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SUMMER PROJECT On A STUDY ON PAINT INDUSTY WITH SPECIAL REFERANCE TO SHALIMAR PAINTS LIMITED Submitted by: Jiban kumar Nayak Registration No. 0706229022 Under the guidance of:

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Page 1: Jiban Final Report1

SUMMER PROJECTOn

A STUDY ON PAINT INDUSTY WITH

SPECIAL REFERANCE TO

SHALIMAR PAINTS LIMITED

Submitted by:Jiban kumar Nayak

Registration No. 0706229022

Under the guidance of:

Mr. Manit Mishra Mr. P.C. Nanda Asst. Professor- Marketing Divisional sales Manager DRIES B-SCHOOL Cuttack

Page 2: Jiban Final Report1

DECLARATION

I hereby declare that the present study entitled “A STUDY ON

PAINT INDUSTY WITH SPECIAL REFERANCE TO SHALIMAR PAINTS

LIMITED” being submitted by me to the department of MBA, (DRIMES)

in partial fulfillment of the requirement for the master of Business

Administration under Biju Pattnaik University, Raurkela. It is my own

and has not been submitted to other university or published any time

before.

Jiban Kumar Nayak

Page 3: Jiban Final Report1

GUIDE CERTIFICATE

This is to certify that Jiban Kumar Nayak has carried out his

summer project work on the subject “A STUDY ON PAINT INDUSTY

WITH SPECIAL REFERANCE TO SHALIMAR PAINTS LIMITED” under my

guidance and supervision. He has incorporate his analysis and finding

into this project of above title being submitted by him in partial

fulfillment requirement for the award of degree of “Master of Business

Administration” under Biju Pattnaik University, Raurkela. I am satisfied

that he has carried out project work independently and proper care

and confidence.

Mr. Manit Mishra Asst. Professor- Marketing

DRIES B-SCHOOL

Page 4: Jiban Final Report1

ACKNOWLEDGEMENT

To undergo Summer Training in Shalimar Paint was lively

experience for me. I am truly indebted to Mr. P.C. Nanda, Divisional

Sales Manager, Cuttack for giving me the opportunity to work in his

esteemed Organization. I will also remain grateful to Mr. Manit Mishra

(Faculty DRIES) for Academic guidance. I am also grateful to the

principal & Staff of DRIEMS B-School.

I am also thankful to all my friends for their continuous co-

operation and my parents for their constant untried encouragement

and blessing through out this project work.

Jiban Kumar Nayak

3. OBJECTIVE OF THE STUDY:-

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Being doing any survey it is very much essential to define the

objectives for which the survey is to be done. Without any objective

there is no value addition to whatever is done in a project. This study

aims towards A STUDY ON PAINT INDUSTY WITH SPECIAL REFERANCE

TO SHALIMAR PAINTS LIMITED” how the dealers react and perception

towards Shalimar paint

The objectives of this market survey are:

To determine the number of dealer is doing the business with

company and what is the problem they are face in it.

To determine the, how many dealers are want to do with

Shalimar paint, and why.

To find out the current market position in the costal market of

Shalimar paint.

To find out the competitors position in the market and taking the

right step against accordingly. .

To gate some vital suggestion from them towards company,

which are helping the company to reach the consumer.

LIMITATION:-

Page 6: Jiban Final Report1

As a student of management it is very much essential on my part

of gain some practical knowledge about the current market

situation. This survey helped me in shaping my practical knowledge

about the existing market position of the various brand of soft drink.

However this study has certain limitation which can be attributed

to various factors.

Time limit is not sufficient enough to collect all the data to

complete the project report.

Some dealers are not alternative when they will fill up the

questionnaires.

Big communication gap.

Some confidential information are not allowed to be analyzed which might have more relevance from the study angel.

Scope:

From this study we can find the pitfalls of Shalimar paints. The main

aim of the study is to increase the no. of dealers and enhance the

satisfaction level of dealer’s painters as well as customer.

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Introduction

Paint is a thick liquid substance used to decorate and protect

concrete, wooden, cloth, metallic surfaces and everything you can

imagine. The colors make these objects look beautiful while its basic

ingredients protect them from corrosion, rust and decay.

