According to paint manufacturers, Covid third wave which has already pushed many states to impose lockdown like restrictions once again may force the home owners to postpone their purchases for home painting but may not result in outright cancellation of purchases. As a result, January sales may be impacted and to some extent February also but thereafter pent-up demand may help to compensate for the loss of business during the initial weeks of the new year.
Fortunately for the industry, many states have started relaxing the lockdown norms which also indicates the recovery may start soon. “There are also state-level restrictions which had an impact in terms of some of the demand conditions. The current situation might continue for some time, but that may only result in deferment of the demand. The demand doesn’t go off to that extent and therefore what we see is that possibly, as we enter February and March there is likely a very strong pent-up demand,” said Amit Syngle, MD & CEO, Asian Paints recently in an analysts meet. According to him, demand from real estate and infrastructure sector is also strong.
Interestingly, paint manufacturers have seen more stronger demand from Tier 1&2 cities as compared to Tier 3&4 cities. This also means that demand was more in premium segment compared to other segments. Also, frequent price hikes, necessitated by cost inflation, might have affected the demand for economy products than the premium products.