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REPORT ON TRAINNING UNDER TAKEN AT

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“TO EXPLORE THE POTENTIAL OF NEROLAC PRODUCT IN

UPCOMING PROJECTS IN JAIPUR CITY BY VARIOUS BUILDERS”

SUBMITTED TO : SUBMITTED BY :

MR. NARESH AGARWAL DHARMENDRA KATIYAR(BBA 3rd)

STAINI MEMORIAL P G COLLEGE

A

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REPORT

ON

“TO EXPLORE THE POTENTIAL OF NEROLAC PRODUCT IN

UPCOMING PROJECTS IN JAIPUR CITY BY VARIOUS BUILDERS”

BY

DHARMENDRA KATIYAR

A report submitted in partial fulfillment of the requirements of

BBA 3rd yr from

STANI MEMORIAL PG COLLEGE

3

PREFACEThe BBA programmed is well structured and integrated course of business studies. The main

objective of practical training at BBA level is to develop skill in student by supplement to the

theoretical study of business management in general. Industrial training helps to gain real life

knowledge about the industrial environment and business practices. The BBA programmed

provides students with a fundamental knowledge of business and organizational functions and

activities, as well as an exposure to strategic thinking of management.

In every professional course, training is an important factor. Professors give us theoretical

knowledge of various subjects in the college but we are practically exposed of such subjects

when we get the training in the organization. It is only the training through which I come to

know that what an industry is and how it works. I can learn about various departmental

operations being performed in the industry, which would, in return, help me in the future when I

will enter the practical field.

Training is an integral part of BBA and each and every student has to undergo the training of for

2 months in a company and then prepare a project report on the same after the completion of

training.

During this whole training I got a lot of experience and came to know about the management

practices in real that how it differs from those of theoretical knowledge and the practically in the

real life.

In todays globalize world, where cutthroat competition is prevailing in the market, theoretical

knowledge is not sufficient. Beside this one need to have practical knowledge, which would help

an individual in his/her carrier activities and it is true that “Experience is best teacher”.

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ABSTRACTIn this competitive market where customer and dealer is the king, it is very important to analyze

the customer perception about the product. Companies, by conducting various market researches,

try to improve their products and provide customers better and more services.

As without putting customers on the top no company can get success. For achieving success

every company should target customers because the market is totally market oriented.

The report is prepared for the partial fulfillment of BBA programme and as a part of curriculum.

The report is an attempt to find out the “Builders Perception” with special reference to “Kansai

Nerolac Paints Ltd.” This training is being conducted by survey on the builders. The survey was

conducted through questionnaires by personally interviewing each respondent on a number of

queries structured in the questionnaire. The data thus collected through survey was organized in

a database, which could be referred for future endorsements. The data thus collected was then

subjected to analysis by a mixture of common and advanced statistical technique. The above

mentioned survey was conducted on 50 respondents. The respondents were selected from

different parts of jaipur city..

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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ACKNOWLEDGEMENTI would like to express my sincere gratitude to MR. KAMLESH SINGH, Kansai Nerolac

Panit Ltd.(Head), Jaipur, for his permission to pursue my Project. Mr.Ballabh gupta,

(TSM) For his constant support and mentorship throughout the project despite of his busy

schedule.

I extend my sincere thanks to, Prof. NARESH AGARWAL. (Stani memorial PG college) for

having spared their valuable time with me and for all the guidance given in executing the project

as per requirements.

Last but not the least; I would like to record my deepest sense of gratitude to my friends for their

support and constant encouragement.

Thank You

Dharmendra katiyar

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TABLE OF CONTENTS

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12 annexures 63

8

S.NO CONTENT PAGE NO.

1 Cover Page i

2 Title Page ii

3 Preface iii

4 Abstract iv

5 Acknowledgement v

6 chapter 1- overview of paint industry 9

7 chapter 2 -introduction of company 15

8 chapter 3-competitors and strategies 38

19 chapter 4- research methodology 48

10 chapter5- observation & analysis 51

11 Chapter6- conclusion and recommendation 61

13 bibliography 68

CHAPTER 1

OVERVIEW OF PAINT INDUSTRY

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HISTORY OF PAINTS:-Colour has fascinated culture throughout history, every age and every region has produced dyes

and pigment depending on the available resources. Colour has been with us for more than 20,000

years. Evidence survives in early cave paintings and the ancient Chinese are considered to have

brought its manufacture and use to a state of perfection tens of thousands of years ago.

Colour was widely used by the ancient Egyptians and was considered to have magical and

healing properties and around this time, 1500 BC, paint making as an art became quite widely

established in Crete and Greece with the Egyptians passing their skills to the Romans. It was

between 600 BC-AD 400 that the Greeks and Romans then introduced varnishes. For the Aztec

Indians red dye was considered more valuable than gold and both the Indians and Chinese

practiced Colour Healing. A 2000 year old, Chinese chronicle, The Nei/ching, records colour

diagnoses.

Yet for all this it was discovered that none of the world’s civilizations has named many colours.

In the 1960s two anthropologists conducted a worldwide study of colour naming. Many

languages only contained two colour terms, equivalent to white (light) and black (dark). Of 98

languages studied, the highest number of basic colour terms was to be found in English - where

we have eleven: black, white, red, orange, yellow, green, blue, purple, pink, grey and brown. The

other millions of colours have 'borrowed' names, based on examples of them, such as avocado,

grape, peach, tan, gold, etc.

One of the earliest recorded colour discoveries was made by Plato who discovered that by

mixing two colours, a third is produced, therefore changing the, 'manufacture', of colour forever.

Prior to that the earliest cave paintings were made by using iron oxides, it was the ancient

Egyptians who developed other paints from pigments in the soil (yellow, orange, and red). It was

the Romans who gave us purple, a pound of royal purple dye, required the crushing of four

million mollusks. Cochineal red, discovered by the Aztecs, was made using the female cochineal

beetle. A pound of water-soluble extract required about a million insects and it was the Spaniards

who introduced the crimson colour to Europe in the 1500's. Later genuine Indian Yellow was

produced from concentrated cows urine which was mixed with mud and transported to London

for purifying, Sap Green from the Blackthorn berry and Sepia Brown from the dried ink sac of

squid.

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Paint is made up of a pigment, a binder to hold it together and appropriate thinners to make it

easy to apply. 5000 years ago Blue Frit was the first synthetic pigment being produced by the

Egyptians from ground down blue glass. Before the nineteenth century the word 'paint' was only

applied to oil-bound types; those bound with glue were called 'distemper'.

By 1000 B.C. development of paints and varnishes based on the gum of the acacia tree (better

known today as gum arabic) had been developed. At this time umbers, ocher's and blacks were

readily obtainable, new colours were also discovered - the first was 'Egyptian Blue'; 'Naples

Yellow' dates from around 500 BC and 'red lead' was discovered by accident in about 2500.

White lead occurred naturally but demand encouraged production of manmade versions.

Vitruvius describes production of white lead in the 2nd century AD.

Before the 16th century, pigment colour was largely dependant on dyestuffs which could be

grown in, or were indigenous to Europe and similar temperate regions. Between 1550 and 1850

only the so-called natural dyestuffs were available but the range was greatly extended with

tropical dyestuffs from Central America and India and elsewhere.

