SAIKANnerolac Project

A Project Report
ON
“Comparative study Of Indian Paints Industry”
FOR
Kansai Nerolac Paints Ltd. & Other Paints
Under the Guidance of

Mrs. Rachana Singh
(Faculty Member Of
Cimt lucknow
Sub
mitted To- Submitted By-
Dharmendra kumar singh

M.B.A (2009-10)
Central institute management and technology lucknow

Executive Summary
This project aims to study the distribution channels, sales

network and service patterns of the paint sector through an
analytical and comparative study of two leading companies-
Nerolac Paints India Ltd. (NPIL) and Asian Paints Ltd.
(APIL). The project also tries to bring out the shortcomings,
if any, in the present system and thus recommends
suggestions to improve the same. The project also gives
insights into the various financial terms, norms of the sales
and service departments as per the guidelines of the paint
industry.
The project was designed after detailed discussion with the

company officials on three parameters i.e. distribution
network, service network and sales functioning. The project
also includes the insights given by the dealers and officials
of the company. “The sample size of 6 for channel members
and that for the sales people was 2, for each company”.
Firstly, the project discusses the distribution network of the

two companies and the functions carried out by the channel
members. Asian Paints being the largest paint manufacturer

In India, definitely have a wider reach and more number of
dealers than Nerolac.
The project also covers the financial terms of the company

with the dealers and that of the dealers with the customers.
Secondly, the project discusses the sales functioning of the

two companies, which includes aspects such as the
hierarchy of the sales department prevalent in the company;
the responsibilities and functions of the sales force, their
performance appraisal structure etc.
Finally the project covers the service network of the two

companies which deals with the after sale services and their
effectiveness provided by both the companies and various
complaints and queries are handled by them

TABLE OF CONTENTS
PARTICULARS PAGE NO.
1. Executive Summary
2. Acknowledgement
3. Methodology
4. Indian Paint Market
5. Company Background(Nerolac
PAINTS)
6. Distribution network
7. Product of Nerolac
8. Company Background((Asian
Paint)
9. Distribution network
10. Selection Of Dealers
11. Analysis
12. Annexure

METHODOLOGY
The objective of this project on sales and distribution is to

do an analytical and comparative study of the sales, service
and distribution function of two players from the chosen
business sector.
The business sector chosen for this purpose is the fast

growing paint sector, and the players chosen for study from
this sector are:
NEROLAC INDIA LIMITED
ASIAN PAINTS LIMITED
INFORMATION SOURCES
PRIMARY DATA SOURCES-

 NEROLAC INDIA LIMITED- Head, Corporate Sales
 NEROLAC AUTHORISED DEALERS
 ASIAN PAINTS LIMITED – Area Sales Manager
 ASIAN PAINTS AUTHORISED DEALERS
SECONDARY DATA SOURCES-
THE INTERNET
www.nerolac.com
www.asianpaints.com
www.google.com
http://www.indiacom.com/yellowpage/category-
gyan/articles/paints/Paints-Introduction.asp?
category=paints
DATA COLLECTION TOOLS
Interviews & Discussions with the company officials, dealers

and
Sales people. Questionnaires were used to record data.
SAMPLE SIZE USED
The sample size for the dealers was 12 in number while the
sample size for sales people was four.
Asian paints (dealers) - 6
Asian paints (sales people) – 2
Nerolac India (dealers) – 6
Nerolac India (sales people) – 2
LIMITATIONS:
It was difficult to ask for time required for a detailed

discussion on the questionnaire & therefore several aspects
of the questionnaire were answered briefly.
The company officials did not divulge details about
competitive sales policies, strategies & certain financial
terms with dealers as they find it to be a confidential piece
of information of the company.

Indian Paint Market
In India, Indian Paint industry’s total market size is US$1400 million.

The organized sector of the industry is 55%. The 45% unorganized
sector has about 2500 units.
The big players and their market share-value of the organized sector
are..
Asian Paints 37%
Goodlass Nerolac 15.9%
Berger Paints 13.8%
ICI 11%
Jenson & Nicholson 5.7%
Shalimar 4%
Others 12%
The market segment is divided into two sectors.
Architectural 70%
Industrial 30%
The total volume of the market is 600,000 MT.

HISTORY
OF NEROLAC
PAINT

Origin & Evolution of Nerolac
Nerolac embarked its journey in 1920 as Gahagan Paints

and Varnish Co.
Ltd. at Lower Parel
in Bombay.
In 1930, three
British companies
merged to
formulate Lead
Industries Group
Ltd. In 1933, Lead
Industries Group
Ltd.
Acquired
entire share capital of
Gahagan Paints in
1933 and thus,
Goodlass Wall (India)
Ltd. was born.
Subsequently, by
1946, Goodlass Wall
(India) Ltd. was known
as Goodlass Wall Pvt.
Ltd. In 1957, Goodlass
Wall Pvt. Ltd. grew
popular as Goodlass

 In addition, it went public in the same year and
established itself as Goodlass Nerolac Paints Ltd.
 In1976, Goodlass Nerolac Paints Ltd. became a part

of the Tata Forbes Group on acquisition of a part of
the foreign shareholdings by Forbes Gokak.
 In 1983, Goodlass Nerolac Paints Ltd. strengthened

itself by entering in technical collaboration
agreements with Kansai Paint Co. Ltd., Japan and
Nihon Tokushu Toryo Co. Ltd.,japan.
 In 1986, Goodlass Nerolac Paints Ltd. turned into a

joint venture of the Tata Forbes and the Kansai Paint
Co. Ltd., with the latter acquiring 36% of its share
capital.
 In 1999, Kansai Paint Company Ltd., Japan took over

the entire stake of Tata Forbes group and thus GNP
became a wholly owned subsidiary of Kansai Paint
Company Ltd.
 In 2006, on the 11th of July, Goodlass Nerolac Paints

Ltd. name has been changed to Kansai Nerolac
Paints Ltd.
 In1976, Goodlass Nerolac Paints Ltd. became a part

of the Tata Forbes Group on acquisition of a part of
the foreign shareholdings by Forbes Gokak.
 In 1983, Goodlass Nerolac Paints Ltd. strengthened

itself by entering in technical collaboration
agreements with

 Kansai Paint Co. Ltd., Japan and Nihon Tokushu
Toryo Co. Ltd., Japan.
 In 1986, Goodlass Nerolac Paints Ltd. turned

into a joint venture of the Tata Forbes and the
Kansai Paint Co. Ltd., with the latter. acquiring
36% of its share capital
 In 1999, Kansai Paint Company Ltd., Japan took over

the entire stake of Tata Forbes group and thus GNP
became a wholly owned subsidiary of Kansai Paint
Company Ltd.

In 2006, on 11 July, Goodlass Nerolac Paints Ltd.
name has been changed to Kansai Nerolac Paints
Ltd.

During the journey of continuous
performance excellence, we have
entered in to many technical
collaborations with other industry
leaders such as E.I. Du-Pont de
Nemours & Company Inc., USA
and
Oshima Kogya Company Ltd.,

Japan for our different products.
Our incessant journey of successes will go on backed by

our present human asset of over 2000 professionals and a
sales turnover of Rs. 1484 cores
We are esteemed a subsidiary of Kansai Paint Company

Limited, which is the largest paint manufacturing company
in Japan and among the top ten coating companies of the
world.
We are the second largest coating company in India with a

market share of over 20%.
We are the market leader in industrial / automotive segment

supplying over 90% of the OEM requirements.
We are the leader in powder coatings.

