Report Sample Khatri

8/8/2019 Report Sample Khatri

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ANKIT SANGHVI

A REPORT ON

TO ESTIMATE THE MARKET SIZE OF PROJECT SALES

IN SEGMENT- HOUSING SOCIETIES BY COLD

CALLING

By

ANKIT SANGHVI

KANSAI NEROLAC PAINTS LIMITED

SUBMITTED ON 29THJUNE, 2010 .

SUMMER INTERNSHIP MET Institute of ManagementPROGRAMM FOR 2010


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A REPORT ON

TO ESTIMATE THE MARKET SIZE OF PROJECT SALESIN SEGMENT- HOUSING SOCIETIES BY COLD

CALLING

PREPARED BY

ANKIT SANGHVI

ROLL NO 09020

SUBMITTED TO

MET MANAGEMENT INSTITUE

IN FULFILLMENT OF

THE MBA PROGRAM

2009-2011

SUBMITTED TO PROF. GUPTE MR. SITHANSHU SHAH

RESPECTED FACULTY PROJECT SALES MANAGER

MET INSTITUTE OF MANAGEMENT KANSAI NEROLAC PAINTS LIMITED



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ACKNOWLEDGEMENTS

A project of this nature calls for intellectual nourishment, professional help and encouragement

from many quarters. Summer training constitutes the backbone of any management education

programme. A management graduate has to quite frequently do the project work during his or

her career plans.

I would like to take this opportunity to thank my Company guide Mr. SITHANSHU SHAH,

Project Sales Manager, Kansai Nerolac Paints Ltd. who has taken all the time and effort to

guide me through this project.

I would also like to thank Prof. GUPTE, Faculty Member, MET Institute of Management,

MUMBAI for giving me an opportunity to execute this project.

I would like to extend my thanks to Miss Pallavi, Mr. Gurvinder Singh for having selected me

to do this project as it has been a completely enriching experience for me and has helped me

implement my learnings as a MBA student.

Along with others I would also like to thank Mr.Vinod Sawant, Mr. R G Desai for having

supported me in times of need and assistance during the project.

I would like to thank the entire team of Kansai Nerolac Paints Ltd. who have come forward

with helping hands whenever any assistance has been sought. The Data Research has been

primary and thus, I would like to thank all the respondents who have taken time out to answer

my questions during the survey undertaken.

Without the support and guidance of all the people mentioned above it would have been very

difficult for me to consummate this project.

~*~*~*~*~



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ABSTRACT

The project is related to find the role of services provided by a paint company in acquiring,

maintaining and retaining customers (read: co-operative housing societies). This report

contains the entire objective, purpose, scope and the procedure taken to complete the

project and also the limitations or difficulties faced during the course of the project. To find

answers to the above questions a survey was done. The primary objective of this project is to

find the potential customers and their requirements and develop business of exterior paint

for the company. The secondary objective of this project is to prepare a comprehensive and

exhaustive database of customers, thereby helping Kansai Nerolac Paints ltd. to get a good

database of customers which will help them in future.

The report is prepared for the partial fulfillment of Management programme and as a part of

curriculum.

The project has helped in recognizing likely customers for the company. It has also helped

in making awareness about Kansai Nerolac Paints Limited and its products in the exterior

paint market amongst the customers. During this project the customers were categorizedin three ways i.e. HOT, WARM and COLD.

This training is being conducted by survey in the Housing Societies of South Mumbai. The

survey was conducted by personally interviewing each respondent. The data thus collected

through survey was organized in a database, which could be referred for future endorsements.

The above mentioned survey was conducted on 380 respondents. The respondents were Co-

Operative Housing Societies from South Mumbai.

It is found that still Kansai Nerolac Paints Ltd is the strongest competitor for the private Paints

companies like: Asian Paints, Berger Paints, ICI Paints and Shalimar Paints, etc.