In the 17th century the Dutch greatly increased availability of white lead and lowered cost by

invention of the Stack Process. All white lead paints included chalk in their undercoats, reserving

purer white lead for finish coats. In1856 the first real synthetic dye, 'Mauveine', was discovered

by Henry Perkins. It was then realized that a great many dyes could be made synthetically and

cheaply.

It was then that Linseed Oil began being mass produced.

They also had pigment grade zinc oxide - we call it white paint.

Using cast-iron paint mills and zinc-based pigments, industrialists produced the first washable

paint marketed as 'Charlton White' in the 1870's (the first ready mixed paint was patented by one

D.R. Averill of Ohio in 1867, but it never caught on).

The Sherwin-Williams company spent ten years trying to perfect the formula where fine paint

particles would stay suspended in Linseed oil. In 1880 they succeeded in developing a formula

that far exceeded the quality of all paints available at the time.

It was then that emulsions based on similar formulae, were produced and marketed as 'oil bound

distempers'. By 1880 the new paints were readily available in tins, in a wide range of colours,

and came to be exported all over the World.

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INTRODUCTION TO PAINTS INDUSTRY IN INDIAThe Indian paint industry is over 100 years old. Its beginning can be traced back to the setting up

of a factory by Shalimar Paints in Calcutta (now Kolkata) in 1902. Until World War II, the

industry consisted of small producers and two foreign companies. After the war, the imports

stopped, which led to the setting up of manufacturing facilities by local entrepreneurs. Still, the

foreign companies continued to dominate the market. Initially British paint companies such as

Goodlass Walls (now Kansai Nerolac), ICI, British Paints (now Berger Paints), Jenson

Nicholson and Blundell & Eomite dominated the market.

Paint Companies in India bring to you a wide range of paints, varnishes, pigments and coatings

for the perfect finishes for the home interior and exteriors décor and beautification. The paints

industry in India has flourished into a full-fledged manufacturing and sale market catering to the

international standards being demanded for the painting jobs.

Painting is a vital ingredient in any décor. Different surfaces require different kinds of products.

The surfaces may vary from walls - interior, exterior and textured to wood and glass surfaces,

metals, faux finishes, doors and handles to cars and special decorative paints for bedrooms and

kids rooms and many such special requirements. The India paints companies have given many

products to suit each individual need. You can get all varieties of plastic paint, acrylic paint,

primers, emulsions, latex paints etc. in a wide spectrum of colors to choose from.

Selection of home and office paint goes far beyond just the matching or desired color. The

texture and quality of the paint applied is what matters the most for the perfect finish you are

looking for. Some of the common problems one might face with the painting jobs done on their

surrounding surfaces are blistering, cracking or flaking, blocking, sagging, yellowing, fading or

surfactant leaching.

The Indian Paints industry is worth more than Rs. 110 billion. The demand for paints is price-

elastic but it is linked to industrial and economic growth. In India the organized sector controls

70 percent of the total market with the remaining 30 percent being in the hands of nearly 2000

small-scale units. The industrial paint segment accounts for 30 percent of the paint market while

the decorative paint segment accounts for 70 per cent of paints sold in India. In most developed

countries, the ratio of decorative paints vis-a-vis industrial paints is around 50:50. Indian paints

industry offers lucrative scope for stable revenue streams to manufacturers of both decorative

and industrial paints.

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The types of paints available in the market and their utility are:

Acoustic Paint: It is specially designed for acoustic tiles

Alkyd Resin Paint: Best suitable for trim, doors, faux finishes and other maximized use areas.

Dripless Paint: This paint is thicker and is most suitable for application on ceilings

Latex Paint: The applicability of this paint is easier than most other and it dries much quickly. It

is also easier to be washed.

One-Coat Paint: It is the more expensive version of the latex and alkyd paints and is mostly

chosen for surfaces that require flawlessness in color.

Primers: This paint is the initiation for all interior paint works.

Rubber-Base Paint: This is best for concrete and bricks.

Textured Paint: If need is to cover any flawed surface in your house get this paint. It works well

on ceilings.

Besides these home decorating and improvement paints and office paint you can also get

industrial paints, aircraft paint, airplane paint, aviation paint and many other paint products with

the paint shops in India.

The paint companies in India house a wide range of paint products that cater to all your needs. A

whole spectrum of colors with your own textured options and application patterns are available

with the paint companies. Each company has its own specialized product and some also offer

home paint services. The cost of a painting job may vary with the paint chosen - acrylic,

emulsion, primer etc., the paint tools being used and the painting company hired. The industry

has also witnessed increased activity in the industrial variety of paints with the entry of MNCs in

auto, consumer durables etc, which has been gaining steadily over decorative paints in the last

one decade. The typical characteristics of the Indian paints industry have been discussed in depth

covering the typical features of the Indian industry viz., raw material intensiveness, working

capital intensiveness, seasonality of demand, price elasticity of demand and low entry barriers.

The current global scenario with reference to the paint industry has been covered in the report

with special focus on auto-coats market, which is a key growth area in the International market.

While talking about the post independent development of the Paint industry in India, mention

must be made of Asian Paints, a completely Indian unit which started on a very small scale,

grew so big and so beyond recognition over the years that it is today not only the largest unit in

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India but way ahead of the second largest, Kansai (Goodlass) Nerolac Paints Ltd., formerly a

unit of Goodlass Wall (UK).

Besides Asian Paints, numerous factories, wholly Indian in ownership and with rare exceptions

in technology as well, were set up in Kolkata, Kanpur and Mumbai. The British units, though a

few in number, were technically strong and financially sound and, with the active support and

patronage of the Government, controlled a vastly higher share of the market. The post

independence period witnessed a steady growth in the paint industry. From a mere Rs.200

million turnover in 1950, the paint industry crossed the Rs.14000 million mark in 1990-91.

But even in this period, paints were considered a luxury item. Only people with high incomes

were expected to decorate their houses with the use of paints. Paints, as a protective element,

were totally unheard of. The industrial segment, which was traditionally a low user of paints, vis-

à-vis its counterparts in the decorative segment, too contributed to this notion. In line with this

misconceived notion, the government drastically increased duties on paints in the early nineties

with an aim to bolster exchequer revenues. The result was obvious. This inevitably brought about

a downturn in the fortunes of the industry. The products, which are highly price elastic, saw a

negative growth rate of 20 % in 1991-92. The next year was also not good, registering a growth

of only 2%, bringing it back to the 1990-91 level, thus corroborating the fact that the industry

needed lower excise levels to grow. The industrial slowdown during that period also did not help

matters. In line with the liberalized policies and the realization that paints are not necessarily a

luxury item, duties were progressively reduced from 1993-94.

This squared growth as most companies passed on duty reductions. Further, the entry of world

majors in the automobile and white goods market in India since 1993 helped the market to

expand. Demand for auto paints shot up suddenly. Form a modest 8% growth rate in 1993-94,

paint demand touched 12% in 1995-96.

Rapid industrialization and improvements in the infrastructure such as transport, energy and

communication during the last decade gave a further fillip to the growth of the paint industry.

