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INTRODUCTION

An internship is a period of work experience offered by an organization for a limited period of

time . An internship enables you to gain first-hand exposure of working in the real world. It also
allows students to harness the skill, knowledge, and theoretical practice and implications which
would condition and gear the prospective managers to face the challenges lying ahead.
Internships facilitates management student to choose the field of their choice and find potential
hidden in that field and helps building up a potential career .

Business is based the understanding of the consumer and providing the kind of products that the
consumer wants. Therefore, to know its buyers, a company should essentially have a knowledge
of the behavior of the consumer in terms of his motives and buying habits, his needs and desires,
his fancies, foibles and eccentricities and through knowledge the companies should set and
implement marketing strategies, thus the 'Consumers' are the focus of all marketing activities.
They are generally considered 'target group' by all. The importance of marketing has been
widened through many evolutionary processes and shaped into consumer orientation stage, in
which the existence of a firm is measured of its ability to satisfy the consumers. This indicates
that the consumer gets top priority and that the entire business of products, marketing and
distribution depends on his desires and needs. Marketing plays a dominant role in every
economy. Without marketing there can be no democratic economic development. Without
marketing, it is as the hinge on which turns the economy, economic development will have to
take the totalitarian form. Marketing begins with the fundamental idea that most human behavior
is a purposeful quest for need satisfaction, and this activity is rooted in "exchange" notion.
Sellers concentrates only on selling their products rather than to keep cordial relationship with
customer, but if one takes the Indian paints Industry, the customer satisfaction regularly because
customer satisfaction plays an important role for customer retention unlike in the past consumers
in this industry are more educated and enlightened today. So today there has been a shift from
the seller's market to the buyer's market, due to the growing competition. A highly satisfied
customer stays longer, buys mom as the company introduces the new products pays less attention
to the competing brands and is less sensitive to price, offers products or service ideas to the
company and costs less to save new customers because transaction are routine. Rapid
technological development, increasing level of knowledge among the people and their over

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inducing consumerist culture have given a place for the large number of paint products in their
houses in order to make their domestic life more convenient and comfortable. Knowledge on
consumer behavior in such an economically and educationally forward market definitely is a key
for directing to the roadmap of the present marketing scenario of Indian paint industry. The
Indian Paint Industry is only segment of the Indian chemical industry that has been sharing a
consistent double digit growth rate in the last five years. The growth rates recorded over the last
few years have been extremely encountered with upward Trend in paint demand and
consumption. The large scale sector is dominated by four players, namely Asian Paint, Nerolac
Paints, Berger Paint and Duke( India Paints. The small scale sector consists of over 5000 players.
This growth has been closely linked with the business and industrial development of modem
India. Performance is anchored today in a wide variety of decorative and industrial paints. An
ISO 9001 company has come a long way in the highly competitive Indian paints industry and has
its own R&D developing, standardizing and ensuring quality assurance of its products. It is
global company in a real sense. Indian housing sectors are booming and also increasing
urbanization has made easy availability of housing loans. This has been resulted into a shift from
semi-permanent to permanent housing structures.

Growth in the decorative paints segment accounts for nearly 65-70% of the Indian paint industry.
Seasons are also involved in the demand for decorative paints, where consumption peaks around
festive time. Over the past few years, the Indian Paint market has substantially grown and caught
the attention of many international players. The growth in the market is driven by emergence of
the middle class in India, growing infrastructure, increase in the tendency to spend and growing
young population inclined towards lavish lifestyle. The country continues to enjoy a healthy
growth rate compared to other economics, backed by the increasing level of disposable income,
and demand from infrastructure, industrial and automotive sectors. Indian paint industry had two
types: Decorative & Industrial Paints. Decorative paint market has been further segmented into
emulsions, enamel, distemper and cement paints. Similarly, Industrial paint market is also
segmented into automotive coatings, high performance coating, powder coating and coil
coatingg. The major boost to the growth in the Indian Paint market has been provided by the
decorative paint segment, which is anticipated to grow at a Compounded Annual Growth Rate
(CAGR) of more than 16% during the period 2013-14 to 2015-16. Under the decorative segment,
the emulsion paint market has Indian paint industry is expected to grow from Rs 40.300 core in

