Indian Paint and Coating Market 2017-21

MBA (FULL TIME) 2018-20
Valuation
TERM-V
Indian Painting and Coating Market
Submitted by:
Akarsh Mehta 181303
Atal Sharma 1813
Manan Gupta 181331
Tushar Tiwari 181362 Submitted to: Vishal Dadlani
Submission Date: th December, 2019

Table of Content
s
1. Executive Summary...........................5
1.1 Scope of the Report....................................................................................................... 5
1.2 Research Methodology................................................................................................... 6
2. Indian Paint and Coating Market -

Overview..............................................6
2.1 Paint and Coating Market Industry value chain..............................................................7
3. Market Segments & Forecasts for

Indian Paint and Coating Market............8
3.1 Overall Forecast for Indian Paint and Coating Market till 2021.......................................8
3.2 Indian Paint and Coating Market Forecast by Type of Consumption...............................8
3.2.1 Decorative Market............................................................................................... 9
3.2.2 Industrial Coating................................................................................................ 9
3.3 Indian Paint and Coating Market Forecast by Application Type....................................10
3.3.1 Architecture and Decorative.............................................................................11
3.3.2 Industrial Wood.................................................................................................12
3.3.3 Automotive....................................................................................................... 13
3.3.4 Marine............................................................................................................... 13
3.3.5 Consumer Durable............................................................................................ 14
3.3.6 Cosmetic Market............................................................................................... 15
3.3.7 Others Applications...........................................................................................15
3.4 Indian Paint and Coating Market Forecast by Type of Technology...............................16
3.4.1 Water borne paint.............................................................................................17
3.4.2 Solvent borne Paints......................................................................................... 18
3.5 Indian Paint and Coating Market Forecast by Type of Industrial Coating......................18
3.5.1 Powder Coating.................................................................................................19
3.5.2 Protective Coating............................................................................................. 20
3.5.3 General Industrial Coating................................................................................21
3.5.4 Automotive Coating..........................................................................................21
4.Growth Drivers and Inhibitors for

Indian Paint and Coating Market..........23
4.1 Growth drivers............................................................................................................. 23
4.2 Growth Inhibitors.......................................................................................................... 24
5. Risks associated with the Indian Paint

and Coating Market.............................25
5.1 Credit Risk.................................................................................................................... 25
5.2 Policy Risk (Government)............................................................................................. 25
6. Profile of Key Players in Indian Paint

6.1 Asian Paints.................................................................................................................. 25
6.1.1 Company Profile................................................................................................25
6.1.2 Value Chain....................................................................................................... 27
6.1.3 Financial Performance of Asian Paints Ltd.........................................................28
6.1.4 Business Strategy............................................................................................. 30
6.1.4.1 Product Level Business Strategy....................................................................30
6.1.4.2 Service Level Strategy...................................................................................31
6.1.5 SWOT Analysis.................................................................................................. 31
Strengths................................................................................................................... 31
Weakness.................................................................................................................. 32
Opportunities............................................................................................................. 32
Threats....................................................................................................................... 32
7.2 Berger Paints................................................................................................................ 33
7.2.1 Company Profile................................................................................................33
7.2.2 Value Chain....................................................................................................... 35
7.2.3 Financial Performance of Berger Paints India
Ltd............................................................................................................................. 35
7.2.4.1 Product Level Strategy...................................................................................38
7.2.4.2 Service Level Strategy...................................................................................38
7.2.5 SWOT Analysis.................................................................................................. 39
Strengths................................................................................................................... 39
Weakness.................................................................................................................. 40
Opportunities............................................................................................................. 40
Threats....................................................................................................................... 40
7.7 Kansai Nerolac Paints Ltd............................................................................................. 41
7.7.1 Company Profile................................................................................................41
7.7.2 Value Chain....................................................................................................... 42
7.7.3 Financial Performance of Kansai Nerolac..........................................................43
7.7.4.1 Product level Business Strategy.....................................................................46
7.7.4.2 Service level Business Strategy.....................................................................47
7.7.5 SWOT Analysis for Kansai Nerolac.....................................................................48
Strengths................................................................................................................... 48
Weaknesses............................................................................................................... 49
Opportunities............................................................................................................. 49
Threats....................................................................................................................... 50
7.8 Shalimar Paints............................................................................................................ 51
7.8.1 Company Profile................................................................................................51
7.8.2 Value Chain....................................................................................................... 52
7.8.3 Financial Performance of Shalimar Paints.........................................................53
7.8.4.1 Business Strategy..........................................................................................55
7.8.4.1 Product level Business Strategy.....................................................................56
7.8.4.2 Service level Business Strategy.....................................................................56
7.8.5 SWOT Analysis for Shalimar Paint.....................................................................57
Strengths................................................................................................................... 57
Weaknesses............................................................................................................... 58
Opportunities............................................................................................................. 58
Threats....................................................................................................................... 58
8. Competitive Landscape in Indian Paint

8.1 Merger and Acquisition................................................................................................ 61
9. Indian Industry Associations Related

to Indian Paint and Coating Industry....63
9.1 Indian Paint association............................................................................................... 63
9.2 Indian Paint and coating Association............................................................................63
9.3 Indian Small Scale Paint association............................................................................63
10. Analysis Models.............................64

10.1 PESTLE analysis for the Paint and Coating Industry...................................................64
10.1.1 Political........................................................................................................... 64
10.1.2 Economic........................................................................................................ 64
10.1.3 Social.............................................................................................................. 64
10.1.4 Technological.................................................................................................. 64
10.1.5 Legal............................................................................................................... 64
10.1.6 Environmental.................................................................................................65
10.2 Porter Analysis Model.................................................................................................66
10.2.1 Threat of New Entrants...................................................................................67
10.2.2 Threat of New Substitutes...............................................................................67
10.2.3 Industry Rivalry...............................................................................................67
10.2.4 Bargaining Power of Buyer..............................................................................67
10.2.5 Bargaining Power of Supplier..........................................................................67
10.3 SWOT Analysis........................................................................................................... 68
10.3.1 Strengths........................................................................................................ 68
10.3.2 Weakness........................................................................................................ 69
10.3.3 Opportunities.................................................................................................. 69
10.3.4 Threats............................................................................................................ 69
11.Challenges Faced by New Players in

Indian Paint and Coating Market..........71
12.Current and Future Trends in Indian
Paint and Coating Market....................72
13. Strategic Recommendations..........73
13.1 For Policy Makers....................................................................................................... 73
13.2 For End Users............................................................................................................. 73
13.3 For Service Providers.................................................................................................73
13.4 For Investors.............................................................................................................. 73
1. Executive Summary
India paint and coating Industry is one the fastest growing industry as this industries growth
has been 1.5 to 2 times of the GDP of the Indian Economy. Indian Paint and Coating market
was valued at around 39,000 crores in 2016 and is expected to grow rapidly.
Indian paint and coating market consumption is dominated by the decorative segment with
consuming around 70% of the total consumption, rest is consumed by the Industrial
segment. Decorative segment has high profit margin, which is not the case in the Industrial
market. In decorative segment water borne paints are very popular. In Industrial segment
solvent based paint are used extensively, but due to the low VOC content of water borne
paint, they are getting popular in industrial coating as well.
Main growth drivers for this industry are Increasing population and disposable income,
government initiatives and low per capita consumption compared to the global
consumption. Indian paint and coating industry is oligopolistic as four major players Asian
Paints, Berger Paints, Kansai Nerolac and AkzoNobel India Ltd. captures around 90% of the
organized sector.
10 major companies have been covered in this report for accurately studying the market
and understanding the need of the market, and to determine the growth drivers and
inhibitors and trends followed in the Paint and Coating market. This 10 companies captures
around 99.50% of the total organized sector.
1.1 Scope of the Report

 This report provides a detailed view of Indian Paint and Coating Market.
 This report identifies the need for Paint and Coatings.
 This report provides detailed information on Paint and Coating market with growth
forecasts up to 2021.
 The report identifies the growth drivers and inhibitors for Paint and Coating market in
world.
 This report profiles top eleven manufacturers related to Indian Paint and Coating
market.
 This report provides detailed competitive landscape of Indian Paint and Coating
market.
 This report identifies major challenges faced by a new player in Indian Paint and
Coating market.
 The report identifies the key risks associated with Indian Paint and Coating market.
 This report provides future trends for Indian Paint and Coating Market.
 This report also provides recommendations for policy makers and investors and helps
other players sustain in this market.
5
6
1.2 Research Methodology
The report has been prepared after extensive secondary and primary research among
various stakeholders in the Indian Paint and Coating market, like government bodies,
associations, industry players etc.
The primary research consists of interviewing the key management people from the leading
companies in the Paint and Coating Industry. A sample size of 10 players was selected based
on convenience sampling method. A questionnaire was prepared to interview the companies
on the following points:
1. To understand the current position of the company along with its current financial
position and the expected growth rate for the company over the next 5 years.
2. To understand the key challenges and pain areas of the company
3. To understand the USP of the company and its future plans
4. To understand the company view point on the various government policies and
implications
5. To get a detailed insight of the industry as a whole as viewed by the senior
management of the company
The interviews were conducted through telephonic conversations based on the

questionnaire prepared. Also, primary research was done by contacting the major
associations in the sector to get deeper insights into the industry.
2. Indian Paint and Coating Market - Overview

The Indian paint industry is as old as 10000 B.C. In those days’ people were using different
kind of soil and lime to paint their houses. Currently the market has more than 25000 outlets
in the country, which is highest in any other countries in the world. The industrialization of
Indian paint industry started in the first decade of 19 th century when Shalimar paints started
commercial production of Paint in India. Currently Indian has more than 50000 paint shop
and out of these nearly 25000 shops are directly handled by the manufacturing companies
itself. This is unique in the case of Indian scenario, as there no any industry across the world,
who has maintained such a huge distribution network The Indian paint industry has got two
major segment one is decorative paint and another is industrial paint, the industrial paint
account for only 30% off the market and the rest is decorative paint. The similar trends is
found in the organized manufacturing companies and unorganized manufacturing
companies, where the organized player used to have 70% of the market share and rest is
unorganized. The presence of unorganized player is due to the fact that there is very low
initial investment and easy access of the market. Currently these companies are facing
hardship because of GST, which will increase their overall cost, as a result they would not be
able to hold the competitive price long enough on which they are selling in to the market.
7
2.1 Paint and Coating Market Industry value chain
As far as the paint and coating market value chain is concerned, it has been found that the
company spend a very little amount of their revenue in the research and development of the
paint product. Only the top performing companies invest in R&D of the paint Product, but
most of the company do not invest in the research and development of the paint product.
So, overall e can say, that the three is medium focus in the research and development. As
far as raw material supplies are concerned, almost all of the companies, have very high
focus in this area. as this is the most cost generation area. More the efficiency and at low
cost, they can get the raw material, the companies can make most of their profit. The next
comes part is manufacturing, here also most of the companies have very high focus, as this
step decide quality of the product. Here one point was very common and can be noticed,
that each and every companies have overcapacity, or even the capacity is equal to the
demand, but the companies do not have working capital to product at full production level.
So, it seems that market forces the manufacturers to have overcapacity, either it would be
real or virtual. As far as marketing and distribution is concerned, different kind of strategy
has been found with different kind of companies, one company target carpenter and other
semiskilled worker to market their product by giving training and other incentives to them,
in some cases, people offers much customization, which help them in marketing their
product. This marketing efforts are depending upon their target customer and locality. Last
but not the least, end user benefits and company focus toward the end user is high in most
of the cases. Specially in the case of industrial customer, they receive very high-quality
service from the company and as far as the household customer is concerned, only big
companies have high quality services, otherwise not so much services are offered by the
paint companies.
8
3. Market Segments & Forecasts for Indian Paint
and Coating Market
3.1 Overall Forecast for Indian Paint and Coating Market till
2021
Indian’s paint market is one of the fastest growing markets in India as, Indian paint and
coating market has grown at CAGR of 11.71% in last five years which is way higher than the
GDP growth of the India in the same period. Growth in 2016 was bit low due to the
demonetization and low sale in rural area due to the weak monsoon. The paint and coating
market is expected to grow at the CAGR of the 11.76% for the forecasted period due to the
factors like decreasing repainting cycle time, increasing urbanization and education, strong
monsoon season and government policies like make in India which can push the sales up in
forecasted period.
Forecast Indian Paint and Coating Market 2017-21 (in INR

Crore)
80000.00
70000.00 67998.07
60842.94
60000.00 54440.71
48712.16
IN R C r o r e
50000.00
43586.40
39000.00
40000.00
30000.00
20000.00
10000.00
0.00
2015-16 2016-17 (est.) 2017-18 (est.) 2018-19 (est.) 2019-20 (est.) 2020-21 (est.)
Exhibit 3.1.1 Forecast of Indian Paint and Coating Market 2017-21 (in INR crore)
Source: Novonous Insights
3.2 Indian Paint and Coating Market Forecast by Type of