Aided by Government’s liberal policy of technology import, the automotive and consumer

durable segments expanded phenomenally, with a flurry of foreign collaboration. Increased

demand for decorative, protective and functional coatings was a natural fall out, which brought,

in its stride, a host of indigenous developments as well as the injection of new technology.

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SWOT ANALYSIS OF INDUSTRY:-

Strengths Imp of brand image as barriers to new entrants

Good technology backup.

Weakness Raw materials – scarcity

Requirement of high working capital

Real estate in a depression phase.

Opportunities Fiscal incentives provided by Government.

Commodity to FMCG.

Rise in disposable income

Threats Foreign companies entering as sole players

CHAPTER 2 INTRODUCTION OF COMPANY

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HISTORY OF THE ORGANIZATION

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 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 KNP 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 toKansai

Nerolac Paintss 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 crores.

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 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.

VISION VALUES AND CULTURE

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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 conviction to the 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

OBJECTIVE OF COMPANY:

The management of kansai nerolac decided some objectives to become topper in the market. And

the objectives are:

o Better quality then other company.

o Fair returns to share holders.

o A higher productivity to cover maximum market.

o Maximum customer satisfaction.

o Clean & healthy Environment for employee’s growth.

o Try to lower pollution to fulfillment of social responsibilities

CULTURAL ETHOS

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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 QUALITY POLICY

It is the philosophy of Kansai Nerolac Paintss 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 relief and development

activities and has donated both in cash and kind for the beautification of some public places in

Mumbai and elsewhere. The company continued its activities directly or indirectly through

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trusts/agencies in community Development and Social Welfare including contributions towards

national defense, medical help, education, improvement of environment etc.

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.

STRONG VISION AND VALUES

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.

KANSAI NEROLAC PAINTS AND THEIR ASSOCIATES COMPANIES:-

The Associates are:-

Nipa Chemicals Limited:-

This Company specializes in the manufacture of Pre-Treated Chemicals. Nipa Chemicals Ltd., is

a joint venture of Nihon Parkerizing Co. Ltd., Tokyo, Japan, and kansai Nerolac. kansai

Nerolac provides the technical and the marketing support for Nipa Chemicals.

Polycoat Powder Limited:-

Kansai Nerolac provides the marketing expertise and technical services for

Polycoat products.

KANSAI NEROLAC PAINT LTD & THEIR TECHNICAL COLLABORATORS

Committed to provide the best in Paints, Kansai Nerolac have entered into Technical

Collaboration with four industry leaders known for their technical superiority.

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The four technical collaborators are:

E.I. Dupont De Nemours & Co.

Inc,U.S.A;

Kansai Paint Co. Ltd., Japan;

Oshima Kogyo Co. Ltd. Japan

Dupont Performance Coatings GmbH & Co.KG ; Germany

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.

MARKET STATUS OF THE ORGANIZATION

The Company has registered a Top line growth of 21.9% at Rs. 345.06 crores, in the IV Quarter,

as compared to Rs.283.01 crores in the previous year, same period. The Profit Before Tax posted

for the IV quarter is of Rs. 35.68 crores as against Rs. 31.06 crores in the previous year, same

period, registering a 14.9% increase.

On cumulative basis, for the full year the gross sale registered is of Rs 1483.86 crores, an

increase of 21% per cent, as compared to Rs1225.98 crores for the previous year.

The Company has posted Profit Before Tax of Rs. 160.97 crores as against Rs. 199.60 crores in

the previous year. Previous year’s profit included an extraordinary gain on sale of shares of Rs

50.39 crores. On excluding this, the growth in Profit Before Tax is 7.7%.

During the quarter, a scheme of amalgamation of Polycoat Powders (PPL) with the Company

was approved by the Bombay High Court effective 1st April, 2006. On completion of all the

statutory formalities, the scheme has been given effect to, in these results and hence figures for

nine months have been restated. Consequently, figures for the quarter and year are not

comparable with the previous quarter/year. Pursuant to the amalgamation, the company has

issued 14,38,320 shares to Kansai Paints Japan as a result of which Kansai Paint Japan’s equity

holding has increased from 64.52% to 66.41%.

Commenting on the performance of the company, Mr. H. M. Bharuka, Managing

Director,Kansai Nerolac Paintss Ltd, said “It has been a year since we started working under

the brand name Kansai Nerolac and we have had a favorable year with Top line growing at

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21%. The growth this year is led by Decorative business. The growth in industrial has been lower

and the cost could not be fully passed on to customers. We will continue to invest in research &

technology in developing new products & finishes keeping abreast of all the latest trends in the

sector and cost will be kept under check. The boom in infrastructure continues to accentuate the

sales and industrial is not the least behind.”

Kansai Nerolac Paints has been at the forefront of paint manufacturing for more than 86

years pioneering a wide spectrum of quality paints. Kansai Nerolac is the second largest

paint company in India and undisputed leader in Industrial segment, having a turnover of

Rs1484 crores. The company has five strategically located manufacturing units all over

India and a strong dealer network of over 11000 dealers across the country. The company

anufactures a diversified range of products ranging from architectural coatings for homes,

offices, hospitals and hotels to sophisticated industrial coatings for most of the industries.

ORGANIZATIONAL STRUCTURE

A sale organization is both an orienting point for co-operative endeavor and a structure of human

relationships. It is a group of individuals striving jointly to reach qualitative and bearing formal

and informal relations to one another.

Existence of a sales organization implies the existence of patterns of relationships among

subgroups and individuals established for purposes of facilitating accomplishment of the group's

aims.

A good and efficient sales organization is the foundation for execution of sales policy and sales

program me.

The concept of organizational structure is somewhat abstract and illusive. However it is real and

effects everyone in the organization.

According to March and Siman, "Organizational structure consists of those aspects of pattern of

behaviour in the organization that are relatively stable and change only slowly."

It facilitates the growth of the organization. It stimulates creative thinking and initiative by

proving well defined are of work with provisions for development of new and improved ways of

working.

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Organizational Structure:-

PRODUCT PROFILE OF KANSAI NEROLAC PAINTS LTD.

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Decorative Paints

(1) Walls

Interior

Water Based Paints

EMULSION

NEROLAC IMPRESSION 24 CARAT PREMIUM LUXURY EMULSION

Product Description

Nerolac Impression 24 Carat Premium Luxury Emulsion is a premium quality Architectural

coating specially formulated by using pure acrylic latex, and high opacity micronised pigments

so as to impart smooth velvet finish, with excellent wash ability.

Performance Features & Benefits

Smooth Velvety Finish with Sheen

Excellent Flow & Brushability

Excellent Washability & Stain Resistance

Very good Antifungal Resistance

Ease of application

Low odour.

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PRODUCTS

DECORATIVE PAINTS INDUSTRIAL PAINTS

NEROLAC IMPRESSION METALLIC

Product Description

Nerolac Impression Metallic is a premium quality water base special effect designer series range

that creats a variety of special effects and textures on interior walls and is based on pure acrylic

emulsion


Smooth Velvety Finish with Sheen

Excellent Flow & Brushability

Excellent Washability & Stain Resistance

Very good Antifungal Resistance

Ease of application

Low odour.

Good aesthetic look

Can make various designs with different application tools

NEROLAC DISNEY EMULSION

Description:

Nerolac Disney Emulsion is a water-based, premium super luxury interior wall finish. It provides

a distinctly rich, velvety smooth with exquisite satin finish. Ideal base coat for Disney stencil

application and for superior results.

