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SUMMER PROJECTOn
A STUDY ON PAINT INDUSTY WITH
SPECIAL REFERANCE TO
SHALIMAR PAINTS LIMITED
Submitted by:Jiban kumar Nayak
Registration No. 0706229022
Under the guidance of:
Mr. Manit Mishra Mr. P.C. Nanda Asst. Professor- Marketing Divisional sales Manager DRIES B-SCHOOL Cuttack
DECLARATION
I hereby declare that the present study entitled “A STUDY ON
PAINT INDUSTY WITH SPECIAL REFERANCE TO SHALIMAR PAINTS
LIMITED” being submitted by me to the department of MBA, (DRIMES)
in partial fulfillment of the requirement for the master of Business
Administration under Biju Pattnaik University, Raurkela. It is my own
and has not been submitted to other university or published any time
before.
Jiban Kumar Nayak
GUIDE CERTIFICATE
This is to certify that Jiban Kumar Nayak has carried out his
summer project work on the subject “A STUDY ON PAINT INDUSTY
WITH SPECIAL REFERANCE TO SHALIMAR PAINTS LIMITED” under my
guidance and supervision. He has incorporate his analysis and finding
into this project of above title being submitted by him in partial
fulfillment requirement for the award of degree of “Master of Business
Administration” under Biju Pattnaik University, Raurkela. I am satisfied
that he has carried out project work independently and proper care
and confidence.
Mr. Manit Mishra Asst. Professor- Marketing
DRIES B-SCHOOL
ACKNOWLEDGEMENT
To undergo Summer Training in Shalimar Paint was lively
experience for me. I am truly indebted to Mr. P.C. Nanda, Divisional
Sales Manager, Cuttack for giving me the opportunity to work in his
esteemed Organization. I will also remain grateful to Mr. Manit Mishra
(Faculty DRIES) for Academic guidance. I am also grateful to the
principal & Staff of DRIEMS B-School.
I am also thankful to all my friends for their continuous co-
operation and my parents for their constant untried encouragement
and blessing through out this project work.
Jiban Kumar Nayak
3. OBJECTIVE OF THE STUDY:-
Being doing any survey it is very much essential to define the
objectives for which the survey is to be done. Without any objective
there is no value addition to whatever is done in a project. This study
aims towards A STUDY ON PAINT INDUSTY WITH SPECIAL REFERANCE
TO SHALIMAR PAINTS LIMITED” how the dealers react and perception
towards Shalimar paint
The objectives of this market survey are:
To determine the number of dealer is doing the business with
company and what is the problem they are face in it.
To determine the, how many dealers are want to do with
Shalimar paint, and why.
To find out the current market position in the costal market of
Shalimar paint.
To find out the competitors position in the market and taking the
right step against accordingly. .
To gate some vital suggestion from them towards company,
which are helping the company to reach the consumer.
LIMITATION:-
As a student of management it is very much essential on my part
of gain some practical knowledge about the current market
situation. This survey helped me in shaping my practical knowledge
about the existing market position of the various brand of soft drink.
However this study has certain limitation which can be attributed
to various factors.
Time limit is not sufficient enough to collect all the data to
complete the project report.
Some dealers are not alternative when they will fill up the
questionnaires.
Big communication gap.
Some confidential information are not allowed to be analyzed which might have more relevance from the study angel.
Scope:
From this study we can find the pitfalls of Shalimar paints. The main
aim of the study is to increase the no. of dealers and enhance the
satisfaction level of dealer’s painters as well as customer.
Introduction
Paint is a thick liquid substance used to decorate and protect
concrete, wooden, cloth, metallic surfaces and everything you can
imagine. The colors make these objects look beautiful while its basic
ingredients protect them from corrosion, rust and decay.
As we look around the world we see many beautiful colors around
us. Some colors are natural some are man-made. It is used to produce
a beautiful work of art, in industrial coating or road surface marks to
help driving or it can be used as a preventing measure for preventing
corrosion or water damage. Paint has been used by mankind since
its origin. 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. There are three basic things required
to make paint. You need a
Pigment to get the exact color you want
Binder to hold the paint together
Thinner so that it can be applied easily.
