Overview of the Paint Industry

Paint is commonly used to describe a substance used to coat any surface. It consists of a suspended pigment in a liquid or pastes medium like oil or water. Products manufactured in the paint industry are not just limited to oil paints, enamel, anticorrosive paints, etc., but have a wide range of applicability. Nowadays, various paints with different utilities and properties are being manufactured. Therefore, there are different manufacturing processes available. Apart from the types mentioned above, other paint varieties, like aluminium paint, synthetic rubber paint, cement paint, etc., are in great demand.

The paint industry also manufactures coatings like varnishes, lacquers, distemper, resins, bituminous paints, etc. Though paint has been used as a surface coating material, the industry has grown rapidly. The popularity of paint is due to its broad applicability on the interior and exterior of buildings, walls, civil structures, and any consumer products meant for household purposes.

Here's all you need to learn about the different requirements to start a paint manufacturing industry.

Demand for Paint Manufacturing Businesses

While the decorative paint category constitutes almost 75% of the overall market and is dominated by four key players familiar with the Indian household, the situation is different for the rest. In the home decorative paint segment, too, we see many new businesses emerging. While this category includes various paints like interior wall paints, exterior wall paints, wood finishes, and ancillary products like primers, putties, etc., the rest of the market is highly untapped. The industrial paint category makes up 25% of the market and includes an array of paint industry segments like automotive paint, marine, powder, protective, packaging and other general industrial coatings.

Apart from the licences and permits needed by any manufacturing entity, the paint industry will also need Waste Management Authorisation. This is required for manufacturing enamel, interior, undercoating, primer and finishing colouring materials, as mentioned in the Indian Standards for Decorative and Household Paints published by the Bureau of Indian Standards (BIS).

Brief about waste management by the Paint Manufacturing Industry

A large-scale paint manufacturer generally has an in-house wastewater treatment facility that treats all solid and liquid waste generated on-site. Medium or small-scale businesses can hire a TSDF service to manage industrial waste from the manufacturing process. In some instances, the paint industry may also need CGWA NOC for water abstraction. The emission of volatile organic compounds affects the paint industry, especially manufacturers of industrial oil-based paints. It is analysed that all coatings, including stains and varnishes, are responsible for releasing considerable VOC into the atmosphere.

Licences and Documents needed to set up a Paint Manufacturing Plant

Consent to Establish (CTE)

CTE is attained by the owner of the paint industry in India before the plant is instituted. The industry will have to acquire CTO after the plant is constructed with all protocols and is well-equipped to start the manufacturing process.

Documents required by the paint manufacturing industry in India

• Land ownership proof, including registration/lease or sale deed
• A detailed project report that includes financial breakdown, Pollution Control Measures, break up of land used and industrial process and particulars for ETP and Solid Waste Management (if required)
• Flow chart of the procedure
• Layout/Site plan
• GST certificate
• PAN card
• RoHS (Restriction of Hazardous Substances) certificate
• Authorisation letter
• Health trade license
• CA letter on the financial breakup
• Verification of registration of unit under Companies Act/LLP Act

Additional Licenses required to set up a paint industry

Hazardous Waste Authorisation

The concerned SPCB provides the registration to manage hazardous waste by the paint industry. It is given to any establishment which disposes of hazardous waste. Moreover, the authorisation is governed by the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2016. To get Hazardous Waste Authorisation, the unit must apply under Form 1 to the concerned SPCB.

The documents/licenses needed when applying for Hazardous Waste Authorisation are: -

• CTE
• Certificate of incorporation (CIN)/LLP
• MOA (Memorandum of Association)
• CTO
• Board resolution for appointing an authorised person
• AOA (Article of Association)
• Aadhaar card
• Layout plans
• PAN copy
• GST certificate of business
• Factory/Trade license
• Rent/proof of Smeltership

Company license

Documents required by the paint industry for obtaining a company license are -

• ID proof such as a passport, election or voter identity card
• Ration card, driving license, electricity bill
• Aadhaar card, PAN card
• MOA (Memorandum of Association)
• GST registration certificate
• AOA (Article of Association)

Udyam MSME Registration

MSME (Micro, Small and Medium Enterprise) registration needs the owner of the Paint Manufacturing Plant to apply via the centralised online portal of the regulating authority. The MSME Ministry is the nodal authority in this case. The smelter must then upload the required documents.