Properties:

It offers excellent washability and superior stain resistance. No added lead, mercury or

chromium compounds.

Designs:

Nerolac Disney Emulsion has beautiful designs of Micky & family, Pooh and Princess.

Packaging:

Nerolac Disney Emulsion is available in 1lt attractive pack. Along with this one set each of

stencil kit and tool kit is required for one complete design.

DISTEMPER

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NEROLAC BEAUTY PREMIUM ACRYLIC DISTEMPER

Product Description

Nerolac Beauty Premium Acrylic Distemper is supplied in paste form, and it can be used for the

decoration of fully matured plasterwork, concrete, brickwork and asbestos surfaces. The paste is

bound with a stable acrylic medium.


Premium Acrylic Distemper

Ease of application

Good washability

Eye soothing matt finish.

NEROLAC BEAUTY ACRYLIC DISTEMPER

Product Description

Nerolac Beauty Acrylic Distemper is supplied in paste form, and it can be used for the

decoration of fully matured plasterwork, concrete, brickwork and asbestos surfaces. The paste is

bound with a stable acrylic medium.


Economical Distemper

Ease of application

Good washability


NEROLAC BEAUTY OIL BOUND DISTEMPER

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Product Description

Nerolac Beauty Oil Bound Distemper is supplied in paste form and it can be used for the

protection and decoration of fully matured plasterwork, concrete, rickwork and asbestos surfaces.

The paste is bound with a stable oil emulsion medium.


Ease of application.

Good wash ability


Solvent Based Paints(I) Nerolac Pearls Lustre Finish

NEROLAC PEARLS LUSTRE FINISH

Brand Name

Nerolac Pearls Lustre finish is a Special Interior Wall paint that captures the magic glow of

pearls and the intrinsic resilience of the shell. Thus, this paint very rightly stands for

"Ornamentation for walls". This is a special product for interior use, developed by incorporating

selected pacifying pigments dispersed in a specially formulated medium.


Silky finish with pearly sheen

Excellent stain resistance

Very good washability

Good applicability

Tough and hard film.

ENAMEL

26

NEROLAC SYNTHETIC ENAMEL

Product Description

Nerolac Synthetic Enamel is a time tested and proven, high quality alkyd based enamel

incorporated with best quality opacifying and light fast pigments.


Excellent Water Repellency

Good Stain Resistance

Excellent flow characteristics to form smooth and uniform finish

Excellent Hardness and Durability

Excellent Gloss.

NEROLAC SATIN ENAMEL

Product Description

Nerolac Satin Enamel is specially formulated to give an excellent smooth finish resembling the

smoothness of satin to masonry, wood and metal surfaces. It can be easily cleaned to give new

look to the surface.


Very smooth satin like appearance

Good wash ability

Very good flow and brush ability

Hard durable film.

NEROLAC IMPRESSION HI-PERFORMANCE ENAMEL

Product Description

Nerolac Impression Hi-Performance Enamel is a specially designed coating having

a judicious blend of high quality resin & light fast pigments. It is recommended for

suitably primed interior & exterior wooden, masonry and metal surfaces.


Super sleek and shiny finish with special anti-fungal formula to

Provide protection from fungus.

Excellent gloss and gloss retention.

27

Excellent colour and colour retention


Excellent durability

Up to 30% more coverage than popular enamels.

FLAT OILNEROLAC SYNTHETIC FLAT PAINT INTERIOR

Description: Nerolac Synthetic Flat Paint Interior is a ready to use paint for wall & ceilings

incorporating high opacity pigments dispersed in a synthetic resin medium. This product can be

blended with Nerolac Synthetic Enamel in various proportions to obtain different sheen levels as

desired.

Properties: Nerolac Synthetic Flat Paint Interior can be easily applied on interior walls which

when dried gives a pleasant velvet matt finish. The dried film provides a very hard wearing

surface. It can be regularly cleansed without detriment to its appearance. The matt finish is useful

in minimizing the uneven appearance of ceiling & wall surfaces. It is best suited for decoration

of ceiling & wall surfaces where a matt finish combined with long-term durability is an essential

requirement.

Packing: The choice of packs that are offered to the consumer are 20 litre drums, 4 litre & 1 litre

tins.

ExteriorNEROLAC IMPRESSION EXCEL ANTI PEEL ACRYLIC EXTERIOR PAINT

Product Description

Nerolac Impression Excel Anti Peel Acrylic Exterior Paint is premium water based, high

performance, long lasting exterior paint, formulated to suit the extreme tropical conditions of

high rainfall, humidity and heat. The product is based on 100% Acrylic resin and hence it forms

a tough and flexible protective film, with an excellent bonding to the substrate, which prevents

peeling off or cracking for years together. Nerolac Impression Excel Anti Peel Acrylic Exterior

Paint contains a unique combination of surface protectants, which are released slowly over a

long period of time. This actively helps not only to prevent the fungal and algae growth, but also,

ensures constant surface activity against these irritants for a long period.


28

Excellent out-door durability

Very good colour retention

Faster drying

Smooth & Matt to Slight Sheen finish

Excellent resistance to fungal and algae growth

Easy to apply and maintain

Superior washability & scrub resistance

Very wide range of beautiful colours

Very good coverage thus good value for money.

NEROLAC IMPRESSIONS EXCEL TOTAL ALL IN ONE ACRYLIC EXTERIOR

EMULSION

Product Description

Nerolac Impressions Excel Total All In One Acrylic Exterior Emulsion is high performance

premium water based, long lasting exterior paint, with UPF (Ultimate Paint Formula). It is

formulated to suit the extreme tropical conditions of high rainfall, humidity and heat. The

product is based on 100% Acrylic resin and hence it forms a tough and flexible protective film,

with an excellent bonding to the substrate, which prevents peeling off or cracking for years

together. It contains special type of emulsion which gives Excellent Dirtpickup Resistance and

Excellent Sheen. 1`All In One Acrylic Exterior Emulsion contains a unique combination of

surface protectants, which are

released slowly over a long period of time. This actively helps not only to prevent the fungal and

algae growth, but also, ensures constant surface activity against these irritants for a long period.

It also offers a 7 year warranty*


Excellent Dirt Pick up Resistance

Excellent resistance to fungal and algae growth

7 year warranty*

Excellent out-door durability

Very good colour retention

Smooth & High Sheen finish

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Easy to apply and maintain

Superior washability & scrub resistance

Very wide range of beautiful colours

Very good coverage thus good value for money.

NEROLAC SURAKSHA ADVANCED PLASTIC EXTERIOR PAINT

Product Description

Nerolac Suraksha Advanced Plastic Exterior Paint is an economical water thinnable coatings,

specially designed for application on exterior walls in dry or moderatey humid climatic

conditons. It has good Washability, Anti-Algal & Anti Fungal properties.


Economical water thinnable coating

Better outdoor durability

Smooth and pleasing finish with Sheen

Performance much superior to cement paint

No need of curing.

NEROLAC SURAKSHA PLASTIC EXTERIOR PAINT

Product Description

Nerolac Suraksha Plastic Exterior Paint is an economical water thinnable coatings, specially

designed for application on exterior walls in dry or moderately humid climatic conditons.