Methodology
Research has conducted a quantitative survey of a sample in
coastal part of orissa.
Sampling Method
Research have used convince sampling and area sampling.
Sample Size
I have used sample size of around 40 dealers.
Data Collection Procedure
In this research work we have collected all the data by surveying
the market and some part collected from the internet.
Study Topic
A STUDY ON PAINT INDUSTY WITH SPECIAL REFERANCE TO
SHALIMAR PAINTS LIMITED
Location: Coastal part of Orissa
Duration: 45 days
Types of Paints
There are different types of paints available today. Till the 19th
century the word paint was used to describe oil-bound types only. The
paints bound with glue were called distemper. For farmhouses and
cottages an alternative was found and was called lime wash or color
wash.
Different things need different paints. The interior of the house is
painted by different type of paint than the exterior of the house.
Automobiles use different type of paint. The industrial paint is different
than marine paint. Now colors are made by using different ingredients
for specific surfaces.
Indian Paint industry
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. There are now twelve players in the organized sector of
India's paint and coatings market and over 2,000 in the unorganized
sector. In 2003-04, the organized sector held 70% share of the
approximately $1.5 billion (Rs 6,800 crore) industry, while the balance
was made up of the unorganized units. The major players are Asian
Paints, Goodlass Nerolac, Berger, ICI and Shalimar. Recently, world
leaders like Akzo Nobel, PPG, DuPont and BASF have set up base in
India with product ranges such as auto refinishes, powder coatings
and industrial coatings. Kansai Paints of Japan, which entered into
collaboration with Goodlass Nerolac in 1984, is now the holding
company for Goodlass Nerolac with 64.52% equity holding.
In India, Indian Paint industry’s total market size is US$1400
million. The organized sector of the industry is 55%. The 45%
unorganized sector has about 2500 units. The big players and their
market share-value of the organized sector are
Asian Paints 37%
Goodlass Nerolac 15.9%
Berger Paints 13.8%
ICI 11%
Jenson & Nicholson 5.7%
Shalimar 4% &Others 12%
Market Share of All paint industry In India
Asian Paint
Nerolac
Gerger Paint
Shalimar
Ici
Jenson & Nicholosn
The market segment is divided into two sectors.
Architectural 70%
Industrial 30%
The total volume of the market is 600,000 MT.
The Indian paint industry is an Rs 49 billion sector.
The demand for paints is relatively price-elastic but is linked to
the industrial and economical growth.
The per capita consumption of paints in India is very low at 0.5 kg
per annum if compared with 4 kegs in the South East Asian
nations and 22 kegs in developed countries. The global average
per capita consumption is 15 kg.
In India the organized sector controls 70 percent of the total
market with the remaining 30 percent being in the hands of
nearly 2000 small-scale units.
In India the industrial paint segment accounts for 30 percent of
the paint market while the decorative paint segment accounts for
70 per cent of paints sold in India.
Most of the paint leaders have technical tie-ups with global paint
leaders.
Paint industry in India is divided in to two categories
1. Decorative.
2. Industrial.
Decorative…..
APIL dominates the decorative segment with a 38 per
cent market share. The company has more than 15,000 retail
outlets and its brands Tractor, Apcolite, Utsav, Apex and Ace are
entrenched in the market. GNPL, the number-two in the decorative
segment, with a 14 per cent market share too, has now increased its
distribution network to 10,700 outlets to compete with APIL
effectively. Berger and ICI have 9 per cent and 8 per cent shares
respectively in this segment followed by J&N and Shalimar with 1
and 6 per cent shares. The demand for decorative paints is highly
price-sensitive and also cyclical. Monsoon is a slack season while the
peak business period is Diwali festival time, when most people
repaint their houses. The industrial paints segment, on the other
hand, is a high volume-low margin business.
Industrial…………
GNPL dominates the industrial paints segment with 41 per cent
market share. It has a lion's share of 70 per cent in the OEM passenger
car segment, 40 per cent share of two wheeler OEM market and 20 per
cent of commercial vehicle OEM market. It supplies 70 per cent of the
paint requirement of Maruti, India's largest passenger car
manufacturer, besides supplying to other customers like Telco, Toyota,
Hindustan Motors, Hero Honda, TVS-Suzuki, Mahindra & Mahindra,
Ashok Leyland, Ford India, PAL Peugeot and Bajaj Auto.
