For the complete report, get in touch with us at: info@netscribes.com Abstract : The new report, ‘Paint Market in India’, states that the industry in India is driven by growth in not only construction activities but also in automotive industry. Media exposure and innovative marketing initiatives by the players have only added to increasing awareness about latest trends prevalent in the sector. Due to increased Government funding for infrastructure, demand for paints both in industrial and decorative segment is set to rise, thereby rendering Indian paint industry to be poised for further growth. A further analysis of the key drivers and challenges of the market indicate the factors for growth of the market including growth in real estate construction, growth in automotive industry, growth in industrial sector, growth in disposable income, low penetration and increased Government expenditure on infrastructure. India is an emerging economy and with a rising GDP and the subsequent growth in industrial activities and infrastructural developments. Aided with increased Government spending on infrastructure in India, market is optimistic about its impact on the paint industry. For new constructions, paint has become an integral component of the development stage. Another factor boosting the market is the growth in the automotive industry which creates huge demand for industrial paints. Further, with enhanced level of communication in terms of media exposure, awareness about latest trends governing the sector has reached a whole host of consumers. Fulfilling needs to look unique becomes possible with more disposable income at the hands of people which is seen to be on an upward trend. Moreover, low per capita consumption of paints in India provides enough opportunity for further growth in this sector. However, the sector is also facing certain challenges. Factors like rising input prices and stringent environmental regulations pose as a barrier for growth. To conclude, the paint industry has a promising future in India, provided players in the market implement innovation and cutting edge technology to combat the negative factors. Table of Contents : Slide 1: Executive Summary Macro Economic Indicators Slide 2: GDP at Factor Cost: Quarterly (2011-2012, 2012-13, 2013-14, 2014-15), Inflation Rate: Monthly (Jul-Aug 2013 – Nov-Dec 2013) Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 – Jul 2013), Exchange Rate: Half Yearly (Apr 2014 – Sep 2014) Slide 4: Lending Rate: Annual (2011-2012, 2012-13, 2013-14, 2014-15), Trade Balance: Annual (2010-11, 2011-12, 2012-13, 2013-14), FDI: Annual (2009-10, 2010-11, 2011-12, 2012-13) Introduction Slide 5: Introduction – Indian Paint Industry Market Overview Slide 5: Market Overview - Market Size (2013 – 2018e) & Paint Industry Segmentation Slide 6: Paint Industry – Supply Chain Slide 7: Primary Constituents of Paints Slide 8: Primary Types of Paints Slide 9: Sales & Distribution

1. Paint Industry – India
February 2015

2. 2PAINT INDUSTRY IN INDIA 2015. PPT
Executive Summary
Market
The paint industry in India was estimated to be valued at around INR x bn and is expected to
attain a CAGR of about xx% to reach INR y bn by 2018
In 2013, decorative paints accounted for about aa% of the overall market
The overall decorative paint segment is price sensitive, whereas the industrial paint segment is
heavily technology oriented
Drivers &
Challenges
Competition
Drivers
–Growth in Real-estate Construction
–Growth in Automotive Industry
–Increase in Disposable Income
–Increased Government Expenditure
on Infrastructure
–Growth in Industrial Sector
–Low Penetration
Challenges
–Increase in input prices
–Stringent environmental regulations
Major Players
Company A Company B Company C
Company D Company E Company F
Color experimentation
Customer participation with value added
services
Environment friendly paint
Trends
 New trademarks and patents flood the
sector
Increasing demand for emulsions
Small size packs

3. 3PAINT INDUSTRY IN INDIA 2015. PPT
•Macro Economic Indicators
•Introduction
•Market Overview
•Import-Export
•Drivers & Challenges
•Trends
•Competition
•Strategic Recommendations
•Appendix