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CONTENT


S R NO. CONTENT

1 Introduction

2 Origin and evolution of NEROLAC Paints

3 Kansai Paints Co. at a Glance

4 Indian Paint Industry at a Glance

5 Major Players of Indian Paint Industry

6 Objectives of this Report

7 Findings, Data Analysis And Methodology Used

8 Source of Data

9 Swot Analysis and Porters Five Force Model

10 Suggestions

11 Limitation

12 Paint Industry in the Years to Come

13 Conclusion

14 Bibliography


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INTRODUCTION

The Indian paint industry: the Indian paint market is poised to grow at a steady rate over the next

decade fueled largely by a growing economy and changing consumer attitudes

The Indian paint industry has been growing at an average rate of 13% over the last five years.

However, the per capita paint consumption in India is only 1.2-1.4 liters. The industry is less

than half the size of the Chinese market by volume and about one fifth of the U.S. market by

volume. Even Sri Lanka and Pakistan have higher per capita paint consumption.

India's market is dominated by the decorative paint and coatings segment. Architectural coatings

largely used in households constitute almost three-fourths of the market's value. The other large

segments are automotive OEM paints, automotive refinish paints, protective coatings and

powder coatings.

There are many players in the Indian paint market. The top four companies--Asian Paints,

Berger, Kansai Nerolac and ICI (India)--constitute more than 5.5% of the Indian domestic

market. In addition to these, there are more than one thousand other companies in both the

organized and unorganized sectors. The unorganized sector itself constitutes 25-30% of the

market.

A number of foreign players have subsidiaries in India including: Jotun (powder, marine and

decorative); AkzoNobel (powder, protective and automotive refinish); Nippon Paints

(decorative); Choguku (marine); DuPont (automotive refinish); and Becker (coil coatings).

Others like Sherwin Williams are in the process of entering India. As a result, all the leading

international players in the decorative, automotive OEM and automotive refinish paint markets

will be operating in India.



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The low per capita paint consumption until recently can be linked to the large number of kuccha

(temporary), and semi-pucca homes (semi-temporary), low purchasing power, the small size of

homes, the long repainting cycle, and use of chuna (lime powder) and French polish (paint

substitutes).

India's market has also seen a higher growth of exterior emulsions. Over the last ten years,

exterior emulsions have gradually replaced cement paints largely on account of longer life, better

looks and ease of usage. This trend is expected to continue with economy exterior emulsions

replacing cement paints. The higher-grade cement paints have been largely replaced by

emulsions and it is but a matter of time before cement paints on the exteriors cease to be an

easily accepted option. Increased advertising by all leading paint companies has educated

consumers and made them aware of better exterior products.



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ORIGIN AND EVOLUTION OF NEROLAC PAINTS

We embarked our 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 Nerolac Paints (Pvt.) Ltd. Also, it went public in the same year and established itself

as Goodlass Nerolac Paints Ltd. In 1976, 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 Paints 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 Paints with the latter acquiring 36% of its share capital. In 1999, Kansai Paints Company

Ltd., Japan took over the entire stake of Tata Forbes group and thus GNP became a wholly

owned subsidiary of Kansai Paints Company Ltd.

We are esteemed to be 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 around 20%. We are the

market leader in industrial / automotive segment supplying over 90% of the OEM requirements.

We are the leader in powder coatings. Goodlass Nerolac Paints Ltd. (GNPL), the Indian

subsidiary of Japan based Kansai Paint Co. Ltd, is the second largest paint company in India

with presence in decorative paints as well as industrial paints & marine paints, enamels,

varnishes, coatings, resins etc. It is the second largest coating company in India. The company

markets its products under the brand names Nerolac, Glossolite, Goody, Allscapes, Excel, in

decoratives. The stake of Kansai Paints in the company now stood at 64.52% of the total equity

of the company. The company has five manufacturing facilities at Kanpur, Ratnagiri,



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Ahmedabad, Perungudi and Rewari spread across India. The company has strong presence in

automotive paints as it controls 45% of the organized Industrial paint segment. Its major clients

include OEMs like Maruti Udyog, Bajaj Auto, TELCO and Mahindra & Mahindra.