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2014-15 to Rs 70875 core by 2019-20. The decorative paint market is expected to witness CAGR
of 12.7%. The industrial paint market is expected to witness CAGR 95%. The industry has
grown at a CAGR of 12.9% from 201 1- 12 to 2014-15 in the term of value. Witnessed a massive
demand over the past few years and is expected to drive the market in the coming years too.
There is a phenomenal growth on the housing sector front with rapid urbanization and
availability of easy to secure housing loam, which have become the prime drivers of growth in
the decorative paint segment, which comprises 70% of the $2 billion Indian Paint Industry. An
average increase of growth of about 10% in the automobile sector contributes to 50% of the
revenues in the industrial paints segment. Today manufacturers in India hardly face any threat
from the foreign players. Most of them have deals with global players in terms of latest
technology and market accessibility. A large number of Paint outlet or shops have
automated/manual dealer tinting systems. Today India has more than 20,000 outlets in operation,
probably the highest for any country. There are only approximately 7,000 tinting systems in
China for a market two and half times of India's size. 30% to the paint industry revenue in India
is accumulated from Industrial Paints. The size of the Indian Paint Industry is around 940 million
litres and is valued at approximately $2 billion. The organized sector comprises 54% of the total
volume and 65% of the value. In the last ten years, the Indian Paint Industry has grown at a
compounded annual growth rate (CAGR) 0112-13%. Today India is booming in the field of
infrastructure and industrial development. Rapid industrialization and improvements in the
infrastructure such as transport, energy and communication during the last decade gave a further
fillip to the growth of the paint industry. So the demand of paint industry is relatively more.
Aided by, Government's liberal policy of technology import, the automotive and consumer,
durable segments expanded phenomenally, with a flurry of foreign collaboration. Increased
demand for decorative, protective and functional coatings was a natural fall out, which brought,
in its stride, a host of indigenous development as well as the injection of new technology. Indian
Paint Industry makes great changes in the rapid Industrial development as well as country
development. Therefore paint industry is of crucial importance to India. Paint is a fluid that dries
to form a continuous solid film when spread over a surface or substrate. Depending on its type
and properties, paint can perform mainly two types of functions. They are as follows: •
Protection against oxidation, corrosion and degradation of materials. • Decoration and
embellishment of materials and surfaces.

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Table 1.1

Functions of Paint

Functions of paint Descriptions

Decorative Paint can be used as a coating to decorate a surface or substrate. It has a
wide variety of colour, texture, finishes and gross level.

Protective Paint can be designed to protect the surface or substrate against uhra-violet
rays, humidity, chemicals, corrosion, algae, abrasion etc

Special Purpose Paint can also be formulated for specific uses such as luminous paint that
glow in the dark for emergency signage, anticondensation paint to provide
an insulating layer to minimize condensation, fire retardant paint to
enhance the fire resistance of combustible surfaces such as softboard or
hardboard. For application of special paints, refer to manufacturer's
recommendations.

In short, the main functions of paint are as follows:

 To protect the surface from weathering effects of the atmosphere and actions by other
liquids, fumes, moisture, temperature, bacteria, fungi, gases etc.
 To provide pleasing, colourful and decorative appearance to the surfaces. > To prevent
decay of wooden members. > To prevent corrosion of metallic surfaces.
 To provide a smooth surface for easy cleaning.
 Aesthetic appearance provided by the paint colour and sheen (eggshell, satin or
gbss).Providing a desired ability of reflection-absorption of heat and light
 Changing the surface properties: ant-friction, hardness, electrical conductivity.
 Identification of product according to the colour of the paint.

1.2 PAINT SYSTEMS AND COMPONENTS

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A paint system is basically composed of primer/sealer, undercoat and topcoat as shown in

Figure. Depending on the design requirement, texture coating may be provided. Due to volume
constraint, this guidebook will focus on paints that are commonly used in the local market The
functions of each system component are illustrated in Table below.

Thus, Classification of painting products by their functions

 Paint - coloured non-transparent protective coating,

 Varnish - transparent or semi-transparent protective coating. A varnish is made of
binder, solvent and additives. Some varnishes contain small amounts of pigment
 Enamel - hard protective coating with glossy finish
 Primer - the fast coating applied to the surface in order to enhance the adhesion of the
final paint (topcoat) and to seal the substrate surface. Prima may be formulated to impart
additional protection to the substrate (e.g. antirust primer for steel substrates).

The paint is composed of different chemicals substances, natural or artificial, which can be
classified into the following basic compounds:

• Resins and binders- This is the polymer base of the paint and thus is the basic element The
binder or resin is the actual film forming component of paint. It is the only component that must
be present in paint.

