Can Nippon Paint Tap Into India's PPF Market The paint protection films(PPF), launched by Nippon Paint, will be available across India and is expected to be present in more than 100 cities by the end of this year

The paint protection films(PPF) market in India is a burgeoning industry. The automotive sector accounts for a significant share of the paint protection film market. PPF is highly used to protect vehicles from road debris, scratches, etc and a rapidly expanding automotive industry is expected to boost its demand. With an eye on developing and expanding the market in India, Nippon Paint, under the n-SHIELD brand, has launched its own PPF.

"Our films cover all categories in the market, not just the premium. We plan to ultimately manufacture these products in India, in line with our Make in India philosophy, mirroring the government's efforts to bring international manufacturing to India," said Sharad Malhotra, director of Nippon Paint India.

PPF is a thermoplastic polyurethane film that can be applied on the painted surfaces of a car to protect the paint from stone chips, reduce abrasions and wear and tear. The PPF market in India is expected to reach a projected revenue of US$ 31.9 million by 2030. From 2023 to 2030, a compound annual growth rate(CAGR) of 7.6 percent is expected in India, according to estimates by Horizon Grand View Research.

The company has set up basic concept plants at the moment to manufacture this product in India. The product caters to mass, premium and luxury segments and is priced between INR 65,000 to INR two lakh. Nippon Paint has multiple sites for developing these films. Currently the products being launched in India are sourced from Japan and China. The paint major is actively seeking to develop new partnerships in India for strategic manufacturing of the product.

"It's still at a concept stage because this is a new technology. The kind of investments, opportunities we see are still evolving. Conceptually we are aligned that this should be manufactured in India but in terms of plant designs, plant sizes, investment sizes it's still a work in progress. If the product takes off very well, we can start manufacturing in the next two to three years. It depends on the adoption rate," Malhotra added. The current investment is primarily R&D focused.

Nippon Paints has been developing the PPF for four years. It started the film business division in Japan way back in 2021. In the middle of COVID as a part of the strategic review in the business, the company decided to enter the film business. India is the largest automotive aftermarket business in Nippon Paint Group and is the second region where the brand promises grand entry with films. First PPF was launched in Thailand.

The PPF comes with a five, seven, ten years warranty and is found in gloss, matte and colored ranges. The company is yet to finalize its original equipment manufacturer (OEM) partners. The entire detailing range consists of tyre dressers, dashboard cleaners, fabric cleaners, etc. Nippon Paint is also launching a host of other films including the headlamp film for which it has already received OEM endorsements. "We want to be a one stop solution, the car dealership or the detailing centre doesn't have to look out to multiple vendors. Nippon is there to serve them as a single source. This is a time where actually a player like Nippon Paint can add a lot of value, set standards, establish benchmarks, create ecosystems for the entire industry to benefit," he added.

This product will be available across India and is expected to be present in more than 100 cities by the end of this year. Not only cars, these films will be available for two-wheelers, bikes and trains as well.

In India right now the market is only two percent to three percent for cars and is expected to reach four percent to five percent in the next couple of years, estimated Malhotra.

The paint protection films market is consolidated in nature. Some of the major players globally include 3M, Saint-Gobain, Avery Dennison Corporation, Eastman Chemical Company, XPEL, Inc., among others.