Prestige Institute of Management &

Research, Indore

MBA III Sem (FT – A)

Report on Paint Industry

Submitted To: Submitted By:

Prof. Prayatna Jain Megha Patel
(1121211773)

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 Contents

Sr. Topics Page No.

No.
1 Paint Introduction 3–4
2 Paint Specification 5–7
3 Paint Features 8
4 Tentative usage 9-10
5 Leader & Competitors 11 – 22
6 Government Regulatory
Bodies
23-24
7 Exporter & Importer 25
8 PESTEL Analysis 26-27
9 Local Players 28-29

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 Paint
Introduction to Indian Paint Industry
Indian paint industry is over 100 years old. It is the 2nd largest paint industry in the world. The
first paint industry which was established in India was Shalimar in 1902. Indian paint industry
is worth ₹50,000 crore in 2019 and it will be increased to ₹70,000 crore by 2022. There are
now 12 leaders in the organized sector like Asian Paints, Good lass Nerolac Paints, Shalimar
and Berger ICI, etc. and over 2000 players in the unorganized sector of India's Paint and coating
market. Organized sector held 80% share of the market while the balance was held by the
unorganized sector.

The Indian Paint Industry has two main market segments. First are Industrial Paints and the
one is Decorative Paints.

Indian Paint
Industry

Decorative Industrial
Paints Paints

Marine Paints
Emulsions Distemper Automobiles
and Others

The Decorative Paint category is constituting almost 75% of this market. Decorative paints
categorized into two parts. Emulsions (Generally in cities), Distemper (Generally in villages).

The Industrial Paints also categorized into several parts like Automobiles, Marine Paints, etc.

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 Indian Paint Industry and Economy

There is a strong co - relation between Indian Paint Industry and Indian Economy. The market
for paints in India is expected to grow at 1.5 to 2 times GDP growth rate in the next five years.
After GST reduced from 28% to 18% paint industry is growing at increasing rate. Our Paint
industry is also supporting economy by exporting paints to many developed countries like
USA, UK, Canada, Australia, China, etc.

Paint Industry is also providing employment to youth. This industry is very huge and the
employment potential is also huge. There is a job opportunity for almost every field.

Nearly 50% of raw materials used by paint companies are crude oil. Even a small fluctuation
in the crude oil prices has a major impact on the profitability and operations of paint producers.
India, which is entirely dependent on the imports of crude oil and its derivative imports almost
90% of its raw materials requirements for the paint and coating industry. Indian paint industry
suffered heavily on the account of rising prices and uncertainty due to political reasons in the
Middle East Region.

Under the Make in India initiative, the government of India aims to increase the share of the
manufacturing sector to the Gross Domestic Product (GDP) TO 25% by 2022 from existing
16%. Manufacturing sector has the potential to reach US $ 1 Trillion by 2025 and India is
expected to rank amongst the three growth economies of world by 2020. These factors expected
to significantly boost industrial paint consumption, and this is very good news for Indian Paint
Industry.

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 Paint specifications
5 DIFFERENT TYPES OF ART PAINT
Acrylic -
Acrylic paints are extremely versatile, and ideal for fine brushwork, glazing, staining, water media
techniques and many more. This smooth and light paint has excellent pigment quality, colour strength,
and durability. The acrylic paint can be applied to almost any stable surface like watercolour paper or
canvas. It is quick-drying and can be purchased in a variety of forms, like a tube or small ink-bottle
varying in viscosity.

Oil -

Oil-based paint is very durable and provides a glossy-looking finish. Brushstrokes fill themselves into a
smooth, rich varnish. Oil-based paint has long-lasting coverage and blends well with others. This paint
dries slowly which works in a painter’s advantage since the artist can develop the painting gradually,
making changes to the work along the way. Don’t forget about water mixable oil paints. Water mixable
oil paint is oil paint with an added emulsifier. This type of paint is water mixable, not water-based. This

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paint possesses elasticity and is diluted thinly when more water is added.

Watercolour -
Watercolour is a translucent paint containing pigment and a binder, typically gum-arcabi. The gum-
Arabic holds the paint together and ensures the paint will not flake. The paint has colour pigment
suspended in water until the water dries and stains the surface. The paint brushes with fluidity and
transparency and dries fairly quickly.

