Market Study Of Paint Industry

INDIAN PAI NT INDU STRY Paint Industry

Product Industrial 30%

Sector Decorative 70%

Coil Coatings

Enamels

Powder Coatings

Distempers

Automotive Coil Coatings Paints

CoilEmulsions Coatings

Marine Paints

Exterior Coating

High Performance

Wood Finishes

Organized 70%

Unorganized 30%

INDUSTRY PLAYERS DECORATIVE SEGMENT Others 19% Shalimar 6%

Asian Paints 37%

Jenson and Nicholson 6% ICI 8% Berger paints 11%

Kansai Nerolac 13%

MARKET FEASIBILITY The Indian paint industry is a Rs 49 billion

sector.

GDP growth is higher, the paint sector will

benefit and vice versa

Highly price sensitive & cyclical Demand arises in Festive Season. Change in demand patterns over the years.

TECHNOLOGY IMPACT: BERGER •Berger

has a series of tie-ups for various purposes.

•Joint venture with Becker Industrifag. •Berger allied with the Japanese major Nippon Paints to boost its OEM turnover •Agreement with Orica Australia Pvt. Ltd. to produce new generation protective coatings. •Tie-ups with Valspar Corp and Teodur BV for manufacturing heavy duty and powder coatings.

ADVERTISING IMPACT: ASIAN PAINTS V/S KANSAI NEROLAC •Waah

Sunil Babu •Soha & Saif Ali Khan ad •Rang soche nahin, dekhe jaate hain •Har Rang Kuch kehta hai •Har Ghar Kuch Kehta hai •Bangla toh abhi bhi chamak raha hai

•Aapko banaye style ikon •Show your true color •Jab ghar ki raunak badhani ho…

MARKET RESEARCH & TREND ANALYSIS Involvement of the consumer. Shift from Commodity to FMCG – brand building. Communication or lack of it can make or break

your brand. Changed brand identity, online services, Inc R&D spend. Newest Trends – New textures, use of bold shades, Disney e.g. Kansai Nerolac site: personality V/s rational

INCREASING 5% MARKET SHARE Strengthen communications Multi v/s sole dealer Training to dealers Increase awareness (networking) amongst

interior decorators, architects, consumers, contractors Feedback mechanisms -E.g. Nerolac impressions

NEXT YEAR PROJECTIONS Introducing Water – based Paints. Repositioning of existing Brands in Rural Market. Broadening of Distribution Network. Adding more choices for shades and effects. Enhancing Better Quality Demand will be generated through the new

constructions coming in housing and industries.

SWOT ANALYSIS  Strengths  Imp of brand image as barriers to new entrants  Good technology backup.

 Weakness  Raw materials – scarcity  Requirement of high working capital  Real estate in a depression phase.

 Opportunities  Fiscal incentives provided by Government.  Commodity to fmcg  Rise in disposable income

 Threats  Foreign companies entering as sole players