As we look around the world we see many beautiful colors around

us. Some colors are natural some are man-made. It is used to produce

a beautiful work of art, in industrial coating or road surface marks to

help driving or it can be used as a preventing measure for preventing

corrosion or water damage. Paint has been used by mankind since

its origin. The evidence can be found in the cave paintings. The

Chinese are considered to be the pioneers of manufacturing paints

thousands of years ago. In modern times paint is made artificially and

is used in many different ways. There are three basic things required

to make paint. You need a

Pigment to get the exact color you want

Binder to hold the paint together

Thinner so that it can be applied easily.

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Methodology

Research has conducted a quantitative survey of a sample in

coastal part of orissa.

Sampling Method

Research have used convince sampling and area sampling.

Sample Size

I have used sample size of around 40 dealers.

Data Collection Procedure

In this research work we have collected all the data by surveying

the market and some part collected from the internet.

Study Topic

A STUDY ON PAINT INDUSTY WITH SPECIAL REFERANCE TO

SHALIMAR PAINTS LIMITED

Location: Coastal part of Orissa

Duration: 45 days

Page 9: Jiban Final Report1

Types of Paints

There are different types of paints available today. Till the 19th

century the word paint was used to describe oil-bound types only. The

paints bound with glue were called distemper. For farmhouses and

cottages an alternative was found and was called lime wash or color

wash.

 

Different things need different paints. The interior of the house is

painted by different type of paint than the exterior of the house.

Automobiles use different type of paint. The industrial paint is different

than marine paint. Now colors are made by using different ingredients

for specific surfaces.

Page 10: Jiban Final Report1

Indian Paint industry

The Indian paint industry is over 100 years old. Its beginning

can be traced back to the setting up of a factory by Shalimar Paints in

Calcutta (now Kolkata) in 1902. Until World War II, the industry

consisted of small producers and two foreign companies. After the

war, the imports stopped, which led to the setting up of manufacturing

facilities by local entrepreneurs. Still, the foreign companies continued

to dominate the market. Initially British paint companies such as

Goodlass Walls (now Goodlass Nerolac), ICI, British Paints (now Berger

Paints), Jenson & Nicholson and Blundell & Eomite dominated the

market. There are now twelve players in the organized sector of

India's paint and coatings market and over 2,000 in the unorganized

sector. In 2003-04, the organized sector held 70% share of the

approximately $1.5 billion (Rs 6,800 crore) industry, while the balance

was made up of the unorganized units. The major players are Asian

Paints, Goodlass Nerolac, Berger, ICI and Shalimar. Recently, world

leaders like Akzo Nobel, PPG, DuPont and BASF have set up base in

India with product ranges such as auto refinishes, powder coatings

and industrial coatings. Kansai Paints of Japan, which entered into

collaboration with Goodlass Nerolac in 1984, is now the holding

company for Goodlass Nerolac with 64.52% equity holding.

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In India, Indian Paint industry’s total market size is US$1400

million. The organized sector of the industry is 55%. The 45%

unorganized sector has about 2500 units. The big players and their

market share-value of the organized sector are

Asian Paints 37%

Goodlass Nerolac 15.9%

Berger Paints 13.8%

ICI 11%

Jenson & Nicholson 5.7%

Shalimar 4% &Others 12%

Market Share of All paint industry In India

Asian Paint

Nerolac

Gerger Paint

Shalimar

Ici

Jenson & Nicholosn

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The market segment is divided into two sectors.

Architectural 70%

Industrial 30%

The total volume of the market is 600,000 MT.

The Indian paint industry is an Rs 49 billion sector.

The demand for paints is relatively price-elastic but is linked to

the industrial and economical growth.

The per capita consumption of paints in India is very low at 0.5 kg

per annum if compared with 4 kegs in the South East Asian

nations and 22 kegs in developed countries. The global average

per capita consumption is 15 kg.

In India the organized sector controls 70 percent of the total

market with the remaining 30 percent being in the hands of

nearly 2000 small-scale units.

In India the industrial paint segment accounts for 30 percent of

the paint market while the decorative paint segment accounts for

70 per cent of paints sold in India.

Most of the paint leaders have technical tie-ups with global paint

leaders.

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Paint industry in India is divided in to two categories

1. Decorative.

2. Industrial.

Decorative…..

