Chapter 1:- Industial / Sectoral Scenario

History
Year Key Milestone 1920 Started as Gahagan Paints and Varnish Co. Ltd 1957 Changed name to
Goodlass Nerolac Paints Ltd. 1976 Became Part of TATA group 1986 Acquisition of stake by
Kansai Paints, Japan 2000 Became subsidiary of Kansai Paints, Japan 2006 Change of name to
Kansai Nerolac Paints Ltd. 2012 Acquisition in Nepal 2017 Commencement of operations in Sri
Lanka

Kansai Nerolac Paints Limited (BSE: 500165, NSE: KANSAINER) (formerly known as
Goodlass Nerolac Paints Ltd) is the largest industrial paint and third largest decorative paint
company of India based in Mumbai.

 SWOC Analysis : -
 Strengths
 Weaknesses
 Opportunities
 Threats

 Major Players in the sector

1 Nippo Paint Indian Pvt. Ltd.

 The company, was founded in 1881 by Jujiro Motegi under the name Komyosha(Yamato
Jujiro Shoten). In 1898 the company was incorporated and renamed Nippon Paint
Manufacturing, while in 1927 the company's name changed to Nippon Paint.[4]
 In 1954, Nippon Paint established a 50/50 joint venture with Bee Chemical. In 2006, it
became a wholly owned subsidiary of Nippon Paint.[5][6]
 In October 2014 Nippon Paint was reorganized into a holding company and the company
adopted its current name.[7]
 In August 2020, the Singaporean paints and coatings manufacturer Wuthelam Group
raised its stake in Nippon Paint from 39% to 58,7 % in exchange for its stake in the joint
venture in Singapore.[8]

2. Shalimar Paints
 Shalimar Paints was founded in 1902 by two British entrepreneurs AN Turner and AC
Wright as Shalimar Paints Colour & Varnish Ltd.[3] In the same year, the company set up
 a large scale manufacturing plant in Howrah, West Bengal, the first such plant in entire
South East Asia. In 1928, Pinchin Johnson & Associates of UK bought control from the
British entrepreneurs AN Turner and AC Wright. In 1963, the company's name was
changed to Shalimar Paints Ltd. after Turner Morisson & Co stepped in as new
management.
 With access to high-end technology, the company introduced many firsts in the industrial
coatings segment such as high build zinc coatings, radiation resistant coatings for nuclear
power plants, polyurethane paint for fighter aircraft and railway coaches, among others.
Shalimar was the first company to paint a fighter aircraft for the Indian Army.[4]
 In 1972 Shalimar went public and in 1989, the company was acquired by the O.P. Jindal
Group and the Hong-Kong based S.S. Jhunjhnuwala Group. From May’2015 affair of the
company are managed by Mr. Surender Bhatia as whole time director.[5]
 Summary:-
Nerolac Paint's Latest Research Report
Brokerage/Analys Report Date Call Price@Cal Target Current Report
t l Status

Kotak 500.0 Target Detail

30-08-2019 Buy 463.05
- 0 Hit s

Kotak 515.0 Target Detail

24-07-2017 Buy 452.00
- 0 Hit s

Kotak 515.0 Target Detail

24-07-2017 Buy 452.00
- 0 Hit s

Kansai Nerolac Paint's Key Fundamentals

Parameter Values

Market Cap (in ₹ Cr.) 32,329.81

Earning Per Share (EPS TTM) (₹) 8.66

Price To Earnings (P/E) Ratio 69.27

Book Value Per Share (₹) 63.55

 Price To Books (P/B) Ratio 9.44

EBIT Margin (%) 12.56

PAT Margin (%) 8.22

ROCE (%) 21.69

PAT Growth (%) -9.50

Total Debt to Equity (D/E) Ratio 0.00

Kansai Nerolac Paint's Financial Summary

Parameter MAR'19 MAR'18 YoY
(₹ Cr.) (₹ Cr.) %Change

Balance Sheet:

Share Capital 53.89 53.89 0.00%

Total Non-Current Liabilities 108.50 90.13 20.38%

Total Current Liabilities 772.95 852.61 -9.34%

Total Liabilities 4,305.92 4,067.86 5.85%

Total Non-Current Assets 2,143.75 1,537.23 39.46%

Currents Investments 195.56 519.96 -62.39%

Cash and Bank 81.37 360.91 -77.45%

Total Current Assets Excluding Current Investments 1,966.61 2,010.67 -2.19%

 Total Assets 4,305.92 4,067.86 5.85%

Profit and Loss:

Gross Sales 5,682.28 5,197.77 9.32%

Net Sales 5,173.62 4,586.57 12.80%

PBIDT (Excl OI) 742.00 789.77 -6.05%

PAT 467.35 516.40 -9.50%

Kansai Nerolac Paint's Shareholding Pattern

Description Percent of Share (%)

Promoters 69.27

Individuals 8.44

Institutions 4.66

FII 6.57

Govt. 0.00

Others 11.06

Kansai Nerolac Paint held by Mutual Fund Schemes

Scheme Holding(%)

4.0
Aditya Birla Sun Life MNC Fund Growth
2
 Aditya Birla Sun Life Manufacturing Equity Fund 3.1
Regular Plan Growth 0

BOI AXA Midcap Tax Fund Series 1 Regular Plan 3.1

Growth 0

ICICI Prudential Bharat Consumption Fund Series 5 2.9

Cumulative 7

2.9
Sundaram Infrastructure Advantage Fund Growth
3

Sahara Wealth Plus Fund Fixed Pricing Option Growth

Chapter 2:- Company Profiles

 Name of Company:- Kansai nerolac paints pvt. ltd.

 Form of Organization:- Public Company

 Registered Address :- Nerolac House Post Box-16322

Ganpatrao Kadam Mrg LowerParel
Mumbai - India

FAX - 91-22-24936296
Phone1 - 91-22-24934001
Email - Investor@Nerolac.Com
 Name & Location of other branches
Kansai Nerolac Paints has 6 paint manufacturing plants and about 6–7 contract
manufacturers. The Nerolac owned plants are at 1. Jainpur, Kanpur Dehat (Uttar Pradesh)
2. Bawal (Haryana) 3. Lote, Chiplun (Maharashtra) 4. Hosur (Tamil Nadu) 5. Sayakha (Gujarat)
6. Goindwal (Punjab) 7. Visakhapatnam (Andhra Pradesh) (Upcoming [10])
Kansai Nerolac Paints Ltd. has entered into many technical collaborations with other industry
leaders such as E.I. Du-products.[11]
The Mumbai-based company is the leader in the industrial paints segment with a market share of
over 40%.[12] It is the third-largest player in the decorative paints segment with a modest market
share of 13%. Nearly 75% of the Indian paints industry consists of the decorative segment.[1
 Year of Establishment :- 1920

 Brief History:- 1920 : It started as Gahagan Paints & Varnish Co. Ltd. at Lower
Parel in Mumbai.[8]
 1957 : Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.) Ltd. Also, it
went public in the same year and established itself as Goodlass Nerolac Paints Ltd. .
 1976 : Goodlass Nerolac Paints Ltd. became a part of Tata Forbes Group on acquisition of
a part of the foreign shareholdings by Forbes Gokak. .
 1983 : Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical
collaboration agreement by Kansai Paint Co. Ltd., Japan and Nihon Tokushu Tokyo Co.
Ltd., Japan.
 1999 : Kansai Paint Co. Ltd. , Japan took over the entire stake of Tata Forbes group and
thus Goodlass Nerolac Paints became wholly owned subsidiary of Kansai Paint Company
Ltd.[9]
 2006 : On 11 July, Goodlass Paint Ltd. name has been changed to Kansai Nerolac Paints
Ltd.

 Name of founedrs :- Katsujiro Iwai.

 Name of promoters :- In February 2000, Kansai Paint Co. Ltd., Japan, the
company’s foreign collaborator and one of the promoters of the company, acquired
43,71,152 shares amounting to 28.56% of the paid-up share capital of the company from
Forbes Gokak Ltd. and their associates, the other promoter of the company, at a price of
Rs.250 per share. With this acquisition Kansai Paint Co., Japan, was now holding 64.52% of
the paid up share capital of the company. Share holding increased to 69%, post the merger of
Polycoat Powders Ltd., a wholly owned subsidiary of Kansai Paint Co., Japan, with Kansai
Nerolac Paints Limited. With subsequent acquisition of shares of our Company from the
open market, Kansai Paint Co. Japan now holds 74.99% of the paid-up share capital in our
Company. The coatings industry globally, like several other industries, is in the process of
consolidation. The process of consolidation is intended to help companies meet increasingly
 challenging customer requirements by constantly updating technology, striving for greater
efficiency in operations and ensuring worldwide servicing capabilitie

