Berger Paints & Kansai Nerolac Project proposal

Introduction
Indian preferences are changing - be it in terms of choosing a product or decorating homes. The
change in the pattern of decorating homes and choosing durable interiors has brought in a new
revolution in the field of paint industry also.
The growth in the Indian paint market is driven by rapid urbanization, emergence of the middle
class, increase in disposable incomes, growing infrastructure, increase in the tendency to spend
extravagantly and growing young population inclined towards leading a lavish lifestyle. On the
back of such advocacies, it is anticipated that the Indian paint market will post a Compounded
Annual Growth Rate of around 13% during 2013-14 to 2017-18, according to the new research
report, India Paint Industry Outlook 2018 published by RNCOS Business consulting Services
in September 2014.
For the purpose of the financial analysis project, we will study the below mentioned 2
companies:
Berger Paints India Ltd (BPIL) is the second largest company in India with its premium
coating and painting brands. It started its business in India in 1923. It started with an annual sales
turnover of Rs 25 lakhs and business revenues today are in excess of Rs 3,600 crores on a
consolidated basis.
Kansai Nerolac limited (KNL) is the third largest company in India with overall 14% market
share and is the largest industrial paint company with 35% market share in industrial paints.
KNL started its operations in India in 1920.
We have selected these 2 companies as they are close competitors; they have comparable market
size and feature in the top 3 market leaders in the paint sector in India. We read through the
annual report of both these companies and the following parameters have raised our interest in
analyzing further the financial statements of these two companies:
http://www.rncos.com/Report/IM710.htm
Research report issued by ICICI Direct on May 12, 2015 on Kansai Nerolac
https://www.bergerpaints.com/about-us/company-profile.html
Research report - India Paint Industry Outlook 2018 published by RNCOS Business consulting
Services in September 2014