NEROLAC
PROFILE
Management & Key People
“The people who make the company are its real

assets.”
At Kansai Nerolac, we
stand by this.
The success of Kansai

Nerolac has
hinged on this philosophy since1920,
In addition, being the second largest paint company in India
is rightful
Company in India is the rightful tribute to its people's
commitment and dedication.
With employee strength of around 2000 spread over the

country and an efficient management, the company provides
the conducive work atmosphere to develop and grow.
Our team of PhD’s, engineers and technicians visit

collaborator's plants abroad to update themselves with the
latest techniques.
BOARD OF DIRECTORS
Designation
Name of the Person
Dr. JAMSHED JIJI IRANI CHAIRMAN
MR. DEVENDRA MOTILAL KOTHARI VICE -CHAIRMAN
MR. HIROSHI ISHINO DIRECTOR
MR. YUZO KAWAMORI DIRECTOR
MR. PRADIP SHAH DIRECTOR

MR. HARISHCHANDRA MEGHRAJ MANAGING
BHARUKA DIRECTOR
MR. SUSIM MUKUL DATTA DIRECTOR
MR. NOEL TATA DIRECTOR
MR. YASO TAJIRI DIRECTOR
MR. PRAVIN CHAUDHARI DIRECTOR
Management Committee Members
Name of the Person Designation
Mr. H.M. Bharuka Managing Director
MR. Pravin Chaudhari Director
Mr. Shrikant Dikhale Vice President - HR
Mr. Anuj Jain Vice President - Marketing (Decorative)
Mr. Mahesh Mehrotra Vice President - Technical

Mr. Hitoashi Nishibayashi Director Supply Chain & Auto Marketing
Mr. P.D. Pai Vice President - Finance
Mr. Jason Gonsalves Vice President - Corporate Planning & IT
The HR Angle
Vision Values and Culture

In today’s dynamic business
environment, no organization can
afford to survive without a well-
articulated and carefully thought
vision stating the overall strategic
direction and long-term future of
its business.
We have been at the forefront of

paint manufacturing over eight decades pioneering a wide
spectrum of quality products that change the face of
economy and lifestyles of people at large.
It is our vision to leverage global technology, for serving our

customers with superior coating systems built on innovative
and superior products and world class solutions, to
strengthen our leadership in Industrial coatings and propel
for leadership in Architectural coatings, all to the delight of
our stakeholders.
We firmly believe that it is not only the vision of where we
wish to go which will form a cornerstone of all our further
growth, but also our fact that
The values based proposition has to be ultimate foundation

of our business.
To this end we consciously have internalized and been

practicing these values in all our business transactions
though human beings:
Innovation
Entrepreneurial
Responsive
Simplicity
Team Orientation
Cultural Ethos
Vision driven organization

Employees feel pride in being part of the organization
Recognition of human resources as extremely important
and critical assets
High level of human dignity
Transparency and openness among employees at all
hierarchical levels
Performance-linked reward system
Management and employee commitment to organization
values is high
Autonomy in work is high
High commitment to quality products
The HR Philosophy
 At Nerolac we recognize our human resources as

extremely important and critical assets. We honor the
dignity of each individual, irrespective of position and
highly value the feelings and emotions of people.
 Our Human Resource Policy is, to facilitate creation of

synergy, mutuality and interdependence between
individual and corporate development and growth
through total employee involvement and building an
enabling work culture in the organization.
 Informality in interactions, transparency and openness

in communications at all levels, and an enabling work
environment supporting high autonomy of work,
transparency and an objective subjectivity of
Performance Management System, fair dealing,
tremendous care and concern for people are a few of
the softer aspects of permeable people management
environment which represent the organizational climate
and culture.

 Our faith is averred by the fact that people feel pride in
being part of the Nerolac family. We care for people;
people care for our business.
The Quality Policy
It is the philosophy of Kansai Nerolac Paints Ltd., and its

associates to achieve complete
customer satisfaction by providing
products and services that
consistently meet or exceed the
customer needs and expectations,
pursuant to agreed specifications,
delivery schedules and
competitive prices.
It is the philosophy of the

company to systematically
operate its manufacturing facilities by inculcating
commitment to total quality management at all levels and on
a continuous basis with a view to achieving “First Time
Right” results in manufacture, services and other
operations.
It is the company’s aim to constantly reduce waste of

material and effort, increase efficiencies and ensure safety
of plant and people and protection of the environment.

Open Door Policy
Working together requires that we have a friendly

atmosphere based on trust and respect amongst all of
us.
At Nerolac we follow an Open Door policy. Any person is

free and welcomed to share good idea, suggestion,
doubt, problem about job or work place, or
uncertainties about one’s future in the organization. An
open and transparent communication is appreciated
Social Responsibility
The company continues to make its due contribution

to community r e l i e f a n d d e v e lo p m e n t a c t i v i t i e s a n d
has donated both in ca s h a n d k in d for the
beautification of some public places in Mumbai and
elsewhere.
T h e c o m p a n y c o n t i n u e d i t s a c t i v i t i e s d ir e c t l y o r
indirectly through t r u s t s / a g e n c ie s in community
D e v e l o p m e n t a n d S o c i a l W e l f a r e i n c lu d i n g c o n t r i b u t i o n s
towards national defense, medical help, education,
improvement of environment etc
IT Pillar
Nerolac has always sought to

harness the benefits of
Information technology. It has
envisioned using Information
technology in all areas of
business to build up unique
competencies and efficiencies
thus delivering maximum value to
Nerolac's stakeholders
Starting in February 2000, it has

transformed its functional based legacy systems into a
process based organization wide systems culture by
investing and implementing the SAP R/3 solution.
It has also sought to leverage its vast repository of data and

work towards building knowledge based organization. In line
with this vision, it has invested in an excellent data
warehousing solution and in Knowledge sharing portal.
The power of IT has been further leveraged to enhance the

operational capabilities with the help of Supply Chain solutions from
SAP.

As part of these implementations, Nerolac today has a state of the art
data center and communication infrastructure based on VSAT’s /
Leased lines/ ISDN/ VPN connecting all its sales offices and factories
Around the country allowing online transaction processing

and response backed by a state of the art
Storage (SAN) device. Nerolac plans to now open its

organization to its suppliers and customers so as to
Reap the benefits of modern communication technology

and E-commerce.
A part of this process it is now pursuing means for

establishing secure connectivity to the extended
enterprises.
Nerolac will continue to invest in applications that make it

more open and transparent to all its stakeholders.

Quality Safety and Environment
Quality-- In continuation of our efforts to achieve highest
Quality standards, we the Kansai Nerolac Paints Ltd have
successfully implemented various Quality Managements
Systems in our organization.
All manufacturing locations of KNPL have been certified for

ISO 9001-2000
Being major Industrial paint manufacturer & supplier to OEM

customers KNPL has also implemented QMS as specified
by ISO/TS 16949 standard .Our industrial paint
manufacturing locations are certified for ISO/TS 16949
-2002
The Japanese 5-S and TPM (total productive maintenance)

concepts have been implemented in organization.
Safety --The Company takes the greatest possible care to

ensure the safety, health and welfare of its staff and the
communities living around its facilities.
All manufacturing locations are OHSAS-18001 certified.

Safety is given paramount importance across the
organization. Safety and occupational health programme
are in place to ensure the wellbeing of employees and
facilities at all locations.

Environment
KNPL aims to promote sustainable environment
management, which contributes to environmental
conservation. Protecting the environment is a crucial
component.
All manufacturing locations are ISO-14001 certified which

helps the organization to achieve sound environmental
performance.
Certified
Sr. No. Plant Type of Certificate
By
ISO /TS 16949 : 2002 BVQI
ISO 9001: 2000 BVQI
1 Lote
ISO 14001:2004 BVQI
OHSAS 18001:1999 BVQI
ISO/ TS 16949 : 2002 BVQI
2 Bawal ISO 14001:2004 BVQI
OHSAS 18001:1999 BVQI
ISO/ TS 16949 : 2002 Intertek
ISO 9001: 2000 Intertek
3 Jaipur
ISO 14001:2004 Intertek
OHSAS 18001:1999 Intertek
ISO 9001: 2000 Intertek
4 Chennai
5 Nippa ISO 9001: 2000 Intertek

Organizational Strengths
An organization is not set on pillars

of brick and concrete but is set on
strong inherent characteristics that
make it strong for Years.
Nerolac is carrying on strong since

1920. Following are its strengths
that have kept this company in good
faith.
Nerolac is a company with very clear and well-defined

vision and very strong values. Clarity of vision and strong
foundation of cultural values have always kept this company
in good stead.Its ethical conduct has always guarded it
against any possible traps and pit falls.
We have made sure that the distribution hurdles and the

climatic vagrancies do not affect the
quality of our services.
This same commitment will ensure that

Kansai Nerolac will march towards its
centennial year, fully dedicated and
invigorated, in step with the exciting
wave of industrialization and
modernization pervading through the
new India.