APIL dominates the decorative segment with a 38 per

cent market share. The company has more than 15,000 retail

outlets and its brands Tractor, Apcolite, Utsav, Apex and Ace are

entrenched in the market. GNPL, the number-two in the decorative

segment, with a 14 per cent market share too, has now increased its

distribution network to 10,700 outlets to compete with APIL

effectively. Berger and ICI have 9 per cent and 8 per cent shares

respectively in this segment followed by J&N and Shalimar with 1

and 6 per cent shares. The demand for decorative paints is highly

price-sensitive and also cyclical. Monsoon is a slack season while the

peak business period is Diwali festival time, when most people

repaint their houses. The industrial paints segment, on the other

hand, is a high volume-low margin business.

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Industrial…………

GNPL dominates the industrial paints segment with 41 per cent

market share. It has a lion's share of 70 per cent in the OEM passenger

car segment, 40 per cent share of two wheeler OEM market and 20 per

cent of commercial vehicle OEM market. It supplies 70 per cent of the

paint requirement of Maruti, India's largest passenger car

manufacturer, besides supplying to other customers like Telco, Toyota,

Hindustan Motors, Hero Honda, TVS-Suzuki, Mahindra & Mahindra,

Ashok Leyland, Ford India, PAL Peugeot and Bajaj Auto.

Page 15: Jiban Final Report1

Profile of the Indian Paint Industry by

Information Research Limited in 2nd edition.

Hundreds of billions of rupees in infrastructure investment,

over 60% of the population aged under 30, falling interest rates, rising

consumer markets growing at double-digit percentages and the

promise of a strong manufacturing base for exports - the list of

attractions for a coatings presence in India is by no means short.

The above are just some of the findings of IRL's new and second Profile

of the Indian Paint Industry which provides up-to-date statistics and

information on the following:

Availability of paint raw materials

Paint production

Paint imports and exports

Paint consumption and per capita use

Market segmentation by paint type and end-use sector

Information on paint producers

Trends in major end-user industries

Market forecasts and growth rates

Page 16: Jiban Final Report1

The report also includes a five-year market forecast based

on estimates of the various paint sector sizes for the year 2004 to

2009. More information on the contents of the report is given on the

right.

Research for this title has included a comprehensive program

of desk and internet research, a review of all available published

sources, some 50 interviews with senior industry executives across the

organized and small-scale sectors and research and discussion taken

from attendance at the 22nd Indian Paint Conference held in Mumbai

in January2005.This report will serve as a valuable tool to strategic

planners, business analysts and marketing managers involved in the

manufacture, distribution and marketing of paints and coatings and

their raw materials

Page 17: Jiban Final Report1

Information Research Limited in 3rd edition.

In A Profile of the Indian Paint Industry, 3rd Edition, IRL revisits the

Indian market offering a collective review of major developments since

2005 and then looks into the future by examining sector-by-sector

growth for the mainstream markets. Furthermore, insight and industry

opinion is brought to the marine paints and can coatings markets as

IRL expands its coverage. Value data for the Indian markets has also

been included for the first time.

Geographical Coverage:

India

Product Coverage:

The report provides up-to-date statistics and information on the

following:

History of paint production

History of paint imports and exports with analysis and comment

Paint consumption and per capita use

Market segmentation by paint type and end-use sector

Market forecasts and growth rates

Page 18: Jiban Final Report1

Investments Surrounding the Indian Paint Industry

Technology Licenses and Agreements

Asian Paints

Kansai Nerolac Paints

Berger Paints India

Ici India

Shalimar Paints.

Market profile in India

The leaders in the organized paint industry are Asian Paints

(India) Ltd. (APIL), Goodlass Nerolac Paints Ltd. (GNPL), Berger Paints,

Jenson & Nicholson Ltd. (J&N) and ICI (India) Ltd.

An Asian paint is the industry leader with an overall market share

of 33 per cent in the organized paint market. It has the largest

distribution network among the players and its aggressive marketing

has earned it strong brand equity. The Berger Group and ICI share the

second slot in the industry with market shares of 17 per cent each.

GNPL has a market share of 15 percent in the organized sector.

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Steady growth:

The Indian paint industry has very low consumption levels as

compared to the other developing economies. While the decorative

segment is growing at 1% per annum, the industrial paint segment

(led by powder and protective coatings) is also expected to record

strong growth rates going forward.

A mixed bag:

A robust housing sector is likely to boost demand in the

decorative segment. Long-term growth potential of the auto sector

is also a big positive.

Structural shift:

Continuous fall in excise duty in the past has benefited

organized players and the impending consolidation will add to the

pricing power.

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Capex cycle booster:

With investment cycle showing signs of momentum,

industrial paint demand could grow at a much higher rate than the

last five years.

