HOME IMPROVEMENT IN INDIA

Euromonitor International
May 2017
HOME IMPROVEMENT IN INDIA Passport I

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 2
Table 1 Sales of Home Improvement by Category: Value 2011-2016 ...................... 2
Table 2 Sales of Home Improvement by Category: % Value Growth 2011-
2016 ............................................................................................................. 3
Table 3 NBO Company Shares of Home Improvement: % Value 2012-2016 ........... 3
Table 4 LBN Brand Shares of Home Improvement: % Value 2013-2016 .................. 4
Table 5 Distribution of Home Improvement by Format: % Value 2011-2016 ............ 5
Table 6 Forecast Sales of Home Improvement by Category: Value 2016-2021........ 5
Table 7 Forecast Sales of Home Improvement by Category: % Value Growth
2016-2021 .................................................................................................... 6

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HOME IMPROVEMENT IN INDIA

HEADLINES
 Retail value sales of home improvements grow by 7% in 2016 to reach INR554.6 billion
 Demonetisation adversely effects the real estate scenario in the country, slowing down home
improvement growth in India
 Asian Paints leads sales of home improvements in 2016 with a 20% value share in 2016
 Retail value sales are expected to rise at a CAGR of 5% at constant 2016 prices over the
forecast period to reach INR703.3 billion in 2021

TRENDS
 Home improvement in India is all about giving a better and attractive look to one’s home.
Home improvement in the country is slowly but surely growing with people spending more
time and money on home improvement products.
 Labour prices in India are significantly lower compared to that in other countries, so people
generally prefer to get their work done with the help of the contractor. Also in India, people
generally lack knowledge about home improvement services and thus feel obliged to hire a
contractor to get their work done. Whilst DIY is predominantly a new concept in India, it is
gaining importance and helping to boost home improvement sales. DIY involving hand tools is
more predominant in tier 2 and tier 3 cities, where people tend to do their own services.
 The demonetisation that was announced in India in November 2016 has adversely impacted
the sales of home improvement products. Due to a cash crunch, consumers had to postpone
their purchases and that impacted the growth of home improvement projects and product
sales during the last quarter of 2016.
 Due to the effect of demonetisation, value sales growth of home improvements was slower in
2016 at 7% compared to 9% in 2015 and the review period current value CAGR of 10%.
 Other power tools saw the fastest current value growth of 19% in 2016. With leading
manufacturers taking initiatives to educate consumers about DIY, consumers have started
doing services by themselves, which has increased the sales of power tools in India.
 Consumers in India mostly use corded drills as these are inexpensive; however, cordless
drills are growing faster. With increasing availability of cordless drills online and prices of the
cordless drills getting cheaper, consumers have slowly started using cordless drills. However,
corded drills accounted for 97% of value sales of drills in 2016.
 Current value sales of home paints in India grew by 7% in 2016 to reach INR265.5 billion.
2015 was not a good year for decorative paints due to poor monsoons in rural India, which
impacted the demand. Although demand picked up in 2016, during the last quarter the
demand for decorative paints slowed down due to demonetisation.
 Bathroom and sanitaryware in India grew by 8% in 2016 to reach INR37 billion in 2016.
Consumers have started spending more money and time in selecting sanitaryware products in
India, which has increased the sales.
 Home improvement and gardening stores accounted for 66% value sales in 2016, followed by
other non-grocery specialists with 29%.

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COMPETITIVE LANDSCAPE
 Asian Paints led the sales of home improvements in 2016 with a 20% share in 2016 followed
by Berger Paints India with a 5% share. Asian Paints has been a pioneer in introducing new
products in decorative paints in India, which has helped the company to maintain its
leadership position in the industry.
 Kohler India witnessed growth of 20% in value sales in 2016. The company has been
strengthening its products portfolio in bathroom and sanitaryware, which has helped the
company to witness strong growth.
 Bosch led sales of power tools in India with a 29% value share in 2016. The company has
opened dedicated DIY stores in India, which has helped the company to increase its share.
 Domestic brands dominated sales of home improvement in India in 2016. Three out of the top
five companies are domestic companies. The category is highly fragmented with many local
manufacturers involved.
 Consumers in India mostly prefer standard and economy brands in India whilst buying home
improvement products. However, with increasing aspirations of consumers, the demand for
premium products has started increasing slowly.