• Pigments - These are solid materials: that provide the tone and colour of the paints and others
like anticorrosion, luminescent, etc. Pigments are granular solids incorporated in the paint to
contribute colour.

• Fillers- Set of chemicals materials that contribute and improve the mechanical, chemical and
physical properties of paint

• Additives - These are chanicals materials that are added in small amounts, which are designed
to add a specific feature of the paint and improve the application, examples of additives are
wetting agents, film-formation promoters, levelling agents.

• Solvents are chemicals materials that make the paint a liquid material and fluid with a specific
viscosity. The main purpose of the solvent is to adjust the viscosity of the paint.

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• Thinners - are chemicals materials that allow changing the viscosity of the paint according to
the conditions land means of application, the main difference is that the solvents do not dissolve
to the paint.

• Hardeners - are chemical compounds that react with the resin, producing the formation of the
polymer and hence the solidification of the paint, are paints which do not require hardener,
curing or solidification occurs by the action of humidity, the application of ultraviolet light, etc.

• Catalyst - are chemical compounds that accelerate the curing or solidification process of the
paints, also called as accelerators or dryers.

The success of a good paint job lies in respecting and select each of the appropriate techniques in
each of the stages of painting, nothing will serve all effort, time and money invested in a paint
application process if the surface preparation not do in accordance with the requirement to fulfil,
due all work is ruined when problems such as adhesion failure of paint applied on the surface.
effort, time and money invested in a paint application process if the surface preparation not do in
accordance with the requirement to fulfil, due all work is ruined when problems such as adhesion
failure of paint applied on the surface.

1.3 SEGMENTATION OF THE PAINT INDUSTRY

Figure 1.1

Market share of paint sector

India's paint industry can be classified into decorative paints, which account fez 72 per cent of
the market, and industrial paints, which make up the remaining 28 per cent. Decorative paint

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markets were further segmented into sub-segments, such as emulsions, enamel paints, distemper
and cement paints. Decorative paint market can be further classified by product class which
indudes premium paints, mid-tier paints and economy paints. The industrial paint market covers
sub-segments such as automotive coating, high performance coating, powder coating and coil
coating. The demand for paints is both derived and direct. The demand for decorative paints is a
direct demand whereas the demand for industrial paints is a derived demand.

Decorative paints account for the bulk of the market in terms of volume and value. The
unorganized segment plays a huge role in the decorative paints segment due to low technical
know-how and a highly scattered market The industrial paints segment is dominated by the
organized sector due to its high technology orientation. It is also the more profitable segment.
Most of the organized companies have a nationwide presence with multilocation manufacturing
facilities. The companies in the unorganized sector are mostly regional, spread in and around
their manufacturing facilities and deal in low value products.

 Indian paints Industry is estimated at —Rs.406 Bn, out of which organized sector
accounts for —65% (-Rs.264 Bn) of the total market
 Organized Sector. Top organized players include Asian Paints, Kansai Nerolac, Berger
Paints and ICI. Top 5 companies control 80% of the organized market.
 Unorganized Sector. In the unorganized segment, there are about 2,000 units having
small and medium sized paint manufacturing plants.

The products of the paint industry can be classified into two major segments decorative
(architectural) paints and industrial paints.

Decorative paints: The decorative paint segment can be classified into interior paints and
exterior or cement paints. 80% of the decorative paints account 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
category consists of distempers.

Figure 1.2

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Paint Products

The products under the decorative finishes can be limestone coatings, primers, distempers,
cement paints, matt/lustre finishes, enamels, emulsions (first quality), and premium ernulsions.
Consurnption 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. Competition is high and margins tend
to be low in this segment. Products of this segment are relatively price sensitive. 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 term of technological and funds requirements are relatively lower in the
paints sector. It is estimated that a plant of I 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.

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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.

Figurel 1.3

Industrial Paints: Demand by sector

Demand for these paints is rdatively price inelastic, but is prone to business cycles and depends
on industrial and economic growth. Major end user industries indude 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 mason that Asian Paints (tie-up with PPG Industries, USA) is a major supplier of paints to
Opel Astra. The top 5 companies make up mom than 80% sales of the organized market. The
market share of the organized sector is continuously improving as consumer preference is
shifting towards better products offered by the leading brands. Established Foreign companies
have entered the Indian market by acquiring existing Indian companies. Kansai Paints, Japan

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entered the Indian Market by acquiring Nerolac, Akzo Nobel, the world's largest Paint company,
entered the Indian market by acquiring ICI Paints (now Alczo Nobel India.)

