The paint industry in India has over 20,000 outlets, the highest of any country. Major cities with paint outlets include Mumbai, Delhi, Bangalore, and Kolkata. Annual output of low-cost distempers in India is approximately 200,000 tonnes. The market for paints in India is expected to grow 1.5-2 times the GDP growth rate in the next five years.

2. Size of the Industry
Today India has more than 20,000 outlets in operation,
probably the highest for any country.
Geographical distribution
Mumbai, Ahmedabad, Coimbatore, New Delhi, Surat,
Chennai, Delhi, Jaipur, Bangalore, Kolkata, Karur,
Tirupur, Ludhiana, Bhilwara, Erode, Jodhpur, Rajkot,
Noida, Panipat, Amritsar, Vadodara, Kanpur, Madurai, etc.
Output per annum
The high volumes of low cost distempers sold in India,
which amounts to approximately 200,000 tonnes per
annum at an average cost of Rs35 per kg ($0.88) at the
present rate.
Market capitalization
The market for paints in India is expected to grow at 1.5
times to 2 times GDP growth rate in the next five years
OVERVIEW OF INDIAN PAINT
INDUSTRY

3.  First paint Industry Shalimar Paints, Colour & Varnish
Company.
 The paints were generally imported from the Britain
 Due the 2nd world war many companies entered in India like
Goodlass Wall(1918), Elephant Oil Mills (1917)
 Asian Paints & Kansai Nerolac came into picture after the post
independence.
 Paints were considered as a luxury item
 Low used in Industrial segments
 There was a negative growth in industry and price was elastic.
 Introduction of liberalization policy

4.  Asian Paints India
 Nerolac India Paints
 Berger
 Dulux India Paints
 Shalimar Paints

6. Indian Paint industry, estimated to be a Rs. 40,600 Cr. industry,
growing at a rate of above 15% for the past few years.

7.  Increasing level of income and education
 Increasing Urbanization
 Increasing share of organized sector
 Development of the Realty, Automobile and Infrastructure
sector
 Increasing Penetration in the Rural Markets

8. POLITICAL FACTORS
 India, the largest democracy in the world
 The government is federal republic
 Export oriented Economy
ECONOMIC FACTORS
 Market based economy
 India is the third largest in term of purchasing
power
 Inflation rate is 6.62 as on January 2013
 Introduction of FDI in few sectors
SOCIAL FACTORS
 India is the second largest populated
economy in the world
 Import of raw material

9. TECHNOLOGICAL FACTORS
 Emerging of IT sector
 Modernization of paint like (waterproof paints,
Teflon coating, creating colours shops etc.)
 Lead free paints
ENVIRONMENTAL FACTORS
 Impact of volatile organic compounds (VOCs)
 Lead free paints
 Season and climate changes
LEGAL FACTORS
 Pollution Control Law
 Consumer Law
 Health and Safety Law
 Environmental Law

10. Indian Paint Industry
Decorative
Paints(7O%)
Premium Range
(High end
Acrylic
Emulsions)
Metros
&
Large Cites
Medium Range
(Enamel Paints
Small Cities
Distemper
Range( Low end
Paints)
Sub - urban
&
Rural Areas
Industrial
Paints(30%)
Automobile
Sector (about
2/3rd share)
Consumer
Durables
Marines Paints
Other OEM's

11.  BARGAINING POWER OF BUYERS
Household users -
 The contractors : Higher bargaining power & more price
sensitive
 The end customer : Number of options are available
Decisions are made based many factors
Industrial users -.
 A low margin high revenue business
 The buyers knowledgeable
 Price comparison is done effectively by the consumers
 BARGAINING POWER OF SUPPLIERS
 Raw material intensive industry
 More than 300 products required to manufacture of the
final products

12.  COMPETITIVE RIVALRY
 About 80% of the organized market is catered by the top four
players of the industry.
 The current market growth rate provide ample room for all the
players of the industry to flourish.
 Competition may increase as the market gets saturated.
AVAILABILITY OF SUBSTITUTES
• Lime wash is conventionally used substitute for paints.
• In decorative paints segments an alternative option is wallpapers.
THREAT OF NEW ENTRANTS
• The paint industry in India is dominated by few players making
difficult for anyone new entering the industry
• Establish foreign players may pose a threat by virtue of the
knowledge and expertise

13. Founder of Asian Paints
• Champaklal H. Choksey
• Chimanlal N. Choksi
• Suryakant C. Dani
• Arvind R. Vakil

14. Ancillaries Decorative
paints
Industrial
Paints
Automobile

15.  Market leader at present.
 Overall condition of the company is quite stable.
 Requires a lot of raw materials for its production ,
 European crisis resulting the prices of the raw materials have
increased considerably.
Solution:
 Company can try to utilize the domestically available materials to
cut down on the extra manufacturing cost.

16.  India's largest paint company and Asia's third largest paint company
 Operates in 17 countries and has 24 paint manufacturing facilities in
the world servicing consumers in over 65 countries.
 Operates around the world through its subsidiaries Apco Coatings,
SCIB Paints.

18. COMPANY ASIAN PAINTS BERGER PAINTS
Particulars
FY 2014 FY 2014
Operating Profit Ratio 15.71 11.15
Net Profit Ratio 9.93 6.44
Current ratio
1.18 0.97
Quick ratio 0.64 0.93
Debt equity ratio 0.01 0.27
Gross Profit ratio 15.02 9.78

19.  Asian paints is having higher operating profit than Berger because of
higher GP.
 Higher current ratio of Asian Paints indicates that co. is holding good
amount of current assets than Berger.
 Asian paints is having less quick ratio means holding of less liquidity
assets which may results in delay of paying its short term obligation.
 Debt equity ratio indicates that the financial leverage is not being
properly used. Therefore the co. is not having high financial risk.
 Asian paints is having greater capacity to stand in worse economic
condition than Berger paints because of higher net profit.
 A higher gross profit indicates that Asian paints having efficient
production and purchase management .

20.  Indian Paint Industry is one of the fastest growing sector in India.
 The market for paints in India is expected to grow at 1.5 times to 2 times
GDP growth rate in the next five years
 The employment potential in this industry is huge.
 Asian Paints, India’s largest paint company and Asia’s third largest paint
company, with a turnover of Rs 96.32 billion.
 Have an enviable reputation in the corporate world for professionalism,
fast track growth, and building shareholder equity.