INDUSTRY ANALYSIS REPORT

ON

PAINT INDUSTRY
SUBMITTED
TO
DEPARTMENT OF BUSINESS ADMINISTRATION

BY

\G.SRINIVAS
(08D31E0047)

INDUR INSTITUTE OF ENGINEERING & TECHNOLOGY

(Affiliated to JNTU)
Ponnala (V), Siddipet (M), Medak – 502277 AP
(2008-2010)
 CERTIFICATE

This is to certify that the Industry Analysis entitled “PAINT INDUSTRY,” submitted by
G.SRINIVAS to Indur Institute of Engineering and Technology is a record of independent
analysis report done during the Academic Year 2009-2010.

Head of the Department Industry Analysis Guide

Mr.Dr.R.Suresh Kumar Mr.Raviprakash

M.B.A (Professor) M.B.A (Assistant Professor)
 DECLARATION

I D.MANOJ GOUD, here by declare that the industry entitled PAINT INDUSTRY, submitted to
INDUR INSTITUTE OF ENGINEERING AND TECHNOLOGY. Drafted by me is an original
work of my own and has not been submitted to any college/university earlier. This industry
analysis has been written & submitted by me under the guidance of RAVIPRAKASH, department
of management Indur institute of Engineering and Technology, Ponnal, Siddipet, Medak Dist.

Place: SIDDIPET G.SRINIVAS

Date: (08D31E0047)
 ACKNOWLEDGEMENT

For completing this Industry analysis, a few people have been very helpful. I would like to lay the
word of gratitude for them imprinted. First of all I would like to thank sincerely to our H.O.D, Mr.
Dr.R.Suresh Kumar for his encouragement, motivation and kind of help to complete this
analysis. I would like to thank my college faculty, and internal guide RAVIPRAKASH for her
guidance, suggestions, help, support and encouragement. Finally I would like to extend my sincere
thanks to my friends and relatives for their valuable help.

Place: SIDDIPET G.SRINIVAS

Date: (08D31E0047)
CONTENTS PAGE NO.

CHAPTER-I INTRODUCTION
Industry origin and growth

CHAPTER-II INDUSTRY ANALYSIS

Government rules and Regulations
SWOT Analysis
Industry present and future trends
Major firms in an industry
Firms or Company strategies

CHAPTER-III DESIGN OF THE STUDY

Objectives
Scope
Methods of data collection
Data analysis
Limitation of the study

CHAPTER - IV DATA ANALYSIS

Data analysis & interpretation

CHAPTER-V
Findings
Suggestions
Conclusions
BIBLOGRAPHY
CHAPTER-I INTRODUCTION

• Industry origin and growth:-

The earliest paint factory in India dates back to 1902, when Shalimar Paints, Colour & Varnish
Company, A Pinchin Johnson unit, was established at Calcutta. Growing industrialization,
expansion of the railways and introduction of electric power a couple of years earlier had all kept
business confidence soaring high. However, this did not provide a ready and expanding market for
the nascent paint industry then. Imports from Britain continued to swarm the market and raw
materials were not easy to come by. The industry still consisting of one lone unit went through a
rather prolonged period of infancy, till the World War II brought in dramatic opportunities. With
the stoppage of imports owing to war conditions, the domestic market at last became almost the
exclusive reserve of the domestic industry. European manufacturers, hitherto exporting to India,
readily saw the advantages of setting up manufacturing facilities here. The period between the
wars thus saw the greatest ever influx of foreign paint companies into India- Goodlass Wall
(1918), Elphant Oil Mills (1917) in Bombay, and British Paints, Jenson & Nicholson and
Macfarlances in Calcutta. Macfarlanes was brought over by the Poddars and became a completely
Indian company, while the other three: Shalimar Paints (Pinchin Johnson), British Paints and
Jenson Nicholson continued as British operated units.