Profile of the Indian Paint Industry by
Information Research Limited in 2nd edition.
Hundreds of billions of rupees in infrastructure investment,
over 60% of the population aged under 30, falling interest rates, rising
consumer markets growing at double-digit percentages and the
promise of a strong manufacturing base for exports - the list of
attractions for a coatings presence in India is by no means short.
The above are just some of the findings of IRL's new and second Profile
of the Indian Paint Industry which provides up-to-date statistics and
information on the following:
Availability of paint raw materials
Paint production
Paint imports and exports
Paint consumption and per capita use
Market segmentation by paint type and end-use sector
Information on paint producers
Trends in major end-user industries
Market forecasts and growth rates
The report also includes a five-year market forecast based
on estimates of the various paint sector sizes for the year 2004 to
2009. More information on the contents of the report is given on the
right.
Research for this title has included a comprehensive program
of desk and internet research, a review of all available published
sources, some 50 interviews with senior industry executives across the
organized and small-scale sectors and research and discussion taken
from attendance at the 22nd Indian Paint Conference held in Mumbai
in January2005.This report will serve as a valuable tool to strategic
planners, business analysts and marketing managers involved in the
manufacture, distribution and marketing of paints and coatings and
their raw materials
Information Research Limited in 3rd edition.
In A Profile of the Indian Paint Industry, 3rd Edition, IRL revisits the
Indian market offering a collective review of major developments since
2005 and then looks into the future by examining sector-by-sector
growth for the mainstream markets. Furthermore, insight and industry
opinion is brought to the marine paints and can coatings markets as
IRL expands its coverage. Value data for the Indian markets has also
been included for the first time.
Geographical Coverage:
India
Product Coverage:
The report provides up-to-date statistics and information on the
following:
History of paint production
History of paint imports and exports with analysis and comment
Paint consumption and per capita use
Market segmentation by paint type and end-use sector
Market forecasts and growth rates
Investments Surrounding the Indian Paint Industry
Technology Licenses and Agreements
Asian Paints
Kansai Nerolac Paints
Berger Paints India
Ici India
Shalimar Paints.
Market profile in India
The leaders in the organized paint industry are Asian Paints
(India) Ltd. (APIL), Goodlass Nerolac Paints Ltd. (GNPL), Berger Paints,
Jenson & Nicholson Ltd. (J&N) and ICI (India) Ltd.
An Asian paint is the industry leader with an overall market share
of 33 per cent in the organized paint market. It has the largest
distribution network among the players and its aggressive marketing
has earned it strong brand equity. The Berger Group and ICI share the
second slot in the industry with market shares of 17 per cent each.
GNPL has a market share of 15 percent in the organized sector.
Steady growth:
The Indian paint industry has very low consumption levels as
compared to the other developing economies. While the decorative
segment is growing at 1% per annum, the industrial paint segment
(led by powder and protective coatings) is also expected to record
strong growth rates going forward.
A mixed bag:
A robust housing sector is likely to boost demand in the
decorative segment. Long-term growth potential of the auto sector
is also a big positive.
Structural shift:
Continuous fall in excise duty in the past has benefited
organized players and the impending consolidation will add to the
pricing power.
Capex cycle booster:
With investment cycle showing signs of momentum,
industrial paint demand could grow at a much higher rate than the
last five years.
Demand for paint companies to increase
The Indian paints sector is valued at Rs 95 bn in value terms and is
very fragmented. In volume terms, the sector posted a 15 per
cent of growth in FY06. The current demand is estimated to be
around 650,000 tones per annum and is seasonal in nature.
Budget Measures
Hike in allocation for rural and urban hosing infrastructure
development
Reduction custom duty on chemicals from 12.5% to 7.5% budget
Measures.
