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CHAPTER 3
INDIGO PAINTS
KALAMASSERY, COCHIN-683503
PHONE : 0484-3299907
E-MAIL : cochin@indigopaints.com
WEBSITE : www.indigopaints.com
& servicing the customers with healthy eco-friendly product match with international
standards
Started in the year 2000, Indigo Paints had a modest beginning. It started out with
manufacture of lower-end Cement paints, and gradually expanded its range to cover most
Primers etc. From an early age, the Company spread its footprints across the country,
with rapid expansion of its reach across India. Today the Company stands out as one of
the strongest contenders in the Indian paint industry, being rated as an innovative paint
manufacturer, which keeps coming out with unique products never before offered in the
country.
The Company’s strategy and approach were very different from other paint
manufacturers from the very outset. The Company pledged to manufacture only eco-
friendly water-based paints, which are not harmful to the health of the customers or the
applicators. The Company eschewed the temptation to manufacture any solvent based
paints, which are extremely harmful to the health of the users, regardless of their profit
contributions.
Over time, the Company found its niche in the paint industry through innovation.
It kept churning out bright new ideas for painting solutions, with alarming regularity.
Gradually, the industry began looking upon the Company as a futuristic thinker and a
With changing time and trends, Indigo Paints revamped its identity showcasing a
new wave of thinking by the Company. A few years ago it clubbed all its multiple brands
for different product categories into a single umbrella brand “INDIGO”. A new logo for
the brand and the Company was created, which accurately reflected the core philosophy
of the organization. The logo design was extended to all packaging design and other
forms of corporate communication. Going forward Indigo Paints will keep evolving
itself. We plan to come up with innovative products at regular intervals and continue to
surprise our customers. A strong focus on advertising in the years to come will set us
apart from the competitors and help gain considerable market share
Indigo paints Kerala section is headed by indigo paints kochi. The indigo paints
kochi was formerly HI-BUILD Coatings Pvt Ltd, a Kochi-based company, which became
a subsidiary of the Oman-based Sadolin Paints Ltd and expanded its capacity and
operations. The HBC unit has been modernized and expanded to manufacture wood care
products and triggered up its capacity. The products ranged from protector products to
finishing paints. The technology used was from Danish Company, Finn Giese. The unit
situated at the South Kalamassery near Major Industrial Estate was expected to make a
large annual turnover. Of late, there had been a good general demand for wood care
Paints,Nerolac, ICI, Berger etc. controlling around 60 per cent of the market. Besides,
Kerala has around 100 hundred small-scale units engaged in manufacturing paints.
Availability of housing loan at low interest rates has activated the house construction
sector and this in turn has accelerated the demand for wood care products and paints.
Added to this, of late, there has been an aesthetic appreciation of wood works done in
residential buildings in Kerala and this phenomenon has increased the use of wood care
products rather than paints in windows, doors etc, And the company hopes that its
products would be absorbed by the Kerala market. With these reasons in mind, indigo
paints planned to spread more of its presence in Kerala, and bought HBC and later in
2016 march hi built coating (HBC) merged with indigo paints. The Kochi indigo paints is
now heading the Kerala area and is the central warehouse in Kerala it too coordinates the
trissur , kollam , Calicut and kochi depots. HBC became indigo paints pvt ltd as per the
high court of Maharashtra and the national company law tribunal order came on
(a) A visual: a zebra with multi-colored stripes, instead of just black and white
(b) A brand line that succinctly sums up what the brand stands for.
4) Suresh babu(Marketing)
3.1.4 MISSION
Going forward Indigo Paints will keep evolving itself. We plan to come up with
innovative products at regular intervals and continue to surprise our customers. A strong
focus on advertising in the years to come will set us apart from the competitors and help
3.1.5 VISION
Setting new work strategies, innovative product development and market research
fundamentals, while keeping the spirit of wonderment intact, Indigo Paints has stood out
The ability to innovate and provide surprising results and never-thought-of approaches
for deeper understanding of market insights has been the key differentiator.