PROSPECTS
 With increasing initiatives taken by the government like Swath Baharat and implementation of
goods and central tax, the demand for home improvement products is expected to increase
over the forecast period.
 Value sales are expected to increase at a CAGR of 5% at constant 2016 prices over the
forecast period and are expected to reach INR703.3 billion in 2021. The forecast CAGR will
be an improvement over the 2% constant value CAGR recorded over the review period, due
to the initiatives taken by the government.
 Value sales of bathroom and sanitaryware are expected to grow at a CAGR of 6% at constant
2016 prices to reach INR50 billion in 2021.
 Mid- to low-priced products are expected to be high in demand over the forecast period as the
majority of consumers do not like to spend more on home improvement products.
 Leading manufacturers are expected to increase their manufacturing capacity to cater to the
increasing demand for home improvement products.

CATEGORY DATA
Table 1 Sales of Home Improvement by Category: Value 2011-2016

INR million
2011 2012 2013 2014 2015 2016

Bathroom and Sanitaryware 20,550.2 23,433.3 27,178.0 30,605.1 34,277.7 37,009.7

Decorating Sundries 8,228.7 8,566.1 8,922.5 9,300.8 9,700.7 9,967.5
Floor Covering 92,502.3 101,703.8 112,056.9 125,324.9 138,267.9 149,068.8
- Carpets 495.7 542.5 597.3 679.8 759.3 820.8
- Floor Tiles 92,006.6 101,161.3 111,459.5 124,645.2 137,508.6 148,248.0
- Wooden Flooring - - - - - -
- Other Floor Covering - - - - - -
Hand Tools 3,389.2 3,663.7 4,008.1 4,412.2 4,797.8 5,184.0
Hardware 11,604.0 12,996.5 14,491.1 15,885.7 17,067.0 18,212.2
Home Paint 169,991.0 186,232.2 206,492.8 230,726.9 247,454.6 265,520.8

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- Lacquer and Varnish 2,141.1 2,235.1 2,329.6 2,431.7 2,608.0 2,751.4

- Decorative Paint 167,849.9 183,997.1 204,163.1 228,295.2 244,846.6 262,769.4
Kitchen Sinks - - - - - -
Power Tools 2,272.0 2,569.7 2,942.3 3,271.9 3,635.7 3,952.1
- Drills 2,090.2 2,317.8 2,602.0 2,836.8 3,090.0 3,303.7
-- Corded Drills 2,044.1 2,262.0 2,534.1 2,757.1 2,997.0 3,193.0
-- Cordless Drills 46.1 55.8 67.8 79.6 93.0 110.6
- Other Power Tools 181.7 251.9 340.4 435.2 545.7 648.5
-- Other Corded Power 178.7 247.4 334.1 426.9 534.9 632.4
Tools
-- Other Cordless Power 3.1 4.4 6.2 8.3 10.8 16.0
Tools
Wall Covering 31,657.3 34,737.5 38,246.0 42,150.9 45,834.9 48,814.2
- Wall Tiles 31,657.3 34,737.5 38,246.0 42,150.9 45,834.9 48,814.2
- Wallpaper - - - - - -
Other Home Improvement 10,782.7 11,782.1 12,894.4 14,306.5 15,571.2 16,865.2
Home Improvement 350,977.3 385,685.0 427,232.0 475,984.9 516,607.5 554,594.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Home Improvement by Category: % Value Growth 2011-2016

% current value growth

2015/16 2011-16 CAGR 2011/16 Total

Bathroom and Sanitaryware 8.0 12.5 80.1

Decorating Sundries 2.7 3.9 21.1
Floor Covering 7.8 10.0 61.2
- Carpets 8.1 10.6 65.6
- Floor Tiles 7.8 10.0 61.1
- Wooden Flooring - - -
- Other Floor Covering - - -
Hand Tools 8.0 8.9 53.0
Hardware 6.7 9.4 56.9
Home Paint 7.3 9.3 56.2
- Lacquer and Varnish 5.5 5.1 28.5
- Decorative Paint 7.3 9.4 56.6
Kitchen Sinks - - -
Power Tools 8.7 11.7 74.0
- Drills 6.9 9.6 58.1
-- Corded Drills 6.5 9.3 56.2
-- Cordless Drills 19.0 19.1 140.0
- Other Power Tools 18.8 29.0 256.8
-- Other Corded Power Tools 18.2 28.8 254.0
-- Other Cordless Power Tools 48.8 39.1 420.9
Wall Covering 6.5 9.0 54.2
- Wall Tiles 6.5 9.0 54.2
- Wallpaper - - -
Other Home Improvement 8.3 9.4 56.4
Home Improvement 7.4 9.6 58.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 NBO Company Shares of Home Improvement: % Value 2012-2016