Innovation in Research & Development
"Compete through Innovation"
The keystone of Kansai Neola’s success has been its

investment in technology and the importance given to
Research and Development.
The company has, over the years, set up excellent facilities

for developmental research, improving its manufacturing
processes and continuously innovating on its products.
Kansai Nerolac's R&D laboratory has the distinction of

being one of the first to be officially recognized by the
Department of Science and Technology (DTI), Government
of India.
At Nerolac, quality control starts from the first stage of raw

materials, through intermediates, right up to the finished
products.

Wide Experience
The rich cumulative experience of the organization gathered
over 80 years of experience provides a strong backbone to
all kinds of decisions taken in this company.
80 years of learning in trade and market has given enough

expertise to innovate and develop products and services
according to the changing needs and desires of customers.
Nerolac paint technology cuts across all barriers; without

discriminating between uses or users. The past decades
have seen a meteoric rise in the fortunes of Kansai
Nerolac. Today, we are the second largest paint company
and a recognized leader in our chosen fields.
The company was adjudged the fastest growing paint

company in the organized sector, not once but thrice-in
consecutive years .
People
Nerolac is a company, which considers its people as one of

its strengths. Nerolac has always valued its employees.
Recruitment thus becomes very important activity at

Nerolac. Employees that add value to the organization are
suitably awarded & rewarded to keep the fire live & going
Strategic Alliances

The coatings industry globally, like several other industries,
is in the process of consolidation.
The process of consolidation is intended to help companies

meet increasingly challenging customer requirements by
constantly updating technology, striving for greater
efficiency in operations and ensuring worldwide servicing
capabilities.
World over, units are moving with

associates/affiliates/parent bodies with core competence as
their prime objective.
The acquisition by Kansai of the shareholding of Forbes

Gokak Ltd. and their associates in your Company is in
furtherance thereof.
Technical collaborators and associates are strategically

placed to make most of the market opportunities and create
more value to the company .

Strong distribution network
Nerolac’s strength of wide spread

distribution network is its right arm in
generating sales revenue from all parts of
India. Nerolac has a wide distribution
network of over 11,000 dealers
we have eight Sales Divisions and each division has depots

to take care of local needs. In all we have 66 depots
all this ensures complete reach in India including rural and

up country markets.
Manufacturing Strength
Manufacturing is a very important function for the paint

industry. Nerolac has made sure that its manufacturing
facilities are world class.
Nerolac has four manufacturing units located at Perungudi

(T.N.), Jainpur (U.P.), Lote Parshuram (Maha.) & Bawal
(Haryana).
The fifth factory is planned at Hosur in T.N. The total

installed capacity of all the existing units put together is
173900 MT/Annum.
Its latest unit is at Bawal, which was commissioned in

March 2005, with a capacity of 20400 TPA
With an investment of around Rs.100 crore- all through
internal accruals

Marketing
At Nerolac, the marketing function has been one of

the pillars behind building a successful organization.
We believe our key strength lies in understanding the

consumer and communicating with him in a language
they understand and relate to best. Nerolac
commercials have been well -loved over the years
and its jingle –
“Jab ghar ki raunaq badhaani ho..”'
Is now a familiar tune in every Indian household?
Over the years, Nerolac has undertaken several initiatives, which

have met with unprecedented
Success and made people really sit up and take notice of the brand.
Beginning with the introduction of the new Brush stroke logo, which
stands for the
‘Process of painting’.
It depicts motion, dynamism and progress through change. The

signal red color, which is the color of Nerolac, is

“Symbolic of eternal joy and hope”.
Has now become an integral part of our brand identity and now
appears as a sign-off on any kind of communication.
Another one of the marketing initiative was the unveiling of the new
corporate campaign with Mr. Amitabh Bachchan as our brand
ambassador.
In this campaign, Amitabh Bachchan embodied Nerolac and showed

how it touches the lives and dreams of people...no matter who they
are and where they come from.
The essence of this thought was captured in the newbaseline
“Yeh Rang hain jo har kisi ko chhoota

hain”.
Apart from the corporate campaign,

we also released a new commercial
for Nerolac Suraksha with
Mr.Bachchan. Focusing on the fast
growing exterior category, this
commercial playfully demonstrates
Suraksha's proposition of
protection.Another one of the
initiatives launched, during the
festival season of Diwali was__

“Har Din Diwali”
A promotional campaign aimed at the customer.
The unique feature of this campaign was the opportunity to

win daily prizes through out the entire duration of 55 days of
the campaign.
In addition to the daily prizes, there was also a grand

bumper prize to be won. For sure, this one campaign was a
runaway success.
Complimenting our core business of paints last year also

saw the launch of “Nerolac Assured Paint Service”.
Designed to bring the Nerolac experience right to the

consumers' doorstep, it met with an excellent response.
Currently available in Mumbai, consumers can now relax
while the Nerolac team takes over the entire paint job right
from sourcing to execution.
In our effort to becoming consumer friendly, this year we

also undertook the exercise of redesigning our shade
cards.
The new look shade cards are not only eye catching and
consistent in appearance but also try to make the
processor shade selection for the consumer lot more
interesting and convenient.

On the award front, we made a great start to the year by
winning two Envies, or media awards for innovative
executions.
Therefore, it has been another successful year for Nerolac.

We have taken some long-term and some short-term
initiatives that will bear fruit as time passes.
That is why we believe that tomorrow, the sky will be the

limit.
The Kansai Nerolac mark symbolizes a progressive, forward
driven process of change. This movement is expressed in a
trend setting style that makes it unique and memorable.
Technical Collaborators
Nerolac Committed to provide the best in Paints, Nerolac

have entered into Technical Collaboration with two industry
leaders known for their technical superiority.
The two technical collaborators are

 Kansai Paint Co. Ltd., Japan.
 Oshima Kogyo Co. Ltd. Japan
The Associates of Nerolac

provide that vital edge to stay ahead of the competition.
These associations were setup with the specialized
expertise of the Industry leaders to make Nerolac a
complete Paint Company catering to all the market
segments.
Shareholders
In February 2000,
Kansai Paint Co. Ltd.,
Japan, the Company's
foreign collaborator
and one of the
Promoters of the
Company, acquired
43,71,152 shares
amounting to 28.56%

of the paid-up Share Capital of the Company from Forbes
Gokak Ltd. and their associates, the other Promoter of the
Company, at a price of Rs.250 per share.
With this acquisition Kansai Paint Co., Japan, was now

holding 64.52% of the paid up share capital of the
Company. Share holding increased to 66.41%, post the
merger of Polycot Powders Ltd., a wholly owned subsidiary
of Kansai Paint Co., Japan, with Kansai Nerolac Paints
Limited.
The coatings industry globally, like several other industries,

is in the process of consolidation.
The process of consolidation is intended to help companies

meet increasingly challenging customer requirements by
constantly updating technology,striving for greater
efficiency in operations and ensuring worldwide servicing
capabilities.
World over, units are moving with

competence associates/affiliates /parent bodies with core as
their prime objective.
Dealer Network
Kansai Nerolac Paints Ltd." has a wide network of around
11,000 Dealers.
They have eight Sales Divisions and each division has depots to take
care of local needs. In all they have 66 depots. All this ensures
complete reach in India including rural and up country markets.
Nerolac have made an attempt to

Provide with the details of those
dealers who have installed the
Computerized/Manual color tinting
Machines at their counters, known
as
Cloudscapes counters
Channel structure
Nerolac Paints Ltd.
Dealer/ distributor Warehouse
Dealer shops
End customer
PRODUCT
S
OF
NEROLAC
Lead Free Paints from Kansai Nerolac
Kansai Nerolac Paints Ltd. Has
Always been committed to the
Welfare of society and environment
In addition, as a responsible
corporate has
Always taken initiatives in the areas
Of health, education, community
Development and environment preservation.

Kansai Nerolac has worked on removing hazardous heavy metals
From their paints. The hazardous heavy metals like lead, mercury,
Chromium, arsenic and antimony can have adverse effects on
Humans.
Lead in paints especially poses danger to human health where it can
Cause damage to Central Nervous System, kidney and reproductive
System Children are more prone to lead poisoning leading to lower
Intelligence levels and memory loss. Kansai Nerolac has removed
Heavy metals from the passenger cars products long ago.
Gradually all such heavy metals were removed. At present, the entire
Decorative Range of products, which are used in Households, has
Become ead free by design.
Kansai Nerolac does not add any
Lead or other such heavy metals
In its manufacturing process
However, lead contamination may
Take place through ingredients like
Solvents and thinners.

