Growth Drivers of Indian paint Industry Per capita consumption at 1.

5kg is way below the developed (20kgs) as well as the developing market standards. Usage of lime extracts (chuna) in ruraland semi urban markets as well as lesser awareness of the protective attributes of paints can be one of the reasons for lower consumption levels. With growing income levels, both in urban as well as rural India on the back of various government initiatives like NREGS, Farm loan waivers, pay commission led salary hikes etc, we expect the per capita consumption to improve in the medium as well as long term.

Rising income levels: According to McKinsey, proportion of low income groups is expected to decline from 24% in FY05 to 10% in FY10e. This will act as a significant catalyst for demand growth in decorative paints.

Increasing media exposure: With better awareness levels, we expect a gradual shift from unbranded to branded segment as well as improvement in product mix for players like Asian Paints as demand for emulsions continues to outpace enamels and distempers. o Rising urbanisation: This will lead to creation of new homes, in turn, fuelling incremental demand. Currently, only 28% of Indian population is urban.

Urban share

Increase in nuclear families: This is a consequence of younger demographics (60% of Indias population is below 30 years of age), with proportion of working population expected to increase from 40% in FY05 to 48% in FY15e.

Healthy growth in consumption levels expected for both, urban and rural India.

Growth in Auto Sector With production of passenger cars expected to grow, demand for automotive paints will continue to remain healthy as sales are expected to grow in double digits. And with realty majors launching new projects, construction activity is expected to gain momentum and generate demand for decorative paints. Globally, the industrial paints segment accounts for a major share, indicating that this segment offers many opportunities for paint manufacturers.

The emerging trends in the decorative industry are: y y y y y y y y y Consumers are increasingly involved in making purchase decisions. Consumers expect better and more relevant functional benefits from paints. Emulsion paints are outgrowing the industry growth rate. Trend of dark shades complementing light shades continues. Tinting systems at store level are the order of the day. Companies are getting more consumer centric and a lot of value added services are being offered, like application support, colour consultancy etc.

Asian Paints Ltd Asian Paints enjoys leadership position in the Indian Paints industry, with nearly 55% share of the organized segment. Over the last 10 years, Asian Paints has gained a market share every year owing to its strong brand equity and innovative marketing tactics, with customer centricity being the key cornerstone of every strategy. Asian Paints has the most comprehensive product portfolio across price points. It is a leader across all the segments of decorative paints e.g.Exterior Emulsions, Interior Emulsions (water based paints), Enamels (solvent based paints), Wood Finishes and Distempers.909yui.

Kansai Nerolac Paints Ltd Goodlass Nerolac Paints Ltd.(GNPL), the Indian subsidiary of Japan based Kansai Paint Co. Ltd, is the second largest paint company in India with presence in decorative paints as well as industrial paints & marine paints, enamels, varnishes, coatings, resins etc. It is the second largest coating company in India. The company markets its products under the brand names Nerolac, Glossolite, Goody, Allscapes, Excel, in decoratives. Kansai Nerolac commissioned its greenfield decorative paint plant with a capacity of 1,500 tonnes per month at Hosur in Tamil Nadu early February 2010. The full ramp up of this decorative capacity will be achieved in FY 2011. The company has increased the share of revenue from decorative paints, constituting nearly 50% of the total revenue. It has received its board approval for brownfield capacity expansion of the Bawal unit in Haryana, with a capex of Rs 68 crore. The estimated spend on capital expenditure is around Rs 300 crore by FY 2013.

Berger Paints Ltd. Berger Paints India Ltd is the third largest paint manufacturer and the second largest decorative paint player in India. They are offering their customers a variety of innovative painting solutions, decorative or industrial. The company is headquartered in Calcutta and service the market through a distribution network comprising of 75 stock points and above 12,000 paint retailers. They are having their manufacturing facilities in West Bengal, Uttar Pradesh, Pondicherry, Goa, and Jammu & Kashmir. Berger Paints plans to double its annual capacity from 2.5 lakh kl to 5 lakh kl over the next five years through green and brownfield expansions. The company plans to set up a new water based paint plant with capacity of 1.5 lakh kl in Andhra Pradesh and an automotive and industrial paints plant with capacity of 0.5 lakh kl in Maharashtra.