Gouache -
Gouache is a water-soluble and opaque paint so the white of the paper surface does not show through. It
is a tad chalkier than traditional watercolour and absorbs light rather than reflects it. The paint is diluted
with water, but possesses a strong coloured pigment. This unique paint dries darker and a little of it goes

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a long way and takes time to dry which means it can be workable for hours or even days after application.

Encaustic -
Encaustic is a wax-based paint with a strong colour pigment. A versatile paint choice, encaustic
has no solvents added and is impervious to moisture. It is highly durable and best used on a
firm, absorbent surface. Artists can use a heat source and metal tools to begin working with
this hot liquid wax known as encaustic.

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 Paint Features

Following are the Features of a good paint:

 It should have a good body or spreading power.

 It should work smoothly and freely and be capable of being laid in a thin coat with
the brush.
 It should form durable, tough and resistant to wear film on drying.
 Colour of paint should not fade or change.
 It should become surface dry in about 9 hours and hard enough to take up another
coat in 24 hours.
 It should not crack on drying.
 It should give a smooth and pleasing appearance showing no brush marks on
drying.
 It should dry quickly.
 It should not damage the painted surface.
 • It should be able to resist the atmospheric conditions to which it will be put
 The films produced should be washable
 It should resist corrosion
 It should have the necessary consistency (property to resist permanent change of shape) for
a particular purpose for which the paint is to be used

All the requirements can be obtained in a paint by properly choosing the proper pigments,
extenders, binders and their quantities

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 Tentative usage

Painting the exterior of a building

Paint has four important uses.
1) Protection
Paint is used to protect all sorts of buildings and structures from the effects of water and sun.
Wooden buildings such as houses are usually painted because a coat of paint prevents water
seeping into the wood and making it rot. The paint also helps to prevent the wood from drying
out in the hot sun.
Metal structures and objects of all sorts are painted to stop them from rusting. A very
large steel structure such as a bridge must have a team of painters who keep the paint in good
condition all the time.

2) Decoration

Paint is used to decorate all sorts of objects. Since pre-historic times, people have painted the
inside walls of their houses to make them look attractive. [2] Painting and decorating the exterior
(outside) and interior (inside) of houses is an important industry in many countries. There are
many types and colours of paint to choose from.
All sorts of other objects are painted to make them attractive. This includes furniture, toys,
tools and utensils, and street fittings. Sometimes things made of wood such as furniture are
painted in decorative patterns. In some countries, many people enjoy decorating furniture and
other small things like trays and boxes. This is one form of what is often called Folk Art. In
other countries such as Japan, painting furniture is a very skilled profession and

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an antique piece of decorated furniture is very valuable. Other people enjoy the hobby of
painting small objects such as model planes or soldiers.

3) Art

Paintings are pictures that are done in paint. Many different types of paint are used for
paintings. They include tempera, oil paint, gouache, watercolours and acrylic paints. The
paintings are usually done on board, canvas or paper. Many other famous paintings are done
on the walls and ceilings of buildings
Many artists are famous for their painted pictures. Old, beautiful and famous paintings are very
valuable and are sometimes sold for millions of dollars.
4) Information
Paint is a very good way to give important information to people, using painted signs. Painted
signs include lane markings on the road, street signs of all sorts, advertising signs and warning
signs.

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 Market Leaders
Paint Industry Overview

 There is a phenomenal growth in the housing sector front with rapid urbanization and
easy availability of home loans. It has become the prime drivers of growth in the
decorative paint segment.
 Whereas, Industrial market accounts for general industrial paints, automotive coatings,
powder coatings, OEM paints and others.
 The Key Drivers for Paint Industry in India:
1. Rising per Capita Disposable Income
2. Favorable for Youth Demographics – High Demographic Dividend in India
with average age of population is around 28 years
3. Expected Revival in Housing and Automotive Sector
4. Technology Advancement

Akzo Nobel India

 Akzo Nobel India has been present in India for over 60 years and is a significant player
in the paints industry. In 2008, the company became a member of the Akzo Nobel
Group. It is most famous for its Dulux brand. Akzo Nobel India Ltd (also known as
Dulux Paints) was founded in the year 1993. It is headquartered in Amsterdam,
Netherlands. Its product range includes Basic and industrial coatings, chemicals,
decorative paints, industrial (re)finishing products. The company is known for its
innovative products.

