The invention provides composition comprising microcapsules containing biocides for coating material such as paint. The invention describes composition of microcapsules containing biocides, especially Irgarol (algaecide) and Zinc Pyrithione (fungicide) and coating material such as paint to increase the life of coating material from the attack of algae and fungi respectively. The invention demonstrates that microcapsules containing biocide dispersed in paint show 0 to 3 % reduction in inhibition zone where as un-encapsulated biocide show 20-22 % reduction in inhibition zone when analyzed by filter paper assay thus indicating extended duration of biocidal activity with microencapsulated biocide.