Nerolac Paints is India's largest industrial paint and third largest decorative paint company. It is a subsidiary of Japanese company Kansai Paint. While Nerolac leads the industrial paint market with 40% share, Asian Paints dominates the decorative paint market with 47% share. Nerolac is focusing on product differentiation, retail initiatives, and brand building through celebrity endorsements to compete with Asian Paints and gain market share in the decorative segment. However, Asian Paints has a stronger distribution network and brand recognition that will be difficult for Nerolac to overcome.

1. Can Nerolac easily beat Asian
Paints?

2. Group No -4
 Arya S Nair
 Ashis Aley Chacko
 Aswathy S Kumar
 Athira S
 Athira Unnikrishnan
 Athira Susheelan
 Aylin Susan Shaji
S4 MBA
MACFAST,THIRUVALLA,KERALA

3. Company Profile
 Nerolac Paints is a leading Indian paint company &
manufacturer offering a wide range of wall paints for
homes & offices, automotive paints and industrial
paints.
 Largest industrial paint and third largest decorative
paint company of India based in Mumbai.
 It is a subsidiary of Kansai Paint of Japan.

4. Company Profile
 It started as Gahagan Paints & Varnish Co. Ltd. in
Mumbai in 1920.
 Goodlass Nerolac Paints Ltd. became a part of Tata
Forbes Group in 1976
 Kansai Paint Co. Ltd. , Japan took over the entire
stake of Tata Forbes group and thus Goodlass Nerolac
Paints became wholly owned subsidiary of Kansai
Paint Company Ltd in 1999.

5. Products
 Interior wall paints
 Exterior wall paints
 Wood coatings
 Metal enamel paints
 Paint Ancillary

6. Industry Profile
 The paint industry can easily grow at 12-13% annually
over the next few years from its current size .
 The per capita paint consumption in India which is still
very low as compared to the developed western
nations.
 The unorganised sector controls around 35% of the
paint market, with the organised sector accounting for
the balance. In the unorganised segment, there are
about 2,000 units having small and medium sized paint
manufacturing plants. Top organised players include
Asian Paints, Kansai Nerolac, Berger Paints and
ICI.

7. Major Players
 Asian paints
 Berger Paints
 Kansai Nerolac
 Nippon paints
 Dulux paints
 Shalimar paints

8. Market Share
Players
• Asian
Paints
• Berger
Paints
• Nerolac
Decorative
Paints
• 47%
• 18%
• 13%
Industrial
Paints
• 13%
• 18%
• 40%

9. STP
 SEGMENT
Middle and Upper class home-owners,automotive
industry, General purpose
 TARGET GROUPS
Automobile brands (2 & 4-wheelers segment),
Home-owners, Engineering Industries
 POSITIONING
Low VOC and Lead free healthy home paints and
market leaders in Industrial Coatings

10. Asian paints- strengths
 Formidable grip over the paint distribution network in
the country
 Ability to produce new product
 High decibel ad campaign
 It has over 25000 dealers (bergers-9500, nerolac-6500)

11. Focusing Strategies of Nerolac
 Differentiation of products.
Nerolac has launched products such as led free
paints and paints with a heat guard, keeping the objective
differentiation in mind.
 Retail initiatives
 Brand building
Nerolac is a brand which never hesitated to invest
in promotions and brand building. The brand has a really
commendable awareness which was created through
heavy brand promotions.

12. Brand building Strategies
 In 2003 ,the brand made a celebrity driven promotion
by roping in Amitabh Bachchan. The endorsement
from Big B was a big news at that point in time.
 The brand tried to emulate the Asian Paint's
positioning based on colours. The ads featuring Big B
had the tagline-This color touches your life. The
adoption of a positioning similar to Asian Paints
confused the consumer.
 During the late 2008, the brand decided Shah Rukh
Khan to endorse the brand.

13. Strength
1. One of the largest coating company in India and market leader in
automotive and powder coating.
2. Being a subsidiary of Kansai Paint Company Limited, the
technological edge of Kansai has helped company innovate to
satisfy consumer’s needs in a better way.
3. Key factors to their success are: R&D, Innovation, Quality and
Aggressive Branding and Marketing strategies.
4. Being market leaders in automotive category they have most
coveted customers like Maruti Suzuki, Toyota Kirloskar, GM, Tata
Motors, HM, Yamaha, Honda, Volvo India, Ashok Leyland etc..
5. It has robust supply chain network.
6. Its entering the Decorative segments category in a big way with
ad with celebrity brand ambassadors
7..Internationally standard

14. Weakness
1. In decorative paints Industry Customer tastes and
perceptions change very fast and products may become
obsolete with change in trends, hence production planning
and inventory problem.
Opportunities
1. Leveraging its R&D competencies the company has good scope
in developing new products with PODs which can give them
competitive advantage.
2. Building perception as eco-friendly and greener brand.
3. Capitalizing on Growth potential in rural India and Infrastructure
development.
4. Expansion initiatives can be considered as economies of scale
and possibility of exporting to neighbouring emerging economies
then comes into the picture

15. Threats
1.Stringent Government rules and regulations regarding
the quality of products and manufacturing facilities as
Environment policies are given more emphasis
2.Raw material scarcity and volatility in prices
3. Competition from national and international brands as
they target India owing to its large market.

16. Conclusion
 In terms of margins, sales growth and return ratios
Asian Paints is far ahead of Kansai Nerolac.
 The focus of Asian Paints is more on the decorative
segment while that of Kansai Nerolac is on the
automotive segment.
 Asian Paints has a well diversified global presence
while the focus of Kansai Nerolac is mostly limited to
domestic markets.

17. Thank
you.