A Report on

Study of Paints, Indian Paint Industry and

Elementto paints

Prepared by :-Alok kumar surya

Submitted to :- Mr. Moin(Manager north india)

Paint: -

Paints are thin coatings applied to surfaces in a liquid form. They dry and become flexible solids. They have many uses, the protection of the surface from sunlight, dampness, dust, abrasion, and weathering . They provide easily cleanable surfaces that help keep the substrates clean and tidy.

Paint and Clear Finish Composition

Clear Finish = Binder + Solvent + Additives

Paint = Binder + Solvent Additives + Pigment + Extender

Clear Finishes and Paint

Clear Finishes (varnish), are transparent and are used so that the substrate's appearance is enhanced by the application as well as protected. They are made up of a binder, solvent and additives.Paint composition is similar but requires pigments for color and extenders for opacity.

Paint Pigments

Pigments are fine powdered solids which provide the colour and opacity (hiding power) of the paint. Pigments can often contribute to the durability of the paint Pigments are obtained from: Chemically treated metals - eg. Iron oxide a yellow or red, it is used in all finishing paints, Titanium dioxide, white, is used for interior paints.

Solvents (or Thinners)

These are colour less liquids that are included in the paint (or clear finish) and work on the binder to thin the quality of the paint. This dilutes the coating and improves the ease of application and increases penetration of the product. The solvent then evaporates after application during the drying out process.

Examples of solvents:

White spirit - used with oil and oil/resin paints Ethers - used with cellulose resins and synthetic finishes Water - used with cement and emulsion paints (Thinners, mineral turps, solvents, methylated spirits, alcohols and acetates). Paint Additives (a substance added to something in small quantities) Most paints and clear finishes have additives included in their makeup. There are various types of additives.

Types of Paints in India The types of paints available in the market and their utility is: Acoustic Paint: It is specially designed for acoustic tiles Alkyd Resin Paint: Best suitable for trim, doors, faux finishes and other maximized use areas. Dripless Paint: This paint is thicker and is most suitable for application on ceilings

Latex Paint: The applicability of this paint is easier than most other and it dries much quickly. It is also easier to be washed.

One-Coat Paint: It is the more expensive version of the latex and alkyd paints and is mostly chosen for surfaces that require flawlessness in color.

Primers: This paint is the initiation for all interior paint works. Rubber-Base Paint: This is best for concrete and bricks. Textured Paint: If need is to cover any flawed surface in your house get this paint. It works well

on ceilings. Besides these home decorating and improvement paints and office paint you can also get industrial paints, aircraft paint, airplane paint, aviation paint and many other paint products with the paint shops in India. The paint companies in India house a wide range of paint products that cater to all your needs. A whole spectrum of colors with your own textured options and application patterns are available with the paint companies. Each company has its own specialized product and some also offer home paint services. The cost of a painting job may vary with the paint chosen - acrylic, emulsion, primer etc., the paint tools being used and the painting company hired. A comprehensive list of the paint companies in India has been mentioned below. You can also get info on the top paint companies like Nerolac, Asian paints, Berger, Dulux, Shalimar etc.

What are Pure Oil and Oil Based Paints and Varnishes? The binder for these paints is a drying oil or a blend of drying oils, or a combination of drying oil(s) and natural or synthetic resin called oil modified resin, for example Alkyd resin.

The dryer used can be any of the drying compounds that are based on metallic salts.

The drying is by oxidation (to combine a substance with oxygen) and partly poly merisation (undergoing a chemical reaction in which two or more small molecules combine to form larger molecules that contain repeating structural units of the original molecules). Advantages of using Pure Oil and Oil Based Paints and Varnishes:- -They are a well proven reliable coating -They are water and weather proof. -It produces a good finish with no brush marks -A high level of gloss can be reached. This provides for a higher aesthetic value as it is easily cleaned, and doesn't hold the dirt on the surface. -If using the correct resin and less oil content it is more heat resistant. Disadvantages of using Pure Oil and Oil Based Paints and Varnishes:- -It has a slow drying time. This depends on the oil content, the less oil the faster the drying time. -There is a long drying time between coats; this can cause an inconvenience, as the job takes longer. -The heat resistant properties lower with increased oil content.

Paint - Water Thinned Coatings, or Water Based Paints

Emulsion Paints

The medium or vehicle is an emulsion, which is a substance consisting of one liquid (oil) dispersed in droplets throughout another liquid (water). In respect to paints, the oil is a drying oil or an oil based binder like alkyd. Emulsifying agents are then added to make the substance stable. These agents could be soda, ammonia or detergents. After application the water evaporates and the coating hardens by oxidation. Emulsion paints are used as exterior coating on blocks and plasterwork. They have some of the advantages of oil-based coatings, the ability to bind back loose powder on the substrate. Latex Paints

The medium or vehicle is a man made latex, which is a dispersion of a synthetic resin binder in a watery base. The resin is made up of tiny sticky globules, which are surrounded by the base of water. On application, the water evaporates and the sticky globules adhere together, in turn trapping the pigment particles between them. The resin finally hardens by polymerisation. To improve the quality of latex paints many additives have been used, wetting agents, freeze-thaw stabiliser, acidity control agent, perfume, fungicides, dispersants, anti foam agent, flow agent.