Documents needed for Micro, Small and Medium Enterprise Registration

• Name and type of enterprise
• Aadhaar card
• PAN card
• The NIC code
• Applicants official name
• Account details
• The social category of the applicant
• The business operations of the enterprise
• Date of Incorporation of a business
• Details related to employment

Factory license

To establish the units, the paint industry's owner must register under Factories Act. According to the Act, the producer must get a Factory license granted by the Chief Inspector of the Labour Commissioner Organisation.

Documents needed for factory license are -

• Form 1
• MOA
• Aadhaar card
• Layout/site plan
• List of directors
• AOA
• Partnership deed
• Account details
• Commencement date
• Payment receipt
• Land deeds
• Consent form from SPCB/PCC
• Details of hazardous and non-hazardous waste
• Tax receipt

Import Export Code (IEC) registration

Import and Export Code (IEC) is the customised ten-digit code granted by the Ministry of Commerce. It is needed by every exporter and importer seeking to import/export pain in or out of India. The Ministry authorises IEC through the Director-General of Foreign Trade (DGFT). It is a one-time authorisation that does not require new registration or authorisation.

The application for certification for the IEC is submitted online with the Digital Signature Certificate (DSC), legal documents and bank details to the portal of the Ministry of Commerce. After which, the Import Export Code is authorised.

Documents Needed for IEC registration

The Ministry of Commerce requires the following documents required for an Import Export Code registration -

• PAN card of the company
• Applicant’s PAN
• Aadhaar card
• Partnership deed or Company Incorporation Certificate
• Address proof
• Attested copy of cancelled cheque in the company’s name leaf/banker certificate of the current account

Fire NOC

The Fire NOC (No objection Certificate) is mandatory for Paint Manufacturing Plant in India. The NOC is approved by the local municipality authority and regulated by state authorities. This comprises applying for a NOC with the mandated documents, which will be forwarded to the Chief Officer of the Fire Service Department responsible for conducting a site inspection. After the inspection, the report is made and presented to the department. Then the Fire NOC is ultimately granted.

Documents required for fire NOC by Paint Manufacturing Plant in India

• Site plan
• Basement floor plan
• Stilt/ground floor plan
• Floor-wise plan
• Terrace plan
• Section plan
• Elevation plan
• Any other records supporting the above documents

GST Certificate

Document required for GST certificate for establishing Paint Manufacturing Plant

• PAN card
• The MCA authorised Incorporation Certificate
• MOA
• AOA
• Aadhar card of the applicant
• Address proof
• Bank details

Trade license

Municipal Corporation gives a trade license for the Paint industry. However, this depends on the rules and guidelines set by the state authorities. The licenses/documents obligatory for trade licenses are submitted along with the application are as follows –

• Aadhaar card
• Address proof (electricity or water bill)
• PAN
• CIN, in the case of companies
• Recent municipal property tax receipt in case the land of the Paint Manufacturing Plant is owned, else lease document or consent letter of the smelter of the property where the business is registered.
• Memorandum of Association (MOA)
• No Objection Certificate of the nearby property holders
• Layout/site plan of the office

The registration process to be followed by the owner of the paint industry

The testing and compliance procedure shall be prepared and published by the CPCB with the help of certification agencies. This must be followed by the paint industry mandatorily.

General Conditions for paint manufacturers in India

Ban on Use of Lead or Exemption of Lead in Certain Cases: The stipulations relating to contents of lead in decorative and household paints, as specified in rule 3, will apply to products that are manufactured or imported on and from the date of implementation of the Regulation of Lead Contents in Decorative and Household Decorative Paints.

Self-Certification: Household and Decorative Paints manufactured in the paint industry or imported must be labelled as "lead content does not exceed 90 mg/kg or lead content does not exceed 90 ppm".

Sampling Protocol: Sampling has been made mandatory from factory premises or company-authorised warehouses by unit/third party. Every manufacturer or importer will be subject to the lead content testing as specified in rule 3 before launching its product from any of the authorised agencies mentioned in rule 6.

Testing agencies will furnish the test reports to the nodal agency for verification. The agency, in turn, will furnish a copy of the report to the concerned importer or manufacturer of the paint industry and the MoEF & CC.

Scope of the Paint Manufacturing Industry in India

As per industry experts, the Indian paint industry is valued at around 50,000 Crores.It is destined to grow at a healthy rate and is expected to reach around Rs.70,000 crores by 2021-22. Barring 2020 and 2021, the paint industry has grown by double digits. The country's paints and coating industry is expected to grow healthy in the medium and long run.

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