Demand for paint companies to increase

The Indian paints sector is valued at Rs 95 bn in value terms and is

very fragmented. In volume terms, the sector posted a 15 per

cent of growth in FY06. The current demand is estimated to be

around 650,000 tones per annum and is seasonal in nature.

Budget Measures

Hike in allocation for rural and urban hosing infrastructure

development

Reduction custom duty on chemicals from 12.5% to 7.5% budget

Measures.

Dividend distribution tax to be hiked from 12.5% to 15%

Additional education cess of 1% to fund secondary and higher

education

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Budget Impact

Increased spending on rural and urban housing infrastructure

development to increase demand for paint companies

Lower custom duty on chemicals to ease some pressure on

profitability by paring the pressure on cost of inputs

Higher education cess and dividend distribution tax to impact net

profits and retained earnings

Stock Outlook

The focus on urban and rural housing to increase demand for

paint companies shall lead to increase in demand for paint

companies. Also, lower custom duty on chemicals is likely to ease

some pressure on profitability by paring the pressure on cost of

inputs. We expect the paint sector to grow at 2 time’s long-term

GDP growth in the future. With GDP growth expected to around

8% to 9% per annum, the top three players are likely to clock

above industry growth rates.

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Company Impact

Market leaders like Asian Paints, Kansai Nerolac and Berger

Paints to benefit from increased spending on rural and urban

hosing

These companies will benefit in terms of lower custom duties on

raw materials like chemicals

Industry Wish List

Increase in the rate of abatement from the MRP (minimum retail

price) to 50% from 40% at present

Reduction of duty on import of raw materials used in the paints

industry to 8% from the current 16%, while retaining the rate of

import duty on finished products at 16%.

Continued impetus to the housing industry as the revival of the

same boosts the growth of the general economy and thereby the

paint industry

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Indian paint Association.

Established in 1962, The Indian Paint Association is the apex body

of the Indian Paint Industry, which represents both the organized

sector and the small scale sector in the paint industry. It is a voluntary

non-political and non-profit organization which promotes the interest of

the paint industry and the society.

The IPA is a unique forum in which even the very small scale

manufacturers are members besides all the major paint producers in

India. The representative character of the association is amply

demonstrated by the fact that more than 80% of the total paint

production in the country is accounted for by members of the IPA.

Indian Small Scale Paint Association

Indian Small Scale Paint Association, commonly known as ISSPA,

traces its origin to the year 1956, when a group of small scale paint

manufacturers banded together to united promote the small scale

paint industry. Today, ISSPA's Membership encompasses the majority

of small scale paint manufacturers, spread all over India. ISSPA truly

represents the small scale paint manufacturing industry in India.

ISSPA's Membership consists of Ordinary Members (paint and allied

manufacturers) and Associate Members (connected with the paint

Page 24: Jiban Final Report1

industry as suppliers of raw and packing materials). The Membership of

ISSPA is open to anyone connected with the paint industry.

Profile I Total Market size - US$1400 million

 - Organized Sector - 55%

 - Unorganized Sector - 45%

Organized Sector dominates by size large players

Unorganized Sector comprising about 2500 units manufacturing

various categories of paints.

Total Volume of the Market - 600,000MT

Profile II

Organized Sector can be divided into 2 distinct segments

 -  Industrial Segment growing at 15% (US$ 230 million)

 -  Architectural Segment growing at 8% (US$ 500 million)

Overall growth is 10 to 12%

Basic of competition in Architectural segment

 - Distribution

 - Brand Image

 - Range of Products

Market Segment

Architectural 70%

Industrial 30%

Page 25: Jiban Final Report1

Architectural Sector Composition

Enamels 50%

Distemper 19%

Emulsions 17%

Exterior Coatings 12%

Wood Finishes 2%

Architectural Sector Features

Enamels Steady growth

Emulsions Shift from distemper and enamels to emulsions. High

growth area

Distempers High growth in low priced low quality distempers as

consumers are upgrading from lime wash

Exteriors Exterior emulsion fastest growing segment in the Indian

Paint market.

Industrial Sector Composition

Automotive Paints - 50%

High Performance Coating - 30%

Powder Coating - 10%

Page 26: Jiban Final Report1

Coil Coating - 5% Marine Paints - 5%

Architectural secter Compsition

Enamels

Distemper

Enulsions

Exterior Coatings

Wood Finisher

Page 27: Jiban Final Report1

Industrial Secter Composition

Atomative Paint

High PerfermanceCoating

Pow der Coatong

Coil Coating

Marine Paint

Some of Indian paint Industry in India.

