Indian Paint Industry

Presented By
Divyank Gupta
MBA 3rd Sem.
Marketing

Paint Industry

Product

Industrial
30%

Sector

Decorative
70%

Coil Coatings

Enamels

Powder Coatings

Distempers

Coil
Automotive
CoatingsPaints

Coil Emulsions
Coatings

Marine Paints

Exterior Coating

High Performance

Wood Finishes

Organized
70%

Unorganized
30%

INDUSTRY PLAYERS
DECORATIVE SEGMENT
Others 19%

Asian Paints
37%

Shalimar 6%
Jenson and
Nicholson
6%
ICI 8%

Berger paints
11%

Kansai
Nerolac 13%

Industry Analysis
Major Inputs
- Raw Material (56%)
- Selling and Administration (12%)
- Employees Cost (15%)

End Users
-House Hold Construction firms (70%)
-Automobile and Consumer Goods Manufacturer

 Nature of Demand
- Irregular in nature
- Increases during festival season

Political And Legal Analysis

- Government rules and regulation can affect any business
- High cost of petroleum product, energy crises and lack of infrastructure
Environmental Hazards
- Contain large amount of lead, mercury and chromium
- Threat to health of human beings

Growth of the Industry

Increasing level of income and education
Increasing urbanization
Increasing Penetration in rural market
Increasing share of organized sector
Availability of financing option

Porters 5 force model

Bargaining Power of Buyers Medium
- Household and Industrial users are the main customer
- Customers are more price sensitive
- Number of options available
- Decisions are made based on quality
Bargaining Power of Supplier Medium
- More than 300 products required
- Pigments, Additives, solvent and binders etc.
- Titanium dioxide is one of the most key pigment is facing a global shortage

 Competitive Rivalry
- 80% of the market is covered by 4 players

- Growth rate can provide opportunity

- Competition will increase as market will get saturated

Availability of Substitute
- Very minimal
- In rural areas white wash is continually used

Threat to New Entrants Medium

- Industry is dominated by few players
- New technology requires high capital

SWOT Analysis
Strengths
Imp of brand image as barriers to new entrants
Good technology backup.
Increase in real estate sector
Weakness
Raw materials scarcity
Requirement of high working capital
Opportunities
Fiscal incentives provided by Government.
Commodity to fmcg
Rise in disposable income
Threats
Foreign companies entering as sole players

THANK YOU