Akzo Nobel India Limited (ICI Ltd) I AkzoNobel India, formerly ICI India Ltd, manufactures and markets paints and speciality chemicals. Their manufacturing activities in India commenced in 1939 with the setting up of Alkali and Chemical Corporation of India Ltd in Rishra, West Bengal. AkzoNobel s Paints business in India owes its success to innovative technology and strong brands such as Dulux and Duco. AkzoNobel plans to set up a 50 million litre plant either in Tamil Nadu or Karnataka at Rs 100 crore.

Swot anaylsis of Asian Paints: Product Range of Asian Paints: y Ancillaries

Product Name: Asian Paints Deco-prime Wall Primer WT Description: Asian Paints Deco-Prime Wall Primer (WT) can be used as primer for painting of water-based wall finishes such as distempers & plastic emulsion paints. Its special features are easy brushing, excellent covering, alkali resistance, quick drying & good sealing properties. It is specially fortified with fungicides.

Product Name: Asian Paints Deco-prime Wall Primer ST Description: Asian Paints Deco-Prime Wall Primer (ST) is suitable for use as a primer for masonry topcoats like distempers, emulsions, lustre & matt wall finishes. It helps in providing a suitable surface for application of subsequent coats of putty & finish paint. It seta fast, has good sealing properties, good resistance to wall alkalinity, moisture & fungus.

Product Name: Asian Paints Acrylic Wall Putty Description: Asian Paints Acrylic Wall Putty is water based putty. It is one of the best products of its kind available in the market. It provides a very strong durable foundation & brings out the best performance from the finish paints. both in looks & durability.

Product Name: Asian Paints Wood Primer Description: Asian Paints Wood Primer is specially formulated to protect wood.It has an excellent sealing & filling properties which protects wood from swelling due to absorption moisture. Wood Primer penetrates wood fibre & gives excellent adhesion to substrates & also serves as a sound base for application of undercoats & finishing coats.It also protects the finish coat from exudation of resinous matter oozing out from wood.

Product Name: Asian Paints Exterior Wall Primer Description: Asian Paints Exterior Primer is water-based wall coating suitable for application on exteriors as an undercoat to exterior emulsions. It has a good opacity & whiteness, which helps improve the appearance of the emulsion top coat .Exterior Wall Primers does not chalk & can be applied on freshly plastered surfaces that are adequately cured. It does not require any water curing.

Product Name: Asian Paints Knifing Paste Filler Description: Asian Paints Knifing Paste Filler is used on metallic or wooden surfaces for filling of dents & other surface imperfections.It has a butter like consistency & is easy in application.It is supplied at ready to use consistency but can be thinned easily to any desired consistency by using recommended thinner.On air drying or stoving,it dries hard.Cutting is easy & involves no strain

Product Name: Asian Paints Wood Stains Description: Asian Paints Wood Stains hav been formulated specifically to impart colour to wood. they offer4 uniform penetration along with a depth & clarity of tones that emphasises the natural pattern & character of wood grain. they can be used on all kinds of veneers & MDF surfaces.

Product Name: Asian Paints Exterior Sealer Description: Asian Paints Exterior Sealer is an acrylic copolymer-based surface conditioner for exterior surfaces. It is designed to penetrate into the exterior substrate & also improves adhesion of the Exterior Emulsion Paint topcoats.

Product Name: Asian Paints Utsav Floor Colour

Description: Asian Paints Utsav Floor Colour is a high quality oxide powder, which keeps your concentrate flooring looking attractive for years.It has high colouring strengths &mixes easily with cement .It is manufactured using genuine Oxide imported from Persian Gulf. Its brilliance & gloss keeps increasing with time. Also , it is UV light resistant & does not fade when exposed to sunlight.

Product Name: Asian Paints Utsav Metal Primer Red Oxide Description: Asian Paints Utsav Metal Primer Red Oxide can be used as an undercoat for ferrous substrates. It has a good Anti-Settiling properties & offers good opacity, coverage, flow & leveling.

Utsav Primer (ST)

Description:Asian Paints Utsav Primer (E3) is a Solvent-Based primer that can be used on cement as well as wooden surfaces.It is an under coat that provides good adhesion to the surface, thereby increasing the life of the entire paint system.It hasw good sealing properties,which leads to lower absorption, ensuring a uniform deposition of top coats.it is a quality product available at economical price.

