Description
PRESENTATION ON INDIAN DECORATIVE PAINT INDUSTRY
TYPES OF PAINTS
INTERIOR PAINTS
Indian Decorative Paint Industry
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.
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.
Segmentation of Paint Industry
Indian Paint Industry
Decorative
Industrial
Emulsions
Distemper
Automobiles
Marine Paints & others
Generally in Cities
Mainly Villages
Market Segmentation
Decorative: Major segments in decorative include exterior wall paints, interior wall paints, wood finishes and enamel and ancillary products such as primers, putties etc. ? Decorative paints account for over 70% of the overall paint market in India. ? Demand for decorative paints arises from household painting, architectural and other display purposes. ? Demand in the festive season (September-December) is significant, as compared to other periods.
Contd.
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.
Major Players in Indian Paint Industry
Types of Decorative Paints
Decorative Paints
Interior Paints
Exterior Paints Emulsion
Wall
-Emulsion -Distemper
Textured Cement
Metal
-Enamel
Wood
Interior Paints (Emulsion)
Dulax Velvet Touch
Asian Paints Royale luxury Emulsion
Silk
Interior Paints (Distemper)
Tractor Distemper
Beauty Distemper
Bison Distemper
Interior Paints Metal & Wood (Enamel)
Synthetic Enamel
Gloss Premium Enamel
Apcolite Premium Gloss Enamel
Luxol
Exterior Paints
Apex Ultima
Weather Shield MAX
Tartaruga (Textured)
Snowcem Plus (Cement)
Price of Products (Interior)
Segment Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Distemper) Walls (Distemper) Metal & Woods Metal & Woods Metal & Woods Metal & Woods Product Royal Velvet Touch Impression Silk Premium Super Smooth Tractor Bison Price (per lt.) Rs. 360-450 Rs. 360-450 Rs. 360-450 Rs. 360-450 Rs. 250-280 Rs. 250-280 Rs. 60-80 (per lt.) Rs. 65-80(per lt.) Rs. 200-230 Company Asian Paints ICI Dulax Nerolac Paints Berger Paints Asian Paints ICI Dulax Asian Paints Berger Paints ICI Dulax Nerolac Paints Berger Paints Asian Paints
Dulax Gloss Premium Enamel Synthetic Enamel Rs. 200-270 Luxol Rs. 200-270 Apcolite Premium Rs. 200-270 Gloss Enamel
Price of Products (Exterior)
Segment Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Product Apex Ultima Dulax weather Shield Max Apex Dulax weather Shield Price (per lt.) Rs. 350-400 Rs. 350-400 Rs. 250-300 Rs. 250-300 Rs. 250-300 Company Asian Paints ICI Dulax Asian Paints ICI Dulax Berger Paints
Walls (Emulsion) Weather coat All Guard
Mechanism of Paints
Major Inputs Major Products
Decorative Products: Paint Emulsions, Enamels, Distempers, Wood Finishes, Metal Finishes etc.
End User
Raw Materials (56%) Selling & Administration expenses (23%) Employee Cost (12%)
Households, Construction firms (70%)
Industrial Products: Powder Coating, Floor Coating, Surface Coating etc.
Automobiles Consumer Goods Marine Industry (30%)
Components of Paints
Raw 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. Contd.
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.
Sales of Companies
Net Sales(FY2011) in Cr.
7000 6000 5000 Quantity 4000
3000
2000 1000 0 Asian Paints 6607.2 Kansai Nerolac 2266.2 Berger Paints 2096.2 ICI Paints 1087.6 Shalimar Paints 404.4
Net Sales(FY2011) in Cr.
Market Shares of Companies (Contd.)
35%
32%
Asian Paints Kansai Nerolac
Berger Paints 5%
6% 11% ICI Paints Others Unorganised
11%
Distribution Process of Paints
Paint Manufactures
Regional Warehouses Company Dealer Customers
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
New concepts of Paints
• Multi coloured room concept. • Lead free colour.
Conclusions
• Over the next few years, the ratio of industrial paints to decorative paints is expected to be 50:50, more in line with the global trend. Currently it is 30:70. • Decorative paints segment is expected to witness higher growth going forward. The incentives given by the government to the housing sector have benefited the housing sector immensely. This will benefit key players in the long term. • Within the decorative coatings segment, considerable growth is being observed in the exterior coatings segment. Paint manufacturers have launched premium products in this category, which are doing well due to superior quality and durability.
References:
• • • • • • • • • www.indianmirror.com www.bergerpaints.com www.asianpaints.com www.nerolac.com www.competitiveness.in www.stockshastra.moneyworks4me.com www.equitymaster.com Phulwari Paints, Bapuji Nagar, Bhubaneswar Kunthia Brothers, Ravi Talkies, Bhubaneswar
doc_574835346.pptx
PRESENTATION ON INDIAN DECORATIVE PAINT INDUSTRY
TYPES OF PAINTS
INTERIOR PAINTS
Indian Decorative Paint Industry
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.
