There are a significant number of unclaimed shares of ACC and Berger Paints that have been transferred to IEPF authority. Today, we want to explore the remarkable history of the paint industry before we dive deep into ACC or Berger Paints individually.
There are two main kinds of paint: one for things like cars and
factories ( Industrial), and the other for houses (decorative).
40% of decorative demand comes from fresh constructions, while the remaining 60% is driven by repainting. Automobile OEMs, industries, and railways use industrial paints.
The decorative paint industry in India currently accounts for 65% to 70% of the total paint industry. However, when your parents were likely to have invested in it, it was only 50%. At that time, India was experiencing growth in the number of factories, which exceeded the number of houses being built.The demand for paint colours depends on how many houses, cars, and buildings are being made. And people also repaint their stuff when they have more money and want things to look nice.
The top 5 companies make up more than 80% of sales of the organised market.
The organised paint companies (the big ones) supply most of the paint in India, about 65%. The rest, about 35%, comes from smaller, unorganised companies.
Some of the most renowned paint manufacturing companies in India are:
- ♦ Asian Paints
- ♦ Berger
- ♦ Nerolac
- ♦ Shalimar
- ♦ Dulux
During the 1990s, the paint industry was expanding by 15% each year, but now it's growing at a rate of 10%. One reason is that the overall size of the paint industry has significantly increased compared to the 1990s. Additionally, we have built many important cities during this time.
Several factors contribute to the growth of the Indian paint industry, including:
Rising income and education levels: As people get educated, they become more aware of brands and prefer to buy branded paints. Their incomes also go up, especially when working for multinational companies, which makes it easier to get bank loans, including home loans.
Rise in Urbanisation: A lot of people are moving to cities, getting home loans, and choosing to live in more permanent houses. This is boosting the demand for paint.
These are just a few factors, and there are others too.
Evaluating stocks like this was quite uncommon 15 to 20 years ago.
Information wasn't as easily accessible, and there were very few bloggers.
So, your ancestors who invested in the paint industry back then must have been forward-thinkers.And when it comes to painting, there's a unique story to it. We all recall how Harshad Mehta manipulated ACC shares, taking them from 200/- per share to 9000/- per share.
In our article detailing how to claim unclaimed shares of ACC Cement, we delve into the historical context.
If your parents had invested in the paint industry, the graph below would be relevant to help you visualise how your wealth would have grown.
If you find yourself in possession of unclaimed shares and are facing challenges, it's essential to address the situation promptly. Unclaimed shares can represent missed opportunities and untapped financial potential. Therefore, it's crucial to take the necessary steps to recover them and ensure that your investments are working for you. Fortunately, there are resources and professional services available to guide you through the process and simplify the share recovery journey, making it easier for you to unlock the value of these unclaimed assets.