While talking about the post independent development of the Paint industry in India,
mention must be made of Asian Paints, a completely Indian unit which started on a very small
scale, grew so big and so beyond recognition over the years that it is today not only the largest unit
in India but way ahead of the second largest, Kansai (Goodlass) Nerolac Paints Ltd., formerly a
unit of Goodlass Wall (UK).

Besides Asian Paints, numerous factories, wholly Indian in ownership and with rare exceptions in
technology as well were set up in Calcutta, Kanpur and Bombay. The British units, though a few in
number, were technically strong and financially sound and, with the active support and patronage
of the Government, controlled a vastly higher share of the market. The post independence period
witnessed a steady growth in the paint industry. From a mere Rs.200 million turnover in 1950, the
paint industry crossed the Rs.14000 million mark in 1990-91.
But even in this period, paints were considered a luxury item. Only people with high incomes were
expected to decorate their houses with the use of paints. Paints, as a protective element, were
totally unheard of. The industrial segment, which was traditionally a low user of paints, vis-à-vis
its counterparts in the decorative segment, too contributed to this notion. In line with this
misconceived notion, the government drastically increased duties on paints in the early nineties
with an aim to bolster exchequer revenues. The result was obvious. This inevitably brought about a
downturn in the fortunes of the industry. The products, which are highly price elastic, saw a
negative growth rate of 20 % in 1991-92. The next year was also not good, registering a growth of
only 2%, bringing it back to the 1990-91 level, thus corroborating the fact that the industry needed
lower excise levels to grow. The industrial slowdown during that periodalso did not help matters.
In line with the liberalized policies and the realization that paints are not necessarily a luxury item,
duties were progressively reduced from 1993-94.

This squared growth as most companies passed on duty reductions. Further, the entry of world
majors in the automobile and white goods market in India since 1993 helped the market to expand.
Demand for auto paints shot up suddenly. Form a modest 8% growth rate in 1993-94, paint
demand touched 12% in 1995-96.

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.
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 developments as well as the injection of new technology.
History:-

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.
Types of PaintsThere 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.
For example enamel paint, when dries it becomes especially hard and usually has glossy finish.
The term enamel paint today means hard surfaced paint and usually it is used in reference to paint
floor coatings of a gloss finish or spray paints. It can be used for concrete, stairs, porches and
patios. Fast dry enamel is ideal for refrigerators, counters and other industrial finishes. High-temp
enamel may be used for engines, brakes and exhaust. Enamel is also used on wood to make it
water resistant.
The Indian Paint IndustryIn 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%The market segment is divided into two sectors.· Architectural
70%· Industrial 30%The total volume of the market is 600,000 MT.

CHAPTER-II INDUSTRY ANALYSIS

Government rules and regulations

Govt take steps to resolve paint industry crisisDecember 11, 2008 (India)
Government has announced several relief measures to support the paint industry from time to time,
which has been representing that paint exports have been affected by the global recession. Steps
taken by Government to help and improve paint industry include the following:

(i) The Technology Upgradation Fund Scheme (TUFS) was launched to facilitate the
modernisation and upgradation of the paint industry both in the organised and unorganized sector.
The Scheme has been further fine tuned to promote the rapid investments in the targeted sub-
sectors of the paint industry. The cost of machinery has been further brought down by reducing the
customs duty on imports.

(ii) To provide the paint industry with world-class facilities for setting up their paints units,
meeting international environmental and social standards, a Public-Private Partnership (PPP) based
Scheme known as the “Scheme for Integrated paint (SIP)” has been introduced in August 2005.

(iii) In 2004-05 Budget, the entire paint sector, except for man-made and filament yarn was
provided optional exemption from excise duty. In 2005-06 Budget, Central Value-added Tax
(CENVAT) on Polyester Filament Yarn has been reduced from 24% to 16%. These modifications
in fiscal levies aim at attracting more investments for modernization of textile sector.