Dividend distribution tax to be hiked from 12.5% to 15%
Additional education cess of 1% to fund secondary and higher
education
Budget Impact
Increased spending on rural and urban housing infrastructure
development to increase demand for paint companies
Lower custom duty on chemicals to ease some pressure on
profitability by paring the pressure on cost of inputs
Higher education cess and dividend distribution tax to impact net
profits and retained earnings
Stock Outlook
The focus on urban and rural housing to increase demand for
paint companies shall lead to increase in demand for paint
companies. Also, lower custom duty on chemicals is likely to ease
some pressure on profitability by paring the pressure on cost of
inputs. We expect the paint sector to grow at 2 time’s long-term
GDP growth in the future. With GDP growth expected to around
8% to 9% per annum, the top three players are likely to clock
above industry growth rates.
Company Impact
Market leaders like Asian Paints, Kansai Nerolac and Berger
Paints to benefit from increased spending on rural and urban
hosing
These companies will benefit in terms of lower custom duties on
raw materials like chemicals
Industry Wish List
Increase in the rate of abatement from the MRP (minimum retail
price) to 50% from 40% at present
Reduction of duty on import of raw materials used in the paints
industry to 8% from the current 16%, while retaining the rate of
import duty on finished products at 16%.
Continued impetus to the housing industry as the revival of the
same boosts the growth of the general economy and thereby the
paint industry
Indian paint Association.
Established in 1962, The Indian Paint Association is the apex body
of the Indian Paint Industry, which represents both the organized
sector and the small scale sector in the paint industry. It is a voluntary
non-political and non-profit organization which promotes the interest of
the paint industry and the society.
The IPA is a unique forum in which even the very small scale
manufacturers are members besides all the major paint producers in
India. The representative character of the association is amply
demonstrated by the fact that more than 80% of the total paint
production in the country is accounted for by members of the IPA.
Indian Small Scale Paint Association
Indian Small Scale Paint Association, commonly known as ISSPA,
traces its origin to the year 1956, when a group of small scale paint
manufacturers banded together to united promote the small scale
paint industry. Today, ISSPA's Membership encompasses the majority
of small scale paint manufacturers, spread all over India. ISSPA truly
represents the small scale paint manufacturing industry in India.
ISSPA's Membership consists of Ordinary Members (paint and allied
manufacturers) and Associate Members (connected with the paint
industry as suppliers of raw and packing materials). The Membership of
ISSPA is open to anyone connected with the paint industry.
Profile I Total Market size - US$1400 million
- Organized Sector - 55%
- Unorganized Sector - 45%
Organized Sector dominates by size large players
Unorganized Sector comprising about 2500 units manufacturing
various categories of paints.
Total Volume of the Market - 600,000MT
Profile II
Organized Sector can be divided into 2 distinct segments
- Industrial Segment growing at 15% (US$ 230 million)
- Architectural Segment growing at 8% (US$ 500 million)
Overall growth is 10 to 12%
Basic of competition in Architectural segment
- Distribution
- Brand Image
- Range of Products
Market Segment
Architectural 70%
Industrial 30%
Architectural Sector Composition
Enamels 50%
Distemper 19%
Emulsions 17%
Exterior Coatings 12%
Wood Finishes 2%
Architectural Sector Features
Enamels Steady growth
Emulsions Shift from distemper and enamels to emulsions. High
growth area
Distempers High growth in low priced low quality distempers as
consumers are upgrading from lime wash
Exteriors Exterior emulsion fastest growing segment in the Indian
Paint market.
Industrial Sector Composition
Automotive Paints - 50%
High Performance Coating - 30%
Powder Coating - 10%
Coil Coating - 5% Marine Paints - 5%
Architectural secter Compsition
Enamels
Distemper
Enulsions
Exterior Coatings
Wood Finisher
Industrial Secter Composition
Atomative Paint
High PerfermanceCoating
Pow der Coatong
Coil Coating
Marine Paint
Some of Indian paint Industry in India.
Asian paint (India) Ltd.
Asian Paints (India) Limited - Engaged in manufacturing and
exporting of decorative paints, emulsion paints, protective coatings,
industrial paints.