Today India is booming in the field of infrastructure and industrial development. Rapid
industrialization and improvements in the infrastructure such as transport, energy and
communication during the last decade gave a further fillip to the growth of the paint industry.

So the demand of paint industry is relatively more. Aided by Government's liberal policy of
technology import, the automotive and consumer durable segments expanded phenomenally,
with a flurry of foreign collaboration. Increased demand for decorative, protective and functional
coatings was a natural fall out, which brought, in its stride, a host of indigenous development as
well as the injection of new technology. Indian Paint Industry makes great changes in the rapid /
industrial development as well as country development. Therefore paint industry is of crucial
importance to India.

There are lot of good companies in paint industry am selecting Berger paints , Shalimar paints,
and Asian paints for my project report.

1) Berger Paints

Berger Paints India Ltd is an Indian paint company based in India . The company is
headquartered at Kolkata  and has 14 manufacturing units in India, 2 in Nepal, 1 each in Poland
and Russia . It has manufacturing units at Howrah and Rishra, Arinso, Taloja, Naltoli, Goa,
Devla, Hindupur, Jejuri, Jammu , puducherry and Udyognagar.

The company has presence in 5 countries – India, Russia, Poland,  Nepal and Bangladesh. They
have an employee strength of over 3,500 and a countrywide distribution network of 25,000+
dealers

2) Asian Paints Limited

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Asian Paints Limited is an Indian Multinational paint company headquartered in Mumbai

Maharashtra. The company is engaged in the business of manufacturing, selling and distribution
of paints, coatings, products related to home decor, bath fittings and providing of related

services. Asian Paints is India's largest and Asia's third largest paints corporation. As of 2015, it
has the largest market share with 54.1% in the Indian paint industry. Asian Paints is the holding
company of Berger International.

3) Shalimar Paints

 Shalimar paint is an Indian paints manufacturing company. The company is engaged in

manufacturing and marketing of decorative paints and industrial coatings. Some of India’s
buildings and structures such as the Howrah Bridge, Rashtrapathy bhavan, Salt Lake Stadium All
india institute of medical Science, and many others, continue to be painted with Shalimar Paints

OBJECTIVE OF THE STUDY

 To provides forecasts of key parameters which helps to anticipate the industry

performance and make sound business decision.

 To know the vital information on the product like its definition, characteristics and
segmentation.

 To identify a profitable project for investing or diversifying into by throwing light to

crucial areas like industry size, demand of the product and reasons for investing in the
product.

 To understand the viability of the project by disclosing details like raw materials
required, manufacturing process, project costs and snapshot of other project financials.

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 Provide and compare the SWOT analysis of the 3 selected companies

INDUSTRY PROFILE

Indian paint industry has evolved since its inception in 1920 from merely decorative paints
market depending mainly on festivals to a more diversified market. The estimate size of Indian
paints market is about US2.5$ billion contributed by organized and unorganized segments in the
ratio of 65:35. This gap has been steadily decreasing providing level playing field to both by
steady and steeped reduction in excise duties over the last few years from 40% to 14% as
organized sector is subjected to excise duty.

India has one of the lowest per capita paint consumption at 1kg/annum as against 15-
25kg/annum of a few of the developed countries, while for the few countries like US, Japan etc
per capita consumption is more than 25 kg/annum. Low per capita consumption with rural
penetration of only 10% has prompted many domestic and global manufacturers to step up their
production capacity to tap this latent potential.

The Indian paint industry is segmented into decorative and industrial market. Decorative market
catering to housing sector has been valued at US 1.7 billion and Industrial market catering to
automobile OEM, industries and railways has been valued at US$0.8 billion. With current
demand of 6,50,000 tonnes the per capita consumption of India is amongst lowest in the world.

Owing to boom in housing sector, increasing urbanization, easy availability of loans and shift
from kuccha or semi permanent to permanent housing structure the demand for decorative paints
segment is increasing which constitute 70% of Indian paint industry. However, due to rapid
industrialization, increase in manufacturing over the past few years the ratio of industrial to
decorative paints is expected to be 50:50 in line with the global trends.