(iv) To facilitate import of state of the art machinery to make our products internationally
competitive in post quota regime, in 2005-06 Budget, the customs duty paint machinery has been
brought down to 10% except for 23 machinery appearing in List 49, which attracts Basic Customs
Duty (BCD) of 15%. The concessional duty of 5% continues to be at 5% on most of the machinery
items.

(v) Government has launched the Debt Restructuring Scheme w.e.f. Sept., 2003 with the principal
objective to permit banks to lend to the paint sector at 8-9% rate of interest. (vi) Government has
allowed 100% Foreign Direct Investment in the paint sector under automatic route.
(vii) Government has de-reserved the readymade garments, hosiery and knitwear from SSI sector
so that large-scale investments may be encouraged in these sectors.

(viii) National Institute of Fashion Technology (NIFT) has been set up to provide the leadership
role in sensitizing the Industry to the concept of value addition by inducting trained professionals
to manage the industry. This has resulted in an increased demand for trained professionals in
various sectors servicing the industry.

(ix) A series of relief measures to paint exporters such as enhanced DEPB & Duty drawback rates,
reduced ECGC premium, subvention on credit rates, refund of service tax paid by exporters on
various services etc.;

(x) Apparel Export Promotion Council (AEPC) has established Apparel Training Design Centres
(ATDCs) throughout the country to cope with the requirement of skilled / semi-skilled manpower
for the paint industry.

This information was given by the Minister of State for Textiles, Shri E.V.K.S. Elangovan in a
written reply in the Rajya Sabha yesterday.

SWOT ANALYSIS:-
 Strengths
 Imp of brand image as barriers to new entrants
 Good technology backup.

 Weakness
 Raw materials – scarcity
 Requirement of high working capital
 Real estate in a depression phase.

 Opportunities
 Fiscal incentives provided by Government.
 Commodity to fmcg
 Rise in disposable income

 Threats
 Foreign companies entering as sole players
Industry present & future trends:-

The Indian paint and coatings industry is riding high on the growth in the Indian automobile
industry, new construction in the housing segment and improving infrastructure throughout the
country. Thirty percent of the paint business is comprised of new construction projects. GDP
growth projections of six to 6.5% in the current year mean a growth of nine to ten percent in Indian
paint business. The growth will be 12-13% in the industrial segment and eight to nine percent for
decorative paint. The Indian automobile industry has been performing remarkably well and will
benefit the market leader in the segment, Goodlass Nerolac.

As for the future, the industry has predicted a CAGR of eight to nine percent for the next five years
compared to last year’s growth levels of 27.4% for cars and 8.9% for two wheelers. The Indian
housing industry is likely to do well in the current year as well, recording a growth rate of 35% last
year. As a result of the overall health of India’s economy, it is safe to predict a nine to ten percent
growth rate for the Indian paint industry in the next five years.

Consumers can look forward to new product launches, some for application in special areas.
Companies will be increasing the value added services available to customers by offering a variety
of finishes through specialized and trained applicators. There will be more options like ranges of
colors/finishes for wood applications through the tinting machines. Additionally, the trend towards
water-based coatings is likely to set in both for industrial and decorative applications. While India
has not yet embraced the DIY concept as cheap labor is still available, exclusive retail chain stores
sponsored and run by Indian paint companies will become a reality.

The Indian paint industry has progressed well and moving ahead is likely to be influenced by
several factos including new technologies, new innovative products, new associations,
consolidation of industry and poor performers getting out of the market. Ultimately, in the years
ahead there will be only four or five key players operating in the Indian paint market.
Major firms in an industry :-

The Indian Paint Industry

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%

The market segment is divided into two sectors.

• Architectural 70%

• Industrial 30%

The total volume of the market is 600,000 MT.

Firms or company strategies :-

MARKET SHARE

The overall organized sector market share is shown in the following graph. Asian Paints leads with
a market share of 37 per cent; Goodlass Nerolac has 16 per cent while Berger Paints has 14 per
cent share.