In any case, the same will be lower than limits certified by various
organizations and also considered safe from health norms To
educate the consumers on the same we have also started an
Advertising campaign highlighting the adverse effects of lead on
humans and how Nerolac Paints are made safe by removal of
These hazardous to identify eco-friendly products, we have
Introduced lead free logo which is displayed on all the
Decorative products of the company.
List of some of the Lead Free products

offered by KNPL:
1. Interior Emulsions
2. Exterior Emulsions
3. Enamels
4. Distempers
5. Putty & Fillers
6. Primers
7. Varnishes & Wood Coatings
8. Passenger
NEROLAC PRODUCT
• WALL

Interior Exterior
Nerolac's range of Nerolac's range of
Decorative paints Decorative paints
for inner walls. for building
exteriors.
Emulsions
1> Water Based Paints
Textured
- Emulsions
Cement
- Distemper
Nerolac Impressions Ever
last
2> Solvent Based Paints

- Lustre
- Enamel
- Flat Oil
• Metal
Nerolac Impression Hi-Performance Enamel
Nerolac Satin Enamel

Nerolac Synthetic Ena
• Wood
1K PU
Mel'mine
2K PU
PU Interior +
Multisealer
Water Clear Lacquer
Wood Stains
NC Sanding Sealer
NC Wood Filler
NC Thinner
• Industrial Paints
Automotive Coatings

Industries Serviced
Value Addition
General Industrial Coatings
Automotive Coatings
High Performance Coatings
Powder Coating .
• Walls- Interior
Emulsions

Nerolac Impressions 24 carat.
Nerolac Impressions Metallic.
Nerolac Impressions Disney.
Nerolac Beauty Premium Acrylic emulsion .

Nerolac Beauty Silky Smooth .
Nerolac Beauty Smooth finish .
Nerol ac Beauty Flexi Coat
Distemper
Beauty Premium Acrylic Distemper .

Beauty Acrylic Distemper .
Beauty Oil Bound Distemper.
Enamel
Nerolac Synthetic Enamel .
N erolac Satin Enamel.

Impressions Hi- Performance.
Goody Synthetic Enamel

• Walls - Exterior
Em
ulsions
Impression Excel Anti Peel .
Imp ression Excel Total.

Suraksha Advanced.
Nerolac Suraksha .
• Industrial Paints
Automotive Coatings
Kansai Nerolac is the Market Leader in the automotive
coating segment in India with a market share of over
60% with global technology acquired from Kansai Paint
Co. Ltd, Japan.
Kansai Nerolac offers the

latest technology in automotive
painting systems to the Indian
automotive industry.
Automotive Coatings of Kansai

Nerolac have been tested and
certified by global automotive
manufacturers who have set up base in India, like:

1. Suzuki Motors
2. Honda Motors
3. Toyota Motors
4. General Motors Corporation
5. IVECO Motors
6. Peugeot
Through its various strategic

collaborations, Kansai Nerolac offers
a tota l painting system to auto
makers in India with a range of
products, starting from Pretreatment
Chemicals, Electro Deposition Primers,
Intermediate Coats/primer Surfacers,
Solid & Metallic Top Coats, Clear
Coats Touch-up Paints.
The product range is backed up by a strong technical

service network of experts placed at customers’ end,
training programs, VA/ VE activities in co-ordination
with customers resulting in ultimate delivery of optimized
painting solution.
Kansai Nerolac has tie-up with the global players for

product range offered to automotive and industrial
customers.
Kansai Nerolac has entered into collaboration with the

following players for specific product range….

The paint manufacturing industry is moving ahead by leaps
and bounds, and setting the momentum is Kansai Nerolac
Paints.
A pioneering R&D ensures we manufacture a wide

spectrum of paints that change the face of the industry in
India. Kansai Nerolac Paints develops and supplies cost
effective paint systems used on the finishing lines of major
electrical components, cycle, and material handling
equipments, bus bodies, containers and furniture industries.
Besides this we also provide systems conforming to I.S. &
Defense specifications.
We pride ourselves in the quality and

consistency of our coatings and have
helped companies, who serve diverse
markets.
We have the experience to help

businesses excel in coatings and
• Company • Product Category
• Kansai Paint Co., Japan • ED Primers, Automotive &

Industrial Coatings
• Nihon Parkerizing, Japan • Pre-Treatment Chemicals
• Oshima Kogyo, Japan • Heat Resisting paints
• Ameron/PPG, USA • High Performance Coatings
application processes.

A comprehensive range of products meant for industrial
application we have specialized in providing:
1>Coating Solutions for Bus, Load & Trailer Bodies
2>Coatings for drums and barrels, cylinders, beverage containers,
collapsible tubes, crown and caps
3>Coil coatings for steel and aluminum substrates
Industries Serviced

Auto Industry Tractor Industry
Auto Ancillaries General
Marine Container & Ship

White Goods Industry
Repair

High Performance Coating
It is amazing how often the havoc wreaked by the ravages

of corrosion goes unnoticed, even though rough estimates
put the corrosion losses in India at
a whopping Rs. 5000 crores a year!

Every second, some surface of a vital structure is under
attack from chemical, physical and environmental forces.
In this battle against corrosion, we offer the best defense.

With a range of High Performance Coatings, manufactured
in collaboration with PPG Industries Inc (formerly Ameron
Coatings), USA
Customized Solutions To Your Problems
Kansai Nerolac offers cost effective solutions to all

corrosion problems. We have had a long association with
satisfied customers in Infrastructures, Power, Fertilizers,
Chemical and Petroleum, Heavy Engineering, Offshore and
Marine segments.
Kansai Nerolac paints Ltd., provides services at the

following major stages:
Initial discussion: Specifications for new projects and/or

maintenance are discussed in the first stage. The objective
of this discussion is to identify the principal criteria.
On site examination: A full inspection is carried out of all

the facilities, with particular reference to maintenance or
repainting jobs. The condition of existing coatings is noted
and a future maintenance program recommended.
Cost effective evaluation: Suitable systems are evaluated

in order to select the most effective system for optimum
results.

Finalization of specification: Discussions with the
customer to ensure that the specification is totally in
accordance with their needs. After which recommendations
and supporting documents are submitted for final
acceptance.
Technical advisory service: This is provided throughout

the period of contract with close monitoring at critical
stages and on finalisation of the project.
Post completion consultancy: Constant and regular

monitoring is done after the project is completed to ensure
total customer satisfaction.
Nath Balakrishnan
`The paint industry in India still has a lot to do to promote usage,

which by itself is a huge opportunity.'

Asian Paints is a household name in the domestic paints industry.
Now, with operations in 23 countries across the world, its business is
acquiring a global dimension. In a freewheeling interview with
Business Line, Mr Ashwin Dani, Vice-Chairman and Managing
Director of Asian Paints (AP) shares his outlook on the company's
prospects, how various categories within the paints segment fared,
the role of marketing initiatives, such as the installation of tinting
machines, and, finally, about AP's acquisition-led expansion strategy.
Mr Dani's views on developments on the acquisition front will be
published next week.

Demand for paints comes from two broad categories:
 Decoratives:
• . Decorative paint's market size stands at around Rs 32.5 Bn.

Asian paints is this market leader in this segment
• Under this segment it offers Painting Guide, Painting Solution,

Paint Calculator and Paint Selector as value added decorative
service.
Introduction
Asian Paints offers 4 types of industrial coatings such as:
Protective Coatings - protects steel and concrete

structures from the corrosive action of harsh climates,
pollution, sea spray, acids, oils and solvents.
Road Markings –
are used as road
markers for lane as
indicator of lane
separation and also
as safety markers.
They include
ordinary road
marking paint, hot
applied retro-reflective thermoplastic material and retro-
reflective water borne paints.