India’s first Metallic paint, which gives a unique look to your walls
India’s first Floor Coat paint, which can withstand any vehicular traffic
First-of-its-kind Tile Coat paint for roofs, which gives an excellent glossy look
The south Indian production held at Ernakulum. The head office is situated at
pune and the south Indian sector is headed by kalamassery unit. The good quality and
variety shades and properties of products help the company to face the competition. The
3.1.8 CERTIFICATIONS
OHSAS18001:2007
ISO14001:2009
ISO9001:2008
3.1.9 MILESTONES
1. Industrial paints
2. Decorative paints
PRODUCT LINE
3.2.1 PRODUCTS
The products are mainly sold in 500ml, 1lt, 4ltr, 10ltr, 20ltr cans.
a) Exterior emulsions
Readymade shades
Readymade shades
b) Interior emulsions
c) Acrylic distempers
Acrylic distemper-silverseries
d) Enamel
h) Undercoatings
Primer surfacer
Board of directors
Regional manager
manager Sr. manager (production)
Management
Sr. officer logistics representative
s
Developmen
Asst. manager
t manager
pvt ltd, kochi follows a flat organizational structure where the general manager or
technical manager heads the work at Kerala and under the G.Ms guidance works the
3.5 DEPARTEMTALISATION
a) Marketing Department
b) HR Department
d) Technical departments
i. materials management
Functional departments
Technical department
MARKETING HR FINANCE
R&D AND QC
LOGISTICS
MATERIALS PRODUCTION
marketing activities. Marketing starts with generation of ideas .To objective is to increase
profit and goodwill of the enterprise and to satisfy the needs and wants of the customers.
There are one marketing managers in indigo paints kalamassery. One for
managing the marketing process inside Kerala, and another is for marketing the product
outside the Kerala. The minimum qualification for the Marketing Manager is an MBA
graduation with minimum 5 years of experience in this field. The Marketing Manager
regularly visits each Sales Officers area and evaluates their performance. He appreciates
the Sales Officers who achieve targets and persuade them to improve their marketing
activities. He also gives suggestions to improve the market share of the product.
The selling procedure is that, the orders are taken by sales executives or is taken
from depots through SAP and is forwarded to the Marketing Manager, after his
inspection, it is transferred to the Accounts Section then to dispatch. Here all the
accounting procedures take place and, prices are fixed and the terms of payment are also
made. Where the bills are prepared and from there the goods are dispatched.
The market is Kerala is segmented and 4 depots are made in order for making
product easily available. Sales support schemes are adopted by the company to increase
the sales volume. Sales forecasting is done on the basis of previous sales. For sales
officers, targets are fixed. If they achieve the targets they get incentives. The products
have a medium shelf life after which the guaranteed quality may not be received. Within
24 hrs the complaint will be acknowledged and within 3 days the complaint will be
handled.
The price of the product differ as per the base colors used the shades of
color opted for the products. The price for products base and shades are fixed for the
products. Product wise analysis is made to know about the movement of the products. If
any difficulty is found they adopt new strategies to improve the movement of the product.
To improve the sales the company participates in programs like exhibitions and sponsor
some events to make the company get noticed in the market. For the same décor club and
3.5.1.2 Competitors
Now the main competitors of INDIGO PAINTS are Berger, dulux, Asian, apex.
The marketing department starts its work from the idea generation stage to sales
follow up. every department is collaborated with each other whatever may be the work
the marketing department may have to assist the concerned department .the marketing
improve the sales of the product of the company by use of different techniques to
promote the products .the company uses different scheme and advertisements for
i. Schemes
customers like
Decor club
The company has also started a point scheme program i.e., decor club (Kerala) or
artist club(rest of India). Painters are registered in to this club; up to know 4000 painters
have been already registered. for every purchase of products from indigo paints the
painter is credited with points in his name .the points have been already set upped for
products .the painters are at painters meet given gifts, gold or trips for the points awarded
to them .of other companies indigo paints have a major strike in this place as the
company provides re.1 for a point whereas other companies only give 45por 25p worth
Annual schemes
The annual scheme is provided for the dealers on the basis of their annual
sales of the dealers their annual growth rate and annual turnover. The annual
dealer’s sales scheme is set on the basis of their increase in sales and achieving set
targets for sales. On achieving the targets reward is given. The reward may be
The company provides tour schemes to dealers. The dealers are hitched
into the scheme and with achievement of the targets they are given trips as a
reward .the company provides 3 foreign trips and a domestic trip. Foreign trip
ii. Advertisement
Indigo paints uses the following Medias for promoting their products .Advertising
2) Television ads
4) Posters
5) Hoardings
For selecting these too there are several factors to be considered like the
vehicle selected for giving ads the release time of the ad which would give more
company chlorophyll.