Others, 12%

Shalimar, 4%
Asian Paints,
Jenson and
37%
Nicholson, 5.7%

ICI, 11%

Berger paints,
Goodlass
13.8%
Nerolac, 15.9%

FIGURE 4.1
The leader in the high volume medium and mass segments of decorative paints, Asian Paints has
been consolidating its market leadership over the last six years and now has the biggest slice of 37
per cent of the market for decorative paints in the organized sector as shown in on the next page.
Trailing behind are Goodlass Nerolac and Berger Paints with market shares of 13 per cent and 11
per cent respectively. Other major players from the organized sector include Jenson & Nicholson
with a low 6 per cent and ICI with 8 per cent. With the exception of Asian Paints, the market
shares of most of the major players have been stagnating over the last few years. This was
primarily due to extensive focus on urban markets and neglecting the high-potential semi urban
and rural markets.
On the other hand, one of the earliest entrants to take a lead, Goodlass Nerolac
dominates the market for industrial paints with an impressive share of 43 per cent of the market as
shown in the following graph. Though other players trail behind Goodlass Nerolac by a wide
margin, competition in industrial paints is increasing. While Asian Paints and Berger have a
market share of 14 per cent each, ICI’s share is lower at 8 per cent

I. ASIAN PAINTS:-

Asian Paints is India's largest paint company and the third largest paint company in Asia today,
with a turnover of Rs 30.2 billion (around USD 680 million). The company has an enviable
reputation in the corporate world for professionalism, fast track growth, and building shareholder
equity. Asian Paints operates in 21 countries and has 29 paint manufacturing facilities in the world
servicing consumers in over 65 countries.

Asian Paints is a great marketing success in a branded consumer product business. The company
succeeded where others failed in three areas:

First, it understood the requirements of the Indian paints market better than the MNCs which did
not bother to respond to local consumer needs. It was the first to introduce small pack sizes, a
variety of shades and a wide range of paint types (enamels, distempers, emulsions) to suit different
pockets.
Thus, in the sixties, the company came out with plaster distemper, Tractor, to suit the needs of the
mass market for a product that was much cheaper than costly emulsions but much better than the
widely used whitewash and crude powder distempers. This opened up a huge market and today
distemper accounts for 25% of the decoratives market in volumes and 15% in value. And as
recently as in 1992, the company introduced a synthetic distemper, branded Utsav, aimed at the
same rural and low income urban markets.

Secondly, in the highly competitive market emulsions segment, the company introduced as many
as 151 shades in its Apcolite range when the competition was offering a maximum of 40 odd
shades. The strategy paid off and Asian Paints today commands a 40% share in this segment. It set
up an extensive national distribution network to tap demand in smaller towns. Today it has direct
dealers in 3,200 towns and 10,000 stockists. Investments were also made in computer technology
to ensure up-to-date information interface between the marketing and production sides of the
business.

And finally, the company has displayed considerable savvy in its advertising campaigns, dealer
relations, point of sale publicity and product demonstrations to consolidate and expand markets. In
fact, the company has played a pioneering role in expanding the Indian paints market by
identifying high demand potential areas and then tapping them to maximum effect.

This ratio is defined as profit after tax divided by the shareholders fund. It measures the
profitability of the funds invested in the firm. It is regarded as a very important measure because it
reflects the productivity of the risk capital employed in the firm.

This ratio measures sales per rupee of Investment in fixed assets. It measures the
efficiency with which the Fixed Assets are employed- a high ratio indicates a high degree of
efficiency in asset utilization and a low ratio indicates inefficient use of assets. It can be seen form
the graph that this ratio is increasing for Asian Paints indicating good asset management.
II. KANSAI NEROLAC (GOODLASS NEROLAC):-

It was established in 1920 as Gahagan Paints and Varnish Co. Ltd. at Bombay. In 1930,
three British companies merged to formulate Lead Industries Group Ltd. In 1933, Lead Industries
Group Ltd. acquired entire share capital of Gahagan Paints in 1933 and thus, Goodlass Wall
(India) Ltd. was born.

Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd.
In 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. It is among the
oldest paint companies of the country and the undisputed market leader in industrial paints, with a
43% share of this segment. It is a dominant player in the auto paints market which accounts for
around one-third of the industrial paints segment. Goodlass Nerolac paints’ strength comes from
the higher end of the auto paints market - passenger cars and light commercial vehicles (LCVs)
account for 60% of the company’s auto paint sales. The rest comes from heavy trucks and two
wheelers.

In auto paints, the market share of Goodlass is now estimated to be around 50% with a 90% share
in passenger cars, 60% in LCVs, 40% in two wheelers and heavy trucks. Right now, the company
is the only significant producer of CED (cathodic electro-deposition) primer, with technical know-
how from its Japanese promoters, Kansai Paints. Goodlass is the only company offering a
complete automotive paint system comprising pre-treatment chemicals, primers, anti-rust coatings,
intermediate and top coatings as well as auto refinishes. GNPL supplies 90% of the requirements
of Maruti Udyog Ltd., which produces 300 cars a day.

The company has a tie-up with Nihon Toshuku Tokyo of Japan for sophisticated coatings for
automotive and industrial sectors. Having lost Daewoo’s Cielo contract to Asian Paints, GNPL is
pursuing business opportunities with car majors planning to enter the country. It recently tied-up
with Dupont, USA for supplying automotive paints to DuPont’s clients in India.

Goodlass Nerolac Paints Ltd. Changed its name to Kansai Nerolac Paints Ltd. in 2006. The present
human asset consists of over 2000 professionals and a sales turnover of 1226 crores. It is the
second largest coating company in India with a market share of over 20% and also the leader in
powder coatings.

III. BERGER PAINTS:-

Berger Paints is the culmination of over seven-decade process of evolution and growth that began
in 1923. Its growth has been closely linked with the business and industrial development of
modern India.

The performance of this company is anchored today in a wide variety of Decorative and
Industrial paints which continue to gain an increasing share of the highly competitive Indian paint
market. Being an ISO 9001 company its quality products have attained instant and worldwide
recognition, 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 and approximately 10,000
dealers, spread across the country.

BPIL has technical tie-ups with Herberts, a subsidiary of the German pharmaceutical major
Hoechst for automotive paints, Tendor NV of Holland for powder coatings and Valspar
Corporation, USA for heavy duty coatings. The company is particularly active in the powder
coating segment and is a supplier to most OEMs in the white good segment. With its thrust shifting
to industrial coatings, the company is expanding its powder coating capacity from 840 metric tons
to 1,840 metric tons at its existing plant.

Recently, it introduced Color Bank, a computerized mixer tinting machine in

technical collaboration with Ital Tinto of Italy. Special software, Tintovision installed in the Color
Bank gives the customers a choice of more than 5,000 shades and can even produce the colors
offered by the company’s competitors. Another achievement of Berger is the setting up of Berger
Prolinks. Prolinks is Berger Paints' response to a market environment that is increasingly driven by
technology and calibrated by expertise. Prolinks is aimed at placing the initiative in the hands of
builders, architects and designers to enable them to directly source innovative products and
services. The team is entrusted with maintaining a seamless interface between paint specifiers and
Berger Paints. The objective is to provide specifiers with a complete basis for recommending
products and processes - databases, technical services, color consultancy, site inspection, etc.
Prolinks experts ensure specific solutions to specific problems, whether it is a particular shade that
needs development, special climatic factors to be provided for, or application factors that have to
be maintained. From know-how to legwork, the Prolinks team delivers total support.

IV. ICI INDIA

ICI India was the subsidiary of the $15bn British multinational company ICI Plc. Brunner Mond &
Co., one of the four Companies that combined to form ICI in UK in 1926, opened a trading office
to sell alkalis and dyes in Calcutta. In 1923, Brunner Mond & Co. (India) was incorporated and the
company's name was subsequently changed to Imperial Chemical Industries (India) Ltd., in 1929.