% retail value rsp

Company 2012 2013 2014 2015 2016

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Asian Paints Ltd (APL) 19.7 20.0 20.7 20.1 20.3

Berger Paints India Ltd 5.0 5.2 5.5 5.3 5.3
Kansai Nerolac Paints Ltd 5.0 5.0 5.0 5.0 5.0
Akzo Nobel India Ltd 2.2 2.1 2.0 2.0 2.0
Kajaria Ceramics Ltd 1.5 1.6 1.7 1.7 1.8
H&R Johnson (India) Pvt 1.8 1.7 1.7 1.7 1.7
Ltd
HSIL Ltd 1.4 1.4 1.3 1.4 1.4
Somany Ceramics Ltd 1.0 1.0 1.1 1.2 1.3
Parryware Roca Pvt Ltd 1.0 1.0 1.0 1.0 1.0
Asian Granito India Ltd 0.6 0.6 0.7 0.7 0.7
RAK India Pvt Ltd 0.6 0.6 0.6 0.6 0.7
Cera Sanitaryware Ltd 0.4 0.5 0.6 0.6 0.6
Nitco Ltd 0.9 0.8 0.7 0.6 0.6
Jaquar & Co Pvt Ltd 0.6 0.6 0.6 0.5 0.5
Nippon Paint (India) 0.4 0.4 0.4 0.5 0.5
Pvt Ltd
Shalimar Paints Ltd 0.9 0.8 0.7 0.5 0.4
Kohler India Pvt Ltd 0.2 0.2 0.3 0.4 0.4
Bosch Ltd 0.2 0.2 0.2 0.2 0.2
Duravit India Pvt Ltd 0.2 0.2 0.2 0.2 0.2
Others 56.5 55.9 55.0 55.7 55.6
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 LBN Brand Shares of Home Improvement: % Value 2013-2016

% retail value rsp

Brand (GBO) Company (NBO) 2013 2014 2015 2016

Asian Paints Asian Paints Ltd (APL) 20.0 20.7 20.1 20.3
Berger Berger Paints India Ltd 5.2 5.5 5.3 5.3
Nerolac (Kansai Kansai Nerolac Paints Ltd 5.0 5.0 5.0 5.0
Paint Co Ltd)
Dulux (Akzo Nobel NV) Akzo Nobel India Ltd 2.1 2.0 2.0 2.0
Kajaria Kajaria Ceramics Ltd 1.6 1.7 1.7 1.8
Johnson H&R Johnson (India) Pvt 1.7 1.7 1.7 1.7
Ltd
Hindware HSIL Ltd 1.4 1.3 1.4 1.4
Somany Somany Ceramics Ltd 1.0 1.1 1.2 1.3
Parryware Parryware Roca Pvt Ltd 1.0 1.0 1.0 1.0
Asian Granito Asian Granito India Ltd 0.6 0.7 0.7 0.7
RAK Ceramics (Ras RAK India Pvt Ltd 0.6 0.6 0.6 0.7
Al Khaimah Ceramics
PSC)
Cera Cera Sanitaryware Ltd 0.5 0.6 0.6 0.6
Nitco Nitco Ltd 0.8 0.7 0.6 0.6
Jaquar Jaquar & Co Pvt Ltd 0.6 0.6 0.5 0.5
Nippon Paint Nippon Paint (India) 0.4 0.4 0.5 0.5
(Nipsea Group) Pvt Ltd
Shalimar Shalimar Paints Ltd 0.8 0.7 0.5 0.4
Kohler (Kohler Co) Kohler India Pvt Ltd 0.2 0.3 0.4 0.4
Bosch (Bosch GmbH, Bosch Ltd 0.2 0.2 0.2 0.2
Robert)
Duravit (Duravit AG) Duravit India Pvt Ltd 0.2 0.2 0.2 0.2
Others Others 55.9 55.0 55.7 55.6
Total Total 100.0 100.0 100.0 100.0

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Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Distribution of Home Improvement by Format: % Value 2011-2016