 Vision Statement :-
” “We design Solutions that Protect, Inspire and Touch Lives everyday

 Mission Statement :-
Our Mission We leverage superior technology to contribute to our Customers and
Society, in a sustainable manner, with innovative Products and Services, through a
competent workforce, built on a culture of Customer Focus, Integrity and Respect to our
Stakeholders

 Values Statement
 INTEGRITY. We build strong trust with all stakeholders, by doing the right thing, and by
taking decisions that enhance the reputation of the organization in the Society.
 CUSTOMER FOCUS. ...
 ACCOUNTABILITY. ...
 RESPECT. ...
 ENTREPRENEURIAL MINDSET. ...
 INNOVATION.

 Organizational Structure:-
Board Of Directors Name Designation Mr.Pradip Panalal Shah Chairman & Ind.Director
Mr.Anuj Jain Executive Director Ms.Sonia Singh Ind. Non-Executive Director Mr.Noel Naval
Tata Ind. Non-Executive Director Mr.Takashi Tomioka Non Executive Director Mr.Shigeki
Takahara Non Executive Director Mr.Hitoshi Nishibayashi Non Executive Director
Mr.Harishchandra Meghraj Bharuka Vice Chairman & Mng.Director Key Executives Name
Designation Mr.P D Pai Chief Financial Officer Mr.G T Govindarajan Co. Secretary & Compl.
Officer

Controlling system:- Senior Officer- Instrumentation

Kansai Nerolac Paints Ltd
Apr 2019 - Present2 years 4 months
Amritsar, Punjab, India
Currently working as Sr. Officer Instrumentation at Kansai Nerolac Pvt Ltd. At present I am
responsible for taking systems handover , the completion of project and the pre trails to take
plant in line.
The responsibilities I am handling;
# loop checking
# verify as built documents
# trails and sequence check
# SAT, FAT
# to coordinate with foreign vender
# spare management
# implement IMS policy
# breakdown analysis
 SWOT analysis of the compamies :-

1. Strengths
 Large Business of Coatings and Paints
 Tech-savvy
 Excellent Research and Development
 Branding and Marketing Strategy
 Top customers in the list
 Good supply chain
 Celebrity ambassadors Awards and accomplishments
2. Weakness
 Change in consumer demand
 Kansai Nerolac Paint’s business model

 Costly Supply Chain and Logistics

3. Opportunities
 Scope in New Products
 Enhanced advances in technology
 Opportunities online

 Low rate of inflation

 New Products launch

 Offers on Bulk Purchase
 Sanitizer Manufacturing

4. Threats 
 Changes in Regulations and Laws
 Raw material shortages
 Competitor challenge
 Change in Government Policies
 CHAPTER 3 : Finance department
1. P & L Account
Kansai Nerolac Paints
Standalone Profit & Loss
------------------- in Rs. Cr. -------------------
account

  Mar '21 Mar '20 Mar '19 Mar '18 Mar '17

  12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 4,690.00 4,943.17 5,173.62 4,737.01 4,531.05

Excise Duty 0.00 0.00 0.00 150.44 531.98

Net Sales 4,690.00 4,943.17 5,173.62 4,586.57 3,999.07

Other Income 28.08 25.84 62.80 71.33 93.49

Stock Adjustments 98.49 -51.21 197.98 114.45 34.26

Total Income 4,816.57 4,917.80 5,434.40 4,772.35 4,126.82

Expenditure

Raw Materials 3,032.01 3,034.15 3,529.65 2,912.59 2,396.78

Power & Fuel Cost 60.41 69.78 82.90 75.38 71.02

Employee Cost 258.58 269.38 255.38 226.56 198.12

Selling and Admin Expenses 147.03 245.99 260.98 275.14 271.01

Miscellaneous Expenses 457.38 491.04 500.69 421.58 365.71

Total Expenses 3,955.41 4,110.34 4,629.60 3,911.25 3,302.64

  Mar '21 Mar '20 Mar '19 Mar '18 Mar '17

  12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 833.08 781.62 742.00 789.77 730.69