The company has two wholly owned subsidiaries namely Saurashtra Paints and GNP

(Madras).The above subsidiary companies were amalgamated with the company from April,

2002 with consent approval from both the states High courts.



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KANSAI PAINTS Co. AT A GLANCE

(PARENT COMPANY PROFILE)

Kansai Paints Co. Ltd., our parent company is the number one paint company in Japan. It is a

global leader in innovation and is known best for its product innovation, R&D and sensitivity

towards the environment, Kansai commands a leadership position in providing state-of-the-art

solutions in dcor and in industrial applications in South East Asia, also parts of Africa, Europe

and America.

It is one of the top paint companies in the world.

It has 39 Joint Ventures, subsidiaries and licensees around the world and has recorded a

turnover of over 2 billion USD.

The biggest strength of Kansai of course is its unmistakable belief in innovation through

R&D.

Kansai Paint Company Ltd. is one of the world's top ten producers of paints and coatings for the

automotive, industrial, marine, decoration, and other industries.

Listed on the Osaka and Tokyo Stock Exchanges, Kansai posted sales of Y196 billion

($1.84 billion) in 2005. In 1983, Kansai entered a technology cooperation partnership with

India's Goodlass Nerolac Paints, part of the Tata group, and Japan's Nihon Tokushu Toryo. In

1986, Kansai acquired a 36 percent stake in Goodlass Nerolac.

Back in the United States, Kansai formed a joint venture with DuPont to develop automotive

coatings for that market in 1990. The two companies had been cooperating on the development

of automotive coatings since the late 1970s.

Through 2005, Kansai Paint continued to build up its stake in Goodlass Nerolac, boosting its

share from 64.5 percent to nearly 80 percent.



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INDIAN PAINT INDUSTRY AT A GLANCE

The market size of the Indian paints sector has been pegged at Rs 170 bn in value terms and is

very fragmented. While in value terms, the industry grew by 17% to 18% in FY09, in volume

terms, the growth stood at 9% YoY, the lowest in the last five years. The per capita consumption

of paints in India stands at 0.5 kg per annum as compared to 1.6 kgs in China and 22 kgs in the

developed economies. India's share in the world paint market is just 0.6%.

The paint industry worldwide is classified into 2 segments viz. decorative and industrial segment

in India constitutes nearly 70% of the market whereas the scenario is just the reverse in the

developed countries.

Decorative Segment is dominated by the unorganized sector which now accounts for 70% of the

total paint production as against 75% three to four ago. The unorganized sector has an advantage

over the organized sector since it is fully exempted from the 20% excise duty and other

government levies.

The Industrial segment is dominated by the organized sector due to being highly technologically

oriented.The industrial paint sector is technology intensive. The Indian cost of production is 24

percent more expensive than the international cost. In fact, Indian majors like Asian paints and

KNL have embarked on hectic R&D to face the competition and also reduce their cost of

production.Industrial segment is also the more profitable segment of the industry as compared todecorative paints due to value addition in the form of specialized functions that these paints

perform.



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The industrial paint market is split into five segments: automotive coatings. High performance

coatings. Marine paints, powder coatings and coil coatings.

Major Players in the Indian Paint Sector

In the organized sector Asian is the market share of 31% followed by Goodlass Nerolac with a

share of 16%.

There is tremendous potential for the paints manufacturers in India because as against an average

per capita consumption of paints in India is very less. Economic liberalization is attracting

international giants like BASF Germany; Curt lauds UK and Jotun Norway, International Paints

UK.The share of organized sector has increased from 20% to 25%.

Distribution channel plays an important role in the industry. Awareness and perception of

specific brand is more important than the corporate brand equity. Asian Paints, the market leader

has around 16,000 dealers in its network which are spread across the country. Kansai Nerolac

comes second with around 9,000 dealers.