Berger Paint
Being an ISO 9001 company its quality products have attained
instant recognition, worldwide, and continues to meet quality
requirements that are demanded today even in the domestic
market. The Country's third largest paint manufacturer, with its
Headquarters in Calcutta, BERGER controls a distribution network
comprising of 66 stock points spread across the country.
Anupam Enterprises
Anupam Enterprises - Manufacturers of paints & coatings,
primers, enamels, lacquers, wood coatings, chlorinated rubber, two-
component epoxies and polyurethane coatings & linings and industrial
coatings.
Classic Paints
Classic Paints - Manufacturer of decorative & industrial paints
including acrylic emulsion paints, exterior paints, specialty coir
coatings and distempers.
Essar International
Managing Partner worked for one of the large paint companies
for 24 years. He held various positions such as Procurement
Manager, Commercial Manager and last 2 years as General Manager
- (Commercial) responsible for purchasing paints raw materials and
marketing of Architectural Paints.
FCL Technologies & Product Ltd
FCL Technologies & Products Ltd, is part of the Flex Group -
name that is synonymous with the flexible packaging revolution in
India, providing complete flexible Packaging solutions to over 60
countries. Today the Flex Group has Asia's largest state-of-the-art
packaging plant and allied infrastructure at NOIDA (U.P.) spread
over 70 acres and MALANPUR (near Gwalior) spread over 125 acres.
Glossy color & Paint Ltd
They provide paints tailor-made to the customer's requirement.
They have a distribution network of 800 well reputed stockiest to
reach every corner of the Indian market. Their production team is
manned by experienced qualified chemists and engineers.
ICI Paint
ICI India manufactures and markets paints, specialty chemicals,
rubber chemicals, adhesives & starch.
Shalimar Paints Limited.
Shalimar Paints is one of the leading paints manufacturing
companies of India. It has three manufacturing units and more than
45 branches and depots all across the country.
Surface Coating System
Surface Coating Systems have been founded by technocrats
having in depth knowledge of Designing/Fabrication, Application,
Erection and Commissioning of Painting & Powder Coating Systems
since 1980. The plants are designed on most modern CAD Systems
and then Fabrication on CNC Machines accordingly to Drawings.
Soujanya Enterprises
Soujanya Enterprises understands and caters to coloring
needs of Customers across five continents and twenty different
countries. Their product range includes Universal Colorants for POS
Tinting Systems, Universal Stainers And Aqueous Pigment Dispersions
for in-plant tinting.
Shalimar paint
Shalimar Paints is one of the leading paints manufacturing
companies of India. It has three manufacturing units and more than
54 branches and depots all across the country.The Company has a
wide product range in both Architectural and Industrial sectors. The
Architectural Coatings cover both Interior and Exterior sectors.The
Husain Collection based on the best quality acrylic copolymer based
emulsion is the Company's premium acrylic emulsion.The Company
also has tinting systems under the brand name "Color Space" where
the Company offers more than 9000 shades across all product lines to
its customers. Shalimar Paints was incorporated in India in 1902 as
Shalimar Paint Color & Varnish Co. Ltd. It became a public limited
company in 1961 and adopted the present name Shalimar Paints
Limited in 1963. Shalimar Paints was the first large-scale
manufacturing unit in India and also in the whole South-
EastAsiaregion.
Shalimar Paints offers comprehensive products range
covering all kinds of paints applicable in home and office
decoration and industrial settings. The architectural coatings in
home and office on interior and exterior walls are specially
designed and formulated using the expertise of the research and
development wing at Shalimar Paints.
Shalimar Paints have their corporate office in Mumbai and
three manufacturing units at Howrah, Nasik and Sikandrabad along
with 45 branches and depots. The branches and depots of Shalimar
Paints spread all across India cater to the distribution of Shalimar
Paints products to over 6000 dealers and distributors
Vision and Mission.
Shalimar's vision is to become one of the leading
paint manufacturing companies of the country, a leader in product
innovation and customer satisfaction. Shalimar intends to build
long term value relationships with all its suppliers and customers.
The Company's mission is to maximize returns of each
stakeholder in the Company be it customers, shareholders,
suppliers or employees and become a socially responsible global
Corporate Citizen.