Consumption
Demand of paint and coating comes from majorly two markets which are Decorative and
Industrial markets. On global level consumption ratio in industrial and decorative market is
in ratio of 50:50, which is not the case in Indian market as Indian market is dominated by
the decorative segment. This ratio in Indian market is expected to reach 40:60 by 2025.
9
Exhibit 3.2.1 Indian Paint and Coating Market Share by Type of consumption 2016 (in %)
3.2.1 Decorative Market

Decorative market is the dominating market in the India and is expected to grow at the
faster rate than the industrial market mostly due to the strong rural demand, government
policies pushing the real estate industry and decreasing repainting cycle. Decorative
segment demand is cyclic and mostly surges during the summer, winter and festival
seasons. Decorative market CAGR for the forecasted period is around 12.09%, slightly above
the industry average. Unorganized market covers significant market share as profit margin
are very high in this market.
Forecast of Decorative Paint and Coating market of India

2017-21 (in INR Crore)
60000.00
49486.55
50000.00
44184.42
39450.38
40000.00
IN R C r o r e
35223.55
31449.60
30000.00 28080.00
20000.00
10000.00
0.00
Exhibit 3.2.2 Forecasted growth of decorative market 2017-21 (in INR crore) Source:
Novonous Insights
3.2.2 Industrial Coating

Industrial coating market is 28% of the total paint and coating market which is expected to
grow at CAGR of the 11.13% in forecasted period. Growth driver for this market re
10
automotive coating, powder coating and marine coating. Though growth forecast for next
two years is being on lower side mostly due to the reduced sales of automobiles, which will
increase in the later part of the forecasted period. Demand in industrial market is mostly
constant through the year mostly peaking in the summer and winter seasons. This market is
mostly technology driven with very few unorganized players, with very tight profit margin.
Forecast for Industrial Paint Paint and Coating market of India

Segment 2017-21 (in INR Crore)
20000.00 18511.51
18000.00 16657.04
16000.00 14988.36
14000.00 13486.84
12135.75
IN R C r o r e
12000.00 10920.00
10000.00
8000.00
6000.00
4000.00
2000.00
0.00
Exhibit 3.2.3 Forecasted growth of Industrial market 2017-21 (in INR crore) Source:
Novonous Insights
3.3 Indian Paint and Coating Market Forecast by Application

Type
Based on the application of the paint in the different areas major sector and their growth
forecast are as following. In application based architectural and decorative segment are the
major consumer of the paint followed by the automotive industry, consumer durable and
industrial wood. Marine coating is having the very less consumption but it is expected to
grow rapidly.
11
Global Market Share by Application Type(in %)
Archetcthure and Decorative
Industrial Wood
4.79% 0.69%1.18% Automotive

0.72%
17.26% Marine
4.46% Consumer Durables
70.90%
Cosmetic
Others
Exhibit 3.3.1 Indian Paint and Coating Market Share by Application 2016 (in %) Source:
Novonous Insights
Application Wise CAGR Growth Forecast for Indian Industrial Paint and
Coating Market 2017-21 (in %)
30.00
25.00
25.00
20.00
15.29
15.00 12.27 13.46
11.63
CAGR %
11.13 10.88 10.72

10.00
5.00
0.00
Exhibit 4.3.2 Application wise CAGR Growth forecast for Indian Paint and Coating market
2017-21 (in %) Source: Novonous Insights
3.3.1 Architecture and Decorative

Architecture and decorative use of the paint in India is highest due to the high population
and rapid urbanization. Moreover, due to the high penetration of internet and online retailing
rural people are also well informed are buying the branded paint instead of local low quality
paints. Most demand comes from the painting of buildings, houses and repainting of the
same. Consumption is highly cyclical in this market mostly driven by the festive season and
personal functions like marriage or purchase of new home. Growth of this market for
forecasted period is around 11.63%, which is lower than the decorative segment as
12
decorative market as whole also include the wood and paint coating for general purpose
which are amongst the fastest growing in the decorative segment. In terms of volume
decorative paint comprises of around 55% of the market and in value terms comprise of
71%, which shows high profit margin in this sector.
Forecast of Architecture and Decorative Maket 2017-21 (in

INR Crore)
60000.00
50000.00 47929.15
42935.73
40000.00 38462.54
IN R C r o r e
34455.38
30865.70
30000.00 27650.00
20000.00
10000.00
0.00
Exhibit 3.3.3 Forecast of Architecture and Decorative Market 2017-21 (in INR Crore)
3.3.2 Industrial Wood

Industrial wood sector is mostly driven by the increasing use of furniture in market and in
applications in music instruments, sports and construction. Industrial wood also includes
part of coatings for window and door applications, decks, cabinets, furniture, and flooring.
Growth forecast for this sector is higher than the overall market which is around 12.27% for
the forecasted period.
Growth Forecast of Industrial Wood Market 2017-21 (in INR

Crore)
3500.00
3103.62
3000.00 2764.42
2462.30
2500.00
2193.19
IN R C r o r e
1953.50
2000.00
1740.00
1500.00
1000.00
500.00
0.00
13
Exhibit 3.3.4 Forecast of Industrial Wood Market 2017-21 (in INR Crore) Source:
Novonous Insights
3.3.3 Automotive
Automobile sector in India is booming with rapid sales growth in last five years. Though, this
marked faced problems in 2016 due to demonetization and increasing government norms
for safety and emissions. Many kind of coating are used in this sector like powder coating,
protective coating and direct paint application in some case. Growth forecast for this is
below industry average, which is around 10.88%. This segment also include part of the
protective and powder coating used extensively by OEM manufacturers.
Growth Forecast of Automotive Market 2017-21 (in INR Crore)
12000.00 11279.27
10172.51
10000.00 9174.34
8274.11
8000.00 7462.22
IN R C r o r e
6730.00
6000.00
4000.00
2000.00
0.00
Exhibit 3.3.5 Forecast of Automotive Market 2017-21 (in INR Crore) Source:
Novonous Insights
3.3.4 Marine
Marine industry has major part to play in development of any country as majority of freight
today is transferred through this medium only. IN last three years of period India has
developed number of ports for increasing their connectivity. India has increased their focus
on defense increasing their need of ships and aircraft carrier production of which is planned
to carried out in India as per the make in India policy. CAGR Growth in forecasted period for
marine coating is staggering 25.00%, mainly due to increasing shipbuilding in India and
government push towards defense pushing demands for ships.
14
Growth Forecast of Marine Market 2017-21 (in INR Crore)
900.00 854.49
800.00
700.00 683.59
600.00
U S $ B illio n
546.88
500.00 437.50
400.00 350.00
300.00 280.00
200.00
100.00
0.00
Exhibit 3.3.6 Forecast of Marine Market 2017-21 (in INR Crore) Source: Novonous
Insights
3.3.5 Consumer Durable

Consumer durable mainly include the white goods like television, Refrigerators, Air
conditioners and any more home appliances. These goods mostly used powder coating or
protective coating for safeguarding the metal and plastic surface for aesthetics and
protection from external environment. Growth in this sector is robust in last five years and
expected to be remain high for the upcoming years, due to the increasing urbanization and
increasing per capita income leading to the increasing luxurious electronics. So, expected
CAGR growth rate for this market is around 13.46%, or higher than this not lower.
Growth Forecast of Consumer Durable Market 2017-21 (in INR

Crore)
4000.00
3516.05
3500.00
3098.94
3000.00 2731.30
IN R C r o r e
2500.00 2407.28
2121.70
2000.00 1870.00
1500.00
1000.00
500.00
0.00
Exhibit 3.3.7 Forecast of Consumer Durable Market 2017-21 (in INR Crore) Source:
Novonous Insights
15
3.3.6 Cosmetic Market
Cosmetic industry is one of the fastest growing industry in India as India has majority of
youth population, which is well educated and highly conscious about their health and looks
leading to increased consumption cosmetic and related products. Paint is used in the
labelling of the product and special from and kind of paints in parts of products like nail
polish, lipsticks and in makeup. CAGR Growth for this market in forecasted period is around
15.29%, higher than the industry average due to the rapid growth in cosmetic industry.
Growth Forecast of Cosmetic Market 2017-21 (in INR Crore)
600.00
549.95
500.00 477.01
413.75
400.00 358.88
IN R C r o r e
311.28
300.00 270.00
200.00
100.00
0.00
Exhibit 4.3.8 Forecast of Cosmetic Market 2017-21 (in INR Crore) Source:
Novonous Insights
3.3.7 Others Applications

Apart from above mentioned fields paint, powder coating and protective coating is widely
used in the rail wagon construction, wind mill manufacturing, printing and labelling and road
marking and many other applications. CAGR growth fro this other application is expected to
be around 10.72%.
16
Growth Forecast of Others Application Market 2017-21 (in INR
Crore)
900.00
800.00 765.54
691.39
700.00
624.43
600.00 563.95
IN R C r o r e
509.33
500.00 460.00
400.00
300.00
200.00
100.00
0.00
Exhibit 3.3.9 Forecast of Cosmetic Market 2017-21 (in INR Crore) Source:
Novonous Insights

Technology
Based on the technology paints can be divide majorly in two segments which are
1. Water borne paints

2. Solvent borne paints
Use of solvent borne paint was popular earlier which is not the case today. Usage ratio of
solvent based to the water based paint was 60:40 in 2012-13, which is around 48;52 today.
Indian Paint Market share by Technology Type in 2016 Type(in %)
Water Borne
48.00%
52.00% Solvent Borne
Exhibit 3.4.1 Indian Paint and Coating Market Share by Technology Type 2016 (in %)
17
Application Wise CAGR Growth Forecast for Global Pesticide Market 2017-
21 (in %)
13.50
13.00 12.86
12.50
CAGR %
12.00 11.76
11.50
11.04
11.00
10.50
10.00
Overall Growth Water Borne Solvent Borne
Exhibit 3.4.2 Technology Type wise CAGR Growth forecast for Indian Paint and Coating
market 2017-21 (in %) Source: Novonous Insights
3.4.1 Water borne paint

Water borne paint use water as a base in which synthetic resins and pigments are kept
dispersed in by use of surfactants. This paints are low in Volatile organic content (VOC),
which pollutes the environment. So, this paints are getting popular due to the their eco
friendliness and less odour. This paint is popular in decorative segment and also getting
popular in the industrial application leading to the rapid growth in their demand. In
forecasted period CAGR growth for this paint is around 12.41%. greater than the solvent
based, moreover, this growth could be on higher side than forecasted growth.
Growth Forecast of Water Baised Paint 2017-21 (in INR Crore)
40000.00
36399.27
35000.00 32380.81
30000.00 28805.99
25625.82
IN R C r o r e
25000.00 22796.75
20280.00
20000.00
15000.00
10000.00
5000.00
0.00
Exhibit 3.4.3 Forecast of Water Borne Paint Market 2017-21 (in INR Crore) Source:
Novonous Insights
18
3.4.2 Solvent borne Paints
Solvent borne paint are getting less popular in the market due to the new ecofriendly and
odorless water borne paint. But some specific metal coating and applications requires the
solvent borne paints, in which water borne paint cannot be used. One example is paint used
in marine coating which is specifically prepared from solvent base. CAGR growth for this
paint is around 11.04%.
Growth Forecast of Solvent based Paint Market 2017-21 (in

INR Crore)
35000.00
31598.75
30000.00 28457.52
25628.56
25000.00 23080.83
IN R C r o r e
20786.37
20000.00 18720.00
15000.00
10000.00
5000.00
0.00
Exhibit 4.4.4 Forecast of Solvent Borne Paint Market 2017-21 (in INR Crore) Source:
Novonous Insights

Industrial Coating
Indian coating market for industrial use can be majorly divided in the four major categories
which are as follow
1. Powder Coating
2. Protective Coating
3. General Industry Coating
4. Automotive Coating
Industrial coating market of India mainly drive by the automobile segment as India is
amongst the leading automobile exporter. Part of protective and powder coating include
application related to the automobiles. BY value automobile consist of around 60% of the
total market in the industrial coating.
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Indian Industrial Paint and Coating Market by Application Type in 2016 (in
%)
Powder Coating
13.55%
Protective Coating
39.93%
30.59% General industrial Coating
Automotive Coating
15.93%
Exhibit 3.5.1 Industrial Coating market share by type of coating in 2016 (in %)
Application Wise CAGR Growth Forecast for Global Pesticide Market 2017-
21 (in %)
11.60 11.50
11.40
11.25
11.18
11.20 11.13
CAGR %
11.00
10.88
10.80
10.60
10.40
Overall Growth Powder Coating Protective General Automotive
Coating industrial Coating Coating
Exhibit 3.5.2 Industrial Coating Type wise CAGR Growth forecast for Indian Paint and Coating
market 2017-21 (in %) Source: Novonous Insights
3.5.1 Powder Coating