Powder Coatings –
is used to enhance
the performance of
Industrial paints.
Floor Coatings – such paints protects the floor surface

and prevents crack formation, insect nest formation, water
seepage etc
The paints sector is raw material

intensive, with over 300 raw materials
(30% petrol-based derivatives)
involved in the manufacturing process.
Since most of the raw materials are
petroleum based (ex: Titanium Dioxide), the industry
benefits from softening crude prices.
COMPANY DECORA INDUSTR OVERA ESTIMATED

TIVE IAL LL PAINT
REVENUES
Asian Paints 38% 14%-16% 32.5% Rs. 6,980
MM
Goodlass 7.8% 40% 17.5% Rs. 3,750
Nerolac MM
Berger Paints *14% *14% 14.0% Rs. 3,007
MM
ICI India Ltd. 8%-9% 12% 10.5% Rs. 2,254
MM
Jenson and *6.9% *6.9% 6.9% Rs 1,482
Nicholson MM
Growth Rate 8-9% 18% 11%
Total (Rs.) 15,033 6,442 21,476
MM MM MM
ince these companies strive to match their product sales

to the market (i.e. 70% : 30%) they maintain similar
market share in each segment
PRODUCT RANGE
• Asian Paints Premium Emulsion
• Asian Paints Interior Wall Finish Lustre
• Asian Paints Ace Exterior Emulsion
• Asian Paints Apcolite Clear Synthetic Varnish
• Asian Paints Touchwood

• Asian Paints Utsav Enamel
• APEX ULTIMA
• With 7 year warranty
COMPANY BACKGROUND
Asian Paints
Asian Paints, established in 1942, is India's largest paint
company and the third largest paint company in Asia. It has
a turnover of Rs 30.2 billion (around USD 680 million).
The company operates in 21 countries and has 29 paint
manufacturing factories servicing 65 countries.
The company operates several subsidaries such as Berger

International Limited, Apco Coatings, SCIB Paints and
Taubmans. The company manufactures paints for
decorative, industrial, and motor applications.
The history of AP dates back to 1942. It was started by four

entrepreneurs, Champaklal Choksey, Chimanlal Choksi,

Suryakant Dani and Arvind Vakil, as a partnership firm for
manufacturing paints, in a garage rented for Rs 75 a month.
In 1945, the partnership firm was turned into a private
limited company named Asian Oil & Paint Co. Pvt. Ltd. And
in the same year, its turnover touched Rs0.35million.
In the 1940s, it was largely multinational companies such as

British Paints and Jenson & Nicholson that dominated the
Indian paints market.
In order to increase revenue, AP concentrated on the

smaller towns ignored by multinationals. In 1954, Asian
Paints asked the famous cartoonist R.K. Laxman to create a
mascot for the company, and from his pen was born – Gattu
– which emerged as one of India’s most memorable mascots
(Refer Figure I). However, AP’s market research found out
that in rural India, farmers who wished to paint the horns of
their bullocks preferred to buy paint in small packs. Soon
AP came out with 50-ml packs, which became very popular.
Asian Paints Limited ("Asian

Paints") is transforming itself to
become a major world player in
the decorative paints business
with particular focus on emerging
markets following its acquisitions
of controlling stakes in Berger
International Limited ("Berger
International") of Singapore and
SCIB Chemical S.A.E. ("SCIB") of
Egypt.

The total investment made by the company in both these
acquisitions amount to around US$ 16.8 million (S$29.6
million).
Asian Paints announced that it would focus on emerging

markets of the world for growth and also that Berger
International will be the main growth driver for Asian Paints
international operations Focusing on the aspect of
increasing shareholder value in Berger International, Mr.
Dani said:
"In Berger International, Asian

Paints will focus to increase
shareholder value by further
improving the supply chain
management in the subsidiaries
(Asian Paints supply chain
management is considered the
best in India servicing around 14,500 dealers directly from
70 sales locations a n d m a n u f a c t u r i n g o v e r 2 , 5 0 0 s t o c k -
keeping units (SKUs).
The success of AP has been attributed to its customer-

centric approach and aggressive marketing initiatives, which
had changed the way industry, functioned.
AP wanted to be one of the top five companies in the global

paints industry by 2007. In order to achieve this goal, it
focused on three main areas - building the AP brand in
terms of a new product portfolio, changing its logo and
packaging.

The new AP was expected to be even more customer-
friendly and service-oriented. In order to keep its prices
low, AP had to keep its production costs low.
So it undertook backward integration to reduce production

costs. In 1987, it entered into joint venture with Tamil Nadu
Industrial Development Corporation (TIDCO)
Pentasia Chemicals Ltd, for the manufacture of

pentaerythritol and sodium formate - two important
intermediates for manufacturing paints.
• South Asia: ASIAN PAINTS
• South East Asia: BERGER INTERNATIONAL
• South Pacific : SCIB PAINTS
• Middle East : APCO COATINGS
• Caribbean region : TAUBMANS

Distribution network
Channel structure, members and their selection
Channel structure ASIAN PAINTS is all over India. The channel

structure is very simple and effective. Complications are kept out in
order to make the overall process very effective and efficient.
• 20,000 Dealers all over India
• 1,000 Dealers in New Delhi alone
• 14 products, 1200 shades
• Depots in Delhi : Badarpur, Mayapuri, Wazirgunj, Mandori

Asian Paints, the market leader in the architectural
segment , has over 14 product offering over 1,200 shades
in package sizes ranging between 1 liter to 20 liters.
Logistics required to ensure that each of the company’s

dealers has just adequate stock of each shade of each
product range, in each size.
T h is ca lls fo r im m e n se a ccu r a cy in d e ma n d f or e ca st in g
a n d an e x c e lle n t ne t wo r k.
Ho we v e r, the a d ve n t of t int in g m a ch in e s has

c o n s id er a b ly e a se d t h e d istr ib u t io n b lu e s. Wit h t h is
t e c h n o lo g y , a p a in t c om p a n y o n ly n e e d s t o p ro vid e th e
d e a ler wit h c er t a in b a se co lo r s, t in t in g m ach in e s ( wh ich
in c lu d e a d is p e n s er , sh a ker a n d a co m pu t e r) , co lor a n t s
o r s tr a in er s , a n d a c o lo r ca r d .
T he c o n su m er c ho o s e s a pa r t icu lar sha d e fr om t he car d .

T he d e a ler p u t s t he co d e of t h e sh ad e in t h e co m p ut e r
a n d t h e c o mp u t e r p ro g r am m e f in d s t h e e xa ct f or m u la f or
t h e c or r e sp o n d in g co lo r .

TINTING MACHINE
Dealers’ Tinting Machines (DTS)
1. Powerful marketing tool

2. Making major investment. Already invested Rs.
92-100 crore
Trying that these machines are directly purchased by

dealers .The programme ensures that the required stainer
gets added to the base paint in the required quantity and
the new paint comes pouring out of the tinting machine in
P
the shade chosen by the customer L A N T
CHANNEL STRUCTURE
D E P O RT E G I O N A L D
T y p e t it l e
S U B - D E P O T
P L A N T S T O C K
SELECTION OF DEALER
Asian Paints follows a strict policy in selection of the

dealers:
1) The dealer should have a sound financial background.
2) The dealers’ current business goodwill, measured in

terms of dealer goodwill which covers areas such as
infrastructure, manpower etc. and individual goodwill
3) The dealer should have his own infrastructure and

logistics, since he is completely responsible for the
inventory and transportation of the goods to the shop from
his warehouse

Responsibilities and Functions of the dealers
ASIAN PAINTS believes in “Customer Loyalty” and thus

asian paints expects that their dealers apart from selling
paint products should perform the following functions for
better customer relations’ management:
• Sales promotion through regular promotional schemes, road

shows, campaigns etc. Recruitment- done under the guidance
of certain asian paint officers.
• Customer relation management
• ervicing according to the size of orders
• Training and development of manpower with company
assistance
The dealer should be in regular touch with the customer, keep taking
his feedback and ensure maximum customer satisfaction. The dealer
should also try and convince the customer to try newer products of
the company.
PAYMENT MODES
HOME
Central institute management and technology lucknow SOLUTIONS
Cheque is the only acceptable way of payment
Margins/Discounts
The dealers collect their margins at the time of sale of the product.
Margin/discounts is provided by the company between 3.5% to 5%
FEEDBACK FROM CUSTOMERS
Customer feedback is obtained not only after servicing as mentioned

earlier, but post sales too. There are 2 types of feedback forms
customers can fill:
• A feedback to company through questionnaires and cards

• Direct feedback to the sales people.
All these feedback cards are sent to the corporate office of the
company where the required action is taken.

