Introduction: The pigments industry made a beginning in India in 1902 when Shalimar Paints set up its operations in Kolkata ( Calcutta ) . Today the size of the pigments market in India is estimated at Rs 180 bn. Market Structure & A ; Product class: The Indian Paint industry can be divided as: * The organized sector comprising of big and average size units * The unorganised or the little graduated table sector.
The part of the organized and unorganized sections is in the ratio of 70:30. The organized sector can itself be divided into two distinguishable sections ( Product wise ) : * Industrial section which is turning at 15 % about and dwell of 30 % of the market and * Decorative section which is turning at 8 % about and dwell of 70 % of market
Market Players The major participants that control the organized sector are shown below:
Market Players| Market Share ( % ) |
Asiatic Paints| 43. 8|
Kansai Nerolac Paints| 15. 3|
Berger Paints India| 14. 19|
Akzo Nobel India| 8. 53|
Inferences Based on Macro Environment of the Paints Industry
* The current Indian population is 1. 1 billion and it is expected to be at 1. 53 billion by 2030 exceling China and go the world’s most populated state [ Ref 3 ] . which would ensue in inexpensive labor force.
* Most of the Indian populations are migrating toward the urban country for employment and industrialisation [ Ref 3 ] . So there is a batch of chance in urban country.
* As the population is increasing at a rapid rate. the figure of houses besides increases consequently. so there would be a immense demand for pigments. Economic:
* India is the world’s 4th largest economic system with the current GDP turning at 7. 8 % . which is expected to turn by 8 % in the following twelvemonth and pigment industry turning at 1. 5 times the GDP growing [ Ref 1 ] . so there is ever a demand for pigments.
* Foreign trade and investings have increased by 34 % and stood at $ 23. 8 billion. [ Ref 2 ] therefore it would ensue in more substructure development.
* The major concern is the Inflation which is at 9. 1 % due to steady addition in nutrient and oil monetary values. [ Ref 2 ] . While this may be a concern ( as the monetary value of natural stuffs may travel up ) ensuing in the terminal merchandise being more expensive-still in the short tally it is improbable that the company will confront any border force per unit area since it is a market leader. In the long tally nevertheless the company may hold to look at diversifying its merchandise portfolio by adding other related merchandises like tiles. etc.
* Indian authorities is paying more attending to substructure development both in the urban and rural countries and batch of Bankss are supplying place loans with nominal involvement rates. So there is a range for addition in demands for pigments.
Political – legal environment:
* There are legion political parties at both national and province degree. So it’s really hard to acquire consensus among all parties if we want to put up an industry. * Some of the organisations are against the construct of industrialisation and protesting against land procurance for that. It could hold a possible impact on the pigment industry. * The fabrication installations need to adhere to the labor Torahs and the environmental criterions set up by the pertinent organic structures.
* There are 500 technological institutes and 1800 research institutes in India. So there are extremely qualified and skilled individuals available.
* The sector is developing at 35 % growing rate yearly.
* With the aid of technological promotion we could hold a sophisticated web of communicating with the client and trader and it could perchance cut down the lead clip thereby bettering supply concatenation efficiency.
Socio – Cultural:
* In a state like India with immense diverseness the psychographic behavior of people are likely to play a major function in act uponing the purchasing form.
* Uniformity of official linguistic communication ( English ) helps the company to recruit and train quality people.
* The gay season is the major concern season for the industry.
1 ) Bing a natural stuff intensive industry. the industry stands to derive from softening petroleum monetary values.
2 ) Supply exceeds demand in both the decorative every bit good as the industrial pigments sections. So this makes it hard for the providers to order footings.
3 ) R & A ; D investings are likely to travel up as companies would necessitate to introduce and come up with new environment friendly merchandises to adhere to Government guidelines. A closer provider relationship is one manner of guaranting competitory and quality merchandises for an administration. Traders:
* Wide trader web is required to provide to the huge Indian market. * The company has built a really robust trader web.
* The company has formed a formidable relationship with its loyal set of traders which has helped it to keep its place. Rivals:
1 ) Unorganized sector.
2 ) MNCs- The three sorts of methods MNCs and emerging rivals use to lean results in their favors are: by sharply traveling into new. aggressive sections ; better pull offing the convergence in costs across advanced and emerging markets ; and make overing the value concatenation. More by and large. R & A ; D- and advertising-intensity are the most robust markers across states. where MNCs are present. 3 ) Substitute products- Wooden panels. wallpapers and glass may move as a replacement to pigments in some instances. Architects & A ; Painters:
Major influences for institutional every bit good as the family sector. OPPORTUNITIES
* Infrastructure Development: The push to substructure development given by the authorities policies in the current budget presents a immense chance for the pigment industry and Nerolac Paints being the 2nd in market portion can acquire the biggest portion of the pie.
* Industrial Paints Segment: Asiatic Paints as a policy focused chiefly on the cosmetic pigments section. The industrial pigments section provides good growing chance as sectors like car and consumer durable goodss have shown considerable growing in India. Furthermore. certain planetary car big leagues have besides entered the market.
* Growth in Indian Economy: The per capita ingestion of pigments in India bases at 0. 5 kilogram per annum as compared to 22 kilograms in the developed economic systems. With the addition in the overall growing of the economic system. the consumer will hold higher buying power which is a positive for pigment companies.
* Green Merchandises: Should supply merchandises which are environment-friendly as they do non incorporate risky substances like lead. Cr. arsenic and quicksilver. Further invention and R & A ; D in this sector can travel a long manner in capturing that section of the market which is environmentally witting. In position of the chances the company needs to augment its fabrication capacities and besides heighten its R & A ; D capablenesss. A joint venture with US based PPG industries is a measure in this way and many more can play important functions every bit good. Consumer Buying Behaviour:
Research surveies have proven that known merchandises and names are sold more than unknown 1s. Therefore. a known trade name or an optimally exposed trade name will happen more acknowledgment and purchasers in the market in comparing to wholly unknown or unexposed trade name. Recognition of trade name and its significance along with the traditional factors plays a really important function in consumer decision-making procedure. More or less every consumer has a trade name penchant and given the affordability and social norms. each purchaser would wish to purchase and devour one of the extremely acceptable. recognizable. and reputed trade names. In the Indian pigment industry. we can anticipate the undermentioned alterations to go on: 1. The tendency of excise responsibility decreasing over the old ages is likely to turn out as a curse for the unorganised sector thereby supplying competitory advantage to major participants like Kansai Nerolac Paints. 2. While Kansai Nerolac Paints has been a dominant participant in the cosmetic section. nevertheless the company would necessitate to beef up its presence in the industrial section. 3. The company would necessitate to make backward integrating for critical natural stuffs like Titanium Dioxide to keep a healthy border.
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