Powder coating paints are widely used in industries like consumer durable, Automotive OEM
manufacturers, Furniture and home improvement. High performance Powder coating is
amongst the fastest growing segment and gaining popularity in industrial coatings
segments, because of the toughness, corrosion/ scratch resistance and finish of the
products. In India Kansai is the market leader in this segment with wide range of use. CAGR
growth for forecasted period for powder coating is around 11.18%.
20
Growth Forecast of Powder Coating Market 2017-21 (in INR
Crore)
3000.00
2514.29
2500.00 2261.43
2034.01
2000.00 1829.46
IN R C rore
1645.48
1480.00
1500.00
1000.00
500.00
0.00
Exhibit 3.5.3 Forecast of Powder Coating Market 2017-21 (in INR Crore) Source:
Novonous Insights
3.5.2 Protective Coating

Performance Coatings are INR 3340 crore segment and have grown at 10.96% CAGR in the
past five years. Protective coating is mostly used for anticorrosive and fire production
coatings and services related to it. Sectors like Oil and Gas, Infra and SME, Power, OEM and
Mining are major growth driver for this segment. Government is planning to invest INR 7000
crore in infrastructure in 2016-17, with plan of setting up national investment and fund for
infrastructure development which will drive the growth of this segment. Solvent borne paint
dominates the water bona and powder coating in this segment. CAGR Growth forecast for
this segment is around 11.25%.
Growth Forecast of Protective Coating Market 2017-21 (in INR

Crore)
6000.00 5691.25
5115.82
5000.00 4598.57
4133.62
4000.00 3715.68
US$ Billion
3340.00
3000.00
2000.00
1000.00
0.00
21
Exhibit 3.5.4 Forecast of Protective Coating Market 2017-21 (in INR Crore) Source:
Novonous Insights
3.5.3 General Industrial Coating
General Industrial coatings segment is INR 1740 crore in size and is likely to grow at 11.50%
CAGR. General industrial coating has many applications like in coating of Prefabricated
Buildings, Sewing machines, Bicycles, Generators, Containers, Fans, Gas Cylinders, Helmets,
TV Cabinets, Barrel Coatings. General Industrial coatings have diverse and large customer
base and are used by large number of players even in the SME segment.
Growth Forecast of General Coating Market Market 2017-21

(in INR Crore)
3500.00
2998.77
3000.00
2689.46
2500.00 2412.05
2163.25
IN R C r o r e
2000.00 1940.12
1740.00
1500.00
1000.00
500.00
0.00
Exhibit 3.5.5 Forecast of General Industrial Coating Market 2017-21 (in INR Crore)
3.5.4 Automotive Coating

Automotive coating is the largest segment in Industrial paints with a market size of INR 4360
crore. Kansai is the market leader in this automotive segment with 60% market share
followed by PPG Asian Paints with 20% and BASF coating with 10 share. Automotive market
is technology driven with long term collaboration with automobile companies. This segment
is volume driven, and pricing is mostly dominated by the Auto OEM. Auto segment
consumption is expected to grow at CAGR of 10.88%, actual growth in last three year of
forecasted period can be on higher side.
22
Growth Forecast of Automotive Coating Market 2017-21 (in
INR Crore)
3500.00
2998.77
3000.00
2689.46
2500.00 2412.05
2163.25
IN R C ro re
2000.00 1940.12
1740.00
1500.00
1000.00
500.00
0.00
Exhibit 3.5.6 Forecast of Automotive Coating Market 2017-21 (in INR Crore) Source:
Novonous Insights
23
4.Growth Drivers and Inhibitors for Indian Paint and
Coating Market
Exhibit 4.1 Growth Drivers and Inhibitors for Paint and Coating market Source:
Novonous Insights
4.1 Growth drivers

1. Population of India is increasing rapidly directly increasing need of the houses and
infrastructure.
2. India’s joint family structure is not prominent today as there are increasing nuclear
families directly increasing the demand in the real estate market.
3. Government’s Make in India has led to infrastructure development in many sectors
like automobile, consumer durable. Railway, oil and gas and defense manufacturing
directly the paint industry demand.
4. Small cities and villages in some part of India has developed rapidly, increasing
construction of new modern steel and cement houses.
5. Per capita paint consumption in India is around 2.7 kg, which is very less compared
to the 15kg of china and 20kg in developed countries.
24
6. Paint and Coating companies are marketing aggressively increasing market presence
through means of emerging medium like social media and televisions. Increased
connectivity and infrastructure in distribution enabling companies to reduce the
operational cost.
7. Paints products has emerged as a high involvement product in last few years. Paints
today occupy center stage of home decor as against earlier trend where painters
used to dictate the brand, colour and type of paint to be used in the residential
buildings.
4.2 Growth Inhibitors

1. Raw material used in paint and coating are mostly second or third derivative of crude
oil. Market of crude oil is highly volatile directly affecting the input prices.
2. Technology plays a major role in industrial sector, which is not available on major
scale in India.
3. Alternative options of paint in home are wallpapers which are getting popular due to
the ease of application. Furthermore, there are few metals which are used for coating
of other metals and surfaces.
4. Demand in India is highly seasonal and dependent on the monsoon and festival
season, if any of the two is weak paint market shows flat growth.
25
5. Risks associated with the Indian Paint and
Coating Market
5.1 Credit Risk
The Paint and coating business requires high working capital. Usually, the paint companies
do not require huge investment in the machinery and other infrastructure. The major cost
factor in the paint manufacturing is raw material and suppliers cost. These cost factor forces
the companies to have huge working capital. Usually in the business, people get investment
in the working capital easily, rather than the assets. So, in the paint business, company
generates finances through various means, and need not to take too much loan in form of
financial instruments. But, in spite of this opportunity, many big and old companies in India,
like Shalimar Paint, J&N are struggling to pay bank loan. The major problem is their huge
investment in new projects and wrong marketing strategy. These two forces, force the
companies to have overcapacity and as a result the company ROCE become too little to stay
in the business. Usually, when equity funding does not support the business, bank comes for
rescue, but with higher Interest rates. This situation also increases the chances of making
default, as the business faces trouble. The paint business also faces the risk from the foreign
exchange market, as the companies need to import almost 30% of their inputs from abroad,
which is subject to foreign exchange transaction and hence carries forex risk.
5.2 Policy Risk (Government)

The government policy risk is very little in the paint business, as it has been found in the
recent days that there is very little intervention from the government as a result there is not
much regulation which affect the paint market. The most of the government policy which
affect the paint market directly is the pollution and environment control acts. The other
policy, which indirectly affects the paint market is foreign trade relation and fluctuation in
the foreign exchange market in the world. This is because 30% of the inputs in the paint
market need to be imported from the oil producing countries, and trade relation and foreign
exchange market have huge report on the overall cost of these inputs.
6. Profile of Key Players in Indian Paint and Coating

Market
6.1 Asian Paints
6.1.1 Company Profile

Asian paint was established in 1942 as a partnership firm by four friends who were willing to
take on the biggest and famous MNC’s operating in the Indian paint industry. Today, it is
double the size of any other paint company in India. Moreover, Asian Paint is a leading paint
company not only in India but across the globe. As per 2016 report of PCI, Asian paints is
world’s 10th largest paint company. Asian paint’s subsidiaries have operations in 19
26
countries across the world with 26 paint manufacturing entities catering customers in 65
countries. In India, Asian paints holds around 54% of the decorative paint market, which is
around 75% of the total paint market of India. Recently Asian paints has entered in business
of Home decor by acquiring Sleek and Ess Ess, which are respectively Kitchen solution
provider and Bathroom products company.
Key Information
Founded In 1942
Employees 6067+
Legal Identity Public Company
Geographical Asia, Africa, South Pacific and Caribbean (Jamaica, Barbados and
Presence Trinidad & Tobago)
Certification ISO 9001
ISO14001
OHSAS 18001
Manufacturing Major Manufacturing Facilities in India
Facilities 1. Ankleshwar & Sarigam – Gujarat
2. Patancheru – Telangana
3. Kasna – Uttar Pradesh
4. Sriperumbudur – Tamil Nadu
5. Rohtak – Haryana
6. Khandala & Taloja – Maharashtra
Upcoming Plants
1. Visakhapatnam, Andhra Pradesh- 4,00,000 KL capacity
2. Mysore, Karnataka – 6,00,000 KL capacity
Exhibit 6.1.1 Company Profile – Asian Paints Ltd. Source: Asian Paints
Website
Contact Details for Asian Paints Ltd.

Company Asian Paints Ltd.
Address Asian Paints Limited, Asian Paints House,6A, Shantinagar,

Santacruz (E), Mumbai - 400 055, India.
Telephone 022 - 6218 1000
Fax 022 - 6218 1111
Website https://www.asianpaints.com/
Contact Person
Email id customercare@asianpaints.com
Key Management Ashwin Choksi
Designation Chairman
27
Exhibit 7.1.2 Contact Details – Asian Paints Ltd. Source: Asian Paints
Website
6.1.2 Value Chain

Asian Paints have increasing R&D focus, which is constantly improving as company’s
expenditure in R&D has increased by 15.08% CAGR in last five years. Asian paints have R&D
facilities across the globe from India, Bangladesh, Sri Lanka, Nepal, Bahrain, Egypt, Jamaica,
to Fiji and Ethiopia. Asian paints have medium focus in raw material, as they produce PAN
and Penta, raw materials in-house for 50% of which they consume internally. Moreover, they
sell the balance raw material in open market. These raw material sales contribute around
1% of company’s consolidated revenue.
Asian paints have strong manufacturing focus as they have 8 facilities for paint
manufacturing in India and are planning to start two new facilities. Furthermore, in Joint
Venture with PPG, Asian paints have two subsidiaries which are Asian paints PPG Pvt Ltd.
(50:50 JV between Asian Paints and PPG Inc.) and PPG Asian paints Pvt Ltd. (50:50 JV
between Asian Paints and PPG Inc.), these two companies respectively cater the automotive
coating and industrial coating markets, with their separate manufacturing facilities. Asian
paints distribute and market their product directly through their network of 36,000
distributors. Asian paints also operate speciality retail stores in few selected locations across
the country. Asian paints actively engage in marketing by Television, print media and social
media advertising.
Exhibit 6.1.3 Asian Paints Ltd. in Paint and Coating Industry Value Chain
Source: NOVONOUS Insights
28
6.1.3 Financial Performance of Asian Paints Ltd.
Asian paints have almost triple the revenue of its largest competitor in India. Asian paints
revenue has grown at 10.87% CAGR in last five years. Asian paints witnessed substantial
revenue growth in the year 2012, as the company restructured their collaboration with PPG
and started a new company PPG Asian Paints Pvt. Ltd. Asian Paints revenue growth 2016 is
lowest as the company faced the problem of reduced sales volume because of the
demonetization.
Asian Paints Ltd. Revenue (In Crore INR)

16000.00
14001.54
14000.00 12932.69
12000.00 10992.84
C ro re IN R
10000.00 9515.11
8356.81
8000.00
6000.00
4000.00
2000.00
0.00
2011-12 2012-13 2013-14 2014-15 2015-16
Exhibit 6.1.4 Asian paints Ltd. 2011-12 to 2015-16 Revenue (in Crore INR) Source:
NOVONOUS Insights
Asian Paints Ltd. Revenue Growth (in %)

30.00%
27.13%
25.00%
% G ro w th
20.00%
17.65%
15.53%
15.00% 13.86%
10.00% 8.26%
5.00%
0.00%
2011-12 2012-13 2013-14 2014-15 2015-16
Exhibit 6.1.5 Asian paints Ltd. 2011-12 to 2015-16 Revenue Growth (in %) Source:
NOVONOUS Insights
Asian paint is little unclear about the market feature, though it is expected that their CAGR
for next five periods will around 12.5% as company is planning to launch few new products
29
in upcoming years. Asian paints hold around 20% market of automobile coating, which they
are planning to increase.
Estimated Year-wise Asian Paints Ltd. Revenue Growth (in

Crore INR)
30000.00
25231.23
25000.00
22427.76
19935.79
20000.00
C ro re I N R
17720.70
15751.73
15000.00 14001.54
10000.00
5000.00
0.00
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
(est.) (est.) (est.) (est.) (est.)
Exhibit 6.1.6 Estimated revenue Growth of Asian Paints Ltd. from 2016-17 to 2020-21 (in INR
crore) Source: NOVONOUS Insights
Estimated Year-wise Asian Paints Ltd. Revenue Growth(in %)

14.00%
12.50% 12.50% 12.50% 12.50% 12.50%
12.00%
10.00%
8.26%
% G ro w th
8.00%
6.00%
4.00%
2.00%
0.00%
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Exhibit 6.1.7 Estimated revenue Growth of Asian Paints Ltd. from 2016-17 to 2020-21 (in %)
6.1.4 Business Strategy

Products Services
Exterior Paints Waterproofing
Putty and Primer
30
Enamels Home painting Solution
Wood Finishes Color Consultancy online
Interior Paints Large projects
Metal Finishes Home Decor
Wall Coverings
Painting Tools and Implements
Automotive Coating
Industrial Coating
Exhibit 6.1.8 Major Products and Services of Asian Paints Ltd. Source: NOVONOUS
Insights
6.1.4.1 Product Level Business Strategy