4. 4
Economic Indicators (-/-)
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
11
12
13
14
15
INR tn
Q4
c4
d2
c2
b2
a2
Q1
d1
b4
a4
Q3
c3
b3
a3
Q2
c1
b1
a1
2013-142012-132011-122010-11
0.0
0.5
1.0
1.5
2.0
%
Oct 2013 - Nov 2013
t
Sep 2013 - Oct 2013
s
Aug 2013 - Sep 2013
r
Jul 2013 - Aug 2013
q
Jun 2013 - Jul 2013
p
PAINT INDUSTRY IN INDIA 2015. PPT

5. 5PAINT INDUSTRY IN INDIA 2015. PPT
Indian paints industry has been successful in registering
double digit growth figures
Paints Industry India – Overview
Paints Industry India – Market Size Paints Industry India – Segmentation (2013)
0
100
200
300
400
500
600
INR bn
X
2018e
a6
2017e
a5
2016e
a4
2015e
a3
2014e
a2
2013
a1
X
Y
YYXX
• The Indian paints market is poised to grow at a steady CAGR of about xx% during 2013 – 18, wherein the decorative
paints segment will continue to dominate the overall market
 Currently, about x% of the overall market is dominated by the decorative paints segment, wherein the demand for such paints mainly
arises from household paintings, architectural and other display purposes
– The demand curve reaches its peak during the festive season in India
 The remaining market comprises mainly of the industrial paints, wherein the demand comes mostly from automotive engineering and
consumer durable segments
• The overall decorative paint segment is price sensitive, whereas the industrial paint segment is heavily technology
oriented

6. 6PAINT INDUSTRY IN INDIA 2015. PPT
Paint Industry – Supply Chain
• X
Decorative Products:
XX
• XX
• XX
• XX
• XX
Major Inputs Major Products End User
• X
• X
Industrial Products:
XX
• XX
• XX
• XX
• XX

7. 7PAINT INDUSTRY IN INDIA 2015. PPT
Sales and distribution channels that organizations have
established towards maximizing revenues
X
Dealers Modern Retail Format
• XX
• XX
• XX
• XX
• XX
• XX
• XX
• XX
• XX
• XX
• XX
• XX
XX

8. 8PAINT INDUSTRY IN INDIA 2015. PPT
Indian Paint Industry – Exports & Imports
E
D
C
B
A
0%
HS Code XX
c1
c2
c3
c4
HS Code XX
b1
b2
b3
b4
HS Code XX
a1
a2
a3
a4
2013 - 20142012 - 20132011 - 20122010 - 2011
Paints Industry India – Imports
HS Code Total Import – Last 4 years (INR bn)
XX XX
XX XX
XX XX
E
D
C
B
A
0%
HS Code XX
c1
c2
c3
c4
HS Code XX
b1
b2
b3
b4
HS Code XX
a1
a2
a3
a4
2013 - 20142012 - 20132011 - 20122010 - 2011
Paints Industry India – Exports
HS Code Total Export– Last 4 years (INR bn)
XX XX
XX XX
XX XX

9. 9PAINT INDUSTRY IN INDIA 2015. PPT
Boom in Indian real estate sector, specifically housing, has
been a key driver for growth of decorative paint
• XX
• XX
• XX
• XX
• XX
• XX
• XX
Growth in Real - estate Construction Impact
Real - estate Market – Segregation Real - estate Market – Size & Growth
Real-estate
Residential
• XX
• XX
• XX
Commercial
• XX
• XX
• XX
C
B
A
0
INR tn
X
2018e
a6
2017e
a5
2016e
a4
2015e
a3
2014e
a2
2013
a1

10. 10
Increased spending by government on infrastructure
provides a fillip to paint sector
• Post 2014 general elections, there has been a solid stabilization political scenario, which in turn
has initiated the roll out of an array of infrastructural projects across the country
• With more Government spending on infrastructure and higher manufacturing activities, paint
industry is expected to be uplifted
 Growth in infrastructure activities would refer to more demand for industrial paints
• Furthermore, the decision of encouraging the adoption of public private partnership based
models for the ongoing projects is expected to drive faster completion of the projects
Increased Government Expenditure on Infrastructure Impact
PAINT INDUSTRY IN INDIA 2015. PPT
Government Investment – Infrastructure Sector
D
C
B
A
0.0
INR tn
XX
2014-2015
y
2013-2014
x
• XX
• XX
• XX
• XX
• XX
• XX
• XX
• XX
• XX