Advantages of using Latex Paint

-The product has a fast drying time -It is relatively easily applied -It has a non offensive odour -The thinning substance (water) is cheap Disadvantages of using Latex Paints -There is no penetration, the product adheres by surface bond only -It doesn't flow as well as oil based paints -The high gloss level of oil based paints is not achievable -It retains dirt on the surface because of its thermo plastic nature (capable of softening or melting when heated and of hardening again once cooled) Paint - Different Types of Paints

Paints that are Named after their Function (i.e. what they do):- Primers, Finishing Coats, Sanding Sealer, Fillers, Floor Paint, Galvanized Iron Primer, Surfacers, Stoving Paint, Spray Paint, Undercoats, Stainer, Etch Primer, Knifing Compounds, Roof Paint Sealers.

Paints Named after the Binder or Medium used in the Making: - Acrylic, Latex Paints/Varnish, Varnish, Shellac Based Paints/Varnish, Spirit Based Paints/ Epoxy Paints/, Polyurethane Paints/Varnish, Alkyd Resin Paints/Varnish, Tung Oil Paints, Linseed Oil Paints, Cement Paints, Emulsion Paints, Bitumous Paints, Chlorinated Rubber Paints.

Paints Named After the Pigment used in the Manufacture: - Zinc Rich or Zinc Dust Primer, White Lead Paints, Graphite Paint, Red Lead Paints, LTZ - Lead Titanium Zinc, Aluminium Paint, Micaceous Iron Oxide Paint (Roof Paint), Calcium Plumbate Primer, Zinc Chromate Paint.

How Paint is Manufactured:-

Just like baking a cake, paint manufacture requires a recipe. This isolates the quantities required of the pigments, the vehicle (the binder and the thinner). These are then thoroughly mixed in their itemised quantities.

This mixture is taken once mixed and is then ground in mills to ensure all the clusters of pigment particles are broken up and that every particle is wetted (which prevents them being repellent to a wetting liquid).

Numerous tests are taken during and after manufacture to ensure that the paint contains all the desired properties, for example: color, workability, hiding power (opacity) gloss, flow, thickness, fineness of particle, durability and flexibility.

The recipe for each type of paint is very important, as the correct ratios of pigment to binder are essential. Gloss paints require very fine pigments; flat paints and undercoats have a much higher pigment content than enamels.

Basic Paint Application Systems: -

A paint system is a series of coats of paint, in which each coat performs a specific function. A standard paint system consists of a primer, undercoat(s), and finishing coat(s). In general, different types of paints will be used for each function, but there are some paint types that can perform more than one function, emulsions for example.

Primer: - This is the first coat of paint that is applied to a raw (unpainted) surface. This is used to "stick" to the substrate and provide adhesion for the remaining coats of paint. It provides a smooth stable surface for the following coats and prevents corrosion and chemical attack of the substrate. There are numerous types of primers that are selected to suit the substrate and surface conditions.

Undercoats: - These are applied over the primer coating, or over existing painted surfaces prepared for receiving new paint. They have a low gloss level and a high amount of pigments. They have many functions, increasing the thickness of the overall film, hiding the color of the primer or the previous layer on the existing substrate, and they are generally tinted in a similar color range as the topcoat.

Finishing Coats: - As the name suggests, these are the finishing or final coats. They provide the final color and gloss level required. They are the protection layer from weather, moisture, knock and chips. They are the aesthetic layer of the paint system.

Special Types of Paint for Interior Design and Decorating: -

Anti Fungus Paints: - These paints contain toxic compounds, which kill any fungi attempting to feed from it. Some paint have a fungicide added to them, these sometimes do not last the duration of the paint films life.

Fire Retardant Paints: - This type of paint works as heat causes the paint to swell on the painted substrate, which forms a barrier insulating the surface from the flames. Other forms incorporate materials for example chlorinated paraffin or chlorinated rubber which on application of heat they fuse together preventing combustion.

Relief Texture Paints: - These are often a heavy plaster like texture, which on application provide a rough finish. They can be carved or moulded to make decorative elements such as borders and motifs (a decorative design or pattern). It generally comes as a powdered form, containing plaster, clay, mica and is mixed with water to the correct consistency required.

Heat Resistant Paints:- Oil -Modified Alkyd Paints are suitable for application to surfaces on which their temperatures could reach 100°C. Light paint colors could discolor at this temperature though. There are other forms of paint that can withstand higher temperatures; all these paints generally contain Aluminum powder

Multicolored Finish Paint:- These paints contain combinations of colored globules, which on application to a surface by a spraying method form a flecked or speckled effect coating. This type of finish has good adhesion, is very durable and washable. It is ideal for the use in schools, large institutions and hospitals as it can be easily repaired on a patch basis, and is cost effective in these situations, saving the need to repaint entire walls.

Plastic Emulsion Paint:- Plastic emulsion paint is water based wall paint. It is based on acrylic and provides a smooth matt finish to the walls. These paints are also washable and easy to maintain just as premium emulsions. It is extremely durable but is not suitable for application on external surfaces, wood and iron surfaces.

Acrylic paint:- Acrylic paint is fast drying paint containing pigment suspension in acrylic polymer emulsion. Acrylic paints can be diluted with water, but become water-resistant when dry. Depending on how much the paint is diluted (with water) or modified with acrylic gels, media, or pastes, the finished acrylic painting can resemble a watercolor or an oil painting, or have its own unique characteristics not attainable with other media.

Texture paints:- Texture paint is a specialty paint that will hold textured designs, like stippling, even after it is dry. Texture paint comes in several different varieties, which are smooth, sand, or coarse. Always look for paint that will give you the longest drying times for your experience level. The longer the drying time, the more opportunity you'll have to work the paint into a dramatic effect or correct any imperfections before it sets.

Texture paint is used for two reasons. One is to cover imperfections. Cracks, cement walls, old paneling, uneven dry wall, or holes are easily and relatively inexpensively hidden with texture paint. Most texture paint is made with interwoven fibers for exactly this reason. Texture paint is generally more durable and is designed to hide any imperfections in your wall or ceiling.

Painting - Paint Application Tools

The Brush:- The brush is available in numerous sizes, it is used greatly for "cutting in" around windows and doors etc, for finishing off with a roller. The brush application method provides good adhesion to the surface. Care is required not to "overload" the brush as the film coating can become uneven, take longer to dry, run or drip.

The Roller

This was a great invention! It is wider than a brush and as it's name suggests it rolls the paint onto the wall. It can be used by hand or attached to a pole to paint a ceiling of high walls. It is a quicker way to paint than using a brush and tends to use less paint as the application provides a lighter film coating. It provides an even finish. It has a handle that gets attached to an angled metal frame when then takes the roller sleeve. The sleeve is a fabric-coated tube that slots over the frame. There are many different piles for the different types of paint application.

Pads

This is a short pile fiber pad fixed to a plastic handle. You dip it into the paint and wipe it over the substrate to cover it with a thin film of paint. They are available in different shapes and sizes allowing you to paint almost anything with them. It leaves a thinner, more even and run free coat of paint than a paintbrush.

Mechanical Spraying Equipment

This is an application method that is used for difficult areas to paint, i.e. a large amount of relief, or textures surfaces. It is also very cost effective to spray a single color for large areas; the time involved is a lot less than rollering or brushing. Care is required that adequate masking is done as over spray can be difficult to remove. It is used in the application of multicolored paint finishes to great effect.

INDIAN PAINT INDUSTRY 1. Introduction The Indian Paints industry has come a long way since its start in the year 1902, from merely a decorative paints market, strongly influenced by festivals, to a well diversified market now. Even till the early nineties, paints were considered a luxury item. Only people with high incomes were expected to do up their houses with paints. Paints, as a protective element, were totally unheard of. India's market is dominated by the decorative paint and coatings segment. Architectural coatings largely used in households constitute almost three-fourths of the market's value. The other large segments are automotive OEM paints, automotive refinish paints, protective coatings and powder coatings.

2. About the market Indian Paint Industry is over 1000 years old. Its beginning can be traced back to the setting up of a

factory by Shalimar paints in Calcutta back in 1902. Till the Second World War 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, which in a way is the current scenario as well. The initial decades saw the complete dominance of British Paint companies such as Goodlass Walls (now Goodlass Nerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and Blundell & Eomite. The Indian Paints sector is valued at Rs 6,800 crores in value terms and is very fragmented. The current demand is estimated to be around 650,000 tonnes per annum and is seasonal in nature. The per capita consumption of paints in India stands at 1.0-kg p.a. as compared to 1.6 kg in China and 22 kg in the developed economies. India's share in the world paint market is just 0.6%. The Indian Paint industry can be divided as: the organized sector comprising of large and medium size units the unorganized or the small scale sector. There are now twelve players in the organized sector with a market share of 70%. This is in contrast to the 55% share that the sector commanded a few years back. Major companies in this segment include Asian Paints (44% market share), Berger Paints (17% market share), ICI (12% market share), Goodlass Nerolac (15% market share), Jenson Nicholson (6% market share), Shalimar Paints and Rajdoot Paints. The organized sector has grown at a CAGR of 11.5% in the last five years. The unorganized sector comprising of over 2000 units has a combined market share of around 30%. The major players are Asian Paints, Goodlass Nerolac, Berger, ICI and Shalimar. Recently, world leaders like Akzo Noble, PPG, Dupont and BASF have set up base in India with product ranges such as auto refinishes, powders 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. PPG has a joint venture with Asian Paints to manufacture industrial coatings. Jenson & Nicholson and Snowcem India are no longer active players because of dwindling sales in recent years. In the 1990s, helped by a growing economy, the paint industry had recorded a healthy growth of 12-13 % annually. This was mainly due to a drastic reduction in excise from a staggering 40% to 16%. However, the growth was restricted in 2000-03 to single digits. There was a revival in 2003-2004 with a robust growth of 13%. 7The per capita consumption of paint in India is 700 grams against 19 kg in the U.S and 2.7 kg and 5.8 kg in other developing countries like China and Brazil. As the consumption goes with affordability, the low Indian figure is not a surprise. High excise duties, low technology and low capital costs for production led to the incidence of a high number of units in the small scale sector. However, since 1992 the government has been consistently lowering duties from 40.5% in 1992 to around 16% currently. This has led to lowering of price differential between the organized and unorganized sector. Moreover the paints sector was also allowed to claim MODVAT credit on petro-based products, thus lowering the excise incidence further. Products The products of the paint industry can be classified into two major segments - decorative (architectural) paints and industrial paints. While the decorative paints are used in protecting

valuable assets like buildings, the industrial paints are used for protection against corrosion and rust to steel structures, on vehicles, white goods and appliances. Decorative paints: The decorative paint segment can be classified into interior paints and exterior or cement paints. 80% of the decorative paint segment (about Rs. 3640 crores in the organized sector) accounts for interior paints, which consists of premium, medium and economy categories. The premium category consists of plastic emulsions, the medium-priced category consists of synthetic enamels and the economy category consists of distempers.

The products under the decorative finishes can be limestone coatings, primers, distempers, cement paints, matt/lustre finishes, enamels, emulsions (first quality), and premium emulsions. Within the decorative segment, the exterior category, particularly exterior emulsions, is the fastest growing segment 20 % for the last three years. Consumption of paints is skewed towards decorative paints which account for 70% of paints sold in India. This is in a sharp contrast to the trend in developed countries, where the ratio is skewed towards the industrial segment. This segment is marked by the presence of a large number of players from the organized as well as unorganized sector. 8Competition is high and margins tend to be low in this segment. Products of this segment are relatively price sensitive. Asian Paints is the market leader in this segment. Demand for decorative paints is seasonal with bulk of sales taking place during the festival seasons from September to December. Besides, sales remain slack during the monsoon months from June to August. Entry barriers in terms of technological and funds requirements are relatively lower in the paints sector. It is estimated that a plant of 1 m tpa will cost around Rs 120 m. However decorative paints are marketing-savvy products and backed by large advertisement campaigns and dealership networks. These serve as high cost entry barriers for new companies in this business. The huge investments required in setting up a vast marketing and dealership network, to advertise and develop a brand over a period of time can only be afforded by companies in the organized sector. It is for this reason that smaller companies and small scale sector units are slowly losing market share to the organized sector. Industrial Paints: Industrial paints comprising 30% of the market include automotive paints, high performance coatings, coil coatings, powder coatings, marine paints and general industrial coatings. The automotive segment is further bifurcated into OEMs and auto refinishes. The

8

The per capita consumption of paint in India is 700 grams against 19 kg in the U.S., and 2.7 kg and 5.8 kg in other developing countries like China and Brazil. As the consumption goes with affordability, the low Indian figure is not a surprise. High excise duties, low technology and low capital costs for production led to the incidence of a high number of units in the small scale sector. However, since 1992 the government has been consistently lowering duties from 40.5% in 1992 to around 16% currently. This has led to lowering of price differential between the organized and unorganized sector. Moreover the paints sector was also allowed to claim MODVAT credit on petro-based products, thus lowering the excise incidence further. Products The products of the paint industry can be classified into two major segments - decorative (architectural) paints and industrial paints. While the decorative paints are used in protecting valuable assets like buildings, the industrial paints are used for protection against corrosion and rust to steel structures, on vehicles, white goods and appliances. Decorative paints: The decorative paint segment can be classified into interior paints and exterior or cement paints. 80% of the decorative paint segment (about Rs. 3640 crores in the organized sector) accounts for interior paints, which consists of premium, medium and economy categories. The premium category consists of plastic emulsions, the medium-priced category consists of synthetic enamels and the economy category consists of distempers.

Fig-1

The products under the decorative finishes can be limestone coatings, primers, distempers, cement paints, matt/lustre finishes, enamels, emulsions (first quality), and premium emulsions. Within the decorative segment, the exterior category, particularly exterior emulsions, is the fastest growing segment 20 % for the last three years. Consumption of paints is skewed towards decorative paints which account for 70% of paints sold in India. This is in a sharp contrast to the trend in developed countries, where the ratio is skewed towards the industrial segment. This segment is marked by the presence of a large number of players from the organized as well as unorganized sector.

automotive and general industrial coatings occupy top slot in terms of production. Goodlass Nerolac is the market leader in this segment.

Demand for these paints is relatively price inelastic, but is prone to business cycles and depends on industrial and economic growth. Major end user industries include shipping, capital goods, white goods and heavy industries. The industrial paints segment due to specialized technology and high capital expenditure attracts fewer players. Most Indian companies have tied up with or are in the process of tying up with international paint majors to have access to the latest technology. A tie-up with a global paint manufacturer also enables the domestic company to supply to local customers of its partner. For example, Goodlass Nerolac is a major supplier to Maruti Suzuki because of Kansai, its Japanese collaborator and Suzuki relations. It is for the same reason that Asian Paints (tie-up with PPG Industries, USA) is a major supplier of paints to Opel Astra.

Products Paints can be generally divided into decorative paints and industrial paints. Industrial paints consist of the automotive category also. Decorative paints can be further divided into interior and exterior wall paints, wood and metal enamels. Each of these products has a range of products varying from the premium segment to the economy segment.

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Competition is high and margins tend to be low in this segment. Products of this segment are relatively price sensitive. Asian Paints is the market leader in this segment. Demand for decorative paints is seasonal with bulk of sales taking place during the festival seasons from September to December. Besides, sales remain slack during the monsoon months from June to August. Entry barriers in terms of technological and funds requirements are relatively lower in the paints sector. It is estimated that a plant of 1 m tpa will cost around Rs 120 m. However decorative paints are marketing-savvy products and backed by large advertisement campaigns and dealership networks. These serve as high cost entry barriers for new companies in this business. The huge investments required in setting up a vast marketing and dealership network, to advertise and develop a brand over a period of time can only be afforded by companies in the organized sector. It is for this reason that smaller companies and small scale sector units are slowly losing market share to the organized sector. Industrial Paints: Industrial paints comprising 30% of the market include automotive paints, high performance coatings, coil coatings, powder coatings, marine paints and general industrial coatings. The automotive segment is further bifurcated into OEMs and auto refinishes. The automotive and general industrial coatings occupy top slot in terms of production. Goodlass Nerolac is the market leader in this segment.

Fig-2

Demand for these paints is relatively price inelastic, but is prone to business cycles and depends on industrial and economic growth. Major end user industries include shipping, capital goods, white goods and heavy industries. The industrial paints segment due to specialized technology and high capital expenditure attracts fewer players. Most Indian companies have tied up with or are in the process of tying up with international paint majors to have access to the latest technology. A tie-up with a global paint manufacturer also enables the domestic company to supply to local customers of its partner. For example, Goodlass Nerolac is a major supplier to Maruti Suzuki because of Kansai, its Japanese collaborator and Suzuki relations. It is for the same reason that Asian Paints (tie-up with PPG Industries, USA) is a major supplier of paints to Opel Astra.

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ICI identified paints as a thrust area and was aggressively moving to improve their position. They invested $11 million in a new decorative paints plant near Bombay and were constructing a $16.7 million plant for industrial paints near Chandigarh in North India. ICI (India) intends to go on an offensive with a target of achieving ten-fold growth in 10 years. The ‘10X Plan’, as it was called, envisaged a strategy based on acquisitions, take-overs and alliances. 4. Products Paints can be generally divided into decorative paints and industrial paints. Industrial paints consist of the automotive category also. Decorative paints can be further divided into interior and exterior wall paints, wood and metal enamels. Each of these products has a range of products varying from the premium segment to the economy segment. Decorative Segment Interior Wall Paints

Product Segment

Asian Paints

Berger

Goodlass Nerolac

Jenson Nicholson

ICI Shalimar

Exquisite emulsion paint with luxurious finish and silky glowing appearance

Royale Luxury

Emulsion

Luxol silk Pearl Luster

Special Effects

Dulux Designer

Silk

Hussain Collection

Emulsion with rich and matt finish and superior quality

Premium Emulsion

Rangoli All Scapes 24

carat

Robbaliac acrylic

Dulux Designer

Silk Low

Sheen

-

Acrylic emulsion at the similar price as distemper

Tractor Emulsion

Bison Emulsion

Nerolac Premium Acrylic

emulsion

- Dulux Wash &

Wear

Superlac Acrylic

Emulsion

Water based paint, long lasting & value for money

Tractor Acrylic & Synthetic Distemper

Bison Distemper

Nerolac Acrylic

Distemper

Jensolin Acrylic

Distemper

Dulux Wash &

Wear

Shalimar No 1

15

Water based paint at affordable prices

Utsav Acrylic

Distemper

- - - - -

Table-4 Exterior Wall Paints

Table-5

Enamels

Product Segment

Asian Paints

Berger

Goodlass Nerolac

Jenson Nicholson

ICI

Premium Segment

Apco Premium Gloss Enamel,

Apcolite Premium Satin

Luxol Luster

- Brolac Polyurethane Enamel

Dulux Super Enamel High Gloss

Product Segment

Asian Paints

Berger

Goodlass Nerolac

Jenson Nicholso

n

ICI Shalimar

Technologically high

end product

Elastomeric-Hi-

Performance

Exterior Paint

Weather Coat

Excel 100%

Acrylic

Special Effects exterior

Dulux Weathershield Garden Shades Low Sheen

Premium Textured Segment

Apex Textured Exterior

Emulsion

Walmasta Nerotex Matt

Armour Quartz

Dulux Tuscan Effects, Dulux Render Effects

Xtra Premium Acrylic finish

Non Textured Segment

Ace Exterior

Emulsion

Duracem Suraksha Plastic

Robbiacem Super Cement

Paint

Dulux Weathershield Low

Sheen

Premium Acrylic

Distemper

Economy Segment

Ustav Exterior

Distemper

- Nerocem - - -

15

Water based paint at affordable prices

Utsav Acrylic

Distemper

- - - - -

Table-4 Exterior Wall Paints

Table-5

Enamels

Product Segment

Asian Paints

Berger

Goodlass Nerolac

Jenson Nicholson

ICI

Premium Segment

Apco Premium Gloss Enamel,

Apcolite Premium Satin

Luxol Luster

- Brolac Polyurethane Enamel

Dulux Super Enamel High Gloss

Product Segment

Asian Paints

Berger

Goodlass Nerolac

Jenson Nicholso

n

ICI Shalimar

Technologically high

end product

Elastomeric-Hi-

Performance

Exterior Paint

Weather Coat

Excel 100%

Acrylic

Special Effects exterior

Dulux Weathershield Garden Shades Low Sheen

Premium Textured Segment

Apex Textured Exterior

Emulsion

Walmasta Nerotex Matt

Armour Quartz

Dulux Tuscan Effects, Dulux Render Effects

Xtra Premium Acrylic finish

Non Textured Segment

Ace Exterior

Emulsion

Duracem Suraksha Plastic

Robbiacem Super Cement

Paint

Dulux Weather

shield Low

Sheen

Premium Acrylic

Distemper

Economy Segment

Ustav Exterior

Distemper

- Nerocem - - -

15

Water based paint at affordable prices

Utsav Acrylic

Distemper

- - - - -

Table-4 Exterior Wall Paints

Table-5

Enamels

Product Segment

Asian Paints

Berger

Goodlass Nerolac

Jenson Nicholson

ICI

Premium Segment

Apco Premium Gloss Enamel,

Apcolite Premium Satin

Luxol Luster

- Brolac Polyurethane Enamel

Dulux Super Enamel High Gloss

Product Segment

Asian Paints

Berger

Goodlass Nerolac

Jenson Nicholso

n

ICI Shalimar

Technologically high

end product

Elastomeric-Hi-

Performance

Exterior Paint

Weather Coat

Excel 100%

Acrylic

Special Effects exterior

Dulux Weathershield Garden Shades Low Sheen

Premium Textured Segment

Apex Textured Exterior

Emulsion

Walmasta Nerotex Matt

Armour Quartz

Dulux Tuscan Effects, Dulux Render Effects

Xtra Premium Acrylic finish

Non Textured Segment

Ace Exterior

Emulsion

Duracem Suraksha Plastic

Robbiacem Super Cement

Paint

Dulux Weathershield Low

Sheen

Premium Acrylic

Distemper

Economy Segment

Ustav Exterior

Distemper

- Nerocem - - -

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Medium Segment

Gattu Synthetic Enamel

Luxol Hi-Gloss, Luxol Satin

Nerolac Synthetic Enamel

Umbrella Synthetic Enamel

Dulux Super Enamel Semi Gloss

Economy Segment

Utsav Enamel Goody Synthetic Enamel

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Table-6 Apart from these there a certain speciality paints produced by these brands which are not produced by all the brands and cannot be categorized. Asian paints has an umbrella brand by the name of Utsav that covers the economy segment in all paint categories. The Utsav sub-brand is aimed at the Indian rural populace who are on the lookout for cheap but durable and beautiful paints. Apart from these all the paint brands also make some miscellaneous products like surface primers , stainers, varnishes, thinners, aluminum paints, etc. Industrial Segment All the paint brands produce industrial paints like epoxy based paints, metal primers, polyurethane coatings, etc. In the Orissa market Shalimar paints is the leader in this segment. 5. Price In the paints industry price is the used only as a differentiator between the various segments in the same product line. The prices of different brands in the same segment remain more or less similar, with just a difference of 30 to 40 paise per square feet. Some of the speciality products, which are not produced by all brands, may be priced at a higher price. Pricing decisions in the paint industry largely depend on the price of the inputs like petro-products, other raw materials, excise duties and taxes and the general operating profits. Generally increase or decrease of prices is effected across all brands in the market. Most of the paint companies offer a 5% margin to the dealer. Due to internal competition, the dealers pass on this advantage to the customers by reducing their own margins to 2-3%. This is a cause of concern for the paint companies because they have to keep a constant check on the prices offered in the market. The dealers offer more of discounts and the companies are not able to firm up the prices. Paint companies offer a lot of discounts like cash discounts, volume discounts, seasonal discounts and allowances. The dealers take advantage of these discounts to gather more business.

Apart from these there a certain speciality paints produced by these brands which are not produced by all the brands and cannot be categorized. Asian paints has an umbrella brand by the name of Utsav that covers the economy segment in all paint categories. The Utsav sub-brand is aimed at the Indian rural populace who are on the lookout for cheap but durable and beautiful paints. Apart from these all the paint brands also make some miscellaneous products like surface primers , stainers, varnishes, thinners, aluminum paints, etc. Apart from these there a certain speciality paints produced by these brands which are not produced by all the brands and cannot be categorized. Asian paints has an umbrella brand by the name of Utsav that covers the economy segment in all paint categories. The Utsav sub-brand is aimed at the Indian rural populace who are on the lookout for cheap but durable and beautiful paints. Apart from these all the paint brands also make some miscellaneous products like surface primers , stainers, varnishes, thinners, aluminum paints, etc.

Porters model:-

Supply Supply exceeds demand in both the decorative as well as the industrial paints segments. Industry is fragmented.

Demand Demand for decorative paints depends on the housing sector and good monsoons. Industrial paint demand is linked to user industries like auto, engineering and consumer durables.

Barriers to entry Brand, distribution network, working capital efficiency and technology play a crucial role.

Bargaining power of suppliers Price increase constrained with the presence of the unorganised sector for the decorative segment. Sophisticated buyers of industrial paints also limit the bargaining power of suppliers. It is therefore that margins are better in the decorative segment.

Bargaining power of customers High due to availability of wide choice.

Competition In both categories, companies in the organised sector focus on brand building. Higher prices through product differentiation are also followed as a competitive strategy.

Financial Year '10

FY10 was a strong year for paint companies as compared to a very challenging FY09. The 3 players viz. Asian Paints, Kansai Nerolac and Berger Paints reported strong growth in sales as demand significantly improved in both the decorative and the industrial paints segment. With respect to the latter, the automotive paints segment did very well on the back of splendid sales performance reported by auto companies. Further, the GDP growing at a much faster rate in FY10 than it did in FY09 also helped matters.

Performance was robust on the margins front as well. Operating margins significantly expanded as raw material costs fell down. This was on the back of benign commodity prices. An appreciating rupee (which makes imports cheaper) also helped matters as all paint companies import a large part of its raw material requirements namely titanium dioxide. However, the end of FY10 saw a gradual rise in input costs and the robust margins that the companies enjoyed are not likely to be sustainable going forward.

All the key players are in an expansion phase. Asian Paints' plant in Rohtak, Haryana has commenced operations and it has acquired land in Maharshtra to set up another plant. Kansai Nerolac is undertaking brownfield expansions at its Lote and Bawal plants. Meanwhile operations have commenced at its greenfield project in Hosur, Tamil Nadu. Berger Paints has acquired land in Andhra Pradesh for setting up a water based paint plant besides enhancing its current plant capacities at Goa and Jammu.

Prospects:-

Decorative paints are expected to witness higher growth going forward. The fiscal incentives given by the government to the housing sector have benefited the housing sector immensely. This will benefit key players in the long term. This apart, the status of monsoons would have a significant impact on agricultural output, which in turn would influence the demand for paint from rural areas. We expect paint demand to grow by 12% to 15% in the next two to three years, largely led by post festive season demand. Demand for industrial paints is expected to increase going forward. This is on account of increasing investments in infrastructure. Domestic and global auto majors have long term plans for the Indian market, which augur well for automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased industrial paint demand, especially powder coatings and high performance coatings will also propel topline growth of paint majors in the medium term. The reduction in peak customs duty from 12.5% to 7.5% will lower the import cost of key raw materials. With more residual income with the population, home loan disbursals are expected to grow at 25% CAGR in the next three years, which is a positive for paint companies.

Paint Companies In India

Paint Companies in India bring to you a wide range of paints, varnishes, pigments and coatings for the perfect finishes for the home interior and exteriors décor and beautification. The paints industry in India has flourished into a full-fledged manufacturing and sale market catering to the international standards being demanded for the painting jobs. The top paints manufacturers and painting companies like Asian Paints India, Nerolac India Paints, Berger, Dulux India Paints, Shalimar Paints etc. also provide an online visual gallery and shade cards citing all the available colors and paints products. Some other Paint companies.

Acro Paints Ltd Acro Paints Ltd. isa multi product company with a glorious track record of over 3 decades. The highly innovative product range includes Acrylic Emulsion paints for exteriors & interiors,

Synthetic Enarmels, Primers, Premium Cement Paints, complete range of Decorative & Protective Paints, high performance coatings & specialized paints as per IS/BS/ASTM etc. Advance Paints Advance Paints belongs to a family knit of "SHETH's" & part of GALIAKOTWALA GROUP. Galiakotwala group was born in the year 1923 with business of trading in Hardwares. The group further developed adding its business into Manufacturing of Containers, Manufacturing of Paints, Property developers, trading of raw cotton (domestic & International), Dealing in environment control equipments, Dealing in BPL Cellular phones. Asian Paints Asian Paints is India's largest paint company and ranks among the top ten decorative coatings companies in the world today, with a turnover of Rs.22.6 billion (around USD 513 million). Auto-Coat Systems India Our dedicated 15 years of proven track record & total 30 years experience in promoting modern technology in product coating at All India Level. Berger Paints 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 Headquarters in Calcutta, BERGER controls a distribution network comprising of 66 stock points spread across the country. Bombay Paints Limited For over 50 years Bombay Paints has been involved in the manufacture of various types of Paints, Varnishes, Enamels, Putties and Sealing Compounds and Resins. Bonjour Enterprises Manufacturer of enamel paints, decorative enamel paints, coating, architectural coating, epoxy coatings, paints, chlorinated paints, primers, polyurethane paints, heat resistant paints, road marking paints and chimney paints. Classic Paints. Classic Paints - Manufacturer of decorative & industrial paints including acrylic emulsion paints, exterior paints, speciality coir coatings and distempers. ICI Paints ICI India manufactures and markets paints, speciality chemicals, rubber chemicals, adhesives & starch. Indolac paints Indolac paints is brought to you by Super Aquacem (India) Pvt. Ltd. which is a very old name in Paint manufacturing. It has now set up an ultra Modern Factory in the industrial belt of Gurgaon ,Haryana Inter Color, LLC Manufacturers of all kinds of paints. intercolor have Brands like: intersheen, interflek, interpearl and tex quartz silk & matt finish have satisfied customer's need and painted a bright future for the company. Jenson & Nicholson Jenson & Nicholson, a leading paint company in the country today was established in the year 1922. It has a country wide presence with 33 branches and stock points across the country and manufacturing plants at Naihati (near Calcutta), Sikandrabad (near Delhi) and Panvel (near Mumbai). Nerolac Paints

They are esteemed to be a subsidiary of Kansai Paint Company Limited, which is the largest paint manufacturingcompany in Japan and among the top ten coating companies of the world. They are the second largest coating company in India with a market share of around 20%. Nitco Paints Nitco Paints, an associate company of Nitco Tiles, Asia's largest manufacturer of flooring tiles, is one of India's leading manufacturer of exterior paints & coatings. Noble Paints Pvt. Ltd Noble Paints Pvt. Ltd. was established in 1934 by the Late Mr. Jal Jamshedji in Bombay. It was one of the first Indian paint manufacturers and is one of the Nations oldest. 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.

A lot to look forward to for India's paints industry

The 100-year-old paint industry is one of the fastest growing sectors in India, thanks to global auto majors setting foot in this country.

Over the years, India's paint industry has indeed come a long way. However, consumption of paints in India is far below than what one sees in developed countries.

How big is the 100 year old Indian paint industry now?

The size of Indian paint industry is Rs 13,600 crore (Rs 136 billion) which includes both organised and unorganised sector. Out of this, Rs 8,600 crore (Rs 86 billion) is roughly contributed by the organised sector.

How much has economic growth helped the paint industry? Did you see considerable growth after 1991?

Paint industry has been growing tremendously since 1991. The growth hovers around 1.5 to two times the real gross domestic product.

How has the attitude of people changed towards paints?

People still look at paint from the aesthetic point of view and ignores its protective aspect. Lack of awareness therefore results in heavy corrosion-related losses every year.

This situation is gradually changing.

It is said that Indians no longer look at paints as a luxury item. If so, what is the reason for this change in attitude?

Unfortunately, paint is still considered a luxury item and even the government taxes it that way. With public awareness growing about the paint's utility, many sophisticated/functional coatings have been introduced. Customers today are enlightened enough and they exercise informed choice.

It was reported that per capita consumption of paints in India is still very low -- about 700 gm per annum in comparison to 22 kg in the US. Why is it so?

Per capita consumption of paint in India is about 1,100 gm and is gradually picking up. Also, we have to gauge consumption from the point of affordability.

Moreover, villages comprise a large part of India and paint consumption is pretty low there as compared to urban areas.

The paint industry is to be blamed for low consumption as it has always been projecting the luxury (aesthetic) aspect rather than the protective aspect.

How much can the Indian paint industry grow?

The Indian paint industry will continue to grow at the rate of 1.5 to 2 times of real GDP. In other words, it will grow by 11-12 per cent every year.

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Elementto Paints:-

ELEMENTTO PRODUCTS NAME

GENERIC DESCRIPTION REMARKS

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Silkano Metallic silky designer paint Velvety shadow effect

Chic High metallic premium texture paint Ruff sand effect

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rinato Matt multi designer paint Bubble busting white effect

Glaze Highly washable metallic designer paint

Design with effect tools

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100%acrylic emulsion paint with low sheen & high washability.

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Grip primer Quartz acrylic primer with strong adhesion with substrate

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Suggestions for ELEMENTTO:- Product should be more aware Need more advertising. Take Architects meet. Appoint distributors & retailers. Price should be more Attractive Need to distribute brochure to the Architects while meeting Customer Questionnaire 1. How often do you paint your house/ office? a) 1 yr b) 3 yrs c) 5 yrs or more 2. When you think of paints what are the brand names that come to your mind? List any four_____________________________________________________ 3. How did you get to know about these brands? a) Newspapers b) TV c) Hoardings e) Dealer

4. Whom do you consult while taking painting decisions? a) architects b) painters c) contractors d) dealers

5. From where do you prefer to purchase?

Ans.

Dealer Wholesaler retailer

WILLINGLY TO PURCHAGE 13 24 39

6. Why do you like this brand?

Ans. _____________________________________________________

7. What are the services offered by paint companies that you know of? a. Colour mixing machine b. consultancy services c. cost calculators d. online services