PBDIT 861.16 807.46 804.80 861.10 824.18

Interest 7.49 5.00 0.00 0.00 0.00

PBDT 853.67 802.46 804.80 861.10 824.18

Depreciation 138.97 119.88 90.47 75.79 69.49

Profit Before Tax 714.70 682.58 714.33 785.31 754.69

PBT (Post Extra-ord Items) 714.70 682.58 714.33 785.31 754.69

Tax 183.52 148.20 246.06 270.00 253.48

Reported Net Profit 530.99 535.40 467.35 516.40 505.94

Total Value Addition 923.40 1,076.19 1,099.95 998.66 905.86

Equity Dividend 237.12 140.12 140.12 161.68 164.37

Corporate Dividend Tax 0.00 28.80 28.80 33.83 34.39

Per share data (annualised)

Shares in issue (lakhs) 5,389.20 5,389.20 5,389.20 5,389.20 5,389.20

Earning Per Share (Rs) 9.85 9.93 8.67 9.58 9.39

Equity Dividend (%) 525.00 315.00 260.00 260.00 300.00

Book Value (Rs) 75.72 70.27 63.54 57.99 52.05

2. Balance Sheet
Kansai Nerolac Paints
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

  Mar '21 Mar '20 Mar '19 Mar '18 Mar '17

  12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 53.89 53.89 53.89 53.89 53.89

Equity Share Capital 53.89 53.89 53.89 53.89 53.89

Reserves 4,027.04 3,732.98 3,370.58 3,071.23 2,751.43

Networth 4,080.93 3,786.87 3,424.47 3,125.12 2,805.32

Secured Loans 0.00 0.00 3.40 0.00 0.00

Unsecured Loans 0.00 0.00 0.00 9.71 18.33

Total Debt 0.00 0.00 3.40 9.71 18.33

Total Liabilities 4,080.93 3,786.87 3,427.87 3,134.83 2,823.65

  Mar '21 Mar '20 Mar '19 Mar '18 Mar '17

  12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 2,727.46 2,599.06 2,089.12 1,691.02 1,557.24

Less: Accum. Depreciation 1,001.35 890.42 773.21 684.44 610.64

Net Block 1,726.11 1,708.64 1,315.91 1,006.58 946.60

Capital Work in Progress 205.83 164.43 314.69 343.09 142.12

Investments 833.60 455.02 304.49 545.77 552.78

Inventories 1,090.20 930.14 1,052.77 805.76 691.31

Sundry Debtors 836.16 674.50 674.02 675.69 571.71

Cash and Bank Balance 75.29 166.28 81.37 360.91 249.69

Total Current Assets 2,001.65 1,770.92 1,808.16 1,842.36 1,512.71

Loans and Advances 441.93 493.43 562.67 330.06 443.15

Total CA, Loans & Advances 2,443.58 2,264.35 2,370.83 2,172.42 1,955.86

Current Liabilities 1,109.18 789.92 863.64 911.90 750.45

Provisions 19.01 15.65 14.41 21.13 23.26

Total CL & Provisions 1,128.19 805.57 878.05 933.03 773.71

Net Current Assets 1,315.39 1,458.78 1,492.78 1,239.39 1,182.15

Total Assets 4,080.93 3,786.87 3,427.87 3,134.83 2,823.65

Contingent Liabilities 204.89 158.57 162.36 162.05 240.25

Book Value (Rs) 75.72 70.27 63.54 57.99 52.05

3. Ratio and their interpretation

KEY FINANCIAL RATIOS MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

OF KANSAI NEROLAC
PAINTS (in Rs. Cr.)

PER SHARE RATIOS  

Basic EPS (Rs.) 9.85 9.94 8.67 9.58 9.39  

Diluted EPS (Rs.) 9.85 9.94 8.67 9.58 9.39  

Cash EPS (Rs.) 12.43 12.16 10.35 10.99 10.68  

Book Value 75.73 70.27 63.55 57.99 52.06  

[ExclRevalReserve]/Share
(Rs.)

Book Value 75.73 70.27 63.55 57.99 52.06  

[InclRevalReserve]/Share
(Rs.)

