Strategy Paints Industry: Presented By:-Abhinav Giri 18PT001 Ekansh Jain 18PT006

Strategy Paints
Industry
Presented By:-
Abhinav Giri 18PT001
Ekansh Jain 18PT006

Major Players
Analysis
– Indian Paint industry Rs.21,000 Cr.
– Paint Industry expected growth INR 75,000 crore (USD 10.6 Billion) value for period 2018 to
2022. Growth rate > 15% past few years.
– Per capita consumption of 4 kgs per person in India is considered below comparison to average
consumption of paint in developed western nations, country developing rapid growth rate per
capita consumption will improve.
– Organized players meet overall demand 65%
– Unorganized players meet remaining demand 35%
– Unorganised sector satisfies distemper segment.
– The industry is divided into two segments:
– Industrial segment – It consists of powder coatings, floor coatings and other protective coatings
catering to the automobile, marine industries.
– Decorative Sector fulfills 70% demand industrial sector fulfills 30%.
– Demand is equally distributed across world, where both segments account approx 50% demand.
Strategic Groups
• Organized Sector
70%
• Unorganized Sector
30%
GST Impact
GST IMPACT - Implementation of Goods and

Services Tax (GST) hasn’t had any significant impact
on the paint industry. The paints are categorized in
28% GST slab which doesn’t really differ from the
existing rate that the industry is paying at present
(with VAT, excise and VAT on excise all put together).
So, it is neutral situation (no-loss no-gain) for the
paint industry post GST commissioning. In addition,
the industry is highly organized with unorganized
players comprising 20%-25% of the market. As such,
it will benefit the organised players (even if
marginally) and they can expect some market share
gains.
Market Restraints
– Reduced Export Demand Unstable political conditions
– Low cost localised manufacturers Rising raw material prices
– Competing Alternative materials.
Industry Challenges
– Technology Trends – The shift of all IT platforms for the Company

Colour dispensing machines both manual to the new GST regime for all its businesses
automated transformed business on distribution in India was completed on time and without
manufacturing sides. any disruption to operations.
Asian Paints continues to invest in Information – Industry 4.0-based technologies are being
Technology (IT) to enhance customer experiences, deployed in the two new paint facilities
improve productivity and bolster agility by refining commissioned by the Company. It covers the
operational efficiency through automation and entire gamut of factory operations from
better data-driven insights. inbound logistics, paint processing,
IT is today embedded into virtually all operating warehousing and outbound logistics. The
processes of the Company’s business, enabling it to foundational blocks for an intelligent factory
successfully implement a wide variety of strategic are being put in place to help run the factory
and tactical initiatives. of the future.
Pricing Trends
– 3/4th of raw materials from crude, pricing of

paints influenced by crude price. The increase in
raw material prices influenced by the increase in
crude prices estimated an average of $77
compared with $51 barrel will remain challenge.
– Raw materials accounting to 50% of total sales,
paint industry is price sensitive. Production cost
of paint will be sensitive to crude oil pricing. It is
important to note that rise in crude oil prices will
affect earnings by 7%-10% for every 10%
increase in crude oil prices. Price of titanium-di-
oxide is also in rising which increases
manufacturing cost of paint.
Regulatory Trends
– The Ministry of Environment, Forest and climate change have

enforced lead control regulations in household and decorative
paints in the year 2016, according to which the lead content is
limited to up to 90 ppm which is the international standard for
lead concentration in all kinds of paints.
World of Décor
– The website, asianpaints.com,

the most popular destination
for consumers renovating their
homes, attracts more than 20
million unique visitors every
year.
Home improvement business in india
– KITCHEN BUSINESS – BATH BUSINESS

The Company forayed into the kitchen Sanitaryware, launched under the
business by acquiring 51% stake in BathSense brand in certain markets in
Sleek International Pvt. Ltd. (Sleek) in the North, plays an important part in
FY 2013-14. During FY 2017-18, the the Company’s strategy of providing
Company proceeded to acquire the ‘complete bathroom solutions’.
remaining 49% stake in Sleek from the
previous promoters for a
consideration of Rs 50 Crores.
Competitive Landscape
12 companies in organized more than 2,000 in unorganized sector. The organized sector market share of
65% which is considered to be less compared developed countries, supply exceeds demand industry still
considered fragmented. Study reveals six factors
Quality, SKU Management, Inventory Management , Computer colour mixing facility, Brand Image, Effective Advertisement
Key stakeholders including Architects, Builders, Developers, Paint Dealers, Interior Decorators, Painters,
Painting contractors and Industrial users. It is observed that wrt “Inventory Management”. Nerolac paint
is comparatively better than other paint companies.
Nerolac’s Marketing Strategy and Interesting
Reasons behind Its Grand Success
– Emphasis on Healthy paint:
– Nerolac gave more importance on the healthy paint version of the
decorative wall paints. This is done for achieving an edge over its
competitors. All products by the brand would provide more focus
on them being healthy and eco-friendly.
– They promote that their paints are lead-free and thus customer
would have no hidden side effects after using these products.
Huge verities of services and
products:
– Like mentioned above, Nerolac has several products under its belt.
The products would consist of both decorative and industrial
purpose paints. For the decorative paints, they could be put under
several categories according to the quality of the product. This is
also similar for the case of industrial proposes paints. This brand
has also online services such as Paint Calculators for helping the
user to know the estimates for using different paints.
– Other apps like Colour Picker app, Online Colour Palette and Paint
Your Home app also provided.
Effective promotion of the brand
through various means:
– Nerolac has always given more emphasis on advertisements that
would increase the exposure of their products. In the city of
Ahmadabad, Nerolac came up with “Rang De Patang” campaign on the
occasion of Uttarayan. In this campaign, colorful kites were given to
the general masses. In another promotion activity named “Paint the
Change you want to see,” people were urged to donate the leftover
paints.
– These paints would be recycled and put into proper use for across the
country. These types of promotional activities gave the brand the
necessary exposure to spread its name among general masses of India.
Nerolac Campaigns
– This brand invested heavily for its advertisement campaigns.

Nerolac used catchy tagline such as “Jab Ghar Ki Raunak Badhani
Ho, Deewaro Ko Sajana Ho, NEROLAC NEROLAC!” and its mascot
Goody for promoting itself. In the year of 2003, the brand replaced
the mascot with its new brand ambassador Amitabh Bachchan.
The influence of the endorsement by Big B gave the brand a major
boost to popularity.
Thank You

Strategy Paints Industry: Presented By:-Abhinav Giri 18PT001 Ekansh Jain 18PT006

Uploaded by

Copyright:

Available Formats

Strategy Paints Industry: Presented By:-Abhinav Giri 18PT001 Ekansh Jain 18PT006

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Strategy Paints Industry: Presented By:-Abhinav Giri 18PT001 Ekansh Jain 18PT006

Uploaded by

Copyright:

Available Formats

Strategy Paints

Abhinav Giri 18PT001

Ekansh Jain 18PT006

GST IMPACT - Implementation of Goods and

– Technology Trends – The shift of all IT platforms for the Company

– 3/4th of raw materials from crude, pricing of

– The Ministry of Environment, Forest and climate change have

– The website, asianpaints.com,

– KITCHEN BUSINESS – BATH BUSINESS

– This brand invested heavily for its advertisement campaigns.

You might also like