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.
Segmentation of Paint Industry
Indian Paint Industry
Decorative
Industrial
Emulsions
Distemper
Automobiles
Marine Paints & others
Generally in Cities
Mainly Villages
Market Segmentation
Decorative: Major segments in decorative include exterior wall paints, interior wall paints, wood finishes and enamel and ancillary products such as primers, putties etc. ? Decorative paints account for over 70% of the overall paint market in India. ? Demand for decorative paints arises from household painting, architectural and other display purposes. ? Demand in the festive season (September-December) is significant, as compared to other periods.
Contd.
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.
Major Players in Indian Paint Industry
Types of Decorative Paints
Decorative Paints
Interior Paints
Exterior Paints Emulsion
Wall
-Emulsion -Distemper
Textured Cement
Metal
-Enamel
Wood
Interior Paints (Emulsion)
Dulax Velvet Touch
Asian Paints Royale luxury Emulsion
Silk
Interior Paints (Distemper)
Tractor Distemper
Beauty Distemper
Bison Distemper
Interior Paints Metal & Wood (Enamel)
Synthetic Enamel
Gloss Premium Enamel
Apcolite Premium Gloss Enamel
Luxol
Exterior Paints
Apex Ultima
Weather Shield MAX
Tartaruga (Textured)
Snowcem Plus (Cement)
Price of Products (Interior)
Segment Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Distemper) Walls (Distemper) Metal & Woods Metal & Woods Metal & Woods Metal & Woods Product Royal Velvet Touch Impression Silk Premium Super Smooth Tractor Bison Price (per lt.) Rs. 360-450 Rs. 360-450 Rs. 360-450 Rs. 360-450 Rs. 250-280 Rs. 250-280 Rs. 60-80 (per lt.) Rs. 65-80(per lt.) Rs. 200-230 Company Asian Paints ICI Dulax Nerolac Paints Berger Paints Asian Paints ICI Dulax Asian Paints Berger Paints ICI Dulax Nerolac Paints Berger Paints Asian Paints
Dulax Gloss Premium Enamel Synthetic Enamel Rs. 200-270 Luxol Rs. 200-270 Apcolite Premium Rs. 200-270 Gloss Enamel
Price of Products (Exterior)
Segment Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Walls (Emulsion) Product Apex Ultima Dulax weather Shield Max Apex Dulax weather Shield Price (per lt.) Rs. 350-400 Rs. 350-400 Rs. 250-300 Rs. 250-300 Rs. 250-300 Company Asian Paints ICI Dulax Asian Paints ICI Dulax Berger Paints
Walls (Emulsion) Weather coat All Guard
Mechanism of Paints
Major Inputs Major Products
Decorative Products: Paint Emulsions, Enamels, Distempers, Wood Finishes, Metal Finishes etc.
End User
Raw Materials (56%) Selling & Administration expenses (23%) Employee Cost (12%)
Households, Construction firms (70%)
Industrial Products: Powder Coating, Floor Coating, Surface Coating etc.
Automobiles Consumer Goods Marine Industry (30%)
Components of Paints
Raw 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. Contd.
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.
Sales of Companies
Net Sales(FY2011) in Cr.
7000 6000 5000 Quantity 4000
3000
2000 1000 0 Asian Paints 6607.2 Kansai Nerolac 2266.2 Berger Paints 2096.2 ICI Paints 1087.6 Shalimar Paints 404.4
Net Sales(FY2011) in Cr.
Market Shares of Companies (Contd.)
35%
32%
Asian Paints Kansai Nerolac
Berger Paints 5%
6% 11% ICI Paints Others Unorganised
11%
Distribution Process of Paints
Paint Manufactures
Regional Warehouses Company Dealer Customers
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
New concepts of Paints
• Multi coloured room concept. • Lead free colour.
Conclusions
• Over the next few years, the ratio of industrial paints to decorative paints is expected to be 50:50, more in line with the global trend. Currently it is 30:70. • Decorative paints segment is expected to witness higher growth going forward. The incentives given by the government to the housing sector have benefited the housing sector immensely. This will benefit key players in the long term. • Within the decorative coatings segment, considerable growth is being observed in the exterior coatings segment. Paint manufacturers have launched premium products in this category, which are doing well due to superior quality and durability.
References:
• • • • • • • • • www.indianmirror.com www.bergerpaints.com www.asianpaints.com www.nerolac.com www.competitiveness.in www.stockshastra.moneyworks4me.com www.equitymaster.com Phulwari Paints, Bapuji Nagar, Bhubaneswar Kunthia Brothers, Ravi Talkies, Bhubaneswar
doc_574835346.pptx