11. 11
SAMPLE
PAINT INDUSTRY IN INDIA 2015. PPT
• There are certain environmental regulations that govern the paint sector in India
• In India, there are some agencies that conduct standard and quality checks regularly to
determine whether standards are being met by the players or not
 Some such environmental agencies include the Ministry of Environment and Forests, Central Pollution
Control Board, National Referral Centre on Lead Poisoning, and other state government agencies
– Various companies in this segment need to comply with the set standards in order to remain in business and be competitive
Stringent Environmental Regulations Impact
Concerns
National Referral Centre for Lead Poisoning in India (NRCLPI)
• X
Bureau of Indian Standards (BIS)
• X
Department of Industrial Promotion and Policy (DIPP)
• X
Environmental regulations pose as a deterrent to this
market

12. 12
SAMPLE
PAINT INDUSTRY IN INDIA 2015. PPT
Colour is the most expressive option of personalizing one’s
home and giving it an individualized touch
• Consumers look to develop a unique identity and have shown interest in experimenting with
colours
 This is forcing paint companies to look at new colors and different finishes
• Recent trends show that conservative paints make way for unique preferences
 Emulsion paints for interiors are being preferred more than distempers
 For exteriors, emulsion based coatings are preferred against conventional cement based coatings
• With continuous lookout for superior quality as well as diversified products, consumers are
switching to marginally higher priced emulsions with higher durability and wider range of colors
• Geography, fashion and home architecture primarily determines color preferences in India
Colour experimentation
Exclusivity
drives color
preferences
• BB
• BB
• BB
XX
• CC
• CC
• CC
XX
• AA
• AA
• AA
XX

13. 13
SAMPLE
In a bid to garner high revenues, players are turning
towards water based paints
• Major players are seen to shift their focus towards emulsions with a view to expand operating
margins in the future
• Demand for emulsions continue to outnumber enamels and distempers as water based paint is
not only a high growth category but also generates higher margins compared to solvent based
paints
Increasing demand for emulsions
Emulsions to
overpower
enamels and
primers
X X X
X X X
XX
PAINT INDUSTRY IN INDIA 2015. PPT

14. 14
SAMPLEPorter’s Five Forces Analysis
PAINT INDUSTRY IN INDIA 2015. PPT
Competitive Rivalry
• X
Bargaining Power of Suppliers
• X
Bargaining Power of Buyers
• X
Threat of New Entrants
• X
Impact
XX
Impact
XX
Impact
XX
Impact
XX
Threat of Substitutes
• X
Impact
XX

15. 15
SAMPLECompetitive Benchmarking (-/-)
Public Trading Comparables (FY 2014)
Company A Company B Company C
Market Capitalization
(INR mn)
XX XX XX
Share Price (INR) XX XX XX
EV/EBITDA (x) XX XX XX
EV/Revenue (x) XX XX XX
PE Ratio XX XX XX
Note: Top 3 Public companies based on the revenue; Market Capitalization and Share Price is as on 27/10/2014; PE Ratio is as on 5/11/2014
PAINT INDUSTRY IN INDIA 2015. PPT

16. 16
SAMPLEKey Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/4)
Competitive Benchmarking (-/-)
0
D
C
B
A
Company C
c3
c2
c1
Company B
b3
b2
b1
Company A
a3
a2
%
a1
Net MarginOperating MarginGross Margin
• XX
• XX
• XX
• XX
PAINT INDUSTRY IN INDIA 2015. PPT

17. 17
SAMPLE
Key People
Products and Services
Corporate Address XX
Tel No. XX
Fax No. XX
Website XX
Year of Incorporation XX
Ticker Symbol XX
Stock Exchange XX
Name Designation
XX XX
XX XX
XX XX
Head Office
Gurgaon
Category Products/Services
XX XX
XX XX
Company Information Offices and Centres – India
PAINT INDUSTRY IN INDIA 2015. PPT
Public: Domestic Company – Company A (1/5)