1. Asian paints have a wide range of exterior paints available, as per the different price
range and application. Few popular exterior paint of the company is Ultima, Apex and
Ace. Asian Paints also offer Putty and Primer.
2. Asian Paints very strong interior paints portfolio, with differentiation based on price
and quality. Most popular interior paint in the higher end segment is Royale. Asian
paints also offer Distempers and Undercoats, which are mostly moderately priced.
3. Asian paint has diversified portfolio of wood and related products, and they also offer
adhesives for the same.
4. Asian paints offer automotive coating products, through their JV PPG Asian Paints Pvt.
Ltd. Their portfolio comprises of products for OEM coating, Refinish, Marine Coating
and Packaging Coating
5. Asian paints offer Industrial coating products, through their JV Asian Paints PPG Pvt.
Ltd. Their portfolio comprises of products for Powder Coating, Protective Coating,
floor Coating and Road Marking.
6. Asian paints are constantly improving their products for making them more
environment- friendly. Their paint Royale Aspira was awarded as the “Best Green
Product in India” under the chemical and petrochemical award category in October
2015, by FICCI.
6.1.4.2 Service Level Strategy

1. Asian paints have a diverse portfolio of services, mostly related to the domestic
applications.
2. As they have acquired Sleek and Ess Ess, company offers the décor services for an
entire house.
3. Asian paints offer colour consulting and Solutions services online as well as offline.
Online services are offered via. virtual system and offline services are provided in
homes of customers.
31
6.1.5 SWOT Analysis
Exhibit 6.1.9 SWOT Analysis of Asian Paints Ltd. Source: NOVONOUS

Insights
Strengths
 Market Leader in Decorative Segment – Decorative paint segment is the largest paint
segment of the Indian paint market and Asian paints hold about 54% in this segment.
Because of which company has almost triple the revenue of its largest competitor in
India. All of the above makes Asian paint India’s largest and prominent paint
Company.
 Collaboration with PPG – Asian paint have collaboration with PPG for industrial coating
which empowers company with world class technology and designs from PPG, as PPG
is world’s largest paint company (PCI Report), enabled with advance technology.
 Diverse Portfolio – Asian Paints offer a wide range of services from home décor to
home colour and waterproofing to colour Shastra (Vastu based coloring and
Modification in the house). Asian paints also offer wide range of industrial products
and services through their subsidiaries.
 Distribution network – Asian Paints have a network of 36000 distributors across the
country, which almost is 1.4 times the size of their closest competitor Berger paints.
32
Weakness
 Industrial and Automotive coating – Industrial and Automotive segment are emerging
rapidly in India as more and more automobile companies are establishing their
manufacturing facilities in India. Kansai Nerolac covers around 40% of the industrial
market and 60% of the automotive coating market. Asian paint’s industrial and
automotive sector is weak as compared to Kansai as they only cover around 20%
market in both the segment.
 Less R&D Spending – Though Asian Paint’s R&D spending has increased at CAGR of
15.08%, their R&D spending is around 0.54% of their revenue which is very less. For
sustainable growth company should invest more in R&D.
 Widening Product Mix – Expanding Product Mix has put a strain on company’s
inventory management, accounting, distribution and retailing and that may lead to
inefficiency in the operations.
Opportunities
 GST Implementation – GST implementation will make taxation on big companies
more competitive, so Big players like Asian paints will able to make their pricing more
competitive. Through this competitive pricing, Asian Paints will be able to capture the
unorganized price sensitive market, which is around 25% of the total paint market.
 Industrial Coating Sector – Industrial sector in India is growing rapidly, because of
the initiatives like make in India. Asian paint has the capability and resources to
expand in this market and increase their market share.
 Overseas Expansion – Asian Paints have operations in regions like Asia, Africa, South
Pacific and the Caribbean. Asian Paints can expand their operations in countries like
America and Europe, which are a huge market for paints and coatings.
Threats
 Slowdown in Economy – Indian economy is growing at around 7% from the last few
year and is expected to grow at the same rate. But, the world economy is facing
problem due to factors like Brexit, Policy changes in America and weak agriculture in
agrarian countries. These factors could impact the growth of India and in turn, could
affect the paint industry adversely.
 Volatile Input Prices – Raw material for paints are mostly derived from crude oil and
as crude oil market is very volatile it is directly impacting the prices of the material
like solvents, monomers for resins, acrylic monomers and resins. Titanium dioxide is
very vital pigments used in the process of paint manufacturing, the supply of which
was on the shorter side in India.
 Intense Competition – Though Asian paints is the market leader with market share of
around 51%, the company is facing intense competition from companies like Berger,
Kansai Nerolac and Nippon paints. These companies are expanding their production
capacities and constantly trying to increase their market share.
33
7.2 Berger Paints

Berger was established 1923, with the name Hadfield Ltd., which was later changed to
British paints 1947 as British paint acquired the company. In 1983, the company was
renamed as Berger after the British researcher and founder of the company Lewis Berger.
The Burger is currently second largest decorative paint company in India. Furthermore,
Berger offers industrial paint and products for automotive companies, both two wheelers
and four wheelers, and have some prominent customers like Tata motors, Mahindra and
Mahindra, LG, Whirlpool, IFB and many more. Berger is the sole supplier of nuclear power
plant coatings in India. Berger also offers industrial coating and services through their JV
BNB coating, in which Nippon Paint Automotive Coating company and Berger paint hold 51%
and 49% ownership respectively. Berger also have a SBU, British paint with portfolio of
decorative and general industrial coatings segment, currently operating in retail, industrial
and projects verticals.
Key Information
Founded In 2008
Employees 2802+
Legal Identity Public Company
Geographical India, Europe, America, Middle East and Africa and Asia Pacific
Presence
Certification ISO 9001: 2008
ISO14001: 2004
ISO/TS -16949
Manufacturing Major Manufacturing Facilities in India
Facilities 1. Howrah – West Bengal
2. Hindpur – Andhra Pradesh
3. Hoogly – West Bengal
4. Chennai – Tamil Nadu
5. New Delhi − India
6. Pondicherry – India
7. Goa – India
8. Sikandrabad – Uttar Pradesh
9. Pune – Maharashtra
10. Sambha – Jammu and Kashmir
11. Two new plants in Assam – Combined 48000 Metric Tons
capacity
34
Key Customers Tata Motors, Force Motors, Mahindra & Mahindra, Hindustan Motors,
Ashok Leyland, Hero MotoCorp, HMSI, TVS Motors, Yamaha Motors,
Royal & Enfield, Crompton, Orient, Marathon Electric, Havelles, Bajaj,
Greaves Cotton, Johnson Lifts, Usha Fans, Khaitan, Hero Cycles, Atlas
Cycles, TI Cycles, LG, Whirlpool, Godrej, Carrier, IFB, Amtrex Hitachi,
Microtek, Balaji Powertronics, Voltas, Videocon, Philips, Crompton,
Usha, Wipro
Exhibit 7.2.1 Company Profile – Berger Paints India Ltd. Source: Berger Paints
Website
Contact Details for Berger Paints India Ltd.

Company Berger Paints India Ltd.
Address Berger House,129 Park Street, Kolkata-700017
Telephone +91 33 2229 9724 / 2229 6005 / 06 / 16
Fax +91 33 2249 9009 / 9729
Website https://www.bergerpaints.com
35
Contact Person Neeltanu Mukherjee
Email id customercare@asianpaints.com
Key Management Mr. Abhijit Roy
Designation Managing director and CEO
Exhibit 7.2.2 Contact Details – Berger Paints India Ltd. Source: Berger Paints
Website
7.2.2 Value Chain

Berger’s R&D focus is very weak, but as they are present in R&D and has developed a few
noteworthy products, the focus is shifted to Medium. Berger is continually increasing their
R&D expenditure, as their CAGR increase in R&D expenditure is around 14% in last five
years. Though their spending is very less compared to their peers, as they spend only 0.24%
of revenue on R&D. Berger has strong manufacturing focus, with 10 strategically built
manufacturing facility across India. Their manufacturing capacity will increase as they are
planning to set up two new plant in Assam. Berger has strong focus in distribution and
retailing with 110 strategically placed warehouses and network of more than 25,000 dealers
across India. Furthermore, Berger heavily markets their product through means of television
and social media and has hired celebrities for the same. Berger’s “No Daag No Dhabba, Only
Beautiful Walls” campaign was a great hit.
36
Exhibit 7.2.3 Berger Paints India Ltd. in Paint and Coating Industry Value Chain
7.2.3 Financial Performance of Berger Paints India Ltd.

Berger’s revenue has increased at 9.5 % CAGR in last five years, which is lower compared to
their its peers. Though company’s CAGR is lower compared to peer, the company has
successfully gained 4% market share in last five years. Berger Experienced unprecedented
growth in 2012 as the company witnessed heavy demand in decorative and protective
coating segment. Berger’s growth in 2016 was low compared to previous years as the
market was affected at the retail level, because of the demonetization.
Berger Paints India Ltd. Revenue (In Crore INR)

5000.00
4580.72
4500.00 4212.94
4000.00 3735.35
3500.00 3330.61
C ro re IN R
3000.00 2901.22
2500.00
2000.00
1500.00
1000.00
500.00
0.00
2011-12 2012-13 2013-14 2014-15 2015-16
37
Exhibit 7.2.4 Berger Paints India Ltd. 2011-12 to 2015-16 Revenue (in Crore INR)
Berger Paints India Ltd. Revenue Growth (in %)

30.00%
26.19%
25.00%
% G ro w th
20.00%
14.80%
15.00%
12.15% 12.79%
10.00% 8.73%
5.00%
0.00%
2011-12 2012-13 2013-14 2014-15 2015-16
Exhibit 7.2.5 Berger Paints India Ltd. 2011-12 to 2015-16 Revenue Growth (in %)
Berger is expecting a revenue growth of 14% CAGR in upcoming year as company plans to
expand their manufacturing facilities and strengthen their water borne paints portfolio.
Berger is also expecting a good revenue from their Indian subsidiaries, BNB coating, BeePee
coating (Wholly owned Subsidiary) and British Paints India Pvt. Ltd. (SBU Unit of company).
Estimated Year-wise Berger Paints India Ltd. Revenue Growth

(in Crore INR)
10000.00
8819.79
9000.00
8000.00 7736.65
7000.00 6786.54
5953.10
C ro re I N R
6000.00 5222.02
5000.00 4580.72
4000.00
3000.00
2000.00
1000.00
0.00
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
38
Exhibit 7.2.6 Estimated revenue Growth of Berger Paints India Ltd. from 2016-17 to 2020-21
(in INR crore) Source: NOVONOUS
Insights
Estimated Year-wise Berger Paints India Ltd. Revenue

Growth(in %)
16.00%
14.00% 14.00% 14.00% 14.00% 14.00%
14.00%
12.00%
% G ro w th
10.00% 8.73%
8.00%
6.00%
4.00%
2.00%
0.00%
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Exhibit 7.2.7 Estimated revenue Growth of Berger Paints India Ltd. from 2016-17 to 2020-21
(in %) Source: NOVONOUS Insights

Products Services
Exterior Wall Coatings Home Painting
Interior Wall Coatings Virtual Painter
Wood and Metal Paints Expert Advice for Professionals
Protective Coatings Express Painting
Powder Coating
GI and Automotive Coating
Exhibit 7.2.8 Major Products and Services of Berger Paints India Ltd. Source:
NOVONOUS Insights
7.2.4.1 Product Level Strategy

1. Berger believes that with changing business world, company needs to keep up with
the pace of change, so they are constantly increasing their R&D expenditure.
Furthermore, company believes that rate of product innovation should not be very
high as that will decay the existing product range very rapidly.
2. Berger is focusing on developing paints that are low on VOC, superior performance,
easily and rapidly applicable and Environment friendly.
39
3. Berger has developed India’s first and globally acclaimed no smell Eco friendly paint.
Moreover, Berger claims that this paint is anti- microbial and allergen- free. It has
been certified by Green Label Committee of Singapore Environment & Health Safety
Standards as eco-friendly and healthy.
4. Berger offers their Premium interior paint under the brand name of Silk. Moreover,
Burger offers paints in economical ranges under the name Rangoli and Easyclean.
5. Berger’s paints are priced more competitively than its peers in most of the segments.
6. Berger’s Industrial products portfolio is very diverse and strong, with products
offering in almost all majority of sectors.
7.2.4.2 Service Level Strategy