Product Name: Asian Paints Apex Ultima Description:Asian Paints Apex Ultima Advanced Anti Algal Weather Proof Emulsion is a water-based,modified acrylic, anti algal, high performance exterior wall finish. It incorporates the latest state-of-the-art technology to provide long-lasting exterior performance even in the most extreme tropical conditions of india. Its unique advanced anti algal chemistry ensures that exterior walls are provided with power-packed resistance aganist algae and fungi growth. Its has very good dirt pick up resistance and dirt cleaning properties Cost Range: Premium Finish: Rich Sheen Availability: Across all Colour World Dealers.

Product Name: Asian Paints Apex Description: Apex Weatherproof Exterior Emulsion is a water-based 100% acrylic, exterior wall finish. A high performance, long-lasting exterior paint specially formulated to withstand extreme tropical conditions of high rainfall, humidity and heat, Apex provides excellent resistance against

the growth of algae and fungi on the walls. It offers excellent protection against alkali and UV degradation too. Cost Range: Mid-Range Finish: Sheen Availability: Across all Colour World Dealers.

Product Name: Asian Paints Dura cast Fine Tex Description:Asian Paints Duracast Fine Tex is a 100% acrylicd water based exterior productspecially designed as an intermediate coating.It facilitates excellent adhesion of subsequent coats .Its unique texture pattern has distinctive appeal. 1.Asian Paint Duracast Fine Tex is a rollable product which will provide opacity in single coat without any sagging 2.It serves as an undercoat which will not only provide protection but also decor for a variety of exterior & interior surfaces 3.It promotes adhesion of subsequent coats 3.It hides surface undulation & fine cracks Cost Range: Premium Finish: Fine texture

Availability: Select Markets

Product Name: Asian Paints Apex Dholpur Tex Description: Cost Range: Premium Finish: Dholpur Stone Finish Availability: Available through Asian Paints Project Sales Only.
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Products infomation sheet

Product Name: Asian Paints Duracast Swirltex Description: Cost Range: Premium Finish: Rich Sheen Availability: Across all Colour World Dealers.

Product Name: Asian Paints Apex Stretch Description: Asian Paints Apex Stretch Water Repellent Exterior Paint is a 100% acrylic, waterbased hi-performance long-lasting exterior wall finish. This has an in built elasticity (Stretches more than 150% of its original size) which with adequate dry film thickness can bridge hairline cracks in the plaster up to 0.5mm. Due to the compactness Apex Strtech resists penetration of water caused by wind driven rain and is coupled with excellent anti-algal and anti-fungal properties. Cost Range: Premium Finish: Rich Sheen Availability: Available through Asian Paints Project Sales Only.

Interior Walls:

Product Name: Asian Paints Tractor Acrylic Distemper Description:Tractor Acrylic Distemper is a water-based, interior wall paint and gives walls a delightful, attractive, matt finish that lasts for ages. A time-tested formulation with acrylic copolymer binder, its special formulation ensures shade retention for a long time and its fast drying property facilitates quicker completion of painting jobs. Cost Range: Mid-Range Finish: Matt Availability: Across all Colour World Dealers.

Product Name: Asian Paints Tractor Synthetic Distemper Description: Asian Paints Tractor Synthetic Distemper is a water-based, interior wall paint. It is the most popular distemper brand in India and gives walls a finish that is good looking, timetested, durable and value for money. Asian Paints Tractor Synthetic Distemper gives a uniform matt film, which can be wiped with clean water. Being oil bound, the paint film becomes harder over a period of time, which gives better washability and durability. Cost Range: Mid-Range Finish: Matt Availability: Across all Colour World Dealers.

Product Name: Asian Paints Utsav Acrylic Distemper Description:Utsav Acrylic Distemper is a water-based, interior wall paint. It is a value-formoney brand that makes it possible for consumers to have beautiful walls at affordable rates. Being an acrylic finish, it offers a smooth and matt finish. The shades retain their brightness for a longer time. White can be tinted with Apcolite Universal Stainer to obtain customized shades. Cost Range: Economy Finish: Matt Availability: Across all Colour World Dealers.