Asian paint (India) Ltd.

Asian Paints (India) Limited - Engaged in manufacturing and

exporting of decorative paints, emulsion paints, protective coatings,

industrial paints.

Berger Paint

Being an ISO 9001 company its quality products have attained

instant recognition, worldwide, and continues to meet quality

requirements that are demanded today even in the domestic

market. The Country's third largest paint manufacturer, with its

Page 28: Jiban Final Report1

Headquarters in Calcutta, BERGER controls a distribution network

comprising of 66 stock points spread across the country.

Anupam Enterprises

Anupam Enterprises - Manufacturers of paints & coatings,

primers, enamels, lacquers, wood coatings, chlorinated rubber, two-

component epoxies and polyurethane coatings & linings and industrial

coatings.

Classic Paints

Classic Paints - Manufacturer of decorative & industrial paints

including acrylic emulsion paints, exterior paints, specialty coir

coatings and distempers.

Essar International

Managing Partner worked for one of the large paint companies

for 24 years. He held various positions such as Procurement

Manager, Commercial Manager and last 2 years as General Manager

Page 29: Jiban Final Report1

- (Commercial) responsible for purchasing paints raw materials and

marketing of Architectural Paints.

FCL Technologies & Product Ltd

FCL Technologies & Products Ltd, is part of the Flex Group -

name that is synonymous with the flexible packaging revolution in

India, providing complete flexible Packaging solutions to over 60

countries. Today the Flex Group has Asia's largest state-of-the-art

packaging plant and allied infrastructure at NOIDA (U.P.) spread

over 70 acres and MALANPUR (near Gwalior) spread over 125 acres.

Glossy color & Paint Ltd

They provide paints tailor-made to the customer's requirement.

They have a distribution network of 800 well reputed stockiest to

reach every corner of the Indian market. Their production team is

manned by experienced qualified chemists and engineers.

ICI Paint

ICI India manufactures and markets paints, specialty chemicals,

rubber chemicals, adhesives & starch.

Page 30: Jiban Final Report1

Shalimar Paints Limited.

Shalimar Paints is one of the leading paints manufacturing

companies of India. It has three manufacturing units and more than

45 branches and depots all across the country.

Surface Coating System

Surface Coating Systems have been founded by technocrats

having in depth knowledge of Designing/Fabrication, Application,

Erection and Commissioning of Painting & Powder Coating Systems

since 1980. The plants are designed on most modern CAD Systems

and then Fabrication on CNC Machines accordingly to Drawings.

Soujanya Enterprises

Soujanya Enterprises understands and caters to coloring

needs of Customers across five continents and twenty different

countries. Their product range includes Universal Colorants for POS

Tinting Systems, Universal Stainers And Aqueous Pigment Dispersions

for in-plant tinting.

Page 31: Jiban Final Report1

Shalimar paint

Shalimar Paints is one of the leading paints manufacturing

companies of India. It has three manufacturing units and more than

54 branches and depots all across the country.The Company has a

wide product range in both Architectural and Industrial sectors. The

Architectural Coatings cover both Interior and Exterior sectors.The

Husain Collection based on the best quality acrylic copolymer based

emulsion is the Company's premium acrylic emulsion.The Company

also has tinting systems under the brand name "Color Space" where

Page 32: Jiban Final Report1

the Company offers more than 9000 shades across all product lines to

its customers. Shalimar Paints was incorporated in India in 1902 as

Shalimar Paint Color & Varnish Co. Ltd. It became a public limited

company in 1961 and adopted the present name Shalimar Paints

Limited in 1963. Shalimar Paints was the first large-scale

manufacturing unit in India and also in the whole South-

EastAsiaregion.

Shalimar Paints offers comprehensive products range

covering all kinds of paints applicable in home and office

decoration and industrial settings. The architectural coatings in

home and office on interior and exterior walls are specially

designed and formulated using the expertise of the research and

development wing at Shalimar Paints.

Shalimar Paints have their corporate office in Mumbai and

three manufacturing units at Howrah, Nasik and Sikandrabad along

with 45 branches and depots. The branches and depots of Shalimar

Page 33: Jiban Final Report1

Paints spread all across India cater to the distribution of Shalimar

Paints products to over 6000 dealers and distributors

Vision and Mission.