Dividend / Share(Rs.) 5.25 3.15 2.60 2.60 3.00  

Revenue from 87.03 91.73 96.00 85.11 74.21  

Operations/Share (Rs.)

PBDIT/Share (Rs.) 16.18 15.00 14.92 16.00 15.38  

PBIT/Share (Rs.) 13.60 12.78 13.24 14.59 14.09  

PBT/Share (Rs.) 13.26 12.69 13.24 14.59 14.09  

Net Profit/Share (Rs.) 9.85 9.94 8.67 9.58 9.39  

PROFITABILITY RATIOS  

PBDIT Margin (%) 18.58 16.35 15.53 18.79 20.72  

PBIT Margin (%) 15.62 13.93 13.78 17.14 18.98  

PBT Margin (%) 15.23 13.82 13.78 17.14 18.98  

Net Profit Margin (%) 11.32 10.83 9.03 11.25 12.65  

Return on Networth / Equity 13.01 14.13 13.64 16.52 18.03  

(%)

Return on Capital Employed 17.27 17.56 20.19 16.06 17.42  

(%)
Return on Assets (%) 10.19 11.65 10.85 12.69 14.06  

Total Debt/Equity (X) 0.00 0.00 0.00 0.00 0.01  

Asset Turnover Ratio (%) 90.03 107.63 120.15 112.75 111.16  

LIQUIDITY RATIOS  

Current Ratio (X) 2.99 3.37 2.80 2.97 3.39  

Quick Ratio (X) 1.86 1.99 1.44 2.02 2.40  

Inventory Turnover Ratio (X) 4.30 5.31 4.91 5.69 5.78  

Dividend Payout Ratio (NP) 44.65 26.17 29.98 31.30 32.48  

(%)

Dividend Payout Ratio (CP) 35.39 21.38 25.11 27.30 28.56  

(%)

Earnings Retention Ratio (%) 55.35 73.83 70.02 68.70 67.52  

Cash Earnings Retention 64.61 78.62 74.89 72.70 71.44  

Ratio (%)

VALUATION RATIOS  

Enterprise Value (Cr.) 32,293.7 20,643.3 24,563.2 26,820.1 20,136.3  

4 4 3 4 7

EV/Net Operating Revenue 6.89 4.18 4.75 5.85 5.04  

(X)

EV/EBITDA (X) 37.04 25.53 30.56 31.11 24.29  

MarketCap/Net Operating 6.90 4.21 4.76 5.92 5.09  

Revenue (X)

Retention Ratios (%) 55.34 73.82 70.01 68.69 67.51  

 Price/BV (X) 7.93 5.50 7.20 8.69 7.26  

Price/Net Operating Revenue 6.90 4.21 4.76 5.92 5.09  

Earnings Yield 0.02 0.03 0.02 0.02 0.02

CHAPTER 4: Marketing Department

Products and Services

Technologically innovative products are the company's hallmark. Kansai Nerolac Paint offers
differentiated products with a focus on being eco-friendly and healthy.[16] Kansai Nerolac Paint’s
key products and brands include the following:

 Decorative Paints: Interior wall paints, exterior wall paints, Wood surface paints, and
Metals surface paints.
 Automotive Coatings :Pre-Treatment Chemicals, Electrodeposition. Intermediate
Coats/Primer Surfacers, Topcoats, Clear Coats, Touch Up Paints, Auto Refinishing Products,
Heat Resistant Paints, Underbody Paints & PVC Sealants & Rapgard Transit Protection
Films.
 Performance Coatings: Performance Coating is available for a wide range of products.
For household appliances and metal fittings in factories, there is a comprehensive range of
general industrial coating systems like P.T. chemicals, Primers and lacquers, Coil Coat, Heat
Resistant Paints & Metal Decoration Coatings. Powder Coating is now increasing in
popularity because of its high quality, resistance to corrosion, the apparent ease of
application and the environmental friendliness of the technology.