Top Management –
 Chairman– Amit Jain
 CEO- Rajiv Rajgopal
 Managing Director – Rajiv Rajgopal
 Secretary – Harshi Rastogi
 Co. Secretary & Compl. Office- Harshi Rastogi
 Board of Directors – R S Kapur

Hemant Sahai

K Narsimhan

Lakshay Kataria

Oscar Wezenbeek

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Branches:

West - Pune, Ahmedabad (2),

East - Kolkata, Bihar,

North – Chandigarh, Lucknow,

South - Bangalore, Chennai,

Manufacturing Units – Mohali, Kolkata, Bengaluru, Bhind, Hyderabad

 Total Sales: Rs 2,842 Cr

 Profit: 237 Cr
 Market Cap: 8,766 Cr.
 ROE: 15.97 %
 Sales Growth (3Yrs): 3.40 %
 Promoter holding: 74.76 %
 Debt to equity: 0.07
 Price to book value: 7.93

Vision –

Customer focused
Deliver on commitments
Passion for excellence
Winning together

Mission – The AkzoNobel art collection helps maintain and preserve our international cultural
heritage for future generations. We aim to create a stimulating working environment with our
collection, one in which art and business are in dialog with each other. Like two communicating
realms. The collection is a source of innovation and creative reflection. It’s also an expression of

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AkzoNobel’s corporate social, cultural and social responsibility.

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 Asian Paints Limited

 Asian Paints Limited is an Indian multinational paint company having a headquarter

in Mumbai, Maharashtra. The company is engaged in the business of manufacturing,
selling and distribution of paints, coatings, products related to home decor, bath fittings
and providing of related services. Asian Paints is India's largest and Asia's third largest
paints corporation. As of 2015, it has the largest market share with 54.1% in the Indian
paint industry. Asian Paints is the holding company of Berger International.

Top Management –
 Chairman Emeritus – Mr. Ashwin Dani

Mr. Manish Choksi

 CEO - Mr. Amit Syngle

 Managing Director – Mr. Amit Syngle
 Board of Directors – Mr. Malav Dani

Ms. Amrit a Vakil

Mr. Jigish Choksi

Mr. Deepak Satwalekar

Dr. S Sivaram

Ms. Vibha Paul Rishi

Mr. R Seshasayee

Ms. Pallavi Shroff

Mr. Suresh Narayanan

Branches:

 Bhopal

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  Chennai
 Mumbai
 Pune
 Hyderabad,
 Sihora
 Nagpur,
 Changodar,
 Amravati
Vision –

The vision statement of Asian paints is “We want to be an innovative, agile, and responsive world
class research and technology organization that’s aligned to future customer needs and catalysis
the growth of the company across existing and future
Indian government has allowed 100% FDI’s into the Indian chemical Industry, since paint is also
a chemical, FDI’s entered into paint industry also

Mission-

Asian paints continuously strive for rejuvenating each and every living and working space of the
customers and to bring happiness and joy to their lives.
Asian paints mainly concentrate on the technology that makes constant innovations in their paints
(colors) and this process is the reason behind their victory, because they clearly understand the
needs and desires of the customers and they act accordingly. They deal their customers with
utmost care and respect. They also believe that trust is very important to their business.

 Total Sales: Rs 20,468 Cr

 Profit: 2,586 Cr
 Market Cap: 166,728 Cr.
 ROE: 23.98 %
 Sales Growth (3Yrs): 10.66 %
 Promoter holding: 52.79 %
 Debt to equity: 0.03

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 Berger Paints
 Berger Paints India Ltd is a paint company based in India. The company is having
headquarter at Kolkata and has 14 manufacturing units in India, 2 in Nepal, 1 each in
Poland and Russia, the name Berger or Lewis Berger is today synonymous with color
worldwide. But actually, the origin of the name dates back to over two & a half centuries
in England in 1760, when a young color chemist named Lewis Berger, started
manufacturing in Europe, 'Prussian blue' using a secret process that every designer and
householder coveted. Mr. Berger perfected this process & art of the blue color, which
was the color of most military uniforms of that time. Enriched by the imagination of
Lewis Berger, the unending quest for creation and innovation in the world of color &
paints still continues.