1. Berger’s home services consist of customized paint advising, based on the customer
specific budget and needs.
2. Berger provides services like virtual painting, paint estimate, colour shades and
selection and colour magazine. Colour magazine provide information regarding
different colour trends, popular colors, the relation between colour and Vastu and etc.
3. Berger’s professional services are specifically designed for handling large scale
projects by organizations, residential, airports, hospitals, public buildings, hotels and
etc. Berger have successfully painted some big projects across the nation like
Cognizant building, Infosys building, the Oberoi, Mumbai Skywalk project,
Commonwealth Games Stadium and IIT Bhubaneshwar are few notable.
40
7.2.5 SWOT Analysis
Exhibit 7.2.9 SWOT Analysis of Berger Paints India Ltd. Source: NOVONOUS
Insights
Strengths
 Second largest Paint Company in India – Berger is amongst the leading paint
countries of India, with market share of around 16% of the total market. Furthermore,
Berger has a second highest market share in decorative and Industrial segment.
 Diverse Portfolio – Berger offers a wide range of services like express painting, Colour
consulting, Professional Services for industries and many more. Berger also offer a
wide range of industrial products and services, and have a strong customer base.
Berger has presence in the niche market of coil coating, through their subsidiary
Berger Becker Coatings Private Limited.
 Distribution network – Berger have second largest distribution network after Asian
paints. Berger’s network consists of around 25000 dealers, with 110 strategically
placed warehouses across the nation.
 Strong and diversified Industrial Customer Base – Berger has strong industrial and
Professional customer base with prominent customers like Tata Motors, Force Motors,
Mahindra & Mahindra, LG, Whirlpool, Godrej and many more.
41
Weakness
 High Dependence on Decorative segment – Though, Berger paint have strong
industrial customer base, the company is highly dependable on the decorative
segment for their revenue, as company’s 70 revenue comes through the decorative
segment.
 Less R&D Spending – Though Berger’s R&D spending has increased at CAGR of 14%,
their R&D spending is around 0.24% of their revenue which is very less. For
sustainable growth company should invest more in R&D.
 Luxury decorative Colors – Berger’s premium decorative color segment is weak
compared to Asian Paints. Berger’s brand silk is aimed at the premium customers,
but fails to attract the affluent end users over Asian paints.
Opportunities
 GST Implementation – GST implementation will make taxation on big companies
more competitive, so Big players like Asian paints will able to make their pricing more
competitive. Through this competitive pricing, Asian Paints will be able to capture the
unorganized price sensitive market, which is around 25% of the total paint market.
 Overseas Expansion – other than India, Berger Paints have operations in Nepal,
Bangladesh, Russia and Poland. Berger Paint can expand their operations in countries
like America, China, Brazil, Australia and European countries which have a huge
market for paints and coatings.
 Rapid urbanization – Rapid urbanization will lead to demand of superior quality and
environmentally more acceptable varieties of water based paints, which could drive
the Paint market in future.
Threats
 Weak Monsoon – Indian economy is agrarian economy as agriculture contributes
about 16 per cent to the country's GDP and provide employment to 60% population
of nation, which drives the rural demand of paint. So, weak monsoon will directly
impact the paint industry.
 Volatile Input Prices – Raw material for paints are mostly derived from crude oil and
as crude oil market is very volatile it is directly impacting the prices of the material
like solvents, monomers for resins, acrylic monomers and resins. Titanium dioxide is
very vital pigments used in the process of paint manufacturing, the supply of which
was on the shorter side in India.
 Intense Competition – Though Berger paint is the second largest company with
market share of around 17%, Berger is facing intense competition by Asian Paints,
Kansai Nerolac and Nippon paints. These companies are expanding their production
capacities and constantly trying to increase their market share.
42
7.7 Kansai Nerolac Paints Ltd.

Kansai Nerolac Paints Ltd. (KNPL), is a Mumbai based company and subsidiary of Kansai
Paint Co. Ltd., Japan. This company was started in 1920 as “Goodlass Nerolac Paints Ltd.
(GNPL)” but in 1999 kansai Paint Co. Ltd., Japan bought the entire stake from TATA group
and from there on, it is a wholly owned subsidiary of kansai group. Currently it is the overall
second largest paint company in India after Asian Paints. This company have the highest
market share in the industrial paint and coating market. In the decorative segment, it is also
in the top five market player in the country. KNPL customer include, decorative customers
as well as Industrial customers. The company is undergoing restructuring process. It is trying
to transferring its manufacturing bases from Chennai to Gujrat and increasing production
capacity on a regular basis. The company major brand includes Nerolac, Glossolite, Goody,
Allscape, Excel in decorative market.
The company revenue has grown over the last five years and has never shown
any downturn in the business. In the year 2011-2012 he company has grown
with the highest percentage of 21.5% and from the last five-year average growth
rate is 10.54%.Key Information
Founded In 1920
Employees 2,566 (by march, 2016)
Legal Identity Public Ltd.
Geographical Presence India
a) ‘Certificate of Merit’ from National Safety Council
(NSC) – Maharashtra;
b) ISO 14001:2004
Certification
c) OHSAS 18001:2007
d) ISO 9001
e) TS 16949
Locatio
State n Capacity
1) UP Jainpur 15,000 MT per year
2) Haryana Bawal 20,400 MT per year
Manufacturing Facilities 3)
Locations Maharashtra Lote 101, 000 MT per year
4) Tamil Nadu Hosur 280,000 MT per year
5) Gujarat Saykha* 42,000 MT per year
Amritsar
6) Punjab * 38,000 MT per year
Major Clients in Auto Maruti, Bajaj Auto, Tata Motors, Honda Cars,
Paint Mahindra & Mahindra
Major client in White Godrej, Whirlpool, Samsung, Blue Star, Daikin,

Goods Industry Voltas, Haier, Videocon, Siemens, Havells and
Hitachi.
43
Note; - * Under Construction
Exhibit 7.7.1 Kansai Nerolac Key Information Source:

www.nerolac.com
Contact Details for Kansai Nerolac
Company Kansai Nerolac Paints Ltd
Address Kansai Nerolac Paints Ltd
Ganpatrao Kadam Marg
Lower Parel,
Mumbai, Maharashtra, Pin-400013
India
Telephone +91 – 22 - 2493 4001
Fax +9 1 – 22 – 2497 3704
Website www.nerolac.com
Contact Person D. M. Kothari
Key Management P.P. Shah
Designation Chairman
Exhibit 7.7.2 Contact Details – Kansai Nerolac Source:

www.nerolac.com
7.7.2 Value Chain

The Company invested almost 19.08 Crore rupees for the Research and development of the
product which is only 0.41% of its total revenue, which indicates that the company do not
invest a lot in the research and development of its products. In comparison to the other
companies this 0.41% is very significant figure, which also indicate that in the paint industry
it does have some focus on R&D. As far as the supply of raw materials is concerned the
company a very high focus on its supply chain management systems, because the company
uses IT enables system to manage the supply chain management. Also, it has adopted high
slandered of JIT-system in its manufacturing process and in supply chain management as
well. So, over all we can say that the company have a very high focus on supply chain
management and in the manufacturing as well. As far as marketing and distribution is
concerned, this company have a huge distribution network of over 16000 dealer networks
44
across the country (in the year 2016). They leverage this huge distribution network in
marketing their product. As compared to its competitors the company invest less in
advertisement but, by using its distribution network they capture a lot of market share. By
using its huge distribution muscle, it now aiming towards the rural market of India. As the
company is more in Industrial market hence the focus of the company towards its customer
is very high.
Exhibit 7.7.3 Kansai Nerolac presence in Paint and coating market Source:
NOVONOUS Insights
7.7.3 Financial Performance of Kansai Nerolac

The company revenue has grown over the last five year and has never shown any downturn
in the business within the last five year. In the year 2011-2012 he company has grown with
the highest percentage of 21.5% and from the last five-year average growth rate is 10.54%.
In the fiscal year 2015-2016 the company registered the growth rate of 9.3% with annual
revenue of 4604.36 crore rupees. The major expenses of the company include raw material
cost which is 50.7% of total revenue and operating expenses, which include 21.6%. The
company is undergoing restructuring process, where it has sold the Chennai plant worth
537.86 Crore rupees and building a new manufacturing facility in Sayakha, nearby Bharuch,
Gujarat with investment of over 350 crore rupees (2014 estimated figure of the company).
45
Kansai Nerolac Revenues (In Crore Rupees)
5000
4500 4326.28
3989.9
4000
C ro re R u p e e s
3550
3500 3203.31
3000 2861.52
2500
2000
1500
1000
500
0
2011-12 2012-13 2013-14 2014-15 2015-16
Exhibit; 7.7.4 - Kansai Nerolac Revenue from 2011-12 to 2015-16 (in Crore Rupees)
Kansai Nerolac Revenue Growth (in %)

25.00%
21.59%
20.00%
% G ro w th
15.00%
11.94% 12.39%
10.82%
10.00% 8.43%
5.00%
0.00%
2011-12 2012-13 2013-14 2014-15 2015-16
Exhibit 7.7.5 Kansai Nerolac revenue growth from 2011-12 to 2015-16 (in %age) in FMC
Agricultural Solution Source: NOVONOUS Insights
46
Kansai Nerolac estimated Revenues (In Crore Rupees)
9000 8483.04
8000 7376.56
7000
C ro re R u p e e s
6414.40
6000 5577.74
4936.05
5000
4000
3000
2000
1000
0
2016-17 (est.) 2017-18 (est.) 2018-19 (est.) 2019-20 (est.) 2020-21 (est.)
Exhibit 7.7.6 Kansai Nerolac estimated revenue growth from 2016-17 to 2019-20 (in Crore
Rupees) Source: NOVONOUS Insights
Kansai Nerolac Revenue Growth (in %)

16.00% 15.00% 15.00% 15.00%
14.00% 13.00%
12.00%
% G ro w th
10.00%
8.00% 7.21%
6.00%
4.00%
2.00%
0.00%
2016-17 (est.) 2017-18 (est.) 2018-19 (est.) 2019-20 (est.) 2020-21 (est.)
Exhibit 7.7.7 Kansai Nerolac estimated revenue growth from 2016-17 to 2020-21 (in %age)
47
The major products and services of Kansai Nerolac are as follows:
Products Services
Home Owner / Professional Home Owner / Professional
Interior wall paint Paint Selection
Exterior wall paint Customer Reach
Wood coating Ncanvas & Nvision
Metal Enamel Paints Professional Aid
Paint Ancillary
Industrial Industrial
Automotive Paint Ncanvas & Nvision
Auto Refinish Paint Customer Reach
High Performance Coating Warranty
General industrial Coating Maintenance
Powder Coating Professional Aid
Floor Coating R&D services
Coil Coating
Other Niche Products
Exhibit 7.7.8 Major Products and Services of Kansai Nerolac Source:

NOVONOUS Insights
7.7.4.1 Product level Business Strategy

1. The target segment for Kansai Nerolac Paint products are middle and upper class
home-owners, professionals and industrial customers.
2. Kansai Nerolac serve its decorative customers by offering a particular brand for a
particular purpose, whereas the industrial customer receives a highly-customized
product for their need. For example, home owner can use, either Impression eco
Clean, or, pearl emulsion for interior wall painting whereas the industrial
customer can use Barrel enamel for barrel coating.
3. They have high distribution network, which help them to push their product into
the market.
4. Currently the company is market leader in industrial segment, and now they want
to become market leader in decorative segment, hence they are investing a lot in
R&D and developing more decorative products.
5. The company is increasing its production capacity on a regular basis so that they
can meet the demand of the market.
6. It tries to keep its production facility in the vicinity if its customer, so that they
can maintain healthy relationship with its customers. Like Kanpur, Saykha, Lote,
Hosur etc., this are all heavy industrialized area, and in this area only they have
48
huge production unit, so that the cost of serving customer can be brought to a
minimum level.
7.7.4.2 Service level Business Strategy

1. Like its other competitors, they also provide Ncanvas and Nvision feature for its
customers where the customer can design or they can see design of home after
applying different color. This enable the customer to select better color
combination for their household purpose.
2. Apart from Ncanvas and Nvision the company also provide professional aid to its
customers, where its professional hep the customer to find suitable color
combination for the household.
3. Apart from that, the company also provide warranty on Excel products.
4. The company offer different kind of services into different market segment. Like
for the decorative segment, they do not offer maintenance services, but for the
industrial customers they do.
5. In order to serve the customer much better they use their distribution network,
and they can reach to the customer location within 24 hour for any can of
assistance related to its paint product. The company named this program as
customer reach.
6. The research and development team of Nerolac work with the industrial
customers, so that they can produce the highly-customized product for its
industrial customers. This is one of the reason that the Kansai have the highest
market share in industrial market.
49
7.7.5 SWOT Analysis for Kansai Nerolac.
Exhibit SWOT Analysis of Kansai Nerolac Source: NOVONOUS