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Rural market has emerged as the new segment for the players in the decorative market and most

of the players have identified this segment as a thrust area and are launching new economy

brands to cater to the need of this segment.

CompanyPremium

BrandRank

Intermediate

BrandRank

Economy

BrandRank

Asian

Paints Royale 2

Apcolyite &

Tractor 1

Utsav &

Tractor 1

Goodlass

NerolacAllscape 4

Nerolac &

Nerocem2

Goody

Synthetic2

Berger

PaintsLuxol 3 Rangoli 3 Butterfly 3

ICI India Dulex 1 Maxilite 3

Comparative position of major players in the decorative segment of the paint industry



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MAJOR PLAYERS of THE INDIAN PAINT INDUSTRY

ASIAN PAINTS

Asian Paints Ltd. was established in 1942. More than half a century down the lane, Asian

Paints is Indias largest and Asias third largest paint company today. Asian Paints operates in

22 countries and has 29 paint manufacturing facilities in the World. Besides Asian Paints, the

group operates around the world through its subsidiaries, Berger International Limited, Apco

Coatings, SCIB Paints and Taubmans. Asian Paints along with PPG Inc, USA is one of the

leading manufacturers of automotive coatings in the world. Asian Paints Industrial Coatings

Limited caters to the Industrial coatings market and has tied-up with Protech Chemicals, a world

leader in powder coatings.

BERGER PAINTS:

Berger Paints was the creation of Mr. Lewis Berger, who in 1760, through his shades had

offered people a chance to transform their homes through the power of imagination. Berger

Paints India Limited has been in India since 1923.



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ICI PAINTS:

Imperial Chemical Industries (ICI) is a major paint, adhesive and specialty products business

with products and ingredients developed for a wide range of markets. ICI is present in Asia

Pacific, Europe and the Americas. However, in the beginning of 2008 ICI became a part of Akzo

Nobel, the worlds largest coatings manufacturer, the number one in decorative paints and

performance coatings, and a leading supplier of specialty chemicals. ICI Paints, headquartered in

UK and manufactured in 24 countries, has some of the worlds top paints and decorative product

brands.ICIs Paints division in India is a subsidiary of ICI Dulux Institutional, a world leader in

paints. The Indian subsidiary, ICI Dulux India which is popularly known as Dulux Paints India,

owes its success to strong brands such as ICIs exterior emulsion brands Weathershield and

Supercote and retail brands like Dulux Velvet Touch, Acrylic Emulsion and Gloss.

JOTUN PAINTS:

Jotun group, a Norwegian paint manufacturer which is headquartered in Sanderfjord, Norway,

is one of the worlds leading manufacturers of paints, Coatings and powder coatings. The group

has 71 companies and 40 production facilities on all continents. In addition, Jotun has agents,

branch offices and distributors in more than 70 countries.

Jotun Paints inaugurated its first manufacturing facility in India, in April 2008 at Ranjangon in

Pune and will soon set up a manufacturing unit in North India. The manufacturing unit in Pune

mainly caters to Kerala, Karnataka, Tamil Nadu and Maharashtra and will move to the northern



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markets such as Gujarat, Delhi and Haryana subsequently. Jotun has launched retail outlets in a

many towns and cities of India.

KANSAI NEROLAC PAINTS:

The history of Nerolac Paints dates back to 1920. Nerolac Paints was established as Gahagan

Paints and Varnish Co. Ltd. in Mumbai. In 1933, it was renamed to Goodlass Wall India Ltd.

and later became Goodlass Nerolac Paints Pvt. Ltd in 1957. And recently in 2006, it acquired the

present name Kansai Nerolac Paints Ltd.

Kansai Nerolac Paints is a subsidiary of Japan based Kansai Paint Company Limited that is one

of the top ten coating companies in the world. Nerolac is the second largest in India with a

leading position in industrial and automotive paints and also in powder coatings.



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NIPPON PAINTS:

The company was first founded in Japan as Komyosha in 1881 by brothers Haruta and Jujiro

Moteki together with their chief engineer Heikichi Nakagawa. In 1898, Nippon Paint was

established as Japans first true paint manufacturing company.