Top Management –
Chairman Emeritus – MR. KULDIP SINGH DHINGRA

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 MR. GURBACHAN SINGH DHINGRA

CEO - MR. ABHIJIT ROY

Managing Director – MR. ABHIJIT ROY

Board of Directors – MRS. SONU HALAN BHASIN

MR. PULAK CHANDAN PRASAD

MR. NARESH GUJRAL

MR. KANWARDIP SINGH DHINGRA

MRS. RISHMA KAUR

MR. ANOOP HOON

DR. ANOOP KUMAR MITTAL

Branches:

 Chennai (Madras)
 Kolkata
 Mumbai
 Delhi
 Pune

Manufacturing Units - Goa – India, Sikandrabad - Uttar Pradesh, Mumbai- Maharashtra,

Chennai (Madras)

Vision –

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To be the most admired Indian Paint & Coating Solutions company with globally recognized
competencies.

Mission –

To maximize shareholder value by developing and delivering innovative and best solutions for
our customers, consistently outperforming our peers and providing a Dynamic & Challenging
work environment for our employees.

Values –

 Passion,
 Partnership for Growth Values,
 Uncompromising Integrity,
 Thoughtful Innovation


 Total Sales: Rs 6,404 Cr

 Profit: 615 Cr
 Market Cap: 48,493 Cr.
 ROE: 21.00 %
 Sales Growth (3Yrs): 12.80 %
 Promoter holding: 75.00 %
 Debt to equity: 0.40
 Price to book value: 18.9

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 Kansai Nerolac Paints
Nerolac Paints Ltd) is the largest industrial paint and third largest decorative paint company
of India based in Mumbai. It is a subsidiary of Kansai Paint of Japan. As of 2015, it has the
third largest market share with 15.4% in the Indian paint industry. It is engaged in the
industrial, automotive and powder coating business. It develops and supplies paint systems
used on the finishing lines of electrical components, cycle, material handling equipment,
bus bodies, containers and furniture industries. It takes hard work and passion. It takes
commitment and courage. It means marching ahead with fearless innovation. It involves
taking risks and celebrating when they work. And going back to the drawing board when
they do not. It means being keenly attuned to the needs of the customer. And still being
invested in the environment.

Top Management –
 Chairman Emeritus – [Link] Panalal Shah
 CEO - H M Bharuka
 Managing Director – [Link] Meghraj Bharuka
 Secretary – Mr.G T Govindarajan
 Co. Secretary – Mr.G T Govindarajan
 Board of Directors-
[Link] Naval Tata
[Link] Furukawa
[Link] Hasebe
[Link] Nishibayashi
[Link] Singh

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Branches:

 Mumbai
 Bhopal
 New Delhi
 Jaipur
 Chennai
 Jamshedpur
 Banglore
 Surat

VISION

“To uphold quality at every stage and maintain consistency to win the Trust of our valued
Customers Worldwide”.

MISSION

“ To contribute positively to the development of the society, by acting as a good

neighbors, considerate of others, playing the role of good corporate citizen with passion
and compassion”.

OBJECTIVE

To provide complete contentment to its customers with respect to Quality, Reliability and
Delivery to achieve Quality Leadership for all products offered.

 Total Sales: Rs 5,504 Cr.

 Profit: 531 Cr
 Market Cap: 28,264 Cr.
 ROE: 13.38 %
 Sales Growth (3Yrs): 12.92 %
 Promoter holding: 74.99 %
 Debt to equity: 0.05
 Price to book value: 7.89

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 Shalimar Paints

Shalimar Paints was founded in 1902 by two British entrepreneurs AN Turner and AC Wright
as Shalimar Paints Colour & Varnish Ltd. [4] In the same year, the company set up a large-scale
manufacturing plant in Howrah, West Bengal, the first such plant in entire South East Asia. In
1928, Pinchin Johnson & Associates of UK bought control from the British entrepreneurs AN
Turner and AC Wright. In 1963, the company's name was changed to Shalimar Paints Ltd. after
Turner Morison & Co stepped in as new management.
With access to high-end technology, the company introduced many firsts in the industrial
coatings segment such as high build zinc coatings, radiation resistant coatings for nuclear
power plants, polyurethane paint for fighter aircraft and railway coaches, among others.
Shalimar was the first company to paint a fighter aircraft for the Indian Army.