The global players like Akzo Nobel, Sherwin Welliams, Nippon and Jotun have set up their
shops in India. They are unlikely to affect the domestic players as it would require some time to
match the scale, reach the brand equity, distribution network, and brand loyalty that is currently
being enjoyed by the existing players. However, serious efforts are being made by them to

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capture market share through organic growth, Sherwins William has acquired domestic
decorative paints company, Netco Paints, while Akzo Nobel has taken over ICI paints.

Thus over the long-term the intense competition well take a toll on operating margins of the
players thus shifting the focus from price increase to cost optimization.

GLOBAL AND INDIAN SCENARIO

Global Market

The total market of paints industry worldwide is 95 billion $. The global top ten players are 1)
Akzo Nobel, 2) PPG Industries Inc. 3) Sherwin-Williams Co. 4) DuPont Performance Coatings
5) BASF Coatings 6) The Valspar Corp. 7) Kansai Paint Co., Ltd. 8) RPM International Inc. 9)
Nippon Paint Co. 10) Jotun

The year 2009-2010 was a very challenging year for the international paint industry because of
the global economic crisis. There were lower sales in the period as compared to the previous
period.

Mixed trends:

 Worldwide decline in manufacturing,

 Housing crisis in United States,

 Challenges facing automative industry,

 UAE impacted with extreme financial crisis & liquidity crunch

 Caribbean economy contracted impacting Paint demand

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 Egypt did not have a significant slowdown; good revival

 South Asia on the whole had good demand

Decorative Segment-Industry dynamics:

Country Per capita Market size Growth (%) No. of Market

consumption(Kg) (US$ bn) Players share of top

4 players
(%)

India 0.6 2.5 14 2000 70

China 1 5 12 7000 25

USA 10 11 2.9 500 50

World 8 40 3.7 16000 50

Source: Industry data, B&K Research

Indian Market

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Total market share of Indian Paint industry is Rs 170 billion. Decorative paints is Rs 110 billion
and Industrial Paints is Rs 60 billion.

 Organized sector – 65%

 Total Turnover for the year 2009-10 is ` 11082Cr.

 Net Profit is ` 1063 Cr

Big players in organized sector and their market share value in decorative segments are as
follows:

 Asian Paints 37% ·

 Kansai Nerolac 15.9% ·

 Berger Paints 13.8% ·

 ICI 11% ·

 Jenson & Nicholson 5.7% ·

 Shalimar 4% ·

 Others 12%

 Unorganized sector – 35%

It has about 2500 units.

Total volume of the market is 650,000 MT

Buoyant Demand in India:

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Demand for Decorative paints was very good throughout the year

Rural and small town demand significantly better than large towns

Construction activity revived and increased capex spend across sectors

Industrial paints grew well due to growth in automotive and durable segments

Paint companies are anticipating a higher demand growth with rising higher GDP, higher
disposable incomes and better lifestyles.

SEGMENTATION

Demand for paint comes from two broad categories-Decorative and Industrial

Decoratives Paints

The decorative paints contribute to around 65% of the total paint market in India. This segment
is the most unorganized of the overall paint market. There are around 2000 companies in this
segment. The major players are Asian Paints, Berger Paints, Nerolac Paints and Dulux Paints.
Asian Paints is the market leader in this category.

The decoartive paints are used in homes, offices, buildings, architectural purposes and other
display purposes (hoardings, banners, etc.). The major demand of decorative paints arises in
festive seasons. But now the trend is changing, customer do not wait for any occasion. Also, the
preferences in buying are also changing. The decoartive paint segment is very sensitive to price
but also it is a huge margin business.

Types of decorative paints in India

The major categories in decorative paints are Interior wall paints, Exterior wall paints, Enamels,
Emulsions, Varnishes (metal & wood) and other subsidiary products like primers, putties, etc

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Decorative Sector Features:

Enamels

Enamels are oil based paints which have a glossy finish in them. These paints are basically used
on hard surfaces like walls, metals and wood. Now days they also find applications in
signboards, banners, hoardings, etc.

Other types of enamels available in market are a) water based enamels which have low VOC b)
solvent based enamels which are highly resistant to stains and water.

Enamels is a steady growth segment in India. The product comes in premium, luxury and
economy ranges.

Emulsions

Emulsions are produced by mixing two or more than two unblendable liquids. In India, Water
based emulsions have a very good market. Also, this category is a very high growth one. The
majority of the products are premium ones.