Heritage.
1902 …… Shalimar Paint Colour & Varnish Co. Ltd.
was incorporated in India.
1928……. Pinchin Johnson & Associates bought control
of SPCV Ltd. & made it part of Red Hand
Composition Company.
1961……. The Company became a Public Limited
Company on 27th May.
1963…… Its name was changed to Shalimar Paints Limited on 1st September.
Business Incorporated in 1902 as Shalimar Paint Colour &
Varnish Company, Shalimar Paints (SPL) is promoted by Om Prakash
Jindal group. The name of the company was changed to the current
one on Sep. 1, 1963.
SPL is engaged in the manufacture of paints and varnishes.
The company`s manufacturing plants are located at Howrah, Nasik
and Sikandrabad. It has more than 45 branches and depots all
across the country. SPL has a wide product range in both
architectural and industrial sectors. The architectural coatings cover
both interior and exterior sectors. The company also has tinting
systems under the brand name `Color Space` where the company
offers more than 9,000 shades across all product lines to its
customers.
SPL has a technical collaboration agreement for coil
coatings with Kunsul Chemical (KCI) Company, Korea. KCI is one of
the largest paint manufacturing companies of Korea. SPL also
entered into a marketing agreement with paint company Akzo
Noble, for introducing in India, the Sadolin range of wood coatings. A
large number of color space systems have been installed at dealer
outlets in various locations all across the country.
Promotional strategy of Shalimar paint.
The promotional strategy of Shalimar Paints includes media
commercial and ad airing on every TV channel, newspaper, radio
channel and other media forms. Besides this, many huge corporate
houses have also had long-term association with Shalimar Paints.
These include Jindal Stainless and Jhunjhnuwala Group.
The whole range of Shalimar Paints products include:
Synthetic Enamel Paints
o Superlac Hi - Gloss Synthetic Enamel
o Superlac Satin Finish Soft Sheen Synthetic Enamel
o Superlac Luster Finish
o Diamond Synthetic Enamel
o Goldmin Synthetic Enamel
Synthetic Enamel Paints
o Xtra Premium 100% Acrylic Exterior Finish
o Superlac Acrylic Emulsion
o Shaktiman Exterior Acrylic Emulsion
o No. 1 Premium Acrylic Distemper
o Hussain Collection Premium Acrylic Emulsion
o No. 1 Silk Emulsion
o Mela Acrylic Distemper
o Cement Paints - Cemkote, Cemkote Plus, Mahacemkote
Wood Finishes and Protection Paints
o Malalac Melamine Wood Finish
o Kiricide Brown And Clear
o Black Board Paint
Aluminum Paints
o Lustrum Aluminum Paint
o Heat Resisting Aluminium Paint (Upto 250OC)
Putty
o Magic Acrylic Wall Putty
o Gold Size Glass Putty
Primers
o Wall Neutralizing Cement Primer
o Water Thinnable Cement Primer
o Pink/ Grey Primer For Wood
o Red Oxide Metal Primer
o Synthetic Red Lead Primer
o Red Oxide Zinc Chromate Primer
o Zinc Chromate Primer Yellow
o Universal White Primer
o Rustguard Red Lead Primer
Varnishes and Polish
o Superlac Clear Synthetic Varnish
o Golden Guinea Copal Varnish
o Golden Guinea French Wood Polish
Dry Colors
o Heart Brand Dry Colours For Cement Floors
o Red Oxide
o Deep Black
o Green/Blue Oxide
o Yellow Oxide
Another popular category is the Hussain Collection that gives a
smooth and eggshell gloss finish to the surface painted. The
advantages of Hussain collection are a whole spectrum of colors in
shade card to choose from, luxuriously smooth finish and fast drying.
Get the Shade Card online on the official site of Shalimar Paints listing
the whole palette of shades and colors available in the entire product
range by ShalimarPaints.
In the industrial paints segment, Shalimar Paints has a long
association with global giants like Pinchin Johnson Co. and International
Paints PLC, UK. The industrial paints products by Shalimar Paints cater
to high performance coatings in the heavy industries like
petrochemicals, nuclear and thermal power, heavy machinery
manufacturers, construction industries etc. along with coatings finish
for two wheelers, tractors, cylinders and textile machinery. Metal
decoration coatings and Indian marine industry also are among the
major clients of Shalimar Paints.
