paint Industry

Topics: Tamil Nadu, India, Marketing Pages: 20 (4096 words) Published: March 11, 2014
THAVAN IJRMM Vol-01: No- 01 Oct-Dec 2011
1
A Research Approach to Paint Industry in India-A Study Of Its Marketing Strategies in Tamil Nadu
A Research approach to paint industry in
India-A Study of its marketing Strategies in
Tamil Nadu
1K. Jayachitra and 2Dr. D. Ilangovan
1Research Scholar in Commerce, Annamalai University, Annamalai Nagar-608 002. jayachitrakps@gmail.com
2Professor of Commerce Annamalai University, Annamalai Nagar-608 002. dil2691@yahoo.co.in
Introduction
Paint has been in use for time
immemorial. The evidence can be found in the
cave paintings. The Chinese are considered to
be the pioneers of manufacturing paints
thousands of years ago. In modern times paint is
made artificially and is used in many different
ways.1 Paint is a mixture of four elements
solvents, binders, pigments and additives.
Solvents give the paint a liquid flow while the
binder binds it to the surface. Pigments impart
colour and opacity to the paint and the additives
give it special resistance properties.2
The Indian paint industry is over 100
years old. Its beginning can be traced back to the
setting up of a factory by Shalimar Paints in
Calcutta (now Kolkata) in 1902. Until World
War II, the industry consisted of small producers
and two foreign companies. After the war, the
imports stopped, which led to the setting up of
manufacturing facilities by local entrepreneurs,
still, the foreign companies continued to
dominate the market. Initially British Paint
companies such as Goodlass Walls (now
Goodlass Nerolac), ICI, British Paints (now
Berger Paints), Jenson & Nicholson and
Blundell & Eomite dominated the market.3
The Indian paint industry historically
grew by 1.5 to 2 times of India’s real GDP
growth on a year – to – year basis. Now with the
Finance Minister announcing his vision of
achieving 10 per cent economic growth it only
augurs well for paint sector.
Raw Materials
Raw materials which constitute 60 per
cent of the total cost for the paint industry is an
important factor for maintaining operating
margins. Around 600 raw materials are required
by the paint industry and all the materials are
directly related to crude oil prices. But the most
important raw materials is titanium dioxide,
which accounts for 25-30 per cent of the costs.
Other important raw materials being used in the
industry comprise sector, linseed and soybean
oils and turpentine. Products such as paint,
timber finishes and others surface coatings are
also included in this industry category.
The paint industry was divided into two
consumer segments. Industrial (such as
automotive) and decorative (such as housing). In
India the industrial paints segment accounts for
30 per cent of the paint market while the
decorative paint segment accounts for 70 per
cent of paints sold in India. In most developed
THAVAN IJRMM Vol-01: No- 01 Oct-Dec 2011
2
A Research Approach to Paint Industry in India-A Study Of Its Marketing Strategies in Tamil Nadu
countries, the ratio of decorative paints vis-à-vis
industrial paint is around 50:50. Similarly, the
per capita consumption of paints in India is very
low at 800 to 900 grams per annum if compared
with 4 kgs in the South East Asian Nations and
22 kgs in developed countries. The global
average per capita consumption is
15 kg.4
Decorative paints can further be
classified into premium, medium and distemper
segments. Premium decorative paints are acrylic
emulsions used mostly in the metros. The
medium range consists of enamels, popular in
smaller cities and towns. Distempers are
economy products demanded in the suburban
and rural market. Nearly 20 per cent of all
decorative paints sold in India are distempers
and it is here that the unorganised sector has
dominance.
Industrial paints include powder
coatings, high performance coating and
automotive and marine paints. But two thirds of
the industrial paints produced in the country are
automotive paints...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Paint Industry in India Essay
  • Paint Industry Analysis Essay
  • Asian Paints Essay
  • Berger Paints Bangladesh Ltd Essay
  • Asian Paints Essay
  • Info on Kansai Paints Essay
  • Case 15: Asian Paints Essay
  • A Study on Market Potential of Jotun Paints Essay

Become a StudyMode Member

Sign Up - It's Free