Nippon Paint has over 126 years experience in the paint industry. Since its establishment the

Nippon Paint group has consistently been a leader in the paints and coatings Industry. After

making inroads into Singapore, Malaysia, Thailand, Philippines, Korea, Vietnam, Hong Kong,

Taiwan, Nippon Paint also garnered a sizeable share of the decorative paints market in China.

Nippon Paint has operations in Europe and America as well. Now the Nippon Group

is recognized as the leader in Asia. Nippon Paint India started its operations from Chennai, in

June 2006 and the Decorative paint division has its Office in Chennai. Apart from the retail

chain network Nippon Paints is present in Noida, Ahmedabad, Bangalore and Hyderabad

through HomeTown hypermarket chain.

OIKOSPAINTS:

Oikos Paints from Italy, known for decorative wall art, has launched three collections in India

The Top Interior Decorative line, The Top Exterior Decorative line, Flat Paint (Acrylic Paint) for

interior as well as exterior. All three ranges have unlimited decorative possibilities in a spectrum

of colours and a variety of feels and textures.



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SHALIMAR PAINTS:

Shalimar Paints was incorporated in India in 1902 as Shalimar Paint Color & Varnish Co. Ltd.

It became a public limited company in 1961 and adopted the present name Shalimar Paints

Limited in 1963. Shalimar Paints was the first large-scale manufacturing unit in India and also in

the whole South-East Asia region. Shalimar Paints have their corporate office in Mumbai.

Some of the most commendable achievements by the Shalimar Paints R & D units are being the

first Indian company to develop a radiation resistant paint for nuclear power plants coating and

another would be aviation coatings epoxy/ vinyl system for ester lubricant resistant aircraft

finish.

SHERWIN-WILLIAMS PAINT:

The Sherwin-Williams Company (SHW) is an American company which primarily engages in

the manufacture, distribution, and sale of coatings and related products to professional,

industrial, commercial, and retail customers primarily in North and South America. The

company is mostly known through its Sherwin-Williams Paints line.

Founded by Henry Sherwin and Edward Williams in 1866, the company has not only grown to

be the largest producer of paints and coatings in the United States, but is among the largest



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producers in the world. It operates through four segments: Paint Stores (known as Sherwin-

Williams Stores), Consumer, Automotive Finishes, and International Coatings.

Sherwin-Williams Paints acquired Nitco Paints, an Indian paint company, in April 2007,

marking its entry into the Indian paint market. The Sherwin-Williams stores will offer a wide

range of interior and exterior paints, painting accessories and tool, and market the companys

wood-care products under the Ronseal brand. They will also offer a touch and feel

experience for the customers.



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OBJECTIVES OF THIS REPORT

The objective of the report is to understand the following.

The report will help in recognizing and identifying potential customer requiring exterior paint

job done and providing such customer paint related services. It will also help in maintaining an

elaborative database of the potential customer. It will also help to infer some key aspects like,

It will mainly help in recognizing the kind of services to be provided to the co-operative

housing societies (customers).

This study will help in segmenting the different societies and areas on the emergence of

paint

To categorize the customers in terms of their preference for exterior paint, i.e. for a term

of 3 years, 5 years or 7 years

To understand the behaviour of customers towards the brand KANSAI NEROLAC

PAINTS LIMITED.

To specifically explore opportunities in terms of new contracts thereby increasing sales

for the company.

To prepare a strong database for the company of its customer for future use and building

good relations

This report will also help to identify the kind of market opportunities waiting for the

company.

Ultimately, this report will help the company to create a direct communication with

above mentioned and to boost up sales in this competitive market thereby retaining their

existing customers as well as new customers

This report will also help the company to identify those who can help the company improve

its presence in the market thereby building awareness about the company and its products,

resulting in sales boost for the company in both the segments, i.e. industrial as well as

decorative segments.



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FINDINGS, DATA ANALYSIS and

METHODOLOGY USEDThe different research tools that have been used in the project are enumerated as under:

1. Due to less number of co-operative societies come up in certain areas like Charni Road,

Grant Road and nearby localities, a collective decision had to be taken for such areas. A

large number of development projects are being undertaken at various places and many

new buildings have come up in certain areas have open more opportunities for the

company.

2. Personal in-depth interview: The survey was conducted by taking personal in-depth

interview of mainly the co-operative housing societys managers, representatives.

3. Probing and prompting: In order to get full information related to the project, frequent

probing and prompting was done during the interview process.

4. Almost everybody knows about Kansai Nerolac Paints Ltd.

5. Asian paints are a more favored brand in comparison to the other private Paints company

brands.

6. During this survey, a total of 379 co-operative housing societies were considered out of

which 17 have been classified as hot sites providing immediate business, 79 warm sites

which may consider painting in next six months and remaining 283 buildings as cold

sites.

7. Out of 283 cold sites, there are 7 new buildings, 47 buildings have been recently painted,

a few sites were privately owned, few already had the contract given to other companies,

few were already under painting and the remaining had been painted a few years back.

8. Out of all the paints work in progress many contract were with PAINTERIOR, VAZIR

SURFACE, VELDON, and VORA ASSOCIATES. All these contractors and consultants

are considered big in the business of renovation and repair as well as repaint.



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SOURCES OF DATA:

Primary Sources

The data collected for the survey was basically primary as all the data was constituted from

South Mumbai area covering from Colaba to Mahalaxmi



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SWOT ANALYSIS

Strengths

1. Quality of the Product is the best in the present market.

2. Being a subsidiary of Kansai Paints Limited, Japan that is among the leading 10 paints manufacturing company in the world had given Kansai Nerolac Paints

Limited a huge boost.

3. Kansai Nerolac Paints Limited is the leaders in the Industrial segment in India. It

has the largest share in automotive segment and Powder segment.

4. Kansai Nerolac Paints Limited has a brand image

5. Good technology backup.

6. Increasing share in the decorative market

Weaknesses

1. Low market share in India as compared to the leader Asian Paints. (approx half of

the Asian Paints )

2. High working capital requirement.

3. Raw materials scarcity

4. Real estate in a depression phase.

5. Maintain large inventory level as sales is seasonal.

Opportunities

1. Government relaxing norms for foreign companies to enter the Indian market.



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2. Boom in Indian Housing Sector: Increasing urbanization, cheaper housing loans

and a shift from semi-permanent to permanent housing structures Increasing

urbanization, cheaper housing loans and a shift from semi-permanent to

permanent housing structures have been driving growth in decorative paintssegment, which constitutes 70% of the $2 billion paint industry in India

3. Strong Industrial growth: An average growth of about 10% in the in automobile

sector which provides 50% of the revenues in the industrial paints segment.

Industrial paints account for 30% of the paint industry revenue in India.

4. Heavy Infrastructure Spending: New projects in roads, ports and industrial

segments increases revenues from protective coatings for civil applications and

road-marking paints to all parts of the building paints sector, whether interior,

exterior, waterproofing or floor coatings.

5. Increase in manufacturing activities: Over 40% of the industrial sector takes the

form of OEM finishes, which is expected to grow steadily as a result of increasing

demand for consumer goods in India as well as Indias position now as a leading

manufacturing hub for the supply of goods to the Southeast Asian and other world

markets

6. Rise in Income: Lifestyle based spending by Indian middle class is helping this

industry. Contemporary wood finish formulations are replacing the more

traditional lacs and exterior emulsions take over from cement paints.

7. Demand for paints from new housing is expected to constitute approximately 30

percent of total demand; the rest comes in from repainting, mainly after the

monsoon rains and before the festive season. This is a function of disposable

income, so improvement in rural incomes will boost the growth in the paint

sector.8. Within the decorative coatings segment, considerable growth is being observed

in the exterior coatings segment. Paint manufacturers have launched premium

products in this category which are doing well due to superior quality and

durability.



