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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 semiurban 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, inturn, 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 doubledigits. 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:

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 consumercentric and a lot of valueadded
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 (waterbased paints), Enamels (solventbased
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 rampup 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 waterbased 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. AkzoNobels Paints business in India owes its
success to innovative technology and strong brands such as Dulux and Duco.
AkzoNobel plans to set up a 50million litre plant either in Tamil Nadu or
Karnataka at Rs 100 crore.
Swot anaylsis of Asian Paints:

Product Range of Asian Paints:


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.

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, water-
based 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, time-
tested, 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-for-


money 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.

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 non-
yellowing 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.

Economy continued to remain buoyant


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