Insights
Strengths
 Huge distribution network; - The company have a huge distribution network, which
include 16000 dealers and around 1 lakhs retailers in the country. This help the
company to access the market very easily.
 Technical edge of parent company: - The kansai Nerolac is a subsidiary of Kansai
Paint company, which is a mater in paint technology. By using the expertise from the
parent company this company has been able to developed and serve its customer
very easily.
 Aggressive Branding; – The company is trying to tap the decorative market segment
more aggressively, for this they are doing very aggressive branding and
advertisement. Recently they appointed Shahrukh Khan as their brand ambassador,
earlier Amitabh Bachchan was its brand ambassador.
 Robust Supply chain Network; – The company uses JIT and lean management in
operation and supply chain management as a result they have a very Robust supply
chain network, which increases the production efficiency of the company.
50
Weaknesses
 More Oriented towards Industrial Market; - This company internal operation is more
focused toward the industrial segment, as a result the company has not been able to
focus much on decorative market. It is evident from marketing campaign for
decorative segment that the company’s upper management is trying to increase the
company market share in the decorative segment but the internal operation is more
dedicated towards the industrial market.
 Non-directional Campaign for decorative customers; – In the decorative market the
company has not been able to differentiate its products from rival competitors, hence
they failed to increase the market share in the decorative segment. For example, the
company is promoting healthy paint, but its competitor, Nippon Paint has already
developed odor free paint, which in a way promote themselves as a healthy paint.
 Localized to Indian Market; - As the Company sells most of the production in India
only hence the company revenue is dependent upon the economy of Indian market
only, and in tough times, it cannot bring the demand from other market.
 Fluctuating Raw Material Prices; - The changing petroleum prices in the international
market change the raw material prices. This is because the raw material of the paint
products is obtained mostly from the petroleum products only, these fluctuation,
have a huge impact on price of products and profitability of the company.
Opportunities
 Leveraging R&D capabilities; - This company invest 19.08 crore in the R&D which is
highest in the industry. This R&D help the company to develop different variety of
product which can be targeted to the different customer segment. Hence this
investment gives a huge opportunity to the company to tap more market. Its parent
company Kansai Paint is already having a huge R&D network that can also give the
company a huge advantage in the market.
 Recent Rural Marketing campaign; – In India the market penetration of paint industry
is around 50-60% of the total paint market. This low penetration is because the paint
company has not been able to tap the rural market. The consumption in the rural
market is very low. So, the company have started targeting the rural market, which
can open new opportunities for the company.
 Developing a green Brand; – The company is trying to brand themselves as green.
Therefore, they are promoting Healthy paint, where they say that their paint is more
environment friendly as they are lead free. Also, they promote that their product has
very less hazardous chemical as their competitors, this is why their product are more
environment friendly.
 Rising Demand of agricultural Outputs; - The huge growth in the automotive market
in India, will increase the demand of paint from these industries. As the kansai
Nerolac is the market leader in this segment, hence its demand may increase in the
future.
51
Threats
 Highly regulated market; – The pesticide is made from the petroleum products, with
little other additives. In general, these chemicals are not environment friendly, hence
the government has imposed a lot of environment regulation to control the pollution
arising from the paint product. This regulation may disturb the business operation
and may become a huge threat for the business in future.
 Competitive Market; – The competition in the paint and coating market is very high.
The competition not only comes from the big player but also from the small
unorganized player which contributes to almost 30% of the market share.
 Political Risk; – The company major market is Industrial market, which is heavy
dependent on Indian economy and Indian polity. In these aspects, the company is
somewhat exposed to political risk as well.
 Threat from Global Competitors; - The growing Indian economy and Increasing
population, make it a very good opportunity for the global player to enter into the
Indian market. As the Kansai Nerolac, is a very local player in the Indian market, it
faces a huge threat from Global players.
52
7.8 Shalimar Paints

After establishing South-East Asia’s first ever large-scale manufacturing plant in 1902 in
Howrah, West Bengal, Shalimar paint became, the first paint manufacturing company in
India. Currently its headquarter is located in Gurgaon. As it was the very first paint
manufacturing company in India, it got the opportunity of painting some Iconic building in
India like, Howrah Bridge, Rashtrapati Bhawan, Salt Lake Stadium, All India Institute of
Medical Sciences, and many others, continue to be painted with Shalimar Paints. In the year
2014, one of its plants in Howrah got damaged because of fire, as a result of which the
company registered loses for consecutive two years. The production from this plant used to
serve 30% of Shalimar paint’s customers.
Shalimar Paints has got good distribution network in India, as it has 53 Branches and depot
and have network of around 8000 dealers in India. The company was making loss for the
financial year 2013-14, 2014-15 before making profit in the year 2015-2016. The country
serves both the major categories of customer I.e. Decorative as well as Industrial customers.
ISO 9001:2008 660+
Key Information
Founded In 1902
Employees 660+
Legal Identity Public Ltd.
Geographical Presence India
Certification ISO 9001:2008
State Location Capacity
1) Bengal Howrah 14,204 MT per year
Manufacturing Facilities 2) Maharashtra Nashik 16,000 MT per year
Locations
3) Uttar
Pradesh Sikandarabad 101,000 MT per year
4) Tamil Nadu Gumudipoondi 24,000 kiloliter
Major Clients in Industrial NTPC, Indian Railways, ESSAR, Aditya Birla Groups
segment
Exhibit 7.8.1 The Shalimar Paint Key Information Source: NOVONOUS Insights
Contact Details for ; - Shalimar Paints Limited.

Company SHALIMAR PAINTS LIMITED
Address 4th Floor, Plot No. 64, Sector – 44, Gurgaon, Haryana - 122001
Telephone +91 124-4616600
53
Fax +91 124-4616659
Website www.shalimarpaints.com
Email Id hwhsec@shalimarpaints.com
Contact Person Ratan Jindal
Key Management Mr. Surendra Kumar
Designation Managing Director, & CEO
Exhibit 7.8.2 Contact Details – Shalimar Paint Limited Source: Shalimar paint
Website
7.8.2 Value Chain

The company invested 199.34 lacs rupees in the research and development of the products,
which is 0.44% of the annual revenue. This is an average expenditure of R&D in the paint
industry. Hence, we can say that the company has medium focus in the research and
development. As far as the supply chain management and production is concerned, it has
got major problems, there. Its former CEO, Sameer Nagpal, raise serious concern over the
supply management and quality issue within the company. Not only this, in the 2013 one of
the company key manufacturing unit at Howrah caught fire because of negligence. As a
result of which the company remained in loss for the consecutive two year. The former CEO
took several measures to improve the situation, but still we hear some issues in the
manufacturing units of Shalimar paint. As far as the distribution and marketing network is
concerned, it has got over 8000 network of dealer network in the country and over 53
branches in the country. If we compare the distribution network and business volume of
Shalimar paint, it seems adequate, as far as the distribution network in concerned. Again, on
the end user side, first we consider the decorative segment. Shalimar Paint marginalized the
decorative segment of the market, till the year 1990, and it has major focus toward the
industrial market. But from there on it started serving decorative customers as well. In the
industrial market, they were the market leader sometime, but they were not able to
maintain the relationship with the industry for long time, hence they lost their market share
to other player in the paint market, Especially to Nerolac. Now they are the third largest
player in the industrial paint segment in the industry.
54
Exhibit 7.8.3 Shalimar paint Value Chain Source: NOVONOUS
Insights
7.8.3 Financial Performance of Shalimar Paints

The company revenue is decreasing on a regular basis from the last three year and in the
upcoming year which is 2016-17, is also expected to dip by 1% at least. The company
registered loss in the financial year 2013-14, 2014-15 but in the year 2015-16 they were
able to manage positive figures in terms of profit, but still, their revenue declined by 6.34%.
The company’s CAGR for the last five year stood at – 0.2% per year. The fire accident at
Howrah Plant which damaged the entire plant, is said the be the reason behind this poor
performance of the company. The production at Howrah plant used to contribute 30% of the
total revenue of the company. As the local production is stopped from the last three years,
hence the product of Shalimar paint has gone up in the eastern part of the country. This is
the reason of lower demand of company products in the eastern part of the country. Apart
from decrease in production and lower demand the company is facing huge issue in supply
chain management, hence the company has initiated restructuring policy, as a result of
which it is expected that the company revenue will show the positive growth rate from the
year 2018. The company’s newly appointed CEO Surendar Kumar and its former CEO
Sameer Nagpal, has Initiated a lot of marketing campaign and structural reforms, which can
improve the performances of the company. Hence it is expected that the company will take
at least 5 year more to achieve 10%-12% market growth rate.
55
Shalimar Paint Revenues (In Lakhs)
60000 56300.37
52864.36 53981.67
50000 48324.82
45262.26
La cs R upe es
40000
30000
20000
10000
0
2011-12 2012-13 2013-14 2014-15 2015-16
Exhibit 7.8.4 Shalimar Paint Revenue growth from 2011-12 to 2015-16 (in Lakhs rupees)
Shalimar Paint Revenue Growth (in %)

25.00%
19.44%
20.00%
15.00%
% G ro w th
10.00%
6.50%
5.00%
0.00%
2011-12 2012-13 2013-14 2014-15 2015-16
-5.00% -4.12%
-6.34%
-10.00%
-10.48%
-15.00%
Exhibit 7.8.5 Shalimar Paint Revenue growth from 2011-12 to 2015-16 (in %age)
56
Shalimar Paint estimated Revenues (In Crore Rupees)
51000
50000 49788.49
49000 48430.62
La cs R upe es
48000 47525.37
47000 46620.13
46000
45000 44809.64
44000
43000
42000
2016-17 (Est.) 2017-18 (Est.) 2018-19 (Est.) 2019-20 (Est.) 2020-21 (Est.)
Exhibit 7.8.6 Shalimar Paint Estimated Revenue growth from 2016-17 to 2020-21 (in Lacs
rupees)
Shalimar Paint Estimated Revenue Growth (in %)

12.00%
10.00%
10.00%
8.00%
% G ro w th
7.00%
6.00% 5.00%
4.00% 3.00%
2.00%
-1.00%
0.00%
2016-17 (Est.) 2017-18 (Est.) 2018-19 (Est.) 2019-20 (Est.) 2020-21 (Est.)
-2.00%
Exhibit 7.8.7 Shalimar Paint Estimated Revenue growth from 2016-17 to 2020-21 (in %age)
7.8.4.1 Business Strategy

The major products and services of Shalimar Paints. are as follows:
Products Services
57
Home Owner / Professional Home Owner / Professional
Interior wall paint Paint Selection
Exterior wall paint
Wood coating
Metal Enamel Paints
Floors
Industrial Industrial
Protective Coating Paint Selection
Product Finish Professional guidance
Packaging
Marine
Exhibit 7.8.8 Major Products and Services of Shalimar Paints Source: NOVONOUS
Insights
7.8.4.1 Product level Business Strategy

1) This company major focus is in industrial segment. And this approach has been the
cause of decline for the company. By time Indian economy was closed this strategy
worked very well for the company but after that, it lost everything. The company
started to focus decorative segment only after the 1991.
2) Currently the company is serving almost all the need of the market as the company
produces emulsions, enamels, distempers, wood finishes, cement paints, aluminum
paints, and floor coating,
3) The company is the largest producer of water based paint in India.
4) The company is now aim to gain market share in the decorative segment, hence they
have started more investment into this kind of paint. As a result of which they have
come up with new emulsions this year like Signature (interior luxury emulsion),
Weather Pro+ (Exterior luxury emulsion). Apart from decorative segment they have
also launched some more products for the industrial customers as single pack DT,
low cost Zincsilicate coats.
5) The company has started working hard on its products quality, which the company
has marginalized over the years. The company is aiming to improve supply chain
management and quality check in the production.
7.8.4.2 Service level Business Strategy

1) Unlike their competitors, Shalimar do not offer warranty services to its customer.
2) Shalimar offer color guide services to its decorative customer.
3) The local distributors or the company professional work with the industrial
customer for customized design of the paint product. But this facility is not
available for the decorative customers.
58
7.8.5 SWOT Analysis for Shalimar Paint.
Exhibit 7.8.9 SWOT Analysis of Shalimar Paints. Source:

NOVONOUS Insights
Strengths
 Lack of focus in decorative segment; - The company is present in India since 1902
and was one of the largest paint company in India. So, the company very well about
the paint market in India. Hence it is likely that the company will be able to perform
better in the future.
 Good distribution network: - The company has over 8000 dealers in the country and
almost 53 regional branches in the country which is very sufficient in relation to its
market share. It can use its distribution network to push its products into the market
very easily.
 Past Legacy; - This company is serving the Indian customer’s need, right from 1902.
This many long year has given an opportunity for the company to serve very
important customers in India. Like the Rashtrapati Bhawan, Howrah Bridge, Indian
Airforce aircrafts, AIIMS was painted from Shalimar paint. In Today’s date, also these
structures are being painted with Shalimar paint only. Because of the legacy of this
paint company Indian Railways also uses Shalimar paint for its consumption.
59
Weaknesses
 Lack of focus toward decorative segment; -. The company has marginalized its
decorative customers. As a result of which they have lost the market share. The
decorative segment forms almost 70% of the current paint market in India. But the
company major focus was its regular industrial customer for which it was working. It
was only after 1991 when the company decided to enter into the decorative
segment. But still the company management was alienated towards the Industrial
segment only. From the last five years, the company focus has shifted its focus
towards the decorative segment, but still, the company need to cover a lot of
distance,
 Unable to change with time; - The company failed to change with the time, and the
company failed to introduce the products as per the requirement of the market.
Instead, they continued the way they were doing business in the past.
 In-efficiency in supply chain management; - The company found major loopholes in
the procurement of raw materials. Apart from that the company has also found the
problems with the payment of suppliers on time. The dealers and distributors was not
paying on time to the company. Apart from that, there was no quality check in the
procurement and distribution network. As a result, the quality of products suffered a
lot.
 In-efficiency in Production: - The company is able to utilize only 80% of the
production capacity. Apart from that there is a lot of accidents in the company has
disturbed the manufacturing process in the company. As a result of which there is a
lot of in-efficiency is getting generated in the company.
Opportunities
 Developing Indian economy; -. The paint market grows one and half times that of the
Indian economy growth rate. The current Indian economy is growing at the rate of
7%, so it is expected that the paint market will grow around 15%. This kind of growth
give excellent opportunity for the company to grow, both in terms of revenue and in
terms of market share.
 Restructuring Strategy; - The company is making a lot of changes to improve the
efficiency into the company. The impact of the restructuring process was seen in the
fiscal year 2015-2016 when the company registered profit after loss in the
consecutive year for 2013-14, 2014-15.
 Indian Rural Market: - The penetration of paint market in rural area is very minimum,
hence this gives an excellent opportunity for the paint companies to explore.
 Self-cleaning technology; - As the company has developed a self-cleaning
technology. The company is developing a paint product by using those technologies.
As this technology is unique, this can bring good fortunes for the company.
Threats
 Regulations; - The company is highly regulated, as its uses chemical which is non-
biodegradable. Any change in the Indian regulations can affect the company business
heavily.
 Financial Risk; - The company need to import raw material, these imported raw
material is subject to fluctuation in foreign exchange market. Apart from this the
company need to settle the Howrah Plant issue, where the company pending issues
60
with the labor and government may bring unnecessary financial burden on the
company.
 Highly competitive market; - The market is highly competitive. In spite of the fact
that big 5 companies have over 75% organized market share, but the un-organized
sector which capture 30% market share bring a huge competition to any player in
this market.
 New Entrants; - The initial investment in the paint manufacturing is very low, hence
there is very low entry barriers in the paint market which allow new entrants to enter
into the market easily. Also, as the Indian economy is growing very well, which give
an excellent opportunity for the foreign players into the market. This foreign player
market with lot of backup can destroy the local paint company. This risk is also with
the Shalimar paint, as it is limited to the Indian market itself.
61
8. Competitive Landscape in Indian Paint and
Coating Market
Company Products Revenue* Market
(2018-19) Share**
Asian Paints Decorative interior and exterior 16,670.59 50.00

paints, Industrial coating and paints
and painting and coating services,
few raw materials, training services
Berger Paints Decorative interior and exterior 4580.72 16.36
training services
Kansai Nerolac Decorative interior and exterior 4326.28 15.45
and painting and coating services
Akzo Nobel India Decorative interior and exterior 2491.70 8.90
Ltd. paints, Industrial coating and paints
raw materials, training services
Nippon Paints Decorative interior and exterior 750.34 2.68
India Ltd. paints, Industrial coating
BASF India Ltd. Industrial and Automotive coating 697.25 2.49

and raw materials
Sheenlac Paints Industrial and Automotive coating 513.00 1.83

and training services
Shalimar Paints Decorative interior and exterior 452.62 1.62

paints, Industrial Paints
Jenson and Decorative paints and Limited 36.59 0.13

Nicholson Paint industrial paints
Snowcem Paints Decorative paints 11.35 0.04
Exhibit 8.1 Competitive Landscape in Indian Paint and Coating Market Source:
NOVONOUS Insights
*revenues from respective companies paint and coating related business in INR Crore
** Organized paint and coating market value is taken into consideration for calculating
market share
62
Market Share of Companies in Indian Paint and Coating industry(in %)
Asian Paints
Berger
Kansai Nerolac
3%2% 2% 0% 3% Akzo Nobel

0% Nippon Paints
9%
50% J&N
16%
Shalimar Paints
16% Sheenlac Paints
Snowcem
BASF Coating
Exhibit 8.2 Market Share of major companies in Indian Paint and Coating Market 2016
8.1 Merger and Acquisition

Paint industry has been witnessing constant merger and acquisitions, as big players try to
expand their product portfolio by acquiring small and medium size enterprises.
Berge paint has acquired Saboo coatings, a Chandigarh based niche paint maker catering
the industrial sector. Berger acquired Saboo coating by giving consideration of Rs 81.77
crore to the shareholders. Furthermore, Berger has also bought 51 per cent paid up equity
capital of Saboo Hesse Wood Coatings Private Limited for amount of 1.5 crore. The main
objective behind this acquisition was to expand their product pool in the industrial market.
Berger paint has partnered with the Chugoku Marine Paints of Japan for diversifying their
protective coating business.
AkzoNobel India has acquired the industrial coatings business of BASF India Ltd for Rs 11.17
crores. Following the closure of global acquisition of BASF's industrial coatings business by
AkzoNobel, which was first announced in February,2016. BASF's industrial coatings segment
caters a range of industries like construction, domestic appliances, wind energy and
commercial transport. Globally, the transaction includes relevant technologies, patents and
trademarks, as well as two manufacturing plants in the UK and South Africa. Approximately
400 employees from BASF's industrial coatings business join AkzoNobel, bringing expertise
to innovate and serve an expanded customer base worldwide.
63
Asian paints have expanded their portfolio in markets of kitchen appliances and bathroom
fittings by acquiring sleek and Ess Ess, which are respectively kitchen and home appliance
and bathroom fitting companies.
In February 2017 India’s largest paints company Asian Paints Ltd announced their
acquisition of Sri Lanka’s Causeway Paints Lanka (Pvt.) Ltd in an all-cash deal. Asian Paints
said its Singapore subsidiary Berger International Pvt. Ltd will make the acquisition. Asian
Paints already operates in Sri Lanka through Asian Paints (Lanka) Ltd. The company did not
disclose the value of the deal. The acquisition is subject to certain conditions and statutory
approvals.
64
9. Indian Industry Associations Related to Indian
Paint and Coating Industry
9.1 Indian Paint association
The Indian Paint association (IPA) is a national body for the paint companies in India. It
represents both, organized and un-organized paint manufacturer in India. This association
came to existence after merger of two associations namely Indian Paint manufacturer
associations and Paint federations on 1 st July 1960. In the initial days IPA was dedicated to
the fiscal issues, DGS & D and so on. These activity helps the paint companies to redress
their problems from government regulation and control measures. Currently the association
has changes its role and it now focuses on promotion of Indian Paint industry. Currently, IPA
role is to effectively channel and reinforce the endeavors of the paint industry to contribute
towards development and to help improve the standards by making the products of high
technology easily available.
9.2 Indian Paint and coating Association

Indian Paint and coating association (IPCA) represents paint, ink and power coating
manufacturers, raw material manufacturers and traders, machinery manufacturers and
allied industries. It has almost 950+ member with them and their number are growing. They
represent organized and un-organized sectors in the paint and coating market in India.
These association, gives a platform to the paint companies to discuss the potential impact of
the Indian government regulation and foreign regulation which can affect the Indian paint
market. Not only they discuss, but many ties they give the recommendation to the
government during budget formulation. IPCA also helps in creating harmony between the
various paint companies and increase their collaboration. The conducts Technical Seminars,
Residential Conferences. They also have training and educational role as they provide
Certificate courses in Coating Technology with the likes of Color Society, Mumbai, IIT, Delhi
& MSME, Government of India.
9.3 Indian Small Scale Paint association

The Indian small-scale paint association (ISSPA) was established in the year 1956, the very
purpose was to solve the problem of excise duty related to the paint industry. They focused
majorly on the small-scale industries. Current they have almost over 1899 members in India,
where their members have been divided into two segments namely, Ordinary Members
(paint and allied manufacturers) and Associate Members (connected with the paint industry
as suppliers of raw and packing materials). The Membership of ISSPA is open to anyone
connected with the paint industry. They cater all the problems of the paint industries in
India.
65
10. Analysis Models
10.1 PESTLE analysis for the Paint and Coating Industry
10.1.1 Political
India is the largest democracy in this world, so political situation should have high impact in
any industry, but as far as the political impact on the paint market is concerned it is very low
in India. The Indian Paint market is almost independent with the political forces in India. One
reason for that is the political stability in the Indian Politics, which has enable the Industry to
register double digit growth rate.
10.1.2 Economic
Currently the Indian economy is world fasted growing economy in the world and also the
third largest purchasing power in the world. This situation given a very suitable ground for
the Indian paint industry to operate. By capitalizing these opportunity Indian paint market is
growing with double digit figures. The Indian paint companies major concern is about 20% of
raw material need to import, which is not available in India at competitive prices. This
product prices are not stable, neither the Indian currency rates in the foreign exchange
market. This kind of fluctuation in Indian economy with the world expose the Indian paint
companies to foreign exchange risk.
10.1.3 Social
India is the second largest population in the world and they have many religions. They used
the paint product in many occasion throughout the year. As a result, the continuous demand
of paint product exists in the market. There is a large number of semiskilled Indian labors
are associated with paint market, so in a way paint market generates huge number
employment in India.
10.1.4 Technological
In recent days, there are a lot digitalization process going on in the Indian paint market, as a
result the Indian paint companies is trying to Increase their efficiency with the help of digital
technology. Also because of new regulation Indian paint industry has to move out of lead
based paint, this event has changed the technological aspects of the Indian paint industry.
Currently all the Paint production plants are modernizing to produce waterproof paints,
Teflon coatings, etc. So, the Indian paint companies need to improve the Quality and design
new innovative products for their survival.
10.1.5 Legal
The paint industry is somewhat regulated by the government. So, the major law which affect
this market is Pollution control law, Health and Safety law, environmental Law. Apart from
these no other law has any huge impact on the Indian paint market.
66
10.1.6 Environmental
In Paint products also creates some sort of pollution in environment. There are some Volatile
organic compounds which is being used in the Paints which has a hazardous Impact. So the
big companies are trying to move away from these paints. As a far as the lead bases paint is
concerned, almost all of the major companies, has opted out of such product and offer zero
percent lead based product. Only small and local player in the market offers lead based
paints.
67
10.2 Porter Analysis Model
Threat of New Entrants (Low to

Medium)
 Hard to aechive Economy of Scale

in the market
 High Woking capital requirement
 Building Distribution Network
 Eastblished large Players
Bargaining Power
Bargaining Power
of Suppliers
of Buyers
(Moderate)
Rivalry among Existing (Moderate)
Firms (Medium to High)
 Limited
 Low in
Supplies and
 Oligopoly Decorative
Shortage of
 Rapid market Segment
TIO2
Growth  Medium o
 Volatile
high in the
Market
Industrial
Dependent on
Segment
Crude
Business
Threat of Substitutes (Low)
 IN rural are Lime wash is a

substitute
 Deorative Wallpapers
Exhibit 10.2.1 Porter Analysis of Indian Paint Market Source: NOVONOUS

Insights
68
10.2.1 Threat of New Entrants
Threat of new entrants is very low in this segment. It could be seen as there is a little capital
requirement of capital in initial days, but there is huge working capital is required for
continuous production. Many companies like, J&N and Snowcem was unable to produce at
full capacity, just because their working capital was low. Also, the big companies has got
economy of scale in the market and also they have a very high brand value and huge
distribution muscle. In order to cross all these barriers, companies need to invest a lot in the
initial days, which prevent the entry of any new players in the market. As far as the threat
from foreign players is concerned, in India almost all the companies have got foreign
collaboration, so they would not come in India, to disturb the equilibrium, hence threat from
them is minimum here.
10.2.2 Threat of New Substitutes

Threat of new substitute is also low in the Indian Paint market. The big reason for that is the
low propensity of the customers towards the available substitute. Although the un tapped
Indian rural population still use lime was to paint their homes, but still, wherever the paint
products have penetrated the market, such uses have reduced.
10.2.3 Industry Rivalry

The Indian paint market is highly Oligopolistic market, as all the top 10 major player in the
organized sector account more than 85% of the market share. With the implementation of
GST even the unorganized sector has been pushed to become organized otherwise they
would extinct. So, with these developments more and more companies would join the
current oligopolistic market. In the Current Indian paint market is concerned, the paint
product has become a commodity product and hence the companies are forced to achieve
economy of scale in the market, if they want to survive, which is not possible with the small
players, but big players have already achieved this. So, they acquire any new successful
paint business, thereby they kill the competition. After summarizing all these aspects, we
can say that industry rivalry is high here.
10.2.4 Bargaining Power of Buyer

The bargaining power of the decorative customers are usually low, this is because, there is
only a limited quantity they buy. But as far as the industrial paint and large construction
companies are concerned their bargaining power is high. This the reason why, in spite of
high demand from industrial consumers, the profitability of industrial paint is low.
10.2.5 Bargaining Power of Supplier