Number of customers
Two wheelers and passenger vahicals.
THE DISTRIBUTION CHANNEL
Chain of intermediaries, each passing the product down the chain to the next organization, before
it finally reaches the consumer or end-user.This process is known as the 'distribution chain' or the
'channel.' Each of the elements in these chains will have their own specific needs, which the
producer must take into account, along with those of the all-important end-user.
Channels
A number of alternate 'channels' of distribution may be available:
Distributor, who sells to retailers,

Retailer (also called dealer or reseller), who sells to end customers. Advertisement typically
used for consumption goods. Distribution channels may not be restricted to physical products
alone. They may be just as important for moving a service from producer to consumer in
certain sectors, since both direct and indirect channels may be used. Hotels, for example, may
sell their services (typically rooms) directly or through travel agents, tour operators, airlines,
tourist boards, centralized reservation systems, etc.

Promotion tools used

 Advertising
 sales promotion
 public relation

 direct marketing.

1. Approaches to pricing service

 Cost based pricing

 Competition based pricing

 Demand based pricing :- Four types of value demand

based pricing.

1. Value is low price

2. Value is whatever I want in a product or a service

3. Value is the quality I get for the price I pay

4. Value is what I get for what I give

SALES FORCE MANAGEMENT

The face of any organization is the sales force. Sales personnel are the company’s link to the

customers. Any company’s survival and existence depends on the market and hence the sales

force which maintains that link deserves the deepest thought in terms of setting objectives for it,

strategy for it and structuring it. Companies spend a considerable amount of time and money on

sales force rather than on any other promotional activity. However, sales force is expensive and

companies are looking forward to managing them in an efficient and effective manner. Sales

Management which is concerned with the direction & control of sales force refers to the

management of sales personnel. Sales force management is “the planning, direction & control of

personnel selling, including recruiting, self selection, training (equipping, assigning, routing),

supervising, paying & motivating as these tasks apply to the personal sales force management.” In

addition to other responsibilities, controlling & guiding the sale force is one of the important

activities of management. Managing the sales force involves the implementation of personal
 selling strategy. The sales force management has two key personal selling strategic decisions Sales

force size Selling style These decisions results from planning how to achieve the sales volume &

related company goals. The decision on selling styles determines the range and nature of activities

required for personal management or management of sales force. The decision on sales force size

determine the magnitude of these activities. Implementing these strategic decisions is sales

management responsibility.
Sales force management is specialized type of personal management. The personal management
focuses upon sales, production or office workers but sales force management focuses only upon sales
personnel. Sales personnel work away from their co-workers and superiors, so it is difficult to develop a
spirit of identity with and loyalty to the company and to manage them into a unified team. Sales
personnel’s necessity is to give freer rein then production or office workers. Up to a large extent they
are relied upon as individuals to plan and control their own activities. Most sales personnel visit their
home office only infrequently and centralize direction of their activities mainly by phone and mail.
The steps in sales force management are the same as those in general personnel management. Sales
force management work, starts with job analysis-determining the job objectives, the component duties
and responsibility, performance criteria, and reporting relationships. The output of job analysis is the
written job description that is used in deriving the necessary qualifications (job specifications) of the
employee. Qualified job applicants must be found, and this requires decisions on recruiting sources and
methods. From the supply of applicants, those meeting the job specifications are selected. After hiring
applicants undergo initial training and throughout their entire careers with the company-receive
continuing training through diverse delivery systems. Compensation plans are designed to provide
appropriate levels and methods of compensation. When the salesperson is assigned to the field, other
personnel activities come into play. The salesperson is motivated to plan and make productive use of
working time. To improve the effectiveness of sales calls, salespersons are counseled on working habits
and methods controlling sales personnel require analysis of selling records and evaluations of sales
performance.

CRM practices:-
  Helping an enterprise to enable its marketing departments to identify and target
their best customers, manage marketing campaigns and generate quality leads
for the sales team.

 Assisting the organization to improve telesales, account, and s
ales management by
optimizing information shared by multiple employees, and str
e a m l i n i n g   e x i s t i n g  processes (for example, taking orders using mobile
devices)

 Allowing the formation of individualized relationships with

customers, with the aim of  improving customer satisfaction and maximizing
profits; identifying the most profitable customers and providing them the highest
level of service.

 providing employees with the information and processes neces
s a r y   t o   k n o w   t h e i r   customers understand and identif y customer
needs and effectively build relationships  between the company, its
customer base, and distribution partners.