For the dealers and retail outlets and shops locations of Shalimar
Paints refer to the Shalimar Paints Ltd website that gives a dealer
locator. Also get an online color visualizer that creates a virtual room
and helps you analyze the color or shade you have chosen the way it
will appear on the walls. A cost calculator is provided that helps you
estimate the cost of the painting job undertaken. The Shalimar Paints
site also has a special segment dedicated to painting tips that ensures
optimum use of the paint products and the best finish.
Financials
The Company reported an 18.64% growth in net profits at Rs 7
million for the quarter ended September 2006 as against Rs 5.9 million
during the corresponding quarter in the previous year. Sales for this
period increased by 18.99% to Rs585.5 million from Rs 492.3million.
SPL reported a 14.24% increase in sales at Rs 2170.4 million for
the year ended March 2006, as against Rs 1,899.9 million for year
ended March 2005. Net profit for this period also increased 72.22% to
Rs 34.1 million as against Rs 19.8 million. The EPS for FY06 stood at Rs
9.01.
RecentDevelopments
The restructuring and investments committee of Shalimar Paints
approved investment of Rs 850,000 in equity shares of Shalimar
Adhunik Nirman. Consequently, Shalimar Adhunik Nirman has become
a subsidiary of the Shalimar Paints.
FuturePlans
The Company wants to develop new water-based eco-friendly
paints, polyester and silicone co-polymer coatings, new generation
wood finish and timber treatments. It also wants to develop a new
technology in can coating, coil coating and marine paint. The
company`s strategy will be to focussed on the emulsions segment,
particularly the exterior segment. It is also looking at strategic
alliances with reputed partners in new and fast growing areas.
Recent Developments
The restructuring and investments committee of Shalimar Paints
approved investment of Rs 850,000 in equity shares of Shalimar
Adhunik Nirman. Consequently, Shalimar Adhunik Nirman has become
a subsidiary of the Shalimar Paints. Future Plans the Company wants to
develop new water-based eco-friendly paints, polyester and silicone co-
polymer coatings, new generation wood finish and timber treatm.
Brief Financials (in Rs. Mn.)
Period ending (months) 30-Jun-2008(3)
31-Mar-2008 (12)
31-Mar-2007 (12)
Net sales 811.40 3401.40 2560.50Other Income 6.20 27.00 20.70Total Income 817.60 3428.40 2581.20Cost of goods sold 770.60 3190.00 2419.90OPBDIT 47.00 238.40 161.30PAT 15.00 95.90 47.50Gross Block - - -Equity capital 37.90 37.90 37.90EPS (Rs.) - 25.34 12.54DPS (Rs.) - - -BV (Rs.) - - -P/E range (x) - 5.98 - 20.72 8.31 - 22.68
Debt / Equity (x) - - -Operating margin (% of OI)
5.7 7.0 6.2
Net margin (% of OI) 1.8 2.8 1.8
A detail repot of net sell and Profit of Indian Paint Industry from 2003-2004
Profit margin from2003-2008
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Asian Paint
Berger
Nerolac
ICI
Shalimar
Net sell Repot of all the Paint Industry in India from 2003-2008
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2500
3000
3500
4000
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
Asian Paint
Berger Paint
Nerolac
ICI
Shalimar
DATA SOURCE
Data is collected from two sources
√ Primary source
√ Secondary source
Primary Source:
Primary data is collected by suitable questionnaire
for dealers, painters and customers. The questionnaire constitutes both
open ended and close ended questions. The questionnaire was
formulated keeping in mined the ease of answering the questions.
SECONDARY SOURCES:
Secondary data source including marketing research
book. Internet, business magazines, news paper, Radio, TV etc.
DATA ANALYSES:
1: Data preparation
The raw data obtained from the questionnaire is
taken through different stage like data editing to remove errors and
ambiguity to facilitate accurate analyses.
