According to the report, due to new entrants, competition among key players for market share has increased and marketing expenses are likely to impact the profitability of companies.
A major portion of the capacity expansion, about 2.4 BLPA, is expected to be commissioned in the current financial year. The new entrant will add 1.3 BLPA capacity alone.
The expansion is dominated by the decorative segment, which accounts for 70 to 80 percent of the total capacity.
The report said capital expenditure will be a mix of cash, debt and surplus liquidity.
CRISIL expects volume capacity to continue growing at 10 to 15 per cent annually. While operating profitability is moderate at 15-17 per cent due to intense competition among market players.
Overall revenue growth is accelerating at a pace of 7-10 per cent in FY25.
Poonam Upadhyay, director, CRISIL Ratings, said volume growth of 10-15 per cent in the current financial year will be driven by continued demand from retail and B2B (business to business) sectors such as construction, real estate and automobile.
"However, pressure on realizations will partially offset higher volume gains, leading to lower revenue growth this fiscal year," Poonam Upadhyay said.
A major portion of the capacity expansion, about 2.4 BLPA, is expected to be commissioned in the current financial year. The new entrant will add 1.3 BLPA capacity alone.
The expansion is dominated by the decorative segment, which accounts for 70 to 80 percent of the total capacity.
The report said capital expenditure will be a mix of cash, debt and surplus liquidity.
CRISIL expects volume capacity to continue growing at 10 to 15 per cent annually. While operating profitability is moderate at 15-17 per cent due to intense competition among market players.
Overall revenue growth is accelerating at a pace of 7-10 per cent in FY25.
Poonam Upadhyay, director, CRISIL Ratings, said volume growth of 10-15 per cent in the current financial year will be driven by continued demand from retail and B2B (business to business) sectors such as construction, real estate and automobile.
"However, pressure on realizations will partially offset higher volume gains, leading to lower revenue growth this fiscal year," Poonam Upadhyay said.
