COATINGS

Global coatings market has recorded at 2% & 6% CAGR in value & volume terms during 2005-09. End user segment: Decorative segment has occupied more than half in value & Volume terms. Demand by formulation: Solvent base has occupied major share

(52%), but water based products are increasing its demand.

Asia is the largest and fastest growing market region in coatings. In 2009, Top 10 companies has occupied 60% market share.

95

Global Coatings Market ( in Value terms)

8 6

90

4
Growth (%)

US$ billion

85

0
80

-2 -4
-6

75

70 2005 2006 2007 Value in sales 2008 Growth 2009

-8

30 25 20
Billion liters

Global Coatings Market (in volume terms)

10 9

8
7
Growth (%)

6 5 4

15 10 5 0 2005 2006 2007 Volume (billion liters) 2008 Growth(%) 2009

3
2 1 0

In 2009, global coatings market is valued at US$ 87 billion, which has shown negative growth 6% (YOY). It has recorded at 2% CAGR during 2005-09. In volume terms, it has recorded 26.5 billion liters, which has shown declined growth at 2% (YOY). It has grown around 6% CAGR during 2005-09.

Source: Orr & Boss and Kusumgar, Nerlfi & Growney

Source: Orr & Boss and Kusumgar, Nerlfi & Growney

Global Coatings By Mix-2009

Auto (OEM) 9%

Packing 6%
Aero 5% GI 44%

Refinish 18%

M&P 18%

Source: Barclays, Freedonia

Solvent base has recorded major share (52%) , but losing its demand when
compared to 2002. Water base has occupied 41% of share, but it has gained demand or acceptance

in the market when compare to 2002. Major share of solvent base market is eaten
by water base. Even powder and Rad-cure gained demand at 5% and 2% respectively.

Asia Pacific Segmentwise Coatings Consumption-2009

Automotive 7% PMC 12%

Refinish Packaging 2% 5%

Aerospace 1%

Architechtural 49%

Industrial 24%

Regionwise Demand (Vol. ) for Global Coating Market2009

Others 11% North America 24%

Asiapacific 35% Europe 30%

Asia is the largest and fastest growing coatings region

Europe occupies second place in region market. North America has seen decrease in market share to 24% in 2009, when

compared 10 years.

Overall Economic Activity The major driver of coatings demand.

Gross Domestic Product (GDP) Total value of goods and services produced
over a period of time. GDP impacts nearly all coatings demand. Construction Market Primary driver of decorative coatings. Closely related to GDP. Construction activity drives deco, Industrial Maintenance, OEM coatings. Housing Activity This includes new home sales as well resale. Impacts deco, wood, coil, powder & general industrial coatings. Vehicle Builds -- Impacts liquid OEM, powder and even refinish coatings. General Industrial Production A function of the health of industrial manufacturing sector. Influenced by regional economy. Drives demand for OEM coatings

Technical Advancement in Volatile Organic Compounds(VOC) Reduction New technology for nanoscale materials Energy Minimization

Integrated systems (reduce carbon footprint)

Low energy cure systems oUV and electron beam

New chemical approaches

Application improvements oone & two coat bell application

Renewable and Re-cyclable Resources

Bio-based material (renewable feed stock) Bio-degradable Use of microbes, bacteria, enzymes as catalysts

16000

Global Coatiings Companies Sales-2009 Vs 2008

10

14000 12000 10000 2008 2009 Growth(%)

5 0 -5
Growth (%)

US$ million

8000 -10 6000 4000

2000

-15 -20 -25

Market Share of Top 10 Coatings Companies-2008

60%

60%

50%
50%
%(Market share)

44%

40% 29% 30% 20% 10% 0%

37% 32%

1991

1995

2000

2006

2008

2009

Global Coatings Companies Market share-2009

Akzo Nobel/ICI PPG/SigmaKalon 13%

10%
9% 6%

Henkel
Sherwin-Williams

Dupont
RPM BASF

3%
3% 3%

Valspar
Kansai Nippon 0% 2%

3%

2%
2% 4% 6% 8% % (Market share) 10% 12% 14%

New Products-2010 Sno

1

Products Launched
Sherwin-Williams has launched Polysiloxane 1K, a single-component polysiloxane finish coat that provides superior weathering and chemical resistance compared to typical polyurethanes.

Tnemec Company Inc., has introduced ultra-low VOC versions of its fluoropolymer coating technology AkzoNobel Powder Coatings Launches Interpon A Range PPG Commercial Coatings has launched the Aquacron water-based product platform for light industrial applications

3 4

Source: Coatings World