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Threats

1. Entry of foreign players in the Indian paint market.

2. Aggressive marketing by Asian & Berger Paints, and other competitors.

3. Availability of cheaper substitutes.

4. Government making automotives expensive.



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PORTERS FIVE FORCES MODEL

The porters 5 forces model states the following in relation with Nerolac paints and the paint

industry as a whole:

1. Industry competitors: The competition in the industry is intense as there are a number

of companies with various offerings such as Asian Paints, ICI Paints, Berger Paints,

Shalimar Paints, all trying to increase their market share by their products and services.

2. Buyers power: The bargaining power of the buyer is more and is increasing day by day

as they have a number of options to choose from since various companies are providing

various semi-homogenous products.

3. Threat of new entrants: The threat for entry of new entrants is high as many

international companies are making their way into the country. Also initiatives taken by

the government is encouraging entry in this industry.

4. Suppliers power: Price increase constrained with the presence of the unorganized

sector for the decorative segment. Sophisticated buyers of industrial paints also limit the

bargaining power of suppliers. It is therefore that margins are better in the decorative

segment.

5. Threat of substitutes: Large number of substitutes are available in the market such as

chuna (limestone), neru, glass frames, etc.



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SUGGESSTIONS

1. Company should promote the advertisement on a large scale in order to compete with

industry leader and new entrants.

2. Company should take feedback from customers to analyze the quality of products and to

judge the satisfaction level of customers.

3. Company should enter in rural areas as these markets largely unexplored and have great

potential.

4. Company should try to pay attention on after sale service.

5. To collect data of all institutions, i.e. schools, colleges, co-operative housing societies,

etc, the company can start promotional scheme on lucky draw basis where it invites the

required data from these institutions and maintain and use the database for the benefit of

the company.

6. The company should provide schemes to its retailers, dealers such as providing valuable

incentives to them thereby encouraging sales of products the company only.

7. The delivery cycle should be quick. The lead time between order placement and delivery

of goods to the end user enables favorable image for the company and a satisfied

customer.

8. The company should come up with competition scheme for its dealer retailers and its

associates, encouraging competition amongst its dealers for boost sales and giving

rewards for the same.

9. Company can come up with a new product offering on the lines of Disney characters

adopted by the company. Such as associating Hindu gods with color scheme- Connect

with God divine theme- offering color shades associated with GOD.

10. Increase manpower, this can lead to more sales operation and awareness of the company.



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11. Maintain an advertisement campaign and dont switch to jingle creating confusion

amongst customers such as the ghar ki ronak badani ho, deewaro ko sajana ho, Nerolac

Nerolac was a successful campaign.

LIMITATIONS

1. In the research conducted all the due efforts are made with full effort and diligence but

still there might be some error due to the following reasons:

Human behavior is too complex to determine. So the information disclosed by

them may not be very accurate.

There was a time constraint while conducting the report.

It might be possible that the answers given by the respondents are full of biasness.

Some of the respondents were not willing to reply the questions.

2. In some of the co-operative housing societies, collection of data had become tough

because of the absence of the concerned person. In such case judgmental decision is to be

taken.

3. In some of the cases, due to the unwillingness of the concerned person, data collection

could not be carried out.

4. Due to lack of awareness about the society decision, the concerned person could not

provide proper details.

5. In some of the co-operative housing societies, due to lack of sincerity among respondents

it had become difficult to get the correct information which might have increased the

error percentage in the sample.

6. In some cases our team was late to approach for a contract as the society had already

gone for painting with a contract with the company competitors, thereby company losing

business.



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7. In some areas, judgmental sampling had to be done, thereby inviting more room for error.



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PAINT INDUSTRY IN THE YEARS TO COME

The Indian paint market has the potential to grow over the next decade at 15-20% per annum as

the current per capita consumption is much lower than other developing countries and less than

half of China

In the decorative segment, the next decade should see a value growth in the region of 15-20%

per annum due to reduction in poverty levels, construction of new homes, higher inclination to

spend, increasing decor-consciousness and gradual replacement of chuna.