The paint products require more than 300 raw materials, but most of them are available
with large number of suppliers. This is why bargaining power of the supplier’s is low except
in a few cases where the supplier is the only producer of specific chemicals like titanium
(which is used in paint pigment and they are in short supply), such supplier has high
bargaining power.
69
10.3 SWOT Analysis
Exhibit 10.3.1 SWOT Analysis of Indian Paint Market Source: NOVONOUS

Insights
10.3.1 Strengths
 Regular demand; - The Indian paint companies receives a regular order not only from
the industrial consumers, but also from the industrial users, as there is a lot of
religious activity used to happen in different-different religious throughout the year.
These event need to ether paint the house or household goods. Hence there is a
regular demand here.
 Economy of scale in Production; - The top 10 companies in the in the Indian paint
market who have almost 85% of the market share have a very high economy scale.
So, the overall market is concerned, they have got very high economy of scale in the
market.
 Few Players In the market; - As far as the Indian Paint industry is concerned, there
are only limited number of organized companies are available in the market, and that
too the remaining companies are trying to consolidate by either through merger or
through acquisition. By doing so they are further reducing the number of
manufacturing companies in the organized sector.
70
10.3.2 Weakness
 Low Product Diversity: - The paint product is becoming commodity products and
there is very limited chances of diversification of products in the paint market. So,
the best way to make profit is by efficiency and the best way to gain market share is
pricing. Both the aspects combined together incurred a lot of cost to the company. As
a result, those companies would not survive here who do not have enough working
capital, with high efficiency in business. This was the reason that companies like J&N
was struggling into the business.
 Low Product Penetration: - The penetration of Indian paint product is very low in
India, in 2013 the per capita consumption was 2.57kg, which is low. The major reason
for low consumption is that the paint product is limited to the urban are in India, and
its penetration in the rural market is very limited.
 Significant unorganized players; - The unorganized player have almost 30% of the
market share. This is a very significant for the Indian Paint Industry. This unorganized
player stops the big player to make Indian paint industry an oligopolistic market, they
offer their products on a highly competitive price. So, the big player could not afford
to lose the market by prices. But the major problems with the unorganized players
comes with the quality. Their quality of product is not consistent; hence the customer
does not create huge brand value for the local pant manufacturers.
 Lack of quality related regulations; - The paint products are regulated so that they
should not destroy the environment. But there is no law which can regulate the
quality of products in the paint market. This is the reason why the small player used
to enter into their market with low prices and low quality of products. As a result, not
only the Indian customer suffers but also the companies in the formal structure
suffers.
10.3.3 Opportunities
 Developing Economy of India; - The Indian Economy is growing at a very fast pace as
a result of which the demand from household and from industries is very high India.
This trend is expected to continue in the upcoming years. This will ensure growing
demand of the paint products in India.
 Product Diversification: - With increasing product diversity in the Industrial products
would demand high paint product diversification. As a result, the companies who
have high product diversity, or the companies who is increasing the product
diversity, is expected to sustain in the market for long period.
 Indian Rural Market; - The Indian rural market is untapped market in India, and most
of the paint products penetration is limited to the urban area in India only. As the
2/3rd of the Indian population lives in village only, hence this would be the excellent
opportunity for the paint companies to explore.
10.3.4 Threats
 New Regulations: - The paint market are regulated, so that the paint products should
not pollute the local environment. With the increasing paint product diversity and
changing climate in the country more regulation is expected to come. These
71
regulations would have negative Impact on the Paint industry and may reduce the
profitability of the Industry as a whole.
 Credit risk; - The Paint companies need large amount of working capital; hence they
need to take a lot of loans from the market, these loans can become a source of
credit risk. Also, all the paint companies need to import 20% of their raw material
from outside India, which is subjected to foreign exchange risk. Any fluctuation in the
forex market would reduce their profitability.
 Competition; - Paint market in India is a highly competitive market. Especially the

unorganized player plays with the prices which the big companies could not afford.
By doing so these small players have made the paint market a highly competitive
market, rather than letting it to become almost oligopolistic market.
 New Entrants; - The threat of new entrants is very low in India, as the Indian
companies has already done major collaboration of big companies outside India, but
if any chance, any big companies can enter into India by looking at its growing
economy and its growing population demand. If the companies have got deep
pocket, then it will give serious competition to existing player in the country.
72
11.Challenges Faced by New Players in Indian Paint
and Coating Market
The Indian Paint market is a highly competitive market overall. As far as the organized
market is concerned it is almost oligopolistic market, where the top ten company hold
almost 85% of the market share. But the unorganized player in the market are almost 30%
of the market and give good competition to the big organized companies.
For any new entrants, the big problem is not the initial capital, but the actual problem is
working capital. If the company want to operate entire year, they need to have deep pockets
too run production for the entire year. Apart from the working capital, the companies need
to have the huge distribution muscle to reach deep into the market, otherwise their product
will not be sold significantly. The big player already has a huge distribution muscle, which
will not allow easy access of the new player into the market. The unorganized player used to
play in a very small region and this is the reason why they have got very high efficiency, but
if any companies would try to operate in a large area in India, would have very low
efficiency, and as a result their profitability would go down. The big companies have
achieved high economy of scale in production because they have high market share, but
these facilities would not be available for any new player.
For any new player, the easy way would be operating first in a very small area and achieve
high economy of scale and then they could expand into the market. But in small region, they
need to overcome pricing policy of small player, as they sell their product with a very low
price.
After successful entry into regional market, the company need to create brand value for
themselves, as the big player have very high brand value. These big companies have
created a lot of brand values because they have given good quality of product to their
customer on a regular basis, So the faith of the Indian customers would be very high on
those old brand but with any new brand those faiths would not be there. In order to
overcome those barriers, they need to create brand value in the minds of the Indian
customers. Once overcome this last barrier the company can gain significant market in
India.
73
12.Current and Future Trends in Indian Paint and
Coating Market
The unorganised market in the Indian paint and coating market is around 28% of the total
market in value terms. There are around 2000 small and medium size producers in India.
Organised sector is the balance 72% consisting players like Asian Paints, Berger Paints,
Kansai Nerolac and Akzo Nobel. The organised sector in rapidly capturing the market share
of the organised sector due to the standard and quality products.
Water Borne Paints are getting popular due to their low VOC content and odour. Paints low
on VOC are environment-friendly, which is the major reason of popularity of this paints.
Waterborne paint is also getting popular in Industrial and automobile applications, where
solvent based paints are popular.
The government is pushing the reforms in major industries like power, infrastructure,
railway, oil and gas, textile and many more. This reforms if implemented and executed as
planned will provide a great boost to the economy and the paint industry. Paint industry of
India has mostly grown at the rate of 1.5 to 2 times of the GDP of the Indian economy.
In new GST implementation, Paint industry was placed in the highest slot of the 28% tax
rate, which is not expected to the affect the market by the great extent in value and volume
terms. GST implementation can lead to the increase of organised market share in the
industry as small and medium companies will find it difficult in finding loopholes in the
system, making pricing more competitive for the big companies.
In India consumption of decorative and industrial segment is in the ratio of 72:28, which is
not the case on the global level as this ratio is near to 50:50. This ratio was 77:23 in India in
2012, which shows the major increase in the industrial market in India and this ratio is
expected to reach 40:60 by 2025.
Demand of decorative paint is highly dependent on the housing sector and good monsoons,
whereas Industrial paint demand is dependent on the user sectors like auto, engineering and
consumer durables.
The paints sector is raw material intensive as production of paint includes more than 300
raw materials. Titanium Dioxide(TIO2) is the most important pigment as it forms around 25%
of the total cost of the paint manufacturing. Since most of the raw materials are derived
from crude oil, prices are highly dependent on volatile and dependent o the crude pieces.
with over 300 raw materials (30% petro-based derivatives) involved in the manufacturing
process. Since most of the raw materials are petroleum based, the industry benefits from
softening crude prices.
74
13. Strategic Recommendations
13.1 For Policy Makers
The policy maker need to asses three different aspects while taking any decisions related to
paint market.
a) Industrial Development; - The Indian paint industry not only gives profit for the paint
companies, but also generates a lot of employment opportunities outside the
company. So, while making any new rules and regulation the government need to
make sure that the Industry should have enough support and time to manage their
changes, so that the population who is dependent on this industry can find
alternative for employment, or the industry can change themselves to meet those
regulations.
b) Customers; - The Indian Policy maker should ensure that the Indian consumer should
get good quality products. The products should be free from any form of hazardous
chemicals. On the basis of Industrial development, the consumer right should not be
overridden by the paint manufacturers.
c) Environment Pollution; - The paint products are usually chemicals and non-
biodegradable. BY using the paint product, we pollute our environment in a way. But
he policy maker need to ensure that the paint products are manufactures and used in
such a way that the environmental damage could be minimized.
13.2 For End Users

As far as the end user is concerned, the end user need to ensure that they are buying the
relevant paint for the consumption. Obviously, the product quality would depend upon the
prices, but apart from quality, they need to estimate the impact of paint uses on their
health. As the volatile Organic paint used to alter the health of common people, so they
need to ensure that they are using the pant in a proper way so that these damages could be
minimized.
13.3 For Service Providers

Service providers includes carpenters and all those semiskilled workers who use to apply
paints, on behalf of end customer in the local market. These service providers need to
ensure that they are fully aware of the techniques of paint application, otherwise, their finish
would not be proper. The end user would either blame the product quality or the quality of
services, if the paint application does not produce the desired result. Also, all of the workers
should be well verse with the product feature and disposal, as the paint product are
pollutant, it should be disposed in a proper way otherwise it may lead to pollution.
13.4 For Investors

The Indian pant industry is growing in the double-digit figure, so it could one of the best
opportunity to invest into such market for long time. The short time investment would be
subject to fluctuation, hence in many cases it would not be profitable. The investors need to
75
ensure that the company in which they are going to invest, that company should have low
debt high working capital, as these are the two financial figures which can give the
indication of market performances of the company. The small companies, are the major
performer and they are also the worst performers in the Industry, hence any investment in
the small paint company should be done with detail study of that company
76

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Indian Paint and Coating Market 2017-21

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MBA (FULL TIME) 2018-20

Indian Painting and Coating Market

Akarsh Mehta 181303

Atal Sharma 1813

Manan Gupta 181331

Tushar Tiwari 181362 Submitted to: Vishal Dadlani

Submission Date: th December, 2019

2. Indian Paint and Coating Market -

3. Market Segments & Forecasts for

4.Growth Drivers and Inhibitors for

5. Risks associated with the Indian Paint

6. Profile of Key Players in Indian Paint

8. Competitive Landscape in Indian Paint

9. Indian Industry Associations Related

10. Analysis Models.............................64

11.Challenges Faced by New Players in

1.1 Scope of the Report

The interviews were conducted through telephonic conversations based on the

2. Indian Paint and Coating Market - Overview

Forecast Indian Paint and Coating Market 2017-21 (in INR

3.2 Indian Paint and Coating Market Forecast by Type of

3.2.1 Decorative Market

Forecast of Decorative Paint and Coating market of India

3.2.2 Industrial Coating

Forecast for Industrial Paint Paint and Coating market of India

3.3 Indian Paint and Coating Market Forecast by Application

Archetcthure and Decorative

4.79% 0.69%1.18% Automotive

4.46% Consumer Durables

11.13 10.88 10.72

3.3.1 Architecture and Decorative

Forecast of Architecture and Decorative Maket 2017-21 (in

3.3.2 Industrial Wood

Growth Forecast of Industrial Wood Market 2017-21 (in INR

Growth Forecast of Automotive Market 2017-21 (in INR Crore)

3.3.5 Consumer Durable

Growth Forecast of Consumer Durable Market 2017-21 (in INR

Growth Forecast of Cosmetic Market 2017-21 (in INR Crore)

3.3.7 Others Applications

3.4 Indian Paint and Coating Market Forecast by Type of

1. Water borne paints

Indian Paint Market share by Technology Type in 2016 Type(in %)

3.4.1 Water borne paint

Growth Forecast of Water Baised Paint 2017-21 (in INR Crore)

Growth Forecast of Solvent based Paint Market 2017-21 (in

3.5 Indian Paint and Coating Market Forecast by Type of

30.59% General industrial Coating

3.5.1 Powder Coating

3.5.2 Protective Coating

Growth Forecast of Protective Coating Market 2017-21 (in INR

3.5.3 General Industrial Coating

Growth Forecast of General Coating Market Market 2017-21

3.5.4 Automotive Coating

4.1 Growth drivers

4.2 Growth Inhibitors

5.2 Policy Risk (Government)

6. Profile of Key Players in Indian Paint and Coating

6.1.1 Company Profile

Contact Details for Asian Paints Ltd.

Address Asian Paints Limited, Asian Paints House,6A, Shantinagar,

Fax 022 - 6218 1111

Key Management Ashwin Choksi