INDIAN PAINT INDUSTRY

Paint Industry

Product Sector

Industrial Decorative Organized Unorganized

30% 70% 70% 30%
Coil Coatings Enamels
Powder Coatings Distempers

Automotive
Coil Coatings
Paints CoilEmulsions
Coatings

Marine Paints Exterior Coating

High Performance Wood Finishes

 INDUSTRY PLAYERS

DECORATIVE SEGMENT

Others 19% Asian Paints

Shalimar 6% 37%

Jenson and
Nicholson
6%
Kansai
ICI 8%
Nerolac 13%
Berger paints
11%
 MARKET FEASIBILITY
 The Indian paint industry is a Rs 49 billion sector.

 GDP growth is higher, the paint sector will benefit

and vice versa

 Highly price sensitive & cyclical

 Demand arises in Festive Season.

 Change in demand patterns over the years.

 TECHNOLOGY IMPACT: BERGER

•Berger has a series of tie-ups for various purposes.

•Joint venture with Becker Industrifag.

•Berger allied with the Japanese major Nippon Paints to
boost its OEM turnover
•Agreement with Orica Australia Pvt. Ltd. to produce new
generation protective coatings.
•Tie-ups with Valspar Corp and Teodur BV for
manufacturing heavy duty and powder coatings.
 ADVERTISING IMPACT: ASIAN
PAINTS V/S KANSAI NEROLAC
•Waah Sunil Babu •Aapko banaye style ikon
•Soha & Saif Ali Khan ad •Show your true color
•Rang soche nahin, dekhe •Jab ghar ki raunak
jaate hain badhani ho…
•Har Rang Kuch kehta hai
•Har Ghar Kuch Kehta hai
•Bangla toh abhi bhi
chamak raha hai
 MARKET RESEARCH & TREND
ANALYSIS
 Involvement of the consumer.
 Shift from Commodity to FMCG – brand building.
 Communication or lack of it can make or break your
brand.
 Changed brand identity, online services, Inc R&D spend.
 Newest Trends – New textures, use of bold shades,
Disney
e.g. Kansai Nerolac site: personality V/s rational
 INCREASING 5% MARKET SHARE
 Strengthen communications
 Multi v/s sole dealer
 Training to dealers
 Increase awareness (networking) amongst interior
decorators, architects, consumers, contractors
 Feedback mechanisms
-E.g. Nerolac impressions
 NEXT YEAR PROJECTIONS
 Introducing Water – based Paints.
 Repositioning of existing Brands in Rural Market.
 Broadening of Distribution Network.
 Adding more choices for shades and effects.
 Enhancing Better Quality
 Demand will be generated through the new constructions
coming in housing and industries.
 SWOT ANALYSIS
 Strengths
 Imp of brand image as barriers to new entrants
 Good technology backup.
 Weakness
 Raw materials – scarcity
 Requirement of high working capital
 Real estate in a depression phase.
 Opportunities
 Fiscal incentives provided by Government.
 Commodity to fmcg
 Rise in disposable income
 Threats
 Foreign companies entering as sole players