The automotive OEM segment too should grow at least at 15% per annum powered by the

projected high growth in the automotive segment. Thus if the Indian economy maintains its

growth rate at the recent high levels, we should see value growth of at least 15% annually in the

Indian paint industry over the next five years.

Lastly, the absence of the DIY market, which constitutes between 25-50% of the decorative

markets in the West, is not present in India. Indians depend on the skilled painter largely on

account of lower labor costs, greater necessary surface preparation and an inherent laziness

among the Indian consumer when it comes to painting. Hence the range of products sold and the

manner in which they are sold and used are very different in India.

The Indian paint market is poised to grow at a steady rate over the next decade fueled largely by

a growing economy and changing consumer attitudes. Paint marketers have to continually meet

the needs of the changing Indian consumer and regularly provide him with newer products and

services to meet his requirements.



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Decorative paints are expected to witness higher growth going forward. The fiscal incentives

given by the government to the housing sector have benefited the housing sector immensely.

This will benefit key players in the long term.

This apart, above normal monsoons in the current year would lead to higher agricultural output

thereby increasing demand for paint from rural areas. We expect paint demand to grow by 12%

to 15% in the next two to three years, largely led by post festive season demand.

Demand in case of industrial segment is also expected to increase going forward. This is on

account of increasing investments in infrastructure. Domestic and global auto majors have long

term plans for the Indian market, which augur well for automotive paint manufacturers like

Kansai Nerolac and Asian-PPG. Increased industrial paint demand, especially powder coatings

and high performance coatings will also propel top line growth of paint majors in the medium

term.

The reduction in peak customs duty from 12.5% to 7.5% will lower the import cost of key raw

materials. With more residual income with the population, home loan disbursals are expected to

grow at 25% CAGR in the next three years, which is a positive for paint companies.



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CONCLUSION

All in all, India's coatings and paints industry is experiencing a rapid development of the course,

which is the automotive industry, infrastructure construction and other related industries, the

rapid development of the history of inseparable. Of course, look at the policy level, the Indian

government implemented the infrastructure for the paint industry with a very broad application

platform.

Consumption, consumers and users are looking forward to for some specific applications of paint

come on the market. As coatings businesses, are also broken down by customer demand for

specific customers customized services and training programs, including providing customers

with a special paint effects, and so a series of value-added services to increase market share and

customer satisfaction degrees.

With the traditional white paint that corresponds to a new generation of interior latex paint

market is also experiencing a massive expansion phase. In India, consumers substitute the use of

economic-based low-cost white latex paint, has become an increasingly popular consumer

trends. In the outdoors, the latex-based coating products are gradually replacing the traditional

solvent-based enamel. More and more consumers, the price slightly higher emulsion coating

products, incremental goodwill. Because they know that, although the input is a number, but the

emulsion paint products can be durable for a longer time for them, more beautiful paint effects,

and more color choices. These advantages are the traditional products cannot do.

It should be noted that for the next couple of years time, India also has huge growth coating

strength. Comparison of decorative coatings and industrial coatings, industrial coatings in India

will be accompanied by a strong rebound in the domestic auto industry, but also showing a more

substantial growth rate.



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In India, using an active marketing strategy and rapid development of new coating products

companies, will in the future be more rapid pace of development. Along with India's paint

technology and market activity further strengthened the leading paint companies in India today,

is likely to further consolidate its leading position, and possession of a higher market share.



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BIBLIOGRAPHY

www.google.com

www.nerolac.com

www.researchmaker.com

www.hindubusinessline.com

www.economictimes.com

www.businessstandard.com
http://www.hindubusinessline.com/http://www.economictimes.com/http://www.businessstandard.com/http://www.hindubusinessline.com/http://www.economictimes.com/http://www.businessstandard.com/

Documents

Report Sample Khatri