Our Business Areas

We operate in business areas involving paint and coatings as well as paint adjacencies.

Paint++ — Going Beyond Paint and into Adjacencies

Expanding into adjacencies area (Paint++) without limiting our operations to the paint and coatings area —We are pursuing a strategy of pushing out the frontiers of our business areas over the medium to long term. We will accumulate assets companies through strategic M&A activities not only in existing business areas but also in areas beyond paint in our pursuit of MSV.

Image: Paint++

Focused on paint and adjacencies with significant market opportunities

Global paint demand

Global paint demand*1 *2

We are focusing on paint and adjacencies that have significant market size and growth opportunities driven by population growth, per-capita GDP growth, and urbanization. We have considerable expertise and knowledge in these areas. The adjacencies market, represented by the sealants, adhesives & fillers (SAF) and construction chemicals (CC) also boasts an attractive market size, and we have established a one-stop platform to supply adjacencies products, in addition to paint products.

*1 Country/region total figures are market growth forecasts in 2019.
*2 Source: ACA-published Global Market Analysis for the Paint & Coatings Industry (2019-2024) https://paint.org/market

Demand for paint as an essential component of social infrastructure steadily rises with population growth and economic development
Growth forecast for 2019-2024 (CAGR) 4.2%

Population:United Nations, Department of Economic and Social Affairs, Population Division (2019). World Population Prospects 2019, Online Edition. Rev. 1.
Paint demand:ACA-published Global Market Analysis for the Paint & Coatings Industry (2019 -2024); https://paint.org/market

Attractive risk/return profile of paint and adjacencies arena

NIPPON PAINT HOLDINGS No.1 in Asia, No.4 in the world

Our powerful brands and high market share in the paint and adjacencies markets have raised entry barriers and enabled us to establish a solid market leading position. The paint and adjacencies markets are highly localized, characterized by local production for local consumption with strong local features, allowing us to minimize PMI risk through autonomous and decentralized management. These markets are also characterized by attractive returns with limited risk, where we can expect profit and cash flow generation with some degree of certainty. These characteristics make the paint and adjacencies markets well suited to M&A.

Characteristics of the paint and adjacencies businesses
  • Image of Businesses characterized by local production for local consumption

    Businesses characterized by local production for local consumption Customer needs differ across countries and regions

  • The aggregate market share of the top eight players: c. 50%

    High entry barriers The markets are dominated by a small number of top-ranking brands

  • Market size SAF 60.0 USD bn (Global), CC 71.5 USD bn (Global), ETICS 3,500 EUR mm (Europe)

    Adjacencies have several areas of attractive markets We supply both paint products and adjacency products in a one-stop fashion

*3 Source: Fortune Business Insights
*4 Source: ReportLinker
*5 External Thermal Insulation Composite System
*6 Source: European Commission Paper

Business overview

We operate in the paint and coatings business centered on decorative paints and automotive coatings, as well as in the adjacencies business focused on adhesives and ETICS.

FY2023 Revenue Composition by Business Segment Automotive coatings: 13% (¥182.4 bn), Decorative paints: 63% (¥909.7 bn), Industrial coatings: 6% (¥90.2 bn), Fine chemicals: 1% (¥20.3 bn), Other paints: 6% (¥81.0 bn), Adjacencies business: 11% (¥159.1 bn)

Overview of our assets companies by segment

Links to related pages

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