18. 18
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
• The company earned a net profit of INR 1.5 bn in FY 2014, as
compared to net profit of INR 2.2 bn in FY 2013
• The company reported total income of INR 26.1 bn in FY 2014,
as compared to INR 25 bn in FY 2013
• The company earned an operating margin of 6.01% in FY 2014,
a decrease of 0.10 percentage points over FY 2013
Key Financial Performance Indicators
Indicators Value (27/10/2014)
Market Capitalization (INR mn) 63,106.2
Total Enterprise Value (INR mn) 56,598.2
EPS (INR)* 36.55
PE Ratio (Absolute)* 35.15
Particulars
y-o-y change
(2014-13)
2014 2013 2012 2011
Profitability Ratios
Operating Margin -0.10 6.01% 6.11% 6.43% 9.42%
Net Margin -2.99 5.75% 8.74% 8.89% 13.49%
Profit Before Tax Margin -3.37 7.79% 11.15% 10.85% 16.79%
Return on Equity -2.08 17.72% 19.80% 14.00% 16.18%
Return on Capital Employed 3.83 16.66% 12.83% 9.56% 10.59%
Return on Working Capital 20.46 61.92% 41.45% 15.35% 13.55%
Return on Assets 1.07 7.70% 6.63% 6.61% 8.01%
Return on Fixed Assets -3.75 29.43% 33.18% 39.32% 78.84%
Cost Ratios
Operating costs (% of Sales) 0.37 93.46% 93.10% 92.60% 88.66%
Administration costs (% of
Sales)
0.28 25.23% 24.96% 25.48% 29.90%
Interest costs (% of Sales) -0.34 0.02% 0.36% 0.15% 0.07%
Liquidity Ratios
Current Ratio -7.50% 1.23 1.33 2.39 3.42
Cash Ratio -31.02% 0.64 0.93 1.58 2.70
Leverage Ratios
Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.
Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio 1269.1% 261.50 19.10 48.63 154.13
Efficiency Ratios
Fixed Asset Turnover -6.33% 4.50 4.81 5.31 6.95
Asset Turnover 22.60% 1.18 0.96 0.89 0.71
Current Asset Turnover 19.05% 1.78 1.49 1.21 0.85
Working Capital Turnover 57.73% 9.47 6.01 2.07 1.19
Capital Employed Turnover 41.37% 2.83 2.00 1.37 1.00
Improved Decline
Net Profit/LossTotal Income
0
3
2
1
30
20
10
0
INR bnINR bn
2014
1.5
26.1
2013
2.2
25.0
2012
2.0
22.7
2011
1.8
13.1
Public: Domestic Company – Company A (2/5)
PAINT INDUSTRY IN INDIA 2015. PPT
*: Data corresponds to 05/11/2014

19. 19
SAMPLE
98% 96% 96% 96%
0%
50%
100%
2014
4%
2013
4%
2012
4%
2011
2%
100% 97% 96% 98%
0%
50%
100%
2014
2%
2013
4%
2012
3%
2011
0%
Outside IndiaIndia
Business Highlights (1/2)
Description News
Overview
•XX
•XX
•XX
•XX
•XX
OthersCoatings
Key Business Segments Key Geographic Segments
Public: Domestic Company – Company A (3/5)
PAINT INDUSTRY IN INDIA 2015. PPT

20. 20
SAMPLE
Description News
Product Portfolio •XX
Prior Investors •XX
Current and Pending
Subsidiaries/ Investments •XX
Business Highlights (2/2)
Public: Domestic Company – Company A (4/5)
PAINT INDUSTRY IN INDIA 2015. PPT

21. 21
SAMPLE
• XX
• XX
• XX• XX
TO
WSStrength Weakness
Opportunity Threat
Public: Domestic Company – Company A (5/5)
PAINT INDUSTRY IN INDIA 2015. PPT