% retail value rsp

2011 2012 2013 2014 2015 2016

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

- Grocery Retailers 1.3 1.6 1.9 2.1 2.1 2.2
-- Supermarkets - - - - - -
-- Hypermarkets 1.3 1.6 1.9 2.1 2.1 2.2
-- Discounters - - - - - -
-- Other Grocery - - - - - -
Retailers
- Mixed Retailers 3.0 3.1 3.3 3.3 3.4 3.5
-- Department Stores 3.0 3.1 3.3 3.3 3.4 3.5
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
- Non-Grocery Specialists 95.7 95.2 94.8 94.6 94.5 94.3
-- Home and Garden 66.6 66.4 66.4 66.2 66.0 65.8
Specialist Retailers
--- Home Improvement 66.6 66.4 66.4 66.2 66.0 65.8
and Gardening Stores
--- Homewares and Home - - - - - -
Furnishing Stores
-- Other Non-Grocery 29.1 28.8 28.4 28.4 28.5 28.5
Specialists
Non-Store Retailing - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - - - - -
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 Forecast Sales of Home Improvement by Category: Value 2016-2021

INR million
2016 2017 2018 2019 2020 2021

Bathroom and Sanitaryware 37,009.7 38,792.0 40,845.5 43,331.1 46,358.7 49,983.5

Decorating Sundries 9,967.5 9,812.3 9,692.5 9,639.2 9,663.9 9,766.1
Floor Covering 149,068.8 155,538.7 162,561.7 170,631.2 179,988.4 190,635.0
- Carpets 820.8 856.4 895.4 940.7 993.7 1,054.3
- Floor Tiles 148,248.0 154,682.2 161,666.2 169,690.5 178,994.7 189,580.7
- Wooden Flooring - - - - - -
- Other Floor Covering - - - - - -
Hand Tools 5,184.0 5,336.5 5,510.6 5,707.6 5,928.2 6,165.8
Hardware 18,212.2 18,405.0 18,556.2 18,644.6 18,731.5 18,804.5
Home Paint 265,520.8 273,451.9 283,681.7 297,498.1 315,847.1 339,539.1
- Lacquer and Varnish 2,751.4 2,776.9 2,816.0 2,878.7 2,970.0 3,091.9
- Decorative Paint 262,769.4 270,675.1 280,865.6 294,619.4 312,877.2 336,447.3
Kitchen Sinks - - - - - -
Power Tools 3,952.1 4,112.4 4,317.3 4,574.8 4,891.3 5,251.7
- Drills 3,303.7 3,380.1 3,493.3 3,648.5 3,850.2 4,083.3

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-- Corded Drills 3,193.0 3,253.6 3,347.0 3,477.2 3,646.7 3,838.0

-- Cordless Drills 110.6 126.6 146.3 171.3 203.5 245.2
- Other Power Tools 648.5 732.3 824.0 926.3 1,041.1 1,168.5
-- Other Corded Power 632.4 710.5 795.2 889.0 993.1 1,107.7
Tools
-- Other Cordless Power 16.0 21.7 28.7 37.3 48.0 60.8
Tools
Wall Covering 48,814.2 49,957.8 51,710.5 54,365.7 57,967.6 62,445.0
- Wall Tiles 48,814.2 49,957.8 51,710.5 54,365.7 57,967.6 62,445.0
- Wallpaper - - - - - -
Other Home Improvement 16,865.2 17,415.9 18,076.6 18,855.2 19,750.9 20,749.6
Home Improvement 554,594.5 572,822.6 594,952.5 623,247.5 659,127.7 703,340.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 7 Forecast Sales of Home Improvement by Category: % Value Growth 2016-

2021

% constant value growth

2016/2017 2016-21 CAGR 2016/21 TOTAL

Bathroom and Sanitaryware 4.8 6.2 35.1

Decorating Sundries -1.6 -0.4 -2.0
Floor Covering 4.3 5.0 27.9
- Carpets 4.3 5.1 28.4
- Floor Tiles 4.3 5.0 27.9
- Wooden Flooring - - -
- Other Floor Covering - - -
Hand Tools 2.9 3.5 18.9
Hardware 1.1 0.6 3.3
Home Paint 3.0 5.0 27.9
- Lacquer and Varnish 0.9 2.4 12.4
- Decorative Paint 3.0 5.1 28.0
Kitchen Sinks - - -
Power Tools 4.1 5.9 32.9
- Drills 2.3 4.3 23.6
-- Corded Drills 1.9 3.7 20.2
-- Cordless Drills 14.4 17.3 121.7
- Other Power Tools 12.9 12.5 80.2
-- Other Corded Power Tools 12.3 11.9 75.2
-- Other Cordless Power Tools 35.6 30.5 278.9
Wall Covering 2.3 5.0 27.9
- Wall Tiles 2.3 5.0 27.9
- Wallpaper - - -
Other Home Improvement 3.3 4.2 23.0
Home Improvement 3.3 4.9 26.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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