Dealer Network
Channel structure, members and their selection
Nerolac’s strength of wide spread distribution network is its right arm
in generating sales revenue from all parts of India. Nerolac has a
wide distribution network of over 11,000 dealers
They have eight Sales Divisions and each division has depots to take
care of local needs. In all they have 66 depots
All this ensures complete reach in India including rural and up country
markets
Channel structure
Nerolac Paints Ltd.
Dealer/ distributor Warehouse
Dealer shops
End customer

There exist a total of 4000+ dealers with multiple outlets, i.e. a total
of dealers covering cities. The percentage of dealers in each of the
zones is as follows.
North- 35%
South- 26%
East- 10%
West- 29%
Market Research:
The company undertakes Market Research activity to measure its
performance in different fields, like after sales service, customer
satisfaction etc. The company employs third party agencies to
measure its performance.
SSI (Sales Satisfaction Index)

The sales satisfaction study is a consumer-driven measure of
customer satisfaction with the product sales and delivery process.
According to the study, there are six major factors impacting
satisfaction with the dealership at the time of purchase. They are
Sales Experience, Explanation at Delivery, Price Evaluation, Delivery
Timing, Salesperson Knowledge and Post-Delivery Contact.

CSI (Customer Satisfaction Index)
The customer satisfaction index with quality delivery performance is

used to track the problems experienced in the customer satisfaction
process. This data helps in building future policies and also helps in
training the employees to perform better in future.
Service Network
Structure:
Group head
Service Support Field Support
On the job
Training
Backend T&D Dealer CRM Day to day
activities
Development Warranty
Nerolac India closely monitors each and every aspect of the entire
process in the business organization. The service network is similar
to that of Asian paints but the CRN and training and development is
not that developed. The technical support in the business units is
different as we have already discussed earlier that Asian paints uses
SAP and i2 technologies while Nerolac uses push and pull protocol.

COMPANY EXECUTIVE
As a part of our report, we used questionnaires for primary research.
Our target group was: the dealers, company executives and
customers of Asian and Nerolac paints
CHANNEL STRUCTURE
COMPANY DIRECT PROJECT [INSTITUTIONAL / CORPORATE BUSINESS /

B2B]
DIRECT CUSTOMER HOME SOLUTION [ASIAN PAINTS]

NAPS [NEROLAC PAINTS]
BULK BUYER [Like BUILDERS, CONTRACTORS ETC.]

GODOWN
RETAILERS WHOLESELLER
RETAILER
ORGANISATION STRUCTURE
SALES EXECUTIVE SALES OFFICER TERRITORY SALES

EXECUTIVE
AREA SALES
MANAGER
REGIONAL MANGER
VP MARKETING HEAD MARKETING HEAD [NORTH

INDIA]
[MARKETING] …………
…………

CRITERIA FOR APPOINTING A DEALER
Credibility in the market

Foot Fall
Financial position
Competitors
CREDIT, PAYMENT & WARRANTY
Credit depends on credibility of the dealer/shopkeeper.

It ranges from 0 – 30 days.
But CD will be 3.5% instead of 5%.
For NEROLAC:
Payment is done on the basis on CHEQUE ON DELIVERY &

ADVANCE CHEQUE [PAYMENT]
For ASIAN PAINTS:

Payment is done on the basis on CHECK ON DELIVERY
Warranty of Asian Paints for APEX ULTIMA is 7 years.

Warranty of Nerolac Paints for SURANKSHA ADVANCE is 4
years.
ORDER CYCLE, INVENTORY, TRANSPORT
Total company’s owned godowns through out the city: 4

Whole country is connected through SAP and are daily
updated.

Therefore, order can be placed regularly & has withing a
day service of delivery.
Inventory depends on financial capacity, schemes/discounts

offered by the organisation.
Transport is outsourced by the company through C&F

agents to the contractors on certain terms & conditions set
by the company.
Transport vehicles generally used are Tampo, Champions,
TATA 407 etc.

DEALER’S ANALYSIS
On the basis of our questionnaire, we analyzed the
following:
• The dealer deals with different brand of paints. The

ones which they generally keep in stock are Nerolac,
Asian, Berger, Shalimar and ICI Dulux paints.
• The demand for each paint varies in accordance to the

area specified. The brand which is generally demanded
by customers are:-
Asian paints (West Delhi)
Nerolac paints (Central Delhi)
ICI paints (South Delhi)
Berger & Asian paints (North Delhi)
• The dealers generally don’t recommend anything

to the customer; they give what the customer demands.
In case, the customer is a bit confused about the
quality of the product, then the dealers generally
recommend ICI Dulux paint.
• Dealers are free to place any order. There is no

minimum order as such.
• Average order cycle time is 1-2 days in case of Asian

paints, while 5 days in case of Nerolac paints.
• Transporter’s behavior, ease and flexibility of

placing an order is very good for Asian paints where
as it’s good for Nerolac paints.
• Quality maintenance, condition of product is good

for Asian paints while it’s very good for Nerolac paints.

• Asian paints provide cash incentives at 1% while
Nerolac doesn’t give any cash incentive. Also, Asian
paints gives
• Commission (if June 2007’s sale is greater than June

2006’s sale.) Other incentives being given are movie
tickets, foreign trips, and big bazaar discount coupons.
• Asian paint’s performance is satisfactory while Nerolac

paint’s performance is good in case of promotional
activities, commercial terms, and service of sales
persons.
• However delivery time, customers’ orientation is

good for both Asian paints and Nerolac paints.
• The efficiency of sales persons is good for Nerolac

paints and satisfactory for Asian paints.
• Both Nerolac paints and Asian paints provide

assistance to dealers in promotional activities.
• Dealers of both Asian paints and Nerolac paints don’t

provide appraisals to their respective sales persons.
• None of the Dealers are facing any problem due to

company’s distribution channel.
• If dealers face any kind of problem from customer’s

side, the sales executive takes care of it.
• Both the companies provide training to painters

whenever new product, new finish is introduced and
skillful work is required.

CUSTOMERS ANALYSIS
The customers were questioned on:
What they do if they don’t get the desired paint?
Who influences them to buy that particular brand?
How frequently do they get their house white
washed/touch ups?
Ranking certain parameters for their choice of
paint.
What they do if they do not get the desired paint?
For the Asian paints DON'T GET THE DESIRED PAINT - NEROLAC
PAINT
market, 76% of the

MOVE TO NEXT
respondents move to the SHOP
next shop, 16% take any 10, 12%
other paint and the rest 21, 24%

TAKE ANY
OTHER PAINT
8% take any other color 55, 64%
of the desired paint. TAKE ANY
OTHER COLOUR
OF THE DESIRED
PAINT
WHILE For the Nerolac

paint market, while 64%
of the respondents move DON'T GET THE DESIRED PAINT - ASIAN
PAINTS
to the next shop, 24%
take any other paint and MOVE TO NEXT
SHOP
the rest 12% take any 13, 8%
other color of the desired 25, 16% TAKE ANY

OTHER PAINT
paint.
116, 76% TAKE ANY
OTHER COLOUR
OF THE DESIRED
The above data shows PAINT
that the respondents of

Asian paints market
are more brand
Loyal as compared to Nerolac paint market.

Who influences them to buy that particular brand?
Overall, it was noticed that in 23% of the cases, shopkeeper

influenced people to buy a particular brand of paint, be it
Asian Paints or Nerolac Paints. In about 18% of the cases,
relatives and friends influenced people. Endorser and
painter influenced people to about a 16%.
People were influenced by kids only in 9% of the cases.
PEOPLE WERE INFLUENCED BY...
9%
23%
SHOPKEEPER
16%
RELATIVES
FRIENDS
ENDORSER
18% PAINTER
16%
KIDS
18%
How frequently do they get their house white

washed/touch ups?
From the various options given, i.e., half yearly, yearly,

once in two years, once in three years and occasionally for
both Asian Paints and Nerolac Paints.

40.00%
35.71%
35.00%
30.00% 26.62%
27.91%
26.74%
25.00% 22.09%
20.78%
20.00%
15.12%
15.00%
` 11.69%
10.00% 8.14%
5.19%
5.00%
0.00%
HALF YEARLY YEARLY ONCE IN TWO ONCE IN THREE OCCASSIONALLY
YEARS YEARS
Asian Nerolac
Details:
Half yearly :
Asian Nerolac
paint paints
5.19% 8.13%
which automatically shows 6.25% people get their

places painted half yearly in our chosen market. This is
not very potential segment, which requires the focus of the
industry in the chosen market.

