Fresh off a blockbuster second quarter that included a 48% sales increase, the specialty chemical giant LANXESS is predicting a double-digit boon for India’s paint and coatings industry.
“Consumption of paints and coatings in India in the domestic sector is clearly on the rise,” the company, a major supplier to the paint and coatings market, said in a recent release.
Steady growth in spending on infrastructure and urbanization has increased sales of industrial paints and coatings, while commercial and residential paints and coatings will see gains from increased consumer purchasing power, booms in the real estate and automotive sectors, “enhancement in lifestyles and frequent special occasions/festivals in India,” LANXESS said.
Thus “encouraged by the buoyant growth and robust potential of the sector,” the company is predicting an annual growth rate of 11% to 14% over the next five years.
Performance Chemicals, Material Protection
LANXESS manufactures pigments and biocides for the paint and coatings industry. Its Performance Chemicals segment--comprised of Inorganic Pigments, Material Protection Products and five other business units--notched a 40% year-on-year increase in second-quarter sales, to 537 million euros ($682.4 million US).
The Preventol range of products in its Material Protection Products unit are used as antimicrobial compounds in a range of industrial applications, including paints, adhesives, emulsions, textile and leather auxiliaries and wood treatment.
Its Bayferrox (iron oxide) and Chromoxide products, in the Inorganic Pigments unit, are used for coloring concrete, roof tiles, paints and dyes, plastics, paper, toners and other applications.
The company’s other segments are Performance Polymers, serving the tire and rubber industry; and Advanced Intermediates for agrochem.
Profits and Earnings
LANXESS’s total net profit for the quarter ending June 30 was 131 million euros ($166.5 million US), up from 17 million euros ($21.6 million US) a year earlier.
As a result of its better-than-expected second-quarter performance, LANXESS raised its earnings forecast for the business year 2010 to 800 million euros ($1 billion US), from the 650 million to 700 million euros ($826 million to $890 million US) it had forecast in May.