G 3 inclusive growth - by h.m. bharuka

transcript

INCLUSIVE GROWTH

By H.M. BharukaKansai Nerolac Paints

4 P’s OF INCLUSIVE GROWTH

PARTICIPANTS/PLAYERS

PEOPLE

PRODUCTS

MANUFACTURERS

SOCIETY

GOVERNMENT

ASSOCIATION DEALERS/RETAILER

PAINTERS

VENDORS

70% -ORGANIZED SECTOR70% -ORGANIZED SECTOR

30%- UNORGANIZED SECTOR30%- UNORGANIZED SECTOR

MANUFACTURERS

UPGRADED MARKET OFFERINGS

SUSTAINABILITY

WORK ENVIRONMENT

TECHNOLOGY

PROXIMITY TO CUSTOMER

ADAPTIBILITY

OFFERS AFFORDABLE SUBSTITUTESBENCHMARK

MANUFACTURERS

SOCIETY

GOVERNMENT

ASSOCIATIONDEALERS/RETAILER

PAINTERS

VENDORS

ORGANIZED UNORGANIZED

VALUE 65%

VOLUME 52%

VALUE 35%

VOLUME 48%

TECHNOLOGYTECHNOLOGY

INNOVATION

INDIGINEOUS

COLLABORATION/EDUCATION

CAPACITYCAPACITY

INCREASE CAPACITY IN SYNC WITH INDUSTRYINCREASE CAPACITY IN SYNC WITH INDUSTRY

SERVICESERVICE

INFRASTRUCTURE

LOGISTICS

INFRASTRUCTURE

LOGISTICS

SUSTAINABILITYSUSTAINABILITY

COMPLIANCE

AWARENESS

COMPLIANCE

AWARENESS

SURVEY – INVESTMENT IN R&D, IT AND SHE

FOCUS ON ADVANCED TECHNOLOGY

INCREASED CAPACITY WORLD CLASS SERVICE

SUSTAINABILITY

MANUFACTURERS

SOCIETY

GOVERNMENT

PAINTERS

VENDORS

DEALERS/RETAILERS

GROWTH

PROFIT

CURRENT SCENARIOCURRENT SCENARIO

SMALL SIZE DEALERS

Sales Value< 10 LakhsNo. of Dealers

Net Profit 8%

MEDIUM SIZE DEALERS

Sales Value< 50 LakhsNo. of Dealers

Net Profit6%

LARGE SIZE DEALERS

Sales Value > 50 LakhsNo. of Dealers

Net Profit5%

With Establishment CostNet Profitability

NET PROFIT > Rs. 5 lacs

NET PROFIT Rs. 1 – 3 Lac

NET PROFIT < 1 Lac

DEALER SURVEY

DEALER

71% 62%Less Profitable

Less Profitable

No Second GenerationNo Second Generation

AMBIENCEAMBIENCECURRENT

THE WAY FORWARD

ATTRACT THE NEXT GENERATION DEALERS

IMPROVED PROFITABILITY OF DEALERS

MODERN RETAIL FORMATS

FOCUS ON SERVICE

MANUFACTURERS

SOCIETY

GOVERNMENT

PAINTERS

VENDORS

GOVERNMENT

NEEDS A FRESH PERSPECTIVEBe seen as a Protector

MANUFACTURERS

SOCIETY

GOVERNMENT

PAINTERS

VENDORS

ASSOCIATIONUNITY

Government- Change of Approach

Systematic Registration

Approach

Focus on Accurate data collection

Holding for Small

Players

Research for Common

Talent pool Providers

MANUFACTURERS

SOCIETY

GOVERNMENT

ASSOCIATION DEALERS/RETAILER

PAINTERS

VENDORS

SOCIETY

VIEWS OF SOCIETY

INCONVENIENCE

SUBSTITUTES

MANUFACTURERS

SOCIETY

GOVERNMENT

PAINTERS

VENDORS

PAINTERS

PETROL PUMP CASE STUDY

1900’s

POVERTY

HEALTH

PEOPLE

PRODUCTS

REACHREACH

ALL INDIAPopulation

117 Cr

Per Capita Consumption

1.5 Kg

URBAN INDIA

Population 32.7 Cr

3.6 Kg

RURAL INDIA

Population 84 Cr

0.7 Kg

PEOPLE

PRODUCTS

TOTAL SHARE OF POPULATION & PAINT DEMAND

2005 2025

Total Population:1107 mn

Total Population:1429 mn

Paint Consumption for Middle class to super rich

1107 mnLiters

12289 mn Liters

Low Quality / Economy Paints

Economy / Medium Quality Paints

Premium PaintsPremium Paints

Super Premium PaintsSuper Premium Paints

RKMRKM

Population growth

27%CAGR-13%CAGR-13%

PEOPLE

PRODUCTS

CHINA COATINGS MARKETINDIA COATINGS MARKET

Other Segmentslike

Industrial, Powder ,Refinish should contribute more to the industry and

be in sync with the World Paint Market

GDP growth momentum to continue at above 7% YOY for next 3 decades.GDP growth momentum to continue at above 7% YOY for next 3 decades.

Per capita income crossing threshold of $1000Per capita income crossing threshold of $1000

Nuclear family to increase as dependency ratio droppingNuclear family to increase as dependency ratio dropping

Working population (at 65%) expected for next 3 to 4 decades..Working population (at 65%) expected for next 3 to 4 decades..

Population in absolute terms increasing from 1100 mn to 1400 mn by 2025Population in absolute terms increasing from 1100 mn to 1400 mn by 2025

Increase in middle class, upper middle class and rich Increase in middle class, upper middle class and rich

INDIA – A BRIGHT FUTUREINDIA – A BRIGHT FUTURE

KEY TAKEAWAYSKEY TAKEAWAYS

The prospects of the Indian Paint Industry look bright

Profitability in distribution channels like dealers and painters

Unorganized Sections should get Organized rapidly

Make Paint Industry appealing for consumers and best talent

Hence Inclusive Growth is the Answer

G 3 inclusive growth - by h.m. bharuka

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