Yearly:
Asian Nerolac
paint paints
35.7% 22.09%
Which surely means that 30.84% of the market gets their

places painted yearly?
Two years
Asian Nerolac
paint paints
26.62% 27.90%
This shows, 27.09% of the market get their house painted

once in two years.
Three years:
Asian Nerolac
paint paints
20.77% 26.74%
Which shows that 22.91% market get their house painted

once in three years?

Occasionally:
Asian Nerolac
paint paints
15.12% 11.68%
This implies,12.91% of market get their house painted

occasionally.
The next aspect of the questionnaire involved the

respondent to rank the performance of his choice of
brand on various parameters. Now, we would discuss
each parameter in detail.

AVAILABILITY OF THE
PRODUCT
The first parameter, asked the respondent to judge the
availability of both the categories of paints. In the Asian
paint segment, 48.5% and in the Neola paint segment
24.5% said that the availability was excellent.
30.7% and 42.3% respondents said that the availability

was very good for Asian paints and Nerolac paints
respectively. 18.75% and 28.8 % respondents said that the
availability was good for Asian paints and nerolac paints
respectively. 1.9% and 4.2% respondents were not
satisfied with the availability of the paint, thus rated the
availability as fair.
Availability of the product
60.00
48.56
50.00
42.37
40.00
Percentage
30.77
28.81 ASIAN PAINTS
30.00 24.58 NEROLAC PAINTS
18.75
20.00
10.00 4.24
1.92
0.000.00
0.00
EXCELLENT VERY GOOD FAIR POOR
GOOD
Parameters
NEW /

INNOVATIVE PACKAGING
The second parameter, asked the respondent to judge the

rate the innovative packaging of both the categories of
paints.
In the Asian paint segment 36.5% and in the Nerolac paint

segment 26.3% said that the company’s packaging was
excellent.
30.8% and 39.8.3percentage respondents said that the

company’s packaging was very good for Asian paints and
Nerolac paints respectively. 26.4% and 26.3 %
respondents said that the company’s packaging was good
for Asian paints and nerolac paints respectively.
6.3% and 7.6% respondents were not satisfied with the

availability of the paint, thus rated the company’s
packaging as fair.

NEW / IN NO V A TIV E PA CK A G ING
4 5 .0 %
3 9 .8 %
4 0 .0 %
3 6 .5 %
3 5 .0 %
3 0 .8 %
3 0 .0 %
2 6 .3 % 2 6 .4 2%6 .3 %
NO. OF RESPONDENTS
2 5 .0 % A S IA N PA INTS
2 0 .0 % N ERO L A C PA INTS
1 5 .0 %
1 0 .0 % 7 .6 %
6 .3 %
5 .0 %
0 .0 %0 .0 %
0 .0 %
EX CEL L EN T V ER Y G O O D GOOD FA IR PO O R
PERFO RM A N CE
INTRODUCTION OF NEW PRODUCTS

The third parameter, asked the respondent to rate the
frequency of introduction of new products for both the
categories of paints.
In the Asian paint segment 25% and in the Nerolac paint

segment 23.7% said that the frequency of introduction of
new products was excellent. 37.5. % and 34.7%
respondents said that the frequency of introduction of new
products was very good for Asian paints and Nerolac paints
respectively.
32.2% and 31.4% respondents said that the frequency of

introduction of new products was good for Asian paints and
nerolac paints respectively. 5.3% and 10.2% respondents
were not satisfied with the frequency of introduction of new
products, thus rated the company’s packaging as fair.

INT R O D UC T IO N O F NE W P R O D UC T S
40 .0 % 3 7 .5%
3 4 .7 %
35 .0 % 3 2 .23%1.4 %
NO. OF RESPONDENTS
30 .0 % 2 5 .02%3 .7 %
25 .0 %
A S IA N P A INTS
20 .0 %
15 .0 % NE ROL A C P A INTS
1 0 .2 %
10 .0 % 5 .3%
5 .0 % 0 .0 %0.0 %
0 .0 %
IR
OR
OD
OD
T
FA
EN
PO
GO
GO
LL
CE
RY
EX
VE
P E R F O R M AN C E
CONTAINER SIZE
The fourth parameter, asked the respondent to rate the
availability of paint in different container sizes as per their
requirements for both the categories of paints.

segment 16.1% said that availability of paint in different
container sizes was excellent. 39.4. % and 36.4.
Percentage respondents said that the availability of paint in
CONTAINER SIZE
45.0%
NO. OF RESPONDENTS
39.4%
40.0% 36.4% 35.6%
35.0% 33.2%
30.0%
25.0% ASIAN PAINTS
20.2%
20.0% 16.1% NEROLAC PAINTS
15.0% 11.0%
10.0% 7.2%
5.0%
0.0%0.8%
0.0%
D
T
R
D
N
IR
O
O
E
O
A
LL
O
O
F
G
P
E
Y
C

X
E
E
PERFORMANCE
different container sizes was very good for Asian paints and
Nerolac paints respectively.
33.2% and 35.6% respondents said that the availability of

paint in different container sizes was good for Asian paints
and nerolac paints respectively.
7.2% and 11% respondents were not satisfied with the

availability of paint in different container sizes, thus rated
the company’s packaging as fair. 0.8% respondents of
Nerolac Paints were not at all satisfied with the availability
of paint in different container sizes and thus rated this
parameter as poor.
.
AVAILABILITY OF COLOR
The fifth parameter, asked the respondent to rate the
availability of color of their choice for both the categories of
paints.

segment 32.2% said that availability of color of their choice
was excellent. 32.2. % and 40.7.% respondents said that
the availability of color of their choice was very good for
Asian paints and Nerolac paints respectively.
23.1% and 22% respondents said that the availability of

color of their choice was good for Asian paints and nerolac
paints respectively. 3.8% and 5.1% respondents were not
satisfied with the availability of color of their choice, thus
rated the company’s packaging as fair.

AVAILABILITY OF COLOR
45.0%
40.7%
39.4%
40.0%
35.0% 32.2% 32.2%

NO. OF RESPONDENTS
30.0%
25.0% 23.1%
22.0% ASIAN PAINTS
20.0% NEROLAC PAINTS
15.0%
10.0%
5.1%
3.8%
5.0%
1.4%
0.0%
0.0%
EXCELLENT VERY GOOD GOOD FAIR POOR
PERFORMANCE
1.4% respondents of Asian Paints were not at all satisfied

with the availability of color of their choice and thus rated
this parameter as poor.
STAR ENDORSEMENT
The sixth parameter, asked the respondent whether star
endorsement for both the categories of paints affected their
purchase.

segment 24.6% said that star endorsement was excellent
and did affect their purchase.
On the other hand, 1.4% and 7.6% respondents were not at

all satisfied with star endorsement and it did not even affect
their purchase, thus rated it as poor.

S TAR E N D OR S E ME N T
4 0 .0 %
3 6 .5 %
3 5 .0 % 3 2 .23%3 .1 %
3 0 .0 %
2 4 .6 % 2 5 .4 %
NO. OF RESPONDENTS
2 5 .0 % 2 2 .1 %
AS IAN P AIN TS
2 0 .0 %
N E R O L AC P AIN TS
1 5 .0 %
9 .3 %
1 0 .0 % 7 .7 % 7 .6 %
5 .0 %
1 .4 %
0 .0 %
E XC E L L E N T VE R Y GO OD G OO D FAIR P O OR
P E R FOR MAN C E
VARIETY
The next parameter, asked the respondent to rate the variety for both
the categories of paints. In the Asian paint segment 34.6% and in the
Nerolac paint segment 22.9% said that variety of color excellent.