Product Name: Asian Paints Utsav Synthetic Distemper Description: Asian Paints Utsav Synthetic Distemper is a water based finish which doesnot come off on hands or clothes like chunna.It imparts a durable matt finish,which lasts all year round.Utsav Distemper gives you a distemper finish at an economical price. Cost Range: Economy

Finish: Matt Availability: Across all Colour World Dealers. Product Name: Asian Paints Premium Semi Gloss Enamel Description:Premium Semi Gloss Enamel is a safe and healthy water-based enamel which can be applied on suitably prepared masonry surfaces, wooden and metal surfaces. It has features like odour and fumes free, meets EN 71 standards, has low VOC, and is quick-drying such that 2 coats can be completed in the same day. Cost Range: Premium Finish: Semi Gloss Availability: Available through Asian Paints Project Sales andAsian Paints Home Solutions. Also available in the States of Gujarat, Kerala, Karnataka, Tamil Nadu, Maharashtra( Ex of Mumbai)

Product Name: Asian Paints Apcolite Premium Satin Enamel Description: Apcolite Premium Satin Enamel is a solvent-based finish. A low gloss enamel with the gentle, soothing sheen of Satin fabric, it is just as tough and durable as premium high gloss enamels and gives a long lasting washable finish. It can be used on interior and exterior surfaces. Cost Range: Premium Finish: Satin Availability: Across all Colour World Dealers.

Product Name: Asian Paints Apcolite Premium Gloss Enamel Description:Apcolite Premium Gloss Enamel is a solvent based finish that imparts a shiny new look to surfaces painted with it. It forms a tough film that is extremely resistant to stains and water, and thereby serves as a protective armour around the painted surface. Suitable for both interior and exterior surfaces, it can be applied on wooden surfaces like doors, windows, cabinets; on metal surfaces like grills and gates, and on suitably prepared masonry wall surfaces. Cost Range: Premium Finish: Glossy Availability: Across all Colour World Dealers.

Product Name: Asian Paints Utsav Enamel Description: Utsav Enamel is a solvent-based paint that gives a long lasting glossy finish, which keeps the surface looking as good as new. It forms a tough film that is resistant to stains and water, and provides a durable finish at economical prices. Recommended for interior surfaces, it

can be applied on wooden surfaces (like doors, windows, furniture, cabinets), on metal surfaces like grills, furniture and on suitably prepared masonry wall surfaces. Cost Range: Economy Finish: Glossy Availability: Across all Colour World Dealers. Opaque Finish

Product Name: Asian Paints PU Exterior Matt Description:Asian Paints PU Exterior is a two component Polyurethane wood finish. It has a Clear-Matt finish. Asian paints PU Exterior provides excellent weather resistance, light fastness & preserves natural beauty of wood on exteriors for years Cost Range: Premium Finish: Clear-High Gloss Availability: Across all Colour World Dealers.
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Products infomation sheet

Product Name: Asian Paints PU Interior Glossy Description: Asian Paints PU Interior Glossy is a two component Polyurethane wood finish.it forms a tough coating that offers excellent resistance to scratches & stains.It has a unique non-

yellowing property that accentuates the natural beauty of wood & keeps the furniture looking good for years. Cost Range: Premium Finish: Clear-High Gloss Availability: Across all Colour World Dealers.

Product Name: Asian Paints PU Interior Matt Description:Asian Paints PU Interior Matt is a two component Polyurethane wood finish.it forms a tough coating that offers excellent resistance to scratches & stains.It has a unique nonyellowing property that accentuates the natural beauty of wood & keeps the furniture looking good for years. Cost Range: Premium Finish: Clear-Matt Availability: Across all Colour World Dealers.

Product Name: Asian Paints Melamyne Glossy Description: Asian Paints Melamyne Glossy is an acid curing solvent based 2 pack wood finish.It is specifically formulated as an protective & decorative clear coating of wood .It protects the Interior wood for many years.It has got excellent resistance to staining from oils,foods & hot beverages. Cost Range: Mid-Range Finish: Clear-Glossy Availability: Across all Colour World Dealers.