1: Data analyses tools
Before a data analysis was done, date is first
tabulated to ease the data analyses process. Data was then prepared
for analyses by frequency distribution of the variable in the questions.
Analysis on the basis of dealer Feed back in the Market.
0
5
10
15
20
25
30
35
Lack ofAds
Kack ofglaze andcoverage
Nodemande
fromPainter
andCustomer
SupplyProblem
Stock Isnot
available
Shalimaris Good
Other NoResponse
LackOfMarketing
peopleVisit
Series1
SWOT analyses on the basis of research.
Strength:
DEALERS FEED BACK NUMBER PERCENTAGELack of Ads 12 30Lack of glaze and coverage 2 5No demanded from Painter and Customer 13 32.5Supply Problem 0 0Stock Is not available 1 2.5Shalimar is Good 5 12.5Other 0 0No Response 4 10Lack Of Marketing people Visit 3 7.5
Shalimar has the 100 Year above market experience in
India.
The company has a wide distribution network. The entire
country is divided into 4 zones, each of which is headed by
a Regional Business Manager.
The company has more then 45 branches and depots who
service more then 6000 dealer all accrues the country.
With its wide distribution network the company is able to
reach not only the urban market but also the rural market
and up-country market.
Weakness:
It has less coverage now as compare as to previous.
Shalimar have not a proper delivery strategy when it sold
the product to the dealer. In this area Berger is very
accurate about it.
Opportunities:
The Company has been a Pioneer in the industrial paint segment by
virtue of its long association with multinational giants lick Pinchin
Johnson Co and International Paint PLC of the UK coupled with its own
R&D strengths.
Threats:
Due to increasing of brand preference of competitor in the mind of
consumer, it may be threat for the existing loyal consumer switch
over from company.
A (Z) test on the basis of dealer survey.
Out of 130 dealer in costal area in Orissa, a sample size of 40 was taken to test the effectiveness of advertisement and 12 found mistake (negative), (check of whether the advertisement is result of poor sales). Assign limits which the number of mistakes can be expected at 95% level of confidence.
Solution:- ( q ) refers to lack of advertisement
=12=12/40=.3
(p) is 1-q=1-0.3=0.7
S.E.(q)= √pq/n=√0.7*0.3/40= √0.00525=0.023
95% confidence limit
q±1.96 s.e
=0.3±1.96 (0.023)
=0.3±0.04508
=0.34508 to 0.25492
Lack of advertisement=100*0.34508 to 100*0.25492
=34 to 25 or 25 to 34
Hence at 5%level of significance of expected that the lack of advertisement results lack of sales of Shalimar paint would vary between 25 percent to 34 percent.
FINDINGS:
Asian paint is the dominating player amongst the paint company in the costal part of Orissa.
Marketing people are not visiting regularly to the dealers.
Lack of painter or sealer preference for Shalimar paints demonstrates the weak.
Supply chain system of Shalimar is weak as compare to its competitor.
Stock position of Shalimar is not enough to meet the market demand.
There is lack of aggressive marketing promotional strategy.
Dealer meeting and painters meeting are not been conducted regularly.
SUGGESTIONS:
The company must increase its sales force. This sales force must be given proper tanning and must build professional into their work.
Marketing people should increase the number of visit to the dealer. Thy must try as much area as possible.
More ground level promotional activities should be taken care like local advertisement and putting up holding for brand visibility.
Supply chain system has to be improved.
Conclusion
On the basis of the research work we are conclude that ,for
existing in the recent global market ,every company have to satisfy the
consumer by innovative idea and dominating over the competitor by
aggressive marketing strategy .
Being Shalimar is a holder of above 100 year market
experience, it can take the advantage on its competitors in decorative
paint market. No dough in industrial paint market Shalimar is market
leader, but in decorative segment it has to improve. For doing it
company just have to remind the consumer by taking little bit effort
towards the awareness in between the consumer like giving some kind
of add in the TV, News paper, Radio, and Business Magazines. So that
it can create a good impartation in the mind of consumer towards
company and insist to loyal consumer for not switchover from Shalimar
product.
Contents
Introduction
Objective
Scope
Methodology
Limitation