The marketing departments also have to deal with the complaints from the
ultimate customer, painters and dealers. The company provides toll free number
Sales executives .any complaint given will be acknowledged wit 24 hrs time and
complaint the snr manager sees to it and is acknowledged and is check up on with
staffs whether it has to be send to the lab or other step is to be taken .the past 3
batch samples will be retained with the lab which would help to find out if it is
the problem of the batch products .the main problems may be color fading which
artificial elements and environmental exposure. After checking the results the
Indigo paints also organises painters meet. painters above 10 numbers is called
upon or shop meet is done where the high estimates sale painters are brought
together .The gifts for painters in décor club is distributed in painters meet. The
Tinting machines are color mixing machines .the marketing dept has to see
to it the tinting machine dealers ,should set up color point managers and service
shades with use of base colors’ .the marketing dept also have to prepare the shade
cards in order to give idea for the customers about the colors’ available and they
also have to update the cards with variety and innovative and different colors so
v. Package designing
The marketing dept also has to take on the package designing for the product with
a view to attract the customer with the packaging of the product .indigo paints has
2) To make products visible in the market through the effective market coverage
and penetration.
3) At the shortest period to be covered the entire market and develop brand
image.
General Manager
(marketing)
trainee
Marketing
executive Area sales Senior sales
manager executive
Sales
executive,
sales officer
Marketing Service
supp. engineer
executive color points
The finance department of the indigo paints kochi is headed by sathesh paul .
The financial statements of the company have been prepared in accordance with
The financial statements are prepared on accrual basis and under historical
convention.
Depreciation on tangible fixed assets is provided on straight line method over the
basis.
i. Bank payments
the section also looks out for the entries in the banks thatis, receipts for
the company i.e., receipts from customer in for the company term loan
repayments
cash transactions
the account section also monitors and gets upto date every transaction in
cash .mainly all transactions are through bank and cheque only small
amout are transacted in pure cash. Like freight ,small recipts from
BOARD OF DIRECTORS
ACCOUNTING FINANCE
section section
Account’ Account’ Maintains
s of s of accounts
SOUTH CENTRAL NORTH
depots Jodhpur at pune
(KOLLAM) (KOCHI) (CALICUIT)
in 28 factory
states
Maintains Maintains
accounts at books of
kochi accounts at
factory pudukottai
factory
with the emergence of GST the tax percentage of the company has shifted from
27 %(i.e. 14%+14%) to 28%(as paint comes under luxury category) . With emergence of
GST it was said there will be decrease in price of product but with increase in tax
percentage the decrease percentage was small .even through with the increase in
percentage the company was able to decrease the price or maintain the price because of
the gst benefit on excise duty. Of which the company was able to give a slight decrease in
Cash book
Bank book
General ledger
Debtor ledger
Creditor ledger
Inventory register
In indigo paints kochi there are 203 employees .of which 143are non executives,
42 are line managers with supervisory powers and 24 are managers. In addition to these a
few are also engaged occasionally to meet the business exigencies. There are seven
persons in the house keeping who are engaged through a contractor. Though not engaged
directly as the principal emplyor, company ensures that they are paid salary as per
from the respective department head . hr manager will review the request from the
respective department head. H r manager will review the request on the basis of
the main recruitment source and reference from employees are also Taken for getting
employees who are employed in indigo paints are covered by all statutory social
security scheme like ESI and EPF . employees state insurance is applicable to employees
whose fixed component of the salary does not exceed Rs.21000. the scheme which is
administered by the government through a wide net work of hospitals and dispensaries
aims to provides medical, sickeness, maternity and other benefits to employess and their
family member. Towards which every employee will contribute 1.75% of this salary
whereas the employers share is 4.75% of the slary paid. Besides the insured employee
and his family members consisting of his spouse and children, his dependent parents will
also get benefits if monthly income of parents is less than Rs 5000. Similarly , minor
brother or sister wholly dependent upon the earnings of the employees will also get the
benifts provided the employee is unmarried and his or her parents are not.
Employees provided fund which is another social welfare aims to fund the employees
during his retirement life by way of continuous monthly payment of pension. Every
employee contributes 12% of his salary for dearness allowance . the employer contributes
12% on the same together with employees deposit linked insurance (EDLI) at the rate of
.05% and administration charges @0.65%. of the contribution of 12% by the employer ,
Indigo paints had been paying wages to its workmen well above wages fixed by
the government under the minimum wages act even though under the minimum wages
act. Paint industry is not brought in as a scheduled employment . the company follows an
accelerated pay scale with 15pay grades . total pay consists of a basic salary , variable
percentage of basic pay , house rent allowance , medical allowance and(for higher grade
staff) reimbursement of the telephone and fuel bills subject to certain sum fixed.
