Year Long Project-Indian Paint Industry

Nivas R (29034)

Indian Paint Industry

• Estimated size - 29100 crores.• Growing rate of 15% pa• Organized players-65% share• Unorganized players-35% share• Per capita consumption of paints in India is

low(around 1 kg)

Global and Industry Production

• Aggregate paint production in India -791231 Tons

• Decorative vs Industrial Share

Factors that affect Production

• Raw Materials• Population Growth• Climate change and Erratic Monsoons• Economy• Carbon Footprint

Raw Materials

• Binders/Resins-Alkyd resins, Vinyl and acrylic emulsions,Natural Oils.

• Pigments/Solids-Titanium Dioxide• Solvents- Mineral Turpentine and PAN• Additives• Availability is unpredictable at times

Substitutes

• Limewash• Wall papers

• Pretreated Panels

• Stainless Steel Body Automotive

Technology in Paint Industry

• Dealer Tinting Machine• Technology Up gradation-Manufacturing

– Screw Compressor, Hydrofoil Agitator• Technology Up gradation-IT

– CRM,SCM,SAP/ERP

Trends in the Paint Industry

• Trend vs Fad• Shift in Consumer Behavior• Companies are getting consumer-centric • Newer types of finishes Emerging

– Flat Finish– Matte Finish– Eggshell Finish– Semi-Gloss Finish– Pearl Finish

Product life Cycle

• Introduction-Royale Play, Kids World, Asian Paints Premium Semi Gloss Enamel, Asian Paints Apcolite Premium Satin Enamel .

• Growth-Asian Paints Apex Ultima, Asian Paints Royale luxury Emulsion,Paints Apcolite Premium Gloss Enamel.

• Maturity-Asian Paints Tractor Acrylic Distemper,Asian Paints Tractor Synthetic Distemper, Asian Paints Utsav Acrylic Distemper

• Decline-Lime powder(choona) and stainer

Recent Development and News

• Change From Oil Based to Water Based • Technological Advances• Smart coatings • Piezoelectric paints • Moderation in Volumes• Values Increased

Asian Paints- Updates

Market Structure

Decorative Paints70%

Industrial Paints30%

Indian Paint Industry

Asian Paints Volume share Value share

Decorative Paints 85% 70%

Industrial Paints 15% 30%

Market Share

32%

11%

11%6%

5%

35%

Market ShareAsian Paints Berger KansaiICI (Akzo Nobel) Others Unorganized sector

Turnover of the company

Asian paints 2012 2011

Sales turnover Rs.9,064.29 cr. Rs.7,201.98 cr.

Sales turnover represents the value of goods and services provided to customers during a specified time period - usually one year.

Operating Efficiencies of competitive firms

Firm Asian paints Berger paints India Kansai nerolac Shalimar paints Akzo nobel

Ratios 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

Inventory Turnover Ratio

7.56 7.08 5.8 5.87 6.76 7.17 5 5.37 6.35 8.73

Debtors Turnover Ratio

19.21 18.93 9.72 9.37 8.82 9.17 3.87 3.95 13.12 16.05

Fixed Assets Turnover Ratio

5.23 4.25 5.19 5.06 3.24 3.37 6.73 5.31 5.45 3.23

Total Assets Turnover Ratio

3.22 3.33 2.63 2.63 2.42 2.28 3.73 3.66 1.35 1.11

Profitability of Firms in Paint IndustryFirm Asian

paints Berger pts

India Kansai

nerolac Shalimar

paits Akzo nobel

Ratios 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

Gross Profit Margin(%)

16.81 17.57 10.61 10.21 12.3 12.88 7.79 6.57 6.65 11

Profit Before Interest And

Tax Margin(%)

15.45 15.97 9.09 8.62 10.19 10.6 6.91 5.7 4.41 8.89

Operating Profit

Margin(%)15.61 16.14 9.19 8.77 10.24 10.7 6.91 5.73 4.77 9.21

Net Profit Margin(%)

11.38 11.61 6.61 6.99 7.86 9.03 2.97 2.87 10.1 14.08

Return On Net

Worth(%)38.52 39.24 21 20.56 20.3 22.48 22.69 22.97 14.11 16.2

Return on Assets

259.36 205.93 24.4 20.84 197.28 170 160.77 134.19 387.79 295.95

Thank you