CHAPTER 5 : Human Resource Department (HRM) / Personal

department

1. Recruitment & Selection process

 Co. is following aptitude test, group discussion and personal
interview for recruitment process.
 Co. is recruiting :
MBA students for marketing, Bsc(chemistrty),BE
mechanical & chemical students for production, CA & MCOM
for finance dept.
  Co. has training center in for fresher’s.
2.Number of employees
 Total KNPL manpower 2569.
3.Training methodology/ approach
 We, at Nerolac, are committed to create a learning environment which is business – centric
whereby the employees are developed as leaders and are prepared to meet current &
future business objectives through deployment of a “pull” strategy rather than a “push”
strategy. Employees are encouraged to broaden their horizon through training programmes
as well as other employee engagement forums such as Kaizen competitions, performance
review process, monthly review of section performance etc.

 Categories of Training:

1. Induction Training
Induction training is given as an initial preparation to new hires upon taking up a post.
2. Competency based Training
Competency Based Training emphasizes on enhancing the competencies required by a person
for a particular job and position, in order to achieve individual growth and organizational goals.
One of the Training Workshop we introduced this year was Workshop on Global Excellence. It is
an In-house designed training workshop aimed at bringing the culture of Excellence in the day to
day activities of employees to achieve Organizational vision. We continued our emphasis on
training our managers on Managerial Competencies and tools to go beyond their areas of
technical specialization and take a holistic approach towards effectiveness at workplace. We
have also carried out a training program on Employee Dialogue. An In-house Training workshop
aimed at equipping managers on effective ways of carrying out the Performance Dialogue with
their team members during Appraisal process.
3. Functions specific Training
Functional Training aims at upgrading the employees’ functional knowledge to keep up with the
ongoing internal and external changes, which affects the day to day working in the short run and
the individual & organizational growth in the long run.
4. Skill Development program
 Skill Development programs aims at upgrading and multi skilling the employees’ current skill level
by means of Work Instructions, Standard Operating Procedures and Single Point Lessons.
5. Advanced Sales Training
Sales Training programs aims at training and upgrading the Frontline Sales personnel to develop
the face-toface selling skills which are needed to promote an open exchange of information
thereby reaching to mutually beneficial sales agreements.

4.Employee safety mechanisms

Occupational health and Safety is one of the important aspects of
manufacturing and it directly relates to employee morale. Journey
towards operational excellence proceeds through Safety
excellence. Company has taken proactive steps to strengthen
operational control and management processes in this area. As a
part of strengthening of “Safety First” culture, company continued
its progress through below key initiatives.

CHAPTER 6: Production / Operations Department

Raw materials used:- Pigments, Extenders and Resins , Organic acids
and anhydrides , Solvent oils and fatty acids, etc.
Turnover: - kansai Nerolac Paints has reported a sales turnover of rs
666.80crore and a net profit of rs 44.90crore for the quarter ended
mar’12.
 For the quarter ended Mar 2011 the sales turnover was rs
519.59crore and net profit was rs 58.86crore.
Plant Location
KNPL has 5 factories located at Jainpur (UP), Lote (Maharashtra), Bawal
(Haryana), Hosur (Tamil Nadu), and Sayakha (Gujarat). The company has
a state-of-the-art R&D facility in Mumbai.

Products Produced

1. Epoxy Concrete Primer ( NeroFlor 4000 Primer)

2. PU Primer  ( NeroFlor PU Primer )
3. Chemical Resistant Primer ( NeroFlor CR Primer )
4. ESD Primer  ( NeroFlor ESD Primer)
5. Epoxy SL Screed  ( NeroFlor Screed )
6. PU SL Screed ( NeroFlor PU Screed )
7. Epoxy SL Finish ( Neroklad 1000 Finish Shade )
8. Epoxy SL Clear Finish   ( NeroFlor 1000 Clear )
9. PU SL Finish ( NeroFlor PU Finish )
10.EPU Finish ( NeroFlor EPU Finish )
11.ESD Finish( NeroFlor ESD Finish )
12.PU Coating ( NeroFlor PU Coating)
13.CarPark ( NeroFlor CarPark)
14.Water Based Cementetious Finish (NeroFlor PU Concrete )
15.Wall Coating ( NeroFlor Wall Coat)
16.Decorative Floor ( NeroFlor DF )