Currently pay is processed by the finance department . Salary of all employees except
employees engaged for work of casual or temporary nature and those engaged through
contractor are paid through bank by crediting the employees saving bank accounts
opened in SBI and union bank of India. Salary is usually paid on 1st 0f the month itself.
3.5.3.2 Bonus
The employees are being bonus at the rate of 20% of their total salary earned
during the year . bonus is not restricted to those whose salary does not exceed Rs21000
nor is it limited to percentages on Rs 7000 , as per payment of bonus act but it is paid
3.5.3.3 Gratuity
leaves the company after rendering a service of at least 5 years. Indigo paints pays a
higher rate of 30days pay for the years in excess of 20 years for those who retire after
and festival holidays) act for declaring holidays during a year .holidays are fixed for the
year in consultation with employees and the trade union. Accordingly, four national
holidays and 9 festival holidays are declared as closed holidays for the company .
Maternity leave is given to women employees as per the provisions of maternity benefits
act
3.5.3.5 Training
Company gives adequate training to do their job safely and competently. Hr.
department prepares an annual training plan on consultation with HODs which will
include all training needs whether internal on the job or other of the employees of
different departments. Training is usually conducted separately for non executives and
executives.
The company recognizes employees as its most important resource and the
performance management and development process is one of the way in which people
can be made aware of their value to the organization. Measuring, improving and
All employees undergoes a formal performance review with their immediate line
been formed in line with the provisions of industrial dispute act 1947.
The committee has 6 members of which 3 are representatives of the employees and of
which at least one member is a women. Any employee may submit any grievance to the
committee in writing. And if not satisfied with the decision the person can go for an
writing or paying salary in lieu of notice and a permanent employee can resign frm work
wby giving a notice for a period as per the contract .the salary earned by him shall be
Conduct exit interviews and use the information for improving company policies.
3.5.3.11 Authority
Authorising appointment orders for employees below the level of sr. managers.
materials needed for the company .the materials order may be placed on the basis of the
annual plans made by the company as per the budget for the year set .the budget for the
current year is set as per the previous years sales with an extra 50-60% extra sales
estimates .
Paint business is a seasonal business so the company manages the budget as per the
requirement of the products. In Kerala the e peak season is from January to may and
diwali time in all India. Based on the annual plans monthly ands extra 50 -60% growth is
Production plan is setup on the bases of the sales plans. for the production plan
the 50 day plan is set up 20th of every month plan is made as known the estimated sales
may not always be as per estimation except for fast moving items (fmcg).sales plan
contains inventory valuation , sales requirement estimated and the stock with the
company . considering all this the company sets the production plan and considering this
the material need is estimated and orders are placed ,the raw material for the company
are imported from Germany ,Italy ,Vietnam and also from Bombay and Chennai for the
procurement to there is planning needed ,for a raw material to be approved the vendor
should be an certified vendor or the products samples should be approved by the labs in
order for placing the order for the product . the company also negotiates with the vendors
for the price of the product the company welcomes quotations from different company
and after the sample approval the company selects a vendor which satisfies the plan laid
down .the selected vendors are to place quotations for the materials and from which the
company selects the lowest quotation or as per the predetermined rules ,within 30days
the company pays the price payment is done through on line. The delivery of the raw
materials is done straight to the plant or to a warehouse from there the company
transports the materials to the factory. For the transportation there are dedicated
transporters and inbound logistics transportation companies like ARC,KRS, ATC etc .
the factory provide a GRN(goods recieval note) on recieval of the foods at the factory.
The stock is then valued and the receipt inspection is done to compare with the invoice.
Critical materials are first tested from the lab before loading in to the factory if it is not as
per quality but within limits it may be considered or else necessary actions may be taken.
There are atotal of 6 staff in materials department 2 purchase officers and 4 stock keepers
The production is set as per the annual plans and from the derived monthly plans
.the production plan is set as per the sales estimation done and based on which the
company makes the plan for production . The production plan for the company is
extracted as monthly plans from the annual plan and also company sets daily plans on the
basis of monthly plans set. The kalamassery production unit of the indigo paints
produces both solvent and water based paints . the main components of a Pint are resin,
pigments, extentors and liquid content for the paint . the pigments and extetors changes
as per products and shades . batch cards are made for every batch which specifies the
details about the batch .the production departments functions involves the production and
packaging . the batch sheet is made at qc dept where the batch card and 1 ltr sample is
send to the qc dept for examination and only after the approval from the dept. the
product is sent in for packing .the stamped approval is given from the qc dept .