22. 22
SAMPLEPrivate: Domestic Company – Company B(1/5)
Corporate Address XX
Tel No. XX
Fax No. XX
Website XX
Year of Incorporation XX
Company Information Offices and Centres – India
Head Office
Mumbai
Key People
Products and Services
Name Designation
XX XX
XX XX
XX XX
Category Products/Services
XX XX
XX XX
PAINT INDUSTRY IN INDIA 2015. PPT

23. 23
SAMPLE
Name No. of Shares held
Jotun AS 136,181,668
Jotun Powder Coatings AS 6,860,000
Total 143,041,668 100.00%
Foreign Holdings
Note: Shareholding pattern as on AGM dated 29th Sep 2013
Private: Domestic Company – Company B (2/5)
Shareholders of the Company Ownership Structure
PAINT INDUSTRY IN INDIA 2015. PPT

24. 24
SAMPLEPrivate: Domestic Company – Company B (3/5)
Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of negative INR 526.6 mn in FY
2014, as compared to net profit of negative INR 461.9 mn in FY 2013
• The company reported total income of INR 2964 mn in FY 2014, as
compared to INR 2929.4 mn in FY 2013
• The company earned an operating margin of negative 10.03% in FY
2014, a decrease of 0.05 percentage points over FY 2013
• The company reported debt to equity ratio of 1.21 in FY 2014, as
compared to 2 in FY 2013
Particulars
y-o-y change
(2013-12)
2013 2012 2011 2010
Profitability Ratios
Operating Margin -0.05 -10.03% -9.99% -5.46% -1.21%
Net Margin -2.00 -17.77% -15.77% -13.43% -9.27%
Profit Before Tax Margin -2.68 -8.33% -5.65% -5.19% -1.00%
Return on Equity 7.96 -47.79% -55.75% -86.95% -27.04%
Return on Capital Employed -0.46 -12.22% -11.75% -7.68% -1.78%
Return on Working Capital 5.14 -26.10% -31.24% -60.47% -5.55%
Return on Assets -0.19 -9.20% -9.00% -5.47% -1.27%
Return on Fixed Assets 4.70 -36.49% -41.20% -23.25% -4.34%
Cost Ratios
Operating costs (% of Sales) -0.23 110.21% 110.44% 105.48% 101.22%
Administration costs (% of
Sales)
N.A. N.A. N.A. N.A. N.A.
Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.
Liquidity Ratios
Current Ratio 20.02% 1.93 1.61 1.14 1.48
Cash Ratio 13.87% 0.37 0.32 0.03 0.15
Leverage Ratios
Debt to Equity Ratio -39.67% 1.21 2.00 3.60 0.99
Debt to Capital Ratio -17.96% 0.55 0.67 0.78 0.50
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency Ratios
Fixed Asset Turnover -9.41% 3.58 3.95 4.25 3.57
Asset Turnover 4.45% 0.90 0.86 1.00 1.04
Current Asset Turnover 8.84% 1.23 1.13 1.33 1.49
Working Capital Turnover -14.57% 2.56 2.99 11.04 4.57
Capital Employed Turnover -21.83% 2.64 3.38 6.46 2.91
Improved Decline
PAINT INDUSTRY IN INDIA 2015. PPT
Net Profit/LossTotal Income
-200
-400
-6000
4,000 0
2,000
-410.2
INR mn
2,929.4
2012
3,053.7
-526.6
2,964.0
2011
INR mn
20142013
-461.9-238.4
2,572.6

25. 25
SAMPLEPrivate: Domestic Company – Company B (4/5)
Business Highlights
PAINT INDUSTRY IN INDIA 2015. PPT
Description News
Overview XX
Extended Product
Segments XX

26. 26
SAMPLE
XX XX
XXXX
TO
WS
Private: Domestic Company – Company B (5/5)
Strength Weakness
Opportunity Threat
PAINT INDUSTRY IN INDIA 2015. PPT

27. 27
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PAINT INDUSTRY IN INDIA 2015. PPT