Shalimar's vision is to become one of the leading

paint manufacturing companies of the country, a leader in product

innovation and customer satisfaction. Shalimar intends to build

long term value relationships with all its suppliers and customers.

The Company's mission is to maximize returns of each

stakeholder in the Company be it customers, shareholders,

suppliers or employees and become a socially responsible global

Corporate Citizen.

Heritage.

1902 …… Shalimar Paint Colour & Varnish Co. Ltd.

was incorporated in India.

1928……. Pinchin Johnson & Associates bought control

of SPCV Ltd. & made it part of Red Hand

Composition Company.

1961……. The Company became a Public Limited

Company on 27th May.

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1963…… Its name was changed to Shalimar Paints Limited on 1st September.

Business Incorporated in 1902 as Shalimar Paint Colour &

Varnish Company, Shalimar Paints (SPL) is promoted by Om Prakash

Jindal group. The name of the company was changed to the current

one on Sep. 1, 1963.

SPL is engaged in the manufacture of paints and varnishes.

The company`s manufacturing plants are located at Howrah, Nasik

and Sikandrabad. It has more than 45 branches and depots all

across the country. SPL has a wide product range in both

architectural and industrial sectors. The architectural coatings cover

both interior and exterior sectors. The company also has tinting

systems under the brand name `Color Space` where the company

offers more than 9,000 shades across all product lines to its

customers.

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SPL has a technical collaboration agreement for coil

coatings with Kunsul Chemical (KCI) Company, Korea. KCI is one of

the largest paint manufacturing companies of Korea. SPL also

entered into a marketing agreement with paint company Akzo

Noble, for introducing in India, the Sadolin range of wood coatings. A

large number of color space systems have been installed at dealer

outlets in various locations all across the country.

Promotional strategy of Shalimar paint.

The promotional strategy of Shalimar Paints includes media

commercial and ad airing on every TV channel, newspaper, radio

channel and other media forms. Besides this, many huge corporate

houses have also had long-term association with Shalimar Paints.

These include Jindal Stainless and Jhunjhnuwala Group.

Page 36: Jiban Final Report1

The whole range of Shalimar Paints products include:

Synthetic Enamel Paints

o Superlac Hi - Gloss Synthetic Enamel

o Superlac Satin Finish Soft Sheen Synthetic Enamel

o Superlac Luster Finish

o Diamond Synthetic Enamel

o Goldmin Synthetic Enamel

Synthetic Enamel Paints

o Xtra Premium 100% Acrylic Exterior Finish

o Superlac Acrylic Emulsion

o Shaktiman Exterior Acrylic Emulsion

o No. 1 Premium Acrylic Distemper

o Hussain Collection Premium Acrylic Emulsion

o No. 1 Silk Emulsion

o Mela Acrylic Distemper

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o Cement Paints - Cemkote, Cemkote Plus, Mahacemkote

Wood Finishes and Protection Paints

o Malalac Melamine Wood Finish

o Kiricide Brown And Clear

o Black Board Paint

Aluminum Paints

o Lustrum Aluminum Paint

o Heat Resisting Aluminium Paint (Upto 250OC)

Putty

o Magic Acrylic Wall Putty

o Gold Size Glass Putty

Primers

o Wall Neutralizing Cement Primer

o Water Thinnable Cement Primer

o Pink/ Grey Primer For Wood

o Red Oxide Metal Primer

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o Synthetic Red Lead Primer

o Red Oxide Zinc Chromate Primer

o Zinc Chromate Primer Yellow

o Universal White Primer

o Rustguard Red Lead Primer

Varnishes and Polish

o Superlac Clear Synthetic Varnish

o Golden Guinea Copal Varnish

o Golden Guinea French Wood Polish

Dry Colors

o Heart Brand Dry Colours For Cement Floors

o Red Oxide

o Deep Black

o Green/Blue Oxide

o Yellow Oxide

Page 39: Jiban Final Report1

Another popular category is the Hussain Collection that gives a

smooth and eggshell gloss finish to the surface painted. The

advantages of Hussain collection are a whole spectrum of colors in

shade card to choose from, luxuriously smooth finish and fast drying.

Get the Shade Card online on the official site of Shalimar Paints listing

the whole palette of shades and colors available in the entire product

range by ShalimarPaints.