Product Name: Asian Paints Melamyne Gold Clear Glossy

Description: Asian Paints Melamyne Gold Clear Glossy is an acid cured solvent based 2 pack wood finish.It imparts an clear finish.It not only protects the wood but retains the natural look for years.It has good hardness & has excellent resistance to staining fom oils,food & hot beverages. Cost Range: Mid-Range Finish: Clear-Glossy Availability: Available in select Markets

OPAQUE FINISH

Product Name: Asian Paints PU Palette Glossy Description:Asian Paints PU Palette Glossy is an opaque 2 component coating system compromising of primer surfacer and top coats that can be applied on all kind of wooden substrates.It forms a tough coating that offers excellent resistance too scratches & stains.It is available in variety of shades & has an unique non- yellowing property Cost Range: Premium Finish: Opaque-High Gloss Availability: Available in select markets

Product Name: Asian Paints PU Palette Satin Description: Asian Paints PU Palette Satin is a opaque 2 component coating system compromising of primer surfacer and top coats that can be applied on all kind of wooden substrates.It forms a tough coating that offers excellent resistance too scratches & stains.It is available in variety of shades. It has good non-yellowing property Cost Range: Premium Finish: Opaque- Satin Availability: Available in select markets

Product Name: Asian Paints Melamyne Palette Glossy Description:Asian Paints Melamyne Palette Glossy is an opaque 2 component acid cure system consisting of primer surfacer & top coat that can be applied on all type of woods,

veneers,ply,MDF.It forms a tough coating that offers very good resistance to scratches & stains.It is also available in variety of shades. Cost Range: Mid-Range Finish: Opaque-Glossy Availability: Available in select markets

Product Name: Asian Paints Melamyne Palette Satin Description: Asian Paints Melamyne Palette Satin is an opaque 2 component acid cure system consisting of primer surfacer & top coat that can be applied on all type of woods, veneers,ply,MDF.It forms a tough coating that offers very good resistance to scratches & stains.It is also available in variety of shades. Cost Range: Mid-Range Finish: Opaque-Satin Availability: Available in select markets.

Product Name: Asian Paints Premium Semi Gloss Enamel Description:Premium Semi Gloss Enamel is a safe and healthy water-based enamel which can be applied on suitably prepared masonry surfaces, wooden and metal surfaces. It has features like odour and fumes free, meets EN 71 standards, has low VOC, and is quick-drying such that 2 coats can be completed in the same day. Cost Range: Premium Finish: Semi Gloss Availability: Available through Asian Paints Project Sales or Asian Paints Home Solutions Only.

Product Name: Asian Paints Apcolite Premium Satin Enamel Description: Apcolite Premium Satin Enamel is a solvent-based finish. A low gloss enamel with the gentle, soothing sheen of Satin fabric, it is just as tough and durable as premium high gloss enamels and gives a long lasting washable finish. It can be used on interior and exterior surfaces.

Cost Range: Premium Finish: Low Gloss Availability: Across all Colour World Dealers.

Product Name: Asian Paints Apcolite Premium Gloss Enamel Description:Apcolite Premium Gloss Enamel is a solvent based finish that imparts a shiny new look to surfaces painted with it. It forms a tough film that is extremely resistant to stains and water, and thereby serves as a protective armour around the painted surface. Suitable for both interior and exterior surfaces, it can be applied on wooden surfaces like doors, windows, cabinets; on metal surfaces like grills and gates, and on suitably prepared masonry wall surfaces. Cost Range: Premium Finish: Glossy Availability: Across all Colour World Dealers.

Product Name: Asian Paints Utsav Enamel

Description: Utsav Enamel is a solvent-based paint that gives a long lasting glossy finish, which keeps the surface looking as good as new. It forms a tough film that is resistant to stains and water, and provides a durable finish at economical prices. Recommended for interior surfaces, it can be applied on wooden surfaces (like doors, windows, furniture, cabinets), on metal surfaces like grills, furniture and on suitably prepared masonry wall surfaces. Cost Range: Economy Finish: Glossy Availability: Across all Colour World Dealers.

y Economy continued to remain buoyant y India paint demand - excellent till July - faltered in August September due to continuing rains - revived in October- November y Rural and small town demand significantly better than large towns y Raw material prices increased considerably more than anticipated y and are expected to increase further in the current quarter y Economic response in some of the overseas markets still remain y uncertain, however South Asia doing well.