VARIETY
45.0%
40.4%
39.8%
40.0%
34.6%
35.0%
NO. OF RESPONDENTS
30.0%
25.4%
25.0% 22.9% ASIAN PAINTS
20.0% 18.8% NEROLAC PAINTS
15.0%
9.3%
10.0%
5.8%
5.0% 2.5%
0.5%
0.0%
EXCELLENT VERY GOOD GOOD FAIR POOR
PERFORMANCE
40.4% and 39.8.% respondents said that the variety of color of their
choice was very good for Asian paints and Nerolac paints
respectively.
18.8% and 25.4% respondents said that the variety of color was good
for Asian paints and nerolac paints respectively. 5.8% and 9.3%
respondents were not satisfied with the variety of color, thus rated the
company’s packaging as fair.
0.5% and 2.5% of respondents of Asian Paints and nerolac paints

were not at all satisfied with the variety of color and thus rated this
parameter as poor.
PRICE RANGE
The next parameter, asked the respondent to rate the price range for
both the categories of paints. In the Asian paint segment 26.9% and

in the Nerolac paint segment 22% said that price range of color
excellent.
36.5% and 30.5. Percentage respondents said that the price range of
color of their choice was very good for Asian paints and Nerolac
paints respectively. 25.5% and 32.2% respondents said that the price
range of color was good for Asian paints and nerolac paints
respectively.
11.1% and 14.4% respondents were not satisfied with the price range
of color, thus rated the company’s packaging as fair.
P RICE RA NGE
40.0%
36.5%
35.0% 32.2%
30.5%
30.0% 26.9%
NO. OF RESPONDENTS
25.5%
25.0% 22.9%
A S IA N PA INTS
20.0%
NE ROLA C P AINTS
14.4%
15.0%
11.1%
10.0%
5.0%
0.0%0.0%
0.0%
E XCE LLE NT V E RY GOOD GOOD FA IR P OOR
P E RFORM A NCE

ANNEXUR
E

Questionnaire for Channel Members
Name : Phone no :
Address: Organization:
1) What are the different brands, which you keep in stock?
2) Which brand is most asked by the customers

I) Asian paints ii) Nerolac iii) Dulux IV)
others……………………………..
3) What is your average sales/month?
4) Which brand do you recommend to the customer and

why?
5) Do you get any credit period from the company?

a) YES b) NO
If Yes, What is the credit period you get?
i) Up to 15 days ii) 15-30 days

iii) >30 days
6>What is your average order size?
7>at are the margins that you get from the company?
8) What is the average order cycle time taken by the company?

i) < 5 days ii) 5-10 days iii) > 10 days
9) Where would you rank the services/assistance provided to you

by the company/s
10) How will you rate the efficiency of your sales persons?
a) Very Good b) Good c) Satisfactory d) Poor

e) Very poor
11) Does company provides you with any assistance by means of

promotional activities.
a) YES b) NO
If Yes, Numbers, Timing, Quantity of promotions.
12) Do you provide appraisals to your sales persons?

a) YES b) NO
If Yes, on what Parameters?

13a) what kind of problem do you face in company’s distributing
channel?
b) What kind of problem do you face from customer? How do you

solve them?
c) How company helps you in it (a & b)?
14) Does the company provide any kind of training? If yes, what is the
motive of training?
15 a) Do you get incentive & commission?

b) What are the different kinds of incentive offered by company?
c) What is the criterion for the same?
d) How much incentive & commission do you earn annually?
e) How much sales target do you get?
f) Are you able to achieve sales target set by company?
g) How company helps you in achieving sales target?
_______________________________________________________
________________
Person contacted
…………………………………………………………..
Name of dealer:
……………………………………………………………..

Address:
………………………………………………………………..
Tel. No.: …………………………
Questionnaire for Company’s Sales

Executive
Name : Phone :
Address: Organization:
1. What type of sales organization structure do you

possess?
2. What are the various channel structures in which you

operate?
3. What are the various criterion/terms and conditions of

selecting your channel members?
4. What is the average Inventory Size you keep?
5. What is the average Order Cycle time?
6. What are the various modes of transportation adopted

and cost incurred?

7. What are the methods of measurement and frequency
of providing appraisals to channel members?
8. What are the modes of by which you receive your

payments:
i) Advance payment ii) Payment on Delivery
iii) Credit payments
9. In case you provide the credit period, what is the time

limit?
i) upto15 days ii) 15-30 days
iii) >30 days
10. How frequently do you collect the feedback from

your Channel members?
i) Weekly ii) Quarterly
iii) Monthly
11. How will you rate and rank the following aspects
of your Channel Members:
Excellent Very Good Fair Poor
good
Dealer’s
Efficiency
Timely
payment
Transporters
behavior
K
12. What are the margins you provide to your Channel

Members?
13. How do you assign targets to your sales

personnel’s and what type of targets?
14. Do you support your Channel Members by

promotional activities?
a) YES b) NO
If Yes, i) Number of Promotions.
ii) Timing of Promotions.
iii) Quantity of Promotions.
15. Have you ever gone for market research?

a) YES b) NO
If Yes, w.r.t. whom?
• Customers
• Channel Members
• General market survey
• Hidden survey rate price and margins
16. i) What type of market research was it?

What was your budget? depend upon survey

17. How frequently you go for market research? Annually
may be twice
Name of Respondent: ……………………………………………………
Name of
Organization:……………………………………………………
Designation: ……………………………………………………
Address: …………………………………………………….
Tel. No.: …………………………………………………….

QUESTIONNAIRE:CUSTOMER
NAME: __________________________
AGE: ______
GENDER: ___ MALE ___ FEMALE
1) Which brand of paints do you prefer?
a) Asian Paints b) Nerolac Paints c) Others

____________
2) What do you do if you do not get the desired paint?

a) Move to next shop
b) Take any other paint
c) Take any other color of the desired paint
3) Who influenced you to buy this brand?
a) Shopkeeper
b) Relatives
c) Friends
d) Endorser
e) Kids
f) Painter

4) What do you prefer:-
a) White Wash b) Touch Ups
5) How frequently do you get your house white

washed/touch ups?
a) Half yearly
b) Yearly
c) Once in two years
d) Once in three years
e) Occasionally
6) In considering the performance how would you rate

the company as per following scale:
1-Excellent 2-Very good 3-Good 4-Fair

5-Poor
S.NO PARAMETERS ASIAN NEROLAC

PAINTS PAINTS
1. Availability of the
product
2. New/innovative
packaging
3. Introduction of new
products
4. Container size
5. Availability of color
6. Star endorsement
7. Variety

8. Price range


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A Project Report

“Comparative study Of Indian Paints Industry”

Kansai Nerolac Paints Ltd. & Other Paints

Under the Guidance of

Dharmendra kumar singh

Central institute management and technology lucknow

This project aims to study the distribution channels, sales

The project was designed after detailed discussion with the

Firstly, the project discusses the distribution network of the

Central institute management and technology lucknow

The project also covers the financial terms of the company

Secondly, the project discusses the sales functioning of the

Finally the project covers the service network of the two

Central institute management and technology lucknow

PARTICULARS PAGE NO.

4. Indian Paint Market

10. Selection Of Dealers

Central institute management and technology lucknow

The objective of this project on sales and distribution is to

The business sector chosen for this purpose is the fast

NEROLAC INDIA LIMITED

ASIAN PAINTS LIMITED

PRIMARY DATA SOURCES-

Central institute management and technology lucknow

 NEROLAC AUTHORISED DEALERS

 ASIAN PAINTS LIMITED – Area Sales Manager

 ASIAN PAINTS AUTHORISED DEALERS

SECONDARY DATA SOURCES-

DATA COLLECTION TOOLS

Interviews & Discussions with the company officials, dealers

SAMPLE SIZE USED

It was difficult to ask for time required for a detailed

Central institute management and technology lucknow

In India, Indian Paint industry’s total market size is US$1400 million.

Central institute management and technology lucknow

Central institute management and technology lucknow

Nerolac embarked its journey in 1920 as Gahagan Paints

Central institute management and technology lucknow

 In1976, Goodlass Nerolac Paints Ltd. became a part

 In 1983, Goodlass Nerolac Paints Ltd. strengthened

 In 1986, Goodlass Nerolac Paints Ltd. turned into a

 In 1999, Kansai Paint Company Ltd., Japan took over

 In 2006, on the 11th of July, Goodlass Nerolac Paints

 In1976, Goodlass Nerolac Paints Ltd. became a part

 In 1983, Goodlass Nerolac Paints Ltd. strengthened

Central institute management and technology lucknow

 In 1986, Goodlass Nerolac Paints Ltd. turned

 In 1999, Kansai Paint Company Ltd., Japan took over

Central institute management and technology lucknow

Oshima Kogya Company Ltd.,

Our incessant journey of successes will go on backed by

We are esteemed a subsidiary of Kansai Paint Company

We are the second largest coating company in India with a

We are the market leader in industrial / automotive segment

We are the leader in powder coatings.

Central institute management and technology lucknow

Management & Key People

“The people who make the company are its real