In the industrial paints segment, Shalimar Paints has a long

association with global giants like Pinchin Johnson Co. and International

Paints PLC, UK. The industrial paints products by Shalimar Paints cater

to high performance coatings in the heavy industries like

petrochemicals, nuclear and thermal power, heavy machinery

manufacturers, construction industries etc. along with coatings finish

for two wheelers, tractors, cylinders and textile machinery. Metal

decoration coatings and Indian marine industry also are among the

major clients of Shalimar Paints.

For the dealers and retail outlets and shops locations of Shalimar

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Paints refer to the Shalimar Paints Ltd website that gives a dealer

locator. Also get an online color visualizer that creates a virtual room

and helps you analyze the color or shade you have chosen the way it

will appear on the walls. A cost calculator is provided that helps you

estimate the cost of the painting job undertaken. The Shalimar Paints

site also has a special segment dedicated to painting tips that ensures

optimum use of the paint products and the best finish.

Financials

The Company reported an 18.64% growth in net profits at Rs 7

million for the quarter ended September 2006 as against Rs 5.9 million

during the corresponding quarter in the previous year. Sales for this

period increased by 18.99% to Rs585.5 million from Rs 492.3million.

SPL reported a 14.24% increase in sales at Rs 2170.4 million for

the year ended March 2006, as against Rs 1,899.9 million for year

ended March 2005. Net profit for this period also increased 72.22% to

Rs 34.1 million as against Rs 19.8 million. The EPS for FY06 stood at Rs

Page 41: Jiban Final Report1

9.01.

RecentDevelopments

The restructuring and investments committee of Shalimar Paints

approved investment of Rs 850,000 in equity shares of Shalimar

Adhunik Nirman. Consequently, Shalimar Adhunik Nirman has become

a subsidiary of the Shalimar Paints.

FuturePlans

The Company wants to develop new water-based eco-friendly

paints, polyester and silicone co-polymer coatings, new generation

wood finish and timber treatments. It also wants to develop a new

technology in can coating, coil coating and marine paint. The

company`s strategy will be to focussed on the emulsions segment,

particularly the exterior segment. It is also looking at strategic

alliances with reputed partners in new and fast growing areas.

Recent Developments

Page 42: Jiban Final Report1

The restructuring and investments committee of Shalimar Paints

approved investment of Rs 850,000 in equity shares of Shalimar

Adhunik Nirman. Consequently, Shalimar Adhunik Nirman has become

a subsidiary of the Shalimar Paints. Future Plans the Company wants to

develop new water-based eco-friendly paints, polyester and silicone co-

polymer coatings, new generation wood finish and timber treatm.

Brief Financials (in Rs. Mn.)

Period ending (months) 30-Jun-2008(3)

31-Mar-2008 (12)

31-Mar-2007 (12)

Net sales 811.40 3401.40 2560.50Other Income 6.20 27.00 20.70Total Income 817.60 3428.40 2581.20Cost of goods sold 770.60 3190.00 2419.90OPBDIT 47.00 238.40 161.30PAT 15.00 95.90 47.50Gross Block - - -Equity capital 37.90 37.90 37.90EPS (Rs.) - 25.34 12.54DPS (Rs.) - - -BV (Rs.) - - -P/E range (x) - 5.98 - 20.72 8.31 - 22.68

Page 43: Jiban Final Report1

Debt / Equity (x) - - -Operating margin (% of OI)

5.7 7.0 6.2

Net margin (% of OI) 1.8 2.8 1.8

A detail repot of net sell and Profit of Indian Paint Industry from 2003-2004

Page 44: Jiban Final Report1

Profit margin from2003-2008

0

50

100

150

200

250

300

350

400

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

Asian Paint

Berger

Nerolac

ICI

Shalimar

Net sell Repot of all the Paint Industry in India from 2003-2008

Page 45: Jiban Final Report1

0

500

1000

1500

2000

2500

3000

3500

4000

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

Asian Paint

Berger Paint

Nerolac

ICI

Shalimar

DATA SOURCE

Data is collected from two sources

√ Primary source

Page 46: Jiban Final Report1

√ Secondary source

Primary Source:

Primary data is collected by suitable questionnaire

for dealers, painters and customers. The questionnaire constitutes both

open ended and close ended questions. The questionnaire was

formulated keeping in mined the ease of answering the questions.

SECONDARY SOURCES:

Secondary data source including marketing research

book. Internet, business magazines, news paper, Radio, TV etc.

DATA ANALYSES:

1: Data preparation

The raw data obtained from the questionnaire is

taken through different stage like data editing to remove errors and

ambiguity to facilitate accurate analyses.

1: Data analyses tools

Before a data analysis was done, date is first

tabulated to ease the data analyses process. Data was then prepared

for analyses by frequency distribution of the variable in the questions.

Analysis on the basis of dealer Feed back in the Market.

Page 47: Jiban Final Report1

0

5

10

15

20

25

30

35

Lack ofAds

Kack ofglaze andcoverage

Nodemande

fromPainter

andCustomer

SupplyProblem

Stock Isnot

available

Shalimaris Good

Other NoResponse

LackOfMarketing

peopleVisit

Series1

SWOT analyses on the basis of research.

Strength:

DEALERS FEED BACK NUMBER PERCENTAGELack of Ads 12 30Lack of glaze and coverage 2 5No demanded from Painter and Customer 13 32.5Supply Problem 0 0Stock Is not available 1 2.5Shalimar is Good 5 12.5Other 0 0No Response 4 10Lack Of Marketing people Visit 3 7.5

Page 48: Jiban Final Report1

Shalimar has the 100 Year above market experience in

India.

The company has a wide distribution network. The entire

country is divided into 4 zones, each of which is headed by

a Regional Business Manager.

The company has more then 45 branches and depots who

service more then 6000 dealer all accrues the country.

With its wide distribution network the company is able to

reach not only the urban market but also the rural market

and up-country market.

Weakness:

It has less coverage now as compare as to previous.

Shalimar have not a proper delivery strategy when it sold

the product to the dealer. In this area Berger is very

accurate about it.

Opportunities:

The Company has been a Pioneer in the industrial paint segment by

virtue of its long association with multinational giants lick Pinchin

Johnson Co and International Paint PLC of the UK coupled with its own

R&D strengths.

Threats:

Page 49: Jiban Final Report1

Due to increasing of brand preference of competitor in the mind of

consumer, it may be threat for the existing loyal consumer switch

over from company.

A (Z) test on the basis of dealer survey.

Out of 130 dealer in costal area in Orissa, a sample size of 40 was taken to test the effectiveness of advertisement and 12 found mistake (negative), (check of whether the advertisement is result of poor sales). Assign limits which the number of mistakes can be expected at 95% level of confidence.

Solution:- ( q ) refers to lack of advertisement

=12=12/40=.3

(p) is 1-q=1-0.3=0.7

S.E.(q)= √pq/n=√0.7*0.3/40= √0.00525=0.023

95% confidence limit

q±1.96 s.e

=0.3±1.96 (0.023)

=0.3±0.04508

=0.34508 to 0.25492

Lack of advertisement=100*0.34508 to 100*0.25492

=34 to 25 or 25 to 34

Hence at 5%level of significance of expected that the lack of advertisement results lack of sales of Shalimar paint would vary between 25 percent to 34 percent.

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FINDINGS:

Asian paint is the dominating player amongst the paint company in the costal part of Orissa.

Marketing people are not visiting regularly to the dealers.

Lack of painter or sealer preference for Shalimar paints demonstrates the weak.

Supply chain system of Shalimar is weak as compare to its competitor.

Stock position of Shalimar is not enough to meet the market demand.

There is lack of aggressive marketing promotional strategy.

Dealer meeting and painters meeting are not been conducted regularly.

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SUGGESTIONS:

The company must increase its sales force. This sales force must be given proper tanning and must build professional into their work.

Marketing people should increase the number of visit to the dealer. Thy must try as much area as possible.

More ground level promotional activities should be taken care like local advertisement and putting up holding for brand visibility.

Supply chain system has to be improved.

Page 52: Jiban Final Report1

Conclusion

On the basis of the research work we are conclude that ,for

existing in the recent global market ,every company have to satisfy the

consumer by innovative idea and dominating over the competitor by

aggressive marketing strategy .

Being Shalimar is a holder of above 100 year market

experience, it can take the advantage on its competitors in decorative

paint market. No dough in industrial paint market Shalimar is market

leader, but in decorative segment it has to improve. For doing it

company just have to remind the consumer by taking little bit effort

towards the awareness in between the consumer like giving some kind

of add in the TV, News paper, Radio, and Business Magazines. So that

it can create a good impartation in the mind of consumer towards

company and insist to loyal consumer for not switchover from Shalimar

product.

Page 53: Jiban Final Report1

Contents

Introduction

Objective

Scope

Methodology

Limitation