ICI (India) is ranked fourth in the paint business, after Asian Paints, Goodlass
Nerolac -17-Paints and Berger Paints. Unlike the other paint companies, ICI (India) was a
diversified unit and paint constituted 43% of its net sales. It identified paints as a thrust area and
was aggressively moving to improve its position. The company invested $11 million in a new
decorative paints plant near Bombay and constructed a $16.7 million plant for industrial paints
near Chandigarh in North India.
In order to increase its presence in the paints market, ICI’s growth plan is to beef up its
distribution network, widen the purview of specialty products, access newer technologies through
joint ventures and of course, targetting the urban and semi-urban markets by introducing more
products in the lower and middle segment of the paints market. In order to be amongst the top two
players in the industry, the company is firming up plans to aggressively market its products in the
country.
The Gliddens brand is being positioned in the middle segment to supplement Maxilite in the
mass-segment and Dulux in the premium segment. In response to Jenson & Nicholson’s Instacolor,
ICI launched Color Solutions which can be used for both exteriors and interiors. This comprises a
menu driven, user friendly touch color screen on a computer that helps consumers visualize as
many as 6,000 shades on house structures resembling their homes.

V. JENSON AND NICHOLSON:-

Jenson & Nicholson, a leading paint company in the country today was established in the year
1922. It has a country wide presence with 33 branches and stock points across the country and
manufacturing plants at Naihati (near Kolkata), Sikandrabad (near Delhi) and Panvel (near
Mumbai). In 1955, it launched India’s first Plastic Emulsion paint, under the brand name of
Robbialac.

It ventured into the Powder coatings market in 1986, thus becoming the first company in the
organized sector to offer this extremely environment friendly coating technology. Subsequently, it
introduced Instacolor, in technical collaboration with M/s Tikkurilla OY of Finland. It is the first
company in the country to introduce computerized dispensing system.Jenson and Nicholson
launched the Standox brand of products in 1996 which offers over 45,000 colours to the Indian car
owner. In the very next year, the company in order to cater to highly specialized Marine paints
sector, entered into a 50:50 joint venture project with M/s Chugoku Marine paints of Japan.
Chugoku is the second largest supplier of marine paints in the world with 30% market share. The
new company also handles heavy duty coatings.
Objectives:-

1. To promote and protect the small scale paint industry in India.

2. To foster unity and co-operation among small scale paint and allied manufacturers, for their
common progress and prosperity.
3. To represent and seek redress from Government for the difficulties experienced by its
Members, by written submission to Government, interaction and representation on relevant
Government bodies.
4. To disseminate among its Members updates in technology and management practices.
5. To update Members about changes in Government regulations affecting their industry.
6. Identify problems that may arise, affecting the small scale paint industry and take preemptive
measures.

7.Maintain a library offering members ready access to several national and international
publications, but most importantly the standards for paints laid down by the Bureau of Indian
Scope:-

The Indian paint industry has come a long way from the days when paints were considered a
luxury item. Today the awareness level on preventing corrosion through paints is relatively high, a
development thatshouldbe a huge boost to the paint industry.

This report provides in-depth information and analysis on the US$ 925.0 million (2000-01) worth
Indian paint industry. The Indian paints industry offers lucrative scope for stable revenue streams to
manufacturers of both decorative and industrial paints. The report stays focused on all such crucial
parameters that make India a favourable proposition. Factors that have been given emphasis include
the low per capita consumption of paints (1.0 kilogram), growth in construction sector (it is being
offered industry status) and growth in the auto/white goods market respectively spurring demand
for decorative and industrial paints. The industry has also witnessed increased activity in the
industrial variety of paints with the entry of MNCs in auto, consumer durables etc, which has been
The report covers both the segments of decorative and industrial varieties of paints along with
elaboration on product sