Case Study Of Shalimar Paints: Paint Industry

ASIAN PAINTS

STRATEGY MANAGEMENT

Submitted by:

Pratik Kheria

1421120

GENESIS OF PAINT INDUSTRY

• First paint Industry Shalimar Paints, Colour & Varnish Company,

• The paints was generally imported from the Britain

• Due the 2nd world war many company entered in India like Goodlass Wall(1918), Elephant Oil Mills (1917)

• Asian Paints & Kansai Nerolac came into picture after the post-independence

• Paints were considered as a luxury item

• Low used in Industrial segments

• There was a negative growth in industry and price was elastic

• Introduction of liberalization policy

• Demand for auto paints shot up suddenly

• Rapid industrialization aided by Government’s liberal policies resulted the growth of the paint industry

NATURE

Pigments constitute about 1/3rd of the total raw material costs. Titanium dioxide is one key pigments which is facing a global shortage supply.

 COMPETITIVE RIVALRY

– About 80% of the organized market is catered by the top four players of the industry.

– The current market growth rate provide ample room for all the players of the industry to flourish.

– Competition may increase as the market gets saturated.

– The presence of the unorganized market does provide room for competition

 AVAILABILITY OF SUBSTITUTES

– Lime wash is conventionally used substitute for paints.

– In decorative paints segments an alternative option is wallpapers.

 THREAT OF NEW ENTRANTS

– The paint industry in India is dominated by few players making difficult for anyone new entering the industry

– Establish foreign players may pose a threat by virtue of the knowledge and expertise

COMPETITIVE ANALYSIS

Company Overview

 Asia’s 3rd largest paint company.

 71% market share in India.

 Currently is in the 13th position.

 Operates in 17 countries.

 It has 24 paint manufacturing facilities.

 Servicing in over 65 countries.

 Trying to make position among the top 10 players.

 Company annual sale turnover is Rs. 1300

Decorative Products: - Emulsions, Metal finishes, Wood finishes, Varnishes, Distempers, Enamels etc.

II. Industrial Products :- Coatings – powder, surface, floor & Non- combustible

The products offered and services offered by the company paly a very vital role as it effects the consumer sentiment and their perception of the company which indirectly effects the earnings of the company.

Types of paints:-

• Acoustic Paint: Specially designed for acoustic tiles

• Alkyd Resin Paint: Good trim, doors, faux finishes and other maximized use areas

• Drip less Paint: This paint is thicker and is most suitable for application on ceilings

• Latex Paint: Good for applicability and it dries much quickly & easier to wash.

• 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: Paint used in 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

SWOT ANALYSIS

Strength

• Market leader

• Capacity expansion plans

• Pricing power

• Wide distribution network