Other features of emulsions are a) subtle metallic textures in Gold and Silver b) rich metallic
shades with unique grain texturing c) marble like impression on interior walls d) silky glowing
appearance e) high stain resistance f) anti-fungal properties

Distempers

Distempers are water based wall paints in which pigments are mixed with water, glue, etc.
Earlier, the trend was to use lime wash, but now distempers offers a low price and better quality

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than locally made products. Distempers can be aggrisevely priced in rural market where
customers do not spend much on premium products.

Unique properties of distempers are long lasting, attractive matt finish, durable and value for
money product.

Exterior emulsion

Exterior emulsions are water based and acrylic based and is used on exterior walls. It is the
fastest growing segment in India. Various features of exterior emulsions are all weather paints;
withstand extreme tropical conditions, anti algal and anti fungal, protection against alkali and
UV degradation, etc.

Varnishes

Varnishes are transparent and protective films used on wood and metals. They provide excellent
weather resistance, light fastness & preserves natural beauty of wood on exteriors for years.
Also, they are resistant to scratches and stains. In India, the varnish market has gone down
because of wall papers and sunmicas, but still it can grow if technology innovations are made.

Industrial Paints

The industrial paints contribute to around 35% of the total paint market in India. This segment is
highly organized one because of technolgy intensive nature and high investments. There are few
companies in this segment, majority of which are foreign tie-ups. The major players are Akzo
Nobel, Asian Paints and Nerolac Paints. Akzo Nobel (earlier ICI India) is the market leader in
this category.

Applications

Automobile industries,

Consumer durables, FMCG,

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Infrastructure construction (roads, highways, dams, etc.),

Protective coatings (nuclear, thermal or hydel power plants, chemical, petrochemical or fertilizer
plants, refineries, sugar, pulp and paper industry, offshore structures, pharmaceuticals etc.)

Floor coatings (across all industries)

Types of industrial paints in India

The major categories in industrial paints are Automotive paints, High perfromance coatings,
Powder coatings, Coil coatings and Marine paints.

Automotive paints

Automotive Paints is a very high growth sector because India is becoming an automobile hub
and in recent years many major automobile companies like BMW, Volkswagan, General Motors,
Skoda, Mercedes Benz have entered or expanded their capacity. Also, demand from two wheeler
makers is also increasing due to consumption from large Indian Middle Class. So, this sector has
a huge potential in it.

Nerolac and Asian Paints are the leading OEM players and Akzo Nobel is the leading player in
the replacement market. The product range is a) Intermediate coats/primer surfaces b) top coats
c) touch up paints d) heat resistant paints e) transit protection films

Various features provided by automative paints are

protection of vehicles during transit from dust, chemicals, bird droppings,

heavy metals free,

protection against UV rays,

stone chip protection,

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resistance to sunlight and weather and

Coloured pigments.

Powder Coatings 

Powder coatings are used for decoration and protection of consumer durables (electronic
equipments, FMCG products), auto components, material handling equipments, gas cylinders,
glasses, helmets, barrels and containers.

Increase growth in this category due to increased sales of auto ancillaries and consumer durables
(majorly due to rapid GDP growth). Berger and Nerolac lead in this solid powder coating
segment.

Powder Coating is applied to metal products by electrostatic spray, the coated item is then heated
and the powder melts into smooth, continuous film. There are no liquids or solvents. The key
benefits of powder coatings are

Ease of application

Environmentally friendly

Economical

Excellence of finish

Excellence of performance

High Performance Coatings 

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High performance coatings are used in mega investment projects like refineries, thermal, nuclear,
hydel power generation, petrochemicals, fertilizers, etc. There has been a steady growth in sales
of high performance coatings due to large investments in these industries in last decade.  

Coil Coatings

Coil Coatings are solvent based paints used in sheets and coils. Akzo Nobel and Asian Paints
lead this segment. The coil coatings are used in steel industries and its downstream industries. 

Marine Coatings

Shalimar and Bombay Paints are the major players in these anti-corrosive, underwater paints
used for ships and containers.

Chemicals

These high performance paints are used in fertilizers, petrochemicals etc. for prevention of
corrosion.

Floor Coatings

Concrete floors are a huge investment for any industry. There are various limitations attached
with concrete flooring: Weakening of the reinforcement and concrete surface due to chemical
spillage, presence of cracks and surface porosity allows various oils to seep in, accumulation of
dust and possibilities of microbial growth.

Road Markings

The cost of road markings is fractional in comparison to the cost of the road, but it is very
important in terms of safety. The properties of road markings are retro-reflective, fast drying,
highly durable and 100% acrylic.

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