The factory now produces both solvent and water based products but will sooner
concentrate on water based products and the other production center at pudukottai will
focus on solvent based products . There are 2 main functions carried on in the factory the
production and the packaging both are machine based .there are currently 3 working
machines for paint production in the factory . Disperser is suitable for liquid, mixing,
dispersing, dissolving evacuation of all range of product viscosities. Efficient machine for
dispersion of powder into liquid used for mixing in batches in easy to change tank .it is
provided with fix speed, to speeds or variable speed drive. a hydraulic lifting column can
be used for adjusting height of dispersion disk inside the tank as well as changing the
Twin shaft disperser contains two impellers on each shaft. It has single motor
between 15 to 60 hp. Variable speed shafts, the twin shaft are for higher viscosities or
Tank mounted disperser, simple in design and operation. It has a advantage of low
cost but less flexibility of operation. It occupies less space compared to other models.
adjustable with electro-hydraulic lifting. The company also uses a continuous transfer
The paint product made is then directed to packaging machine the filling
given the quantity to be released in every bucket etc these are then caped and stored on
per order.
The company also has to follow certain rules and laws normacleacure there are
certain mandatory laws implemented by the govt to be followed while packaging the
company is to show the batch no , m.f.d, m.r.p , company address etc on the packet
(bucket) . the batch samples are retained with lab for 2 yrs for any future reference for
any consumer redressel .the quantity of the paint packed in every pack is set by first
calculating the vapour liter of the product as the packaging is done in liters but the filling
machine does it in kg so in order to transfer kg into liters calculating the vapor liter of the
product.
The company also makes solvent based paints in a small circle and also makes
putty which will be wholely shifted to pudukottai plant and kalamassery unit will only
concentrate on water based paints. The solvent based machinery also uses the same
components as the water based but doesn’t use water for blending slurry is added in here
there are beeding present in machinery which help in dispensing of the components.
restriction for which the company treats the waste water with chemicals and the treated
waer is used for pupose like gardeniong and other uses it is not safe for drinking purpose.
Gloves
Goggles
Mask
Shoes
DEPARTMENT
Weight per litre ,colour difference bases etc are also checked by qc dept
The comptrollers use group field viscometers, flockups, wieghtperliter cups and
Competitor evaluation
Shade development
For developing a new product they first set the properties that the product GOT
to have and the desired extenders is added as per scales .the company saves different
shades of color ratios after formulation thus for future use .the company also uses the
given and released. The formations and specifications thus made is transferred to the QC
department. A market trail is done on the new product to know the acceptance by the
consumer and based on this feedback the product is launched in to the market.
This department not only does the name sake job of distribution but also carries
out various other duties .it to works collaborated with other departments of the company
Manager. In indigo paints, there are 3 staffs in logistics department. The logistics
manager, Asst. manager and a management trainee. The department also handles various
1. material management
3. logistics execution
4. production
5. production process
6. plant maintenance
7. customer service
8. quality management
9. logistics controlling
products are transported from production house to warehouse and it is then distributed to
various deports in Kerala. The Kerala circle is divided into 4 area kochi, trissur, Calicut
and kollam. The head office of Kerala is at kochi. In south India the indigo paints factory
Earlier the production took place at jodhpur factory and all the products where
distributed to different depots from there ,now items for Kerala are made at kochi facility
Factory (kochi)
Warehouse (kochi)
(sales executives)
Retailers, painters
The company deals with SAP therefore the logistics department gets the order
information with out the placement of order .company from here itself calculates the
order based on previous orders and takes other specific orders (as per specific instruction
of customers). The company uses first in first out method (FIFO) so it should be seen to it
that all products are properly ordered in the warehouse and properly layouted
above and which is achieved with ombined effort of logicticd dept along with other
departments.
TECHNICAL MANAGER
Sr. officer
logistics Sr. manager
Manager
(manufacturing)
materials
Asst.
manager
Purchase
Asst. Development
officer
manager manager
Management
trainee Technical R&D chemist
RM officer
store in-
Store charge
supervisor
QC CHEMISTs Applicators
Gen workers