Top Management –
 Chairman Emeritus - Gautam Kanjilal
 CEO - Ashok Kumar Gupta
 Managing Director – Ashok Kumar Gupta
 Secretary – Gautam
 Co. Secretary - Gautam
 Board of Directors – Alok Perti

Ashok Kumar Agarwal

Sanjay Kumar Gupta

Shruti Shrivastava

Branches:

 Delhi
 Haryana

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  Kolkata
 Chandigarh
 Pune
 Mumbai
 Manufacturing Units – Chandigarh, , Kolkata, Chennai, Mumbai,
 Vision - We aim at building better homes and delivering world class projects while
maintaining a well-rounded organizational growth, just not only building better homes
or offices but also providing better facilities, in order to offer a life of better quality.

Mission- Delivering world class projects with balanced organizational growth is our mission.
Our motto is not only to build better homes, offices and commercial places but to also provide
a better quality of life and environment to end users. We have an unflinching commitment to
the highest levels of innovation professionalism, social and moral responsibility to our
customer enduring them with enthralling architecture, lavish comforts and a gracious living.

 Total Sales: Rs 332 Cr

 Profit: – 68 Cr
 Market Cap: 419.74 Cr.
 ROE: -29.76 %
 Sales Growth (3Yrs): -9.17 %
 Promoter holding: 53.10 %
 Debt to equity: 0.45
 Price to book value: 1.40

 GST Applicability –Goods and services tax (GST) on paints and varnishes has
been reduced to 18% from 28%,

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 Government Regulatory Bodies

Overview of Chemical Regulations in India

The following 2 chemical regulations are the most important ones in force in India. We will
take a close look at them one by one.

 Manufacture, Storage And Import Of Hazardous Chemical (Amendment) Rules, 1989,

1994, 2000
 Ozone Depleting Substance (R&C) Rules (2000)

The Function and Mission of regulatory bodies are as follows:

Indian Small Scale Paint Association(ISSPA)- Indian Small Scale Paint Association,
commonly known as ISSPA, traces its origin to the year 1956, when excise duty was first
imposed on paints when a group of small scale paint manufacturers banded together to unitedly
protect the small scale paint industry.

Main Objectives
To promote and protect the small-scale paint industry in India.
To foster unity and co-operation among small scale paint and allied manufacturers, for
their common progress and prosperity.
To represent and seek redress from Government for the difficulties experienced by its
Members, by written submission to Government, interaction and representation on
relevant Government bodies.
Identify problems that may arise, affecting the small-scale paint industry and take pre-
emptive measures.
To update Members about changes in Government regulations affecting their industry.

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To disseminate among its Members updates in technology and management practices.
To help members to identify their strength, specialize and grow.

I)- Indian Paint & Coating Association(IPCA

IPCA, Indian Paint & Coating Association is one of the young and dynamic
associations, which represents both the organized and unorganized sector in the paint
and coating industry. In 2004, in an attempt to improve communication and to
coordinate industry policy on matters of national and international concern, the Indian
Paint & Coating was formed

Over the last several years common issues facing the paint and coating industries have
increased significantly. While it is always a constant challenge for each individual to
manage the myriad of domestic regulations, it has also become increasingly difficult
to interpret the potential impact of foreign issues on our businesses. IPCA is
endeavoring to help out the people across the Paint and Coating fraternity in making
businesses better and more profitable. It is also its bounden goal to encourage
brotherhood and cooperation amongst its members & the coating fraternity.

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 Exporters and Importers
Total combined exports of different types of paint by country totaled US$21.7 billion in
2019. That dollar amount reflects an 8.7% increase for global paint shippers over the five-
year period starting in 2015. Year over year, international sales of paint fell by -5.5% from
2018 to 2019.

The value of exported paint made from synthetic or chemically modified natural polymers
amounted to $21 billion or 96.8% of the global total in 2019. Just 3.2% of the global total
($696.8 million) represents paint made from non-synthetic ingredients.

1. Germany: US$3.7 billion (16.8% of total paint exports)

2. United States: $2.4 billion (11.2%)
3. Japan: $1.9 billion (8.5%)
4. Italy: $1.7 billion (7.6%)
5. Netherlands: $1.14 billion (5.2%)
6. France: $1.08 billion (5%)
7. Belgium: $970.6 million (4.5%)

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 PESTEL Analysis
Pestel Analysis is a framework used for analyzing and scanning an organization’s and
industry’s external macro environment by considering factors which include Political,
Economical, Socio – cultural, Technological, Environmental and Legal.

Political – POLITICAL FACTORS Political situation is stable. ModiNomics promises to

drag India's economy into the 21st century Make in India and various infrastructural
development programmes will pave way for revenue generation in Paint Industry The fiscal
incentives given by the government to the housing sector have immensely benefited the
housing sector. This will benefit key players in the paint industry for long term

Economical- ECONOMIC FACTORS The market for paints in India is expected to grow
at 1.5 times to 2 times GDP in the next five years With GDP growth expected to be between
6.9% levels, the top three players are likely to clock above industry growth rates in the future,
considering they have a strong brand and good reach Rise in disposable income and education,
increasing urbanization, development of the rural market and various launches of many
innovative products have fuelled the paint industry’s growth…

Socio Cultural- SOCIO CULTURAL FACTORS Rise in price of raw material

Import of raw material,

Technological- TECHNOLOGICAL FACTORS Cross-border tie-ups in industrial paints

are becoming the order of the day with massive investment thrusts in automobiles and
consumer durables. None of the Indian paint manufacturers possess the requisite technology to
manufacture auto- paints. All the paint majors have tie-ups with global paint leaders for
technical expertise. Asian Paints has formed a JV with PPG Industries Inc to service the
automotive OEMs. The lack of technology also affects the chances of Indian paint companies
in setting up manufacturing units abroad Modernization of paint like (waterproof paints, Teflon
coating, creating colors shops etc.)

Environmental - ENVIRONMENT FACTORS Low-VOC and other environmentally

preferred paints Volatile organic compounds are gases emitted by various solids or liquids,
many of which have short- and long-term adverse health effects. Solvents in traditional paints
often contain high quantities of VOCs. Low VOC paints improve indoor air quality and reduce
urban smog. The beneficial characteristics of such paints include low odor, clean air, and safer
technology, as well as excellent durability and a washable finish. Heavy metals Heavy metals
are used in paints and have raised concerns due to their toxicity at high levels of exposure and
since they build up in the food chain. Lead paint Lead paint contains lead as pigment. Lead is
also added to paint to speed drying, increase durability, retain a fresh appearance, and resist

26
moisture that causes corrosion. Lead, a poisonous metal, can damage nerve connections
(especially in young children) and cause blood and brain disorders. Chromium Primer paint
containing hexavalent chromium is still widely used for aerospace and automobile refinishing
applications. Zinc chromate has been used as a pigment for artists' paint, known as zinc yellow
or yellow 36. It is highly toxic and now rarely used.

Legal- LEGAL FACTORS Pollution Control Law, Health and Safety Law, Environmental
Law…

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 Local Players
1) DIVINE PAINTS-

Luster Emulsion-PEARL GLOW high sheen luster emulsion provides excellent shine
and gives a smooth and luxurious finish. It has higher washability and eco-friendly. It is low
odor and low VOC paint with anti-fungal property. It has dirt pickup resistance property and
protect against water-based stains. This is processed using superior quality chemical
compounds that are procured from the trustworthy vendors of the industry. Our offered range
of product is highly demanded in the market for its High sheen Luster, uniform film formation,
pleasant environment, accurate composition and safe uses. Moreover, it is duly tested on set
quality parameters in order to ensure their flawlessness.

2) Dolphin Plastic Emulsion Paint-

Brand Dolphin
Finish Soft Sheen
Pack Size 10 litre
Usage Wall
Application method Roller

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 3) Jagdish Coating Tejas Primer Auto Paints-

Product Specification

Brand Jagdish coating

Color All color

Form Of Paint Liquid

Minimum Order Quantity 60 Litre

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 Bibliography
[Link]
 Official websites of Leader and competitors,
 [Link]
l&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjg3JiJ3tvtAhVkw
TgGHcthBNoQ_AUoAXoECAQQAw&biw=1042&bih=726
 [Link]
Presentations/2016-2017/[Link]
 [Link]
 [Link]


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