Asian Paints is fast growing and best performing Indian Paint Company.

It has its own strategies like concern about the consumer and spirit of innovation.

It has created image in the society about its professionalism, consistent growth record and building
shareholder equity.

Berger Paints India Limited is the second largest paint company in the country.

Berger Paints India is headquartered at Kolkata, with 10 strategically located manufacturing units and
about 110 stock points.

The company also has an international presence in 4 countries (Nepal, Bangladesh, Poland and Russia).

The company has shown its growth track record.

It has its focus on Innovation, customer-focus, contemporary and responsible products.

It has strategy to pursue the activities which are beneficial to the society or environment.

Indian paint Industry

The Indian paint market which was around INR 40,300 crores in 2014-15 is expected to reach INR 70,
875 crores by 2019-2020.

The Indian Paint Market consists of two types of paints.

 Decorative Paints:
o Major segments in decorative include exterior wall paints, interior wall paints, wood
finishes and enamel and ancillary products such as primers, putties etc.
o Decorative paints account for over 75% of the overall paint market in India.
o Asian Paints is the market leader in this segment.
 Industry Paints:
o Three main segments of the industrial sector include automotive coatings, powder
coatings and protective coatings.
o Kansai Nerolac is the market leader in this segment.
o User industries for industrial paints include automobiles engineering and consumer
durables.
o The industrial paints segment is Far more technology intensive than the decorative
segment.

The top players in organized paint market are Asian Paints (30% market share), Kansai Nerolac (20%
market share), Berger Paints (19% market share) and ICI (12% market share).
Industrial Paints

o Nerolac has a tie up with Kansai Paints so can very easily tap Maruti in India.
o Berger has tie up with Herbets, Germany for automotive paints.
o Berger Paints has the highest D/E ratio is has the lowest interest coverage ratio (ICR).
o Kansai is running their businesses on 0-debt policy.
o Berger manufactures and markets decorative & industrial paint products under various
product brands.
o Nerolac Paints is the company's well established brand in decorative paints segment.
o Kansai Nerolac Limited (KNL) is the second largest coating company in India and a
market leader in the area of industrial coatings.

BERGER
BERGER KANSAI PAINTS/
PAINTS NEROLAC KANSAI
NEROLAC
P/E (TTM) x 77.4 51.4 150.4%
P/BV x 19.4 8.2 235.4%
Dividend Yield % 0.4 0.5 77.3%

Berger Paints:
U K PAINTS INDIA PVT. LTD. --- 50.1%

Berger paints is known to have a weaker distribution network as compared to

Nerolac or Asian paints which is a major problem for the company. It needs to
ramp up its distribution network far and wide and if needed, increase its
manufacturing potential to match demand.
Knp

Being market leaders in automotive category they have most coveted customers like Maruti
Suzuki, Toyota Kirloskar, GM, Tata Motors, HM, Yamaha, Honda, Volvo India, Ashok Leyland
etc..
It has robust supply chain network.
Its entering the Decorative segments category in a big way with ad with celebrity brand
ambassadors
cost synergies is when a larger group is able to negotiate lower prices or improved payment
terms with vendors such as paint companies because they buying more products and
services.