Nerolac 'Suraksha' is much superior to normal cement paint coatings in respect to exterior

durability, finish, washability and resistance to fungus / algae.


Economical water thinnable coating

Better outdoor durability

Smooth and pleasing finish

Performance much superior to cement paint

No need of curing.

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TEXTUREDNEROTEX MATT DECORATIVE AND PROTECTIVE EXTERIOR FINISH

Product Description

Nerotex matt wall finish is a water-based product that gives a high performance, textured finish

coating. It is specially formulated by using Light fast pigments, special type thermoplastic resin

medium, fine and tough aggregates like inert silica, unique additives to resist fungus, algae and

mould growth. It protects the exterior surfaces from rain, sun, dust.


Very good exterior durability

Matt and textured finish

Good resistance to fungus, algae and moulds

Good flexibility and adhesion

Good wash ability

CEMENTNEROCEM WITH TITANIUM+

Product Description

Nerocem with Titanium + is available in powder form. It is an economical exterior product

specially formulated by using best quality white cement and other ingredients to get an

economical exterior product. It is useful for the protection and decoration of the surfaces.


Easily mixable with water

Superior water repellency

No cracking, flaking or peel off

Excellent hiding power

Ease of application by brushing.

NEROLAC IMPRESSION EVER LAST SELF CLEANING

NEROLAC IMPRESSION EVERLAST SELF CLEANING

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Product Description

Nerolac Everlast with pliolite is a specially designed solvent based exterior coating having

superior properties with respect to protection of masonry surfaces from aggressive environmental

conditions. It is formulated by using ideal combination of true pigments and special type of

extenders, dispersed in a balanced combination of different grades of Styrene Acrylate Resins

and plasticized with ultra violet stabilized grade of plasticizer.



Excellent adhesion to masonry surfaces

Very good alkali resistance

Unique breathable film properties

Self cleaning characterstics

Very good resistance to mould growth

Can be applied on freshly constructed masonry surfaces.

(2) Woods

(I) 1K PU -

Variants - Gloss, Matt

Type of Coat - Top Coat

Features - Good Gloss, Easy to Use, Good Value for Money

Usage - Wood, Veneer

(II) Mel'mine

Variants - Gloss, Matt, Thinner


Features - Excellent Finish, Quick Drying, Compatible to all

base coats, Non Yellowing

Usage - Wood, Veneer, MDF

(III) 2K PU

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Variants - Gloss, Matt, Sealer, Thinner


(IV) PU Interior +

Variants - Gloss, Matt


(V) Multisealer

Variants - NA

Type of Coat - Base Coat

(VI) Water Clear Lacquer

Variants - NA

(VII) Wood Stains

Variants - NA

Type of Coat - Color

(VIII) NC Sanding Sealer

Variants - NA


Features - White & opaque in appearance, Quick Drying

(IX) NC Wood Filler

Variants - NA


Usage - Wood, Veneer, MDF

(X) NC Thinner

Variant - NA

Type of Coat - Thinner

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Features - Compatible with NC & Melamine based products

(3) Metals

NEROLAC IMPRESSION HI-PERFORMANCE ENAMEL

Product Description

Nerolac Impression Hi-Performance Enamel is a specially designed coating having a judicious

blend of high quality resin & light fast pigments. It is recommended for suitably primed interior

& exterior wooden, masonry and metal surfaces.


Super sleek and shiny finish with special anti-fungal formula to

provide protection from fungus.

Excellent gloss and gloss retention.

Excellent colour and colour retention



Up to 30% more coverage than popular enamels.

NEROLAC SATIN ENAMEL

Product Description

Nerolac Satin Enamel is specially formulated to give an excellent smooth finish resembling the

smoothness of satin to masonry, wood and metal surfaces. It can be easily cleaned to give new

look to the surface.


Very smooth satin like appearance

Good washability

Very good flow and brushability

Hard durable film.

34

NEROLAC SYNTHETIC ENAMEL

Product Description

Nerolac Synthetic Enamel is a time tested and proven, high quality alkyd based enamel

incorporated with best quality opacifying and light fast pigments.


Excellent Water Repellency

Good Stain Resistance


Excellent Hardness and Durability

Excellent Gloss.

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:

Suzuki Motors

Honda Motors

Toyota Motors

Ford Motor Company

General Motors Corporation

IVECO Motors

Peugeot

Through its various strategic collaborations, Kansai Nerolac offers a total painting system to

auto makers in India with a range of products, starting from Pretreatment

Chemicals, Electro Deposition Primers, Intermediate Coats/primer Surfacers, Solid

35

& 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 solutions. 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:

Company

o Product Category

o Kansai Paint Co., Japan

o ED Primers, Automotive & Industrial Coatings

o Nihon Parkerizing, Japan

o Pre-Treatment Chemicals

o Oshima Kogyo, Japan

o Heat Resisting paints

o Ameron, USA

o High Performance Coatings

Product Range:

PRETREATMENT (PT) CHEMICALS

Degreasing chemicals - High Temp. / Low Temp.

De-rusting chemicals

Phosphating Chemicals - Di-cationic and Tri-cationic

Activation and Passivation chemicals

Surface Conditioners

Pretreatment Chemicals for plastics

36

ELECTRO DEPOSITION (ED) PRIMER S

Polybutadiene Resin Based Anodic Electrodeposition Primer

Epoxy Resin Based Cathodic Electrodeposition Primer

Acrylic Resin Based Cathodic Electrodeposition Primer

INTERMEDIATE COATS / PRIMER SURFACERS

Conventional Primers, based on - Alkyd-Amino Epoxy Polyester amino Polyurethane

The Intermediate Coats are available in White, Light Grey, Dark Grey, Red, Blue and other

specific colours as required by OE manufacturers.’

Top Coats

Solid Colours, based on -

Alkyd-Amino

TSA Polyester amino

Polyurethane

Metallic / Mica, based on -

Polyester

Thermo-setting Acrylic

Polyurethane

Clear Coats

Acrylic amino

2K acrylic urethane

Alkyd-Amino

Polyester / Acrylic

Silane based Mar Resistant

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Touch-Up Paint

Nitro-cellulose Acrylic based paint

Quick Drying Acrylated based paint

Polyrethane based paint

The entire range of products from Primers to Top Coats are available as per customers' specific

colour/performance need.

General Industrial Coatings

The paint manufacturing industry is moving ahead by leaps and bounds, and setting the

momentum isKansai Nerolac Paintss. A pioneering R&D, ensures we manufacture a wide

spectrum of paints that change the face of the industry in India.

Our product spectrum offers a comprehensive coating system starting from P.T. Chemicals,

Primers, Top Coats & Lacquers, Coil Coats, Heat Resistant Paints, Metal decoration coating, etc.

High Performance

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. 4000 crores a year!

Powder Coating

POLYCOAT POWDERS LTD.

Polycoat Powders Ltd., is an associate company of M/s.Kansai Nerolac Paintss Ltd., occupying

the No.1 position in the powder coating segment in India. Polycoat Powders Ltd. is an ISO-9001

certified company and is engaged in the manufacture of Thermosetting Powder Coatings since

1984. The powders are manufactured in technical collaboration with Kansai Paints - Japan which

is among the top 10 Coating companies in the world. The manufacturing facilities for Powder

Coating are at Lote Parshuram in Ratnagiri district, Maharashtra & at Bawal, Haryana.

