The Indian paint industry has been growing at around 15% annually with a current market size of approximately Rs. 21,000 crores. The per capita consumption in India is 1.5kg compared to the global average of 15kg. The industry is segmented into decorative paints used in homes and industrial paints used in automotive, engineering and other industries. The major players in the decorative paints segment are Asian Paints, Kansai Nerolac, Berger Paints, and ICI Paints which account for over 70% of the market. The paint industry distribution process involves manufacturers supplying products to regional warehouses and then to dealer networks. Key factors influencing the industry include rising incomes, urbanization, financing availability and

1. INDIAN PAINT INDUSTRY
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2. Business Model
Association with following people is involved:
• Channel Partners
• Painters
• Contractors
• Decorators (Arch/ID)
• Builders / Developers
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3. INTRODUCTION
 The Indian Paint Industry has been growing at a rate of near
about 15% for the past few years.
 The industry is estimated at around Rs. 21000 Cr.
 The per capita consumption in India is 1.5kgs p.a., as compared
to the global average of 15kgs p.a.
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4. HISTORY OF PAINTS
 The Indian Paint Industry was initiated in 1902, when Shalimar
Paints set-up its first factory in Kolkata.
 After liberalization, as the excise duties got drastically reduced
(from 40% to 16%), the industry recorded a healthy growth of
12-13% annually.
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5. SEGMENTATION OF PAINT INDUSTRY
Indian Paint
Industry
Decorative Industrial
DistemperEmulsions
Mainly
Villages
Generally
in Cities
Automobiles Marine
Paints
& others
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6. MARKET SEGMENTATION
Industrial: Three main segments of the industrial sector include
automotive coatings, powder coatings and protective coatings.
 User industries for industrial paints include automobiles
engineering and consumer durables.
 The industrial paints segment is far more technology intensive
than the decorative segment.
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7. MAJOR PLAYERS IN INDIAN PAINT
INDUSTRY
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8. Decorative Paints
Exterior PaintsInterior Paints
Wall
-Emulsion
-Distemper
Metal
-Enamel
Wood
Emulsion
Textured
Cement
Types of Decorative Paints
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9. Types of Paint
• Primer
• Emulsion – Water Based
• Flat Finish – ceiling or walls with bad shape
• Matt finish – wash-ability
• Eggshell Finish – bathrooms
• Satin – furniture
• Varnish – protective coating
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10. MECHANISM OF PAINTS
Major Inputs
Major
Products
End User
Raw Materials
(56%)
Selling &
Administration
expenses
(23%)
Employee Cost
(12%)
Decorative
Products: Paint
Emulsions, Enamels,
Distempers, Wood
Finishes, Metal
Finishes etc.
Industrial Products:
Powder Coating,
Floor Coating,
Surface Coating etc.
Households,
Construction
firms (70%)
Automobiles
Consumer Goods
Marine Industry
(30%)
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11. COMPONENTS OF PAINTSRaw Materials: On an average, raw materials constitute 56% of
the total expenditure in paint companies.
 Titanium dioxide is one of the major raw materials and price
fluctuations in its cost have direct and substantial impact on the
cost of production.
 Crude oil derivatives are the other major raw materials and
have similar impact.
 Apart from these a large number of other raw materials are
used for adding/giving specific properties to the wide product
range offered by the industry.
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12. COMPONENTS OF PAINTS
 End-User: The decorative paints segment products find
use in households and construction whereas the industrial
segment products find use in automotive industry,
consumer durables industry.
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13. SALES OF COMPANIES
Asian
Paints
Kansai
Nerola
c
Berger
Paints
ICI
Paints
Shalim
ar
Paints
Net Sales(FY2011) in
Cr.
6607.2 2266.2 2096.2 1087.6 404.4
0
1000
2000
3000
4000
5000
6000
7000
Quantity
Net Sales(FY2011) in Cr.
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14. MARKET SHARES OF COMPANIES
(CONTD.)
32%
11%
11%6%
5%
35%
Asian Paints
Kansai Nerolac
Berger Paints
ICI Paints
Others
Unorganised
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15. DISTRIBUTION PROCESS OF PAINTS
Paint Manufactures
Regional Warehouses
Company Dealer
Customers
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16. FACTORS AFFECTING PAINT INDUSTRY
 Increasing level of income & education
 Increasing urbanisation
 Increasing share of organised sector
 Development of the Realty, Automobile and Infrastructure
sector
 Availability of financing options
 Increasing Penetration in the Rural Markets
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17. NEW CONCEPTS OF PAINTS
 Multi coloured room concept.
 Lead free colour.
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18. Dealership
Conditions:
• Blank check against next order/security
• Dealer form – Registration etc
• Asking for display space wall/racks -company pays (in
case of Asian)
• Margin – 5-6%
Dealer Incentives
• Scheme based Incentives
• Foreign trips / Gifts
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19. Market Condition
• Paint Industry is Mostly Organized sector and local
players gives comparatively more competition in Rural
areas rather than Urban Areas
• Competition is fierce
• Indian Paint Industry growth is higher than Global rate
– so Demand is ever increasing
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20. Company Support and Market
Strategy
Sales Support
• Presence of Sales team in the local market
• Channel sales and Project sales teams are different in
some cases
• Projects are being executed via channel only except for
Berger Paints which takes projects directly many times
Marketing Support
• Contractor Meets at local level
• Approaching construction sites well in Advance to
generate leads
• Advertisement support for big brands
• Yearly gifts to associated members
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21. Market
There are different approaches to cap different markets
• Decorative paints
• Industry purpose Paints
Company Industrial market Decorative Market
Asian 14.5 37.5
Nerolac 42.5 10
Berger 14.2 11.2
Dulux 7.8 7.8
J N Paints 8.1 5.5
Market Share
(Percentage)
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22. Paint Substitutes
• White Cement
• White Wash
• Brick and Stone structure
• WALLPAPER
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23. Innovation in the Industry
Despite its lower margin and greater credit risks, dealers stick around, Demand
being main reason, Innovation is what keeps them intact
There is so much R&D going on in this sector and results are tangible,
• Paints that lower the room temp up to 5*c
• Marble Finishing
• Scratch proof
• Textured
• Stencils
And so much..
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24. THANK YOU !!!
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