38

CHAPTER 3

COMPETITORS AND STRATEGIES MAJOR COMPETITORS:-

39

MAJOR COMPETITOR IN INDIA:

ASIAN PAINTS

Asian Paints is India's largest paint company and the third largest paint company in Asia today,

with a turnover of Rs 30.2 billion (around USD 680 million). The company has an enviable

reputation in the corporate world for professionalism, fast track growth, and building shareholder

equity. Asian Paints operates in 21 countries and has 29 paint manufacturing facilities in the

world servicing consumers in over 65 countries.

Asian Paints is a great marketing success in a branded consumer product business. The company

succeeded where others failed in three areas:

First, it understood the requirements of the Indian paints market better than the MNCs which did

not bother to respond to local consumer needs. It was the first to introduce small pack sizes, a

variety of shades and a wide range of paint types (enamels, distempers, emulsions) to suit

different pockets.

Thus, in the 1960s, the company came out with plaster distemper, Tractor, to suit the needs of

the mass market for a product that was much cheaper than costly emulsions but much better than

the widely used whitewash and crude powder distempers. This opened up a huge market and

today distemper accounts for 25% of the decoratives market in volumes and 15% in value. And

as recently as in 1992, the company introduced a synthetic distemper, branded Utsav, aimed at

the same rural and low income urban markets.

Secondly, in the highly competitive market emulsions segment, the company introduced as many

as 151 shades in its Apcolite range when the competition was offering a maximum of 40 odd

shades. The strategy paid off and Asian Paints today commands a 40% share in this segment. It

set up an extensive national distribution network to tap demand in smaller towns. Today it has

direct dealers in 3,200 towns and 10,000 stockists. Investments were also made in computer

technology to ensure up-to-date information interface between the marketing and production

sides of the business.

And finally, the company has displayed considerable savvy in its advertising campaigns, dealer

relations, point of sale publicity and product demonstrations to consolidate and expand markets.

In fact, the company has played a pioneering role in expanding the Indian paints market by

identifying high demand potential areas and then tapping them to maximum effect.

40

BERGER PAINTS:

Berger Paints is the culmination of over seven-decade process of evolution and growth that

began in 1923. Its growth has been closely linked with the business and industrial development

of modern India.

The performance of this company is anchored today in a wide variety of Decorative and

Industrial paints which continue to gain an increasing share of the highly competitive Indian

paint market. Being an ISO 9001 company its quality products have attained instant and

worldwide recognition, and continues to meet quality requirements that are demanded today

even in the domestic market. The Country's third largest paint manufacturer, with its

Headquarters in Kolkata, Berger controls a distribution network comprising of 66 stock points

and approximately 10,000 dealers, spread across the country.

BPIL has technical tie-ups with Herbert’s, a subsidiary of the German pharmaceutical major

Hoechst for automotive paints, Tendor NV of Holland for powder coatings and Valspar

Corporation, USA for heavy duty coatings. The company is particularly active in the powder

coating segment and is a supplier to most OEMs in the white good segment. With its thrust

shifting to industrial coatings, the company is expanding its powder coating capacity from 840

metric tons to 1,840 metric tons at its existing plant.

Recently, it introduced Color Bank, a computerized mixer tinting machine in technical

collaboration with Ital Tinto of Italy. Special software, Tintovision installed in the Color Bank

41

gives the customers a choice of more than 5,000 shades and can even produce the colors offered

by the company’s competitors. Another achievement of Berger is the setting up of Berger

Prolinks. Prolinks is Berger Paints' response to a market environment that is increasingly driven

by technology and calibrated by expertise. Prolinks is aimed at placing the initiative in the hands

of builders, architects and designers to enable them to directly source innovative products and

services. The team is entrusted with maintaining a seamless interface between paint specifiers

and Berger Paints. The objective is to provide specifiers with a complete basis for recommending

products and processes - databases, technical services, color consultancy, site inspection, etc.

Prolinks experts ensure specific solutions to specific problems, whether it is a particular shade

that needs development, special climatic factors to be provided for, or application factors that

have to be maintained. From know-how to legwork, the Prolinks team delivers total support.

ICI INDIA:

ICI India was the subsidiary of the $15bn British multinational company ICI Plc. Brunner Mond

& Co., one of the four Companies that combined to form ICI in UK in 1926, opened a trading

office to sell alkalis and dyes in Calcutta. In 1923, Brunner Mond & Co. (India) was

incorporated and the company's name was subsequently changed to Imperial Chemical Industries

(India) Ltd., in 1929.

ICI (India) is ranked fourth in the paint business, after Asian Paints, Goodlass Nerolac Paints and

Berger Paints. Unlike the other paint companies, ICI (India) was a diversified unit and paint

42

constituted 43% of its net sales. It identified paints as a thrust area and was aggressively moving

to improve its position. The company invested $11 million in a new decorative paints plant near

Bombay and constructed a $16.7 million plant for industrial paints near Chandigarh in North

India.

In order to increase its presence in the paints market, ICI’s growth plan is to beef up its

distribution network, widen the purview of specialty products, access newer technologies

through joint ventures and of course, targetting the urban and semi-urban markets by introducing

more products in the lower and middle segment of the paints market. In order to be amongst the

top two players in the industry, the company is firming up plans to aggressively market its

products in the country.

The Gliddens brand is being positioned in the middle segment to supplement Maxilite in the

mass-segment and Dulux in the premium segment. In response to Jenson & Nicholson’s

Instacolor, ICI launched Color Solutions which can be used for both exteriors and interiors. This

comprises a menu driven, user friendly touch color screen on a computer that helps consumers

visualize as many as 6,000 shades on house structures resembling their homes.

43

MARKET SHARE IN INDIACompany Name Market Share Sales(Cr.)

ASIAN PAINTS 49.89% 5041.87

KANSAI NEROLAC 16.78% 1664.56

ICI 11.03% 1114.87

BERGER 16.47% 1695.77

OTHRS 5.83% 588.01

MARKETING MIX

PRODUCTSPaints can be generally divided into decorative paints and industrial paints. Industrial paints

consist of the automotive category also. Decorative paints can be further divided into interior and

exterior wall paints, wood and metal enamels. Each of these products has a range of products

varying from the premium segment to the economy segment.

Apart from these there a certain speciality paints produced by these brands which are not

produced by all the brands and cannot be categorized.

44

Industrial segment

All the paint brands produce industrial paints like epoxy based paints, metal primers,

polyurethane coatings, etc. In the Indian market Kansai Nerolac paints is the leader in this

segment.

Decorative Paint

All the paint brands produce industrial paints like Emulsion, Distemper, Cement, Enamel etc. In

the Indian market Asian paints is the leader in this segment.

PRICEIn the paints industry price is the used only as a differentiator between the various segments in

the same product line. The prices of different brands in the same segment remain more or less

similar, with just a difference of 30 to 40 paise per square feet. Some of the specialty products,

which are not produced by all brands, may be priced at a higher price.

Pricing decisions in the paint industry largely depend on the price of the inputs like etroproducts,

other raw materials, excise duties and taxes and the general operating profits. Generally increase

or decrease of prices is effected across all brands in the market. Most of the paint companies

offer a 5% margin to the dealer. Due to internal competition, the dealers pass on this advantage

to the customers by reducing their own margins to 2- 3%. This is a cause of concern for the paint

companies because they have to keep a constant check on the prices offered in the market. The

dealers offer more of discounts and the companies are not able to firm up the prices. Paint

companies offer a lot of discounts like cash discounts, volume discounts, seasonal discounts and

allowances. The dealers take advantage of these discounts to gather more business.

DISTRIBUTION NETWORKKansai Naerloc paint in 24 State in India and 68 sales Depots.The distribution system is taken

care by area sales managers and executives. The executives keep canvassing the market and

meeting the dealers to get the orders. Asian paints has around 12000 dealers who are catered to

by the sales xecutives. The orders are collected by the sales executives and passed on to the

nearest depot. The depots are fed by regional warehouses. These depots maintain a minimum

45

order quantity which is arrived at from the monthly demand forecast. The material is dispatched

from the depot in the name of the dealer. Generally some orders of the same region are clubbed

together and dispatched in trucks. Finally the truck is unloaded and the small orders of the

dealers are dispatched to them. The The sales executives are also responsible for the collection of

outstandings. Generally paint companies allow a maximum outstanding of 2-3 lakhs for 45 days.

Other jobs of the sales team consist of grievance redressal and customer feedback.

PROMOTIONThe paint industry until 1999 was concentrated mostly on increasing sales by intensive trade

promotion wherein the dealers, contractors and other components of the supply chain. There was

little emphasis on theme advertising directed towards the customer. A recent trend that is

emerging in the Indian paint market is that the major brands have all identified the importance of

reaching out to the common man instead of just limiting themselves to the intermediaries.

SWOT ANALYSIS

STRENGTH:Well Establish Brand:

Nerolac Paints is 90 year old brand. Kansai Nerolac is at third Position in the world.

46

Quality driven:

While its competitors concentrate more on variety and mass production and a lot of other

different strategies, the company is essentially a quality centric company. This has helped the

company grow and sustain its brands

First Mover Advantage

Nerolac was started in 1920. So company has first mover advantage. Company was started

LEAD free products.

Innovation in Research and Develpoment

"Compete through Innovation"

The keystone of kansai Nerolac'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.

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.

WEAKNESS:

Weak Distribution

Company has less dealer network in compare to competitor . Company has around 12000 dealer

in India.

Products Awareness

Kansai Nerolac products Brand awareness is very less.

47

OPPORTUNITY:Greater Penetration

One of the biggest opportunities KNP has in India is to become the positioned leader in all parts

of the country. At present, there is very less penetration of KNP brands in the rural market. KNP

could reap great profits coming from the rural areas as well.

Real Estate Boom

The real estate boom which is gaining momentum by the day, is a great boon to the entire paint

industry. This would actually be a good opportunity for all of the industry to cash in on their

profits.

THREAT:Loss Of Loyal Customers

Because KNP is one of the oldest and one of the most bankable brands in the market today, it has

a lot of demand as well as appeal among consumers. With a lot of innovations and a lot of

movement in the market, the loyal consumer might just get inquisitive and opt or a competitor

brand. A study shows that most loyal brand users opt for new brands because boredom sets in

and change seems to be a great option.

Possibility of Running out of Fashion

New trends keep coming up and they have a lot of impact on the consumption patterns of people.

Moods and a lot of other factors also are taken into consideration when it comes to choosing

consumer goods. With so many different innovations and finishes launching in the industry, a

consumer is very prone to get deviated from his original choice. This deviation influences the

consumer to try out a new product which has an element of surprise in it as well.

48

CHAPTER-4

RESEARCH METHODOLOGYResearch methodology is used to search answers of the research questions. An attempt has been

made to describe the nature of the builders of jaipur city by the study of the samples.

SAMPLE PLAN

To know the position & perception of NEROLAC PAINTS in the Jaipur region regarding sales

and brand equity in comparison with the other brands on the basis of attributes of paint has been

done. For this purpose, opinion of contractors and builders has been taken. This might be helpful

to draw the right picture about the market scenario. This was convenient in nature because I

would have to account only those people who actually require or purchase paint. The survey is

conducted with the help of questionnaire method and survey is conducted in the Jaipur region.

Survey of BUILDERS has been done for the analysis.

Sample size: 50

Data Collection Every type of research requires two types of data to be collected to reach up to

any conclusion.

Primary Data are those data, which are directly obtained from people by approaching them

individually; primary data are generated when the researcher employing mail questionnaire,

telephone surveys, personal interviews, observations and investigates a particular problem at

hand.

For this project primary data was collected from contractors and builders by using survey

method. Data collection from respondents was carried out with the help of a structured interview

schedule. In this method data was collected from respondents through questionnaires. I made a

survey based on the questionnaire. The mode of survey was directly contacting the people and

recording their response based on well-defined questions and also through telephone.

Secondary Data, on the other hand, includes those data, which are collected in the past for other

research work and are being used in current project work. Secondary Data, such as procedures of

marketing for paint, marketing conditions, brief details of NEROLAC paint and other

competitors, price, quality, and other strategy and planning, specification in relation to other

49

paint companies, all other information which can be useful to complete this project, was

collected from different resources.

SOURCES OF DATA

Primary Data Secondary Data

Questionnaire Newsletter

Observation Journals

Interviews Magazines

Newspapers

Books

Websites

OBJECTIVE OF STUDY:

To find out Market size Trends Brand Perception Band Awarenesss of Paint Industry and

Potential Market for Kansai Nerolac in various upcoming building projects in jaipur.

To determine what aspects do people deem important in selecting a particular brand of

paint.

It was done with the help of questioner, survey and current information of the company and

taking into consideration the current market scenario of the paint industry at Jaipur.

50

SCOPE OF THE STUDY

The research had been conducted in Jaipur in the month May-June 2010. We contacted builders

and contractors in different areas of Jaipur city for fieldwork.

The research not only partially fulfilled the requirement of MBA degree program but also

learned a lot in the field of marketing research. This project gives an opportunity of

implementing his theoretical knowledge of management curriculum in practical life and will

learn a lot from practical experiences during this research.

Type of Research – exploratory

Type of Data – Primary

Method of Data collection – Survey

Research Instrument - Structured Schedule

Sampling Method – non parametric

Sample Size – 50

Sampling Unit – Builders and contractors

LIMITATIONS OF THE STUDY:

The successes of any research work depend on the response of the respondent.

But sometime the response is not sufficient due to these following reasons

Respondents generally have less time to respond.

Sometimes they are confusing in their response due to lack of knowledge.

Some persons are not willing to disclose the truth.

Their attitude towards people representing a company.

The time constraint faced in the project might have affected the comprehensiveness of its

findings.

51

CHAPTER-5

OBSERVATION & ANALYSIS

Q-1 Which paint brand are you using in your projects?

INFERENCE:

On Asking the Question We Recognized That Asian paints Is Holding a Quite More Share than

Nerolac paint . Reason behind Asian Paints is more focusing on Brand building( Advertisement).

First brand name come that is Asian Paints. Or We Can Say That the Closest Competitor Of

Nerolac paint (18%) Is Berger paint with 18% Consumption Share.

52

Q-2 Who does influence you to buy that particular brand?

INFERENCE:

On the whole, it was noticed that in 50% of the cases, buider (owner)decide to buy a particular

brand of paint by their self knowledge . In about 26%% of the cases, people were influenced by

architect. painter influenced people to about 25%.

No one were influenced by dealers.

53

INFERENCE:

Interpretation drawn from the pie chart states that 78% of people take quality as rank 1 for

purchasing decision. 16% people gives rank 2 to quality and 6 % gives rank 3.

So it is very clear from the above interpretation that most of the people mainly focus on quality

while purchasing paint.

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INFERENCE: Interpretation drawn from the pie chart states that 8% of people take competitive

rates as rank 1 for purchasing decision. 46% people gives rank 2 to competitive rates,10% gives

rank 3 and 18-18% of people give rank4 & rank5.

So it is very clear from the above interpretation that the competitive rates is also very important

parameter for customers purchasing decision.most of the people majorly focus on competitive

rates after quality while purchasing paint.

INFERENCE:

Interpretation drawn from the pie chart states that 6% of people gave rank 1 to the brand name

for purchasing decision. 16% people gives rank 2 to brand name and 38% gives rank 3.

So it is very clear from the above interpretation that most of the people take brand name as a

third preference while purchasing paint.

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INFERENCE:

Interpretation drawn from the pie chart states that 8% of people take product performance as

rank1 for purchasing decision. 10% people gives rank 2 to performance,24% gives rank 3 and

40% & 18% of people give rank4 & rank5 respectively.

So it is very clear from the above interpretation that the most of the people gives rank4 to

product performance while purchasing paint.

INFERENCE:

From the above graph it can be seen that people while buying give coverage as a last option.

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l

INFERENCE:

The interpretation drawn from the above pie chart states that 48% of the customers preferred

Asian Paints when they choose paints according to quality. While 32% of the customers

preferred nerolac Paints. And 16% of the customers choose brger Paints for painting. Only 4% of

the customers preferred ICI Paints.

It means the quality of asian paints is very good and nerolac is biggest competitor of asian paints

with quality concern.

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INFERENCE:


Asian Paints when they choose paints according to product performance. While 14% of the

customers preferred nerolac Paints. And 12% of the customers choose brger Paints for painting.

Only 10% of the customers preferred ICI Paints.

It means the product performance of asian paints is very good and nerolac and berger is biggest

competitor of asian paints.

INFERENCE:


Asian Paints when they choose paints according to competitive rates. While 22% of the

customers preferred nerolac Paints. And 20% of the customers choose brger Paints for painting.

Only 10% of the customers preferred ICI Paints.

.

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INFERENCE:


Asian Paints when they choose paints according to brand name. While 22% of the customers

preferred berger Paints. And 10% of the customers choose nerolac Paints for painting. 10% of

the customers preferred ICI Paints.

It means nerolac should do brand building by increasing advertisement.

.

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INFERENCE:


Asian Paints when they choose paints according to coverage. While 8% of the customers

preferred berger Paints. And 8% of the customers choose nerolac Paints for painting. 4% of the

customers preferred ICI Paints.

Q- following attributes according to their importance in your purchase decision for PAINT.

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Combined analysis of purchasing decision :-

from above graphs it can be seen that people are very much concern about quality and easily availability. Packaging type of the product is also affect the purchasing decision of the customer.

Now a days paint companies are organizing painters loyalty program but it has been seen that it is not giving much of the benefits to the company. Because only 2% people gives it highly importance, 8% people gives moderate importance out of 50 samples.

CHAPTER-6

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CONCLUSION AND RECOMMENDATIONSConclusions followed by recommendations form the basis of the report more solid. The conclusion proves the analysis that is carried out in the report and on the basis of these conclusions, recommendations are given.

In the report under study, it was found through the survey that Kansai Nerolac Paints, is lacking popularity due to the less cons traction on the advertising policy..

In the survey and analysis it was found that the Buying Behavior of the customers depends on variety of factors like Cost, Quality, Durability, Color Varity and some other factors.

Advertisements

The company should also concentrate upon the Advertisement strategies and should come up with the innovative ads.

Brand recall amongst the Consumer Categories is low because of less frequency of the TV advertisements.

Has to identify some of the highly dense areas of the city so that the company can use the Bill Boards.

Traffic signals would be the best suitable location for the Company Advertisements.

The construction industry is in boom. In order to tap the potential market, the Company can advertise in a magazine named ‘Builders Grid’. This will help in showcasing the products of the magazine. This can add an extra spice to sales.

Place

Kansai Nerolac has less dealer network in comparison to Asian Paints. So increasing the dealer network or market presence increase the availability of the product in the market that will increase market share also.

Human Resource

The Company should concentrate on human Resources. Company should increase Number of sales officer.

Product

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Company should focus on their product line. Company has less product line in compair to competitor. Ex. Texture Paint.

Price

Company should focus on their Price. For Example Nerolac Impression 24 Carat Price higher than their competitor Product.

ANNEXURES

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QUESTIONNAIRE

Respected Sir/Madam,

To explore the potential of Narolac Products among upcoming projects of the Jaipur city by various builders.

This is a questionnaire intended to study the penetration of NEROLAC PAINTS PRODUCT in the upcoming projects in JAIPUR by various builders and the different factors that play an important role in taking purchasing decision.

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TYPE OF PROJECT RESIDENCIAL COMMERCIAL

NAME OF PROJECT

BUILDER NAME

CONTACT NO.

Which paint brand are you using in your projects?(a) Nerolac (b) Asian paints (c) Berger (d) ICI(e) Other(Please specify)

Who does influence you to buy that particular brand?(a) Painter (b) Architect (c) Dealer (d) Other

Do Ranking of following parameters for your choice of paint (1 to 4) .(a) Quality (b)Brand Name (c) Competitive Rates (d)Product Performance (e)

coverage

1) 5)

2)

3)

4)

Do Ranking of following companies on the basis of coverage of their products?(a) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

1)

2)

3)

4)

5)

Do Ranking of following companies on the basis of quality of their products?(b) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

1)

2)

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LOCATION

3)

4)

5)

Do Ranking of following companies on the basis of product performance of their products?(c) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

1)

2)

3)

4)

5)

Do Ranking of following companies on the basis of Competitive rates of their products?(d) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

1)

2)

3)

4)

5)

Do Ranking of following companies on the basis of Brand Name of their products?

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(e) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

1)

2)

3)

4)

5)

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Tick the following attributes according to their importance in your purchase decision for PAINT.

Attributes Highly important Moderately important

Average important

Very less important

Not at all important

Quality

Brand Image

Packaging Type

Total price

Advertisement Content

Gift by Trader/company

Easily availability

Advertisements Media

Celebrity endorsement

Painter loyalty program i.e. RRK, Paint Merchant, Masterstroke etc

Thank you for your kind cooperation, valuable inputs and time.

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BIBLIOGRAPHY:

www.google.com www.nerolacpaints.com www.marketing teachers.com

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http://www.nerolacpaints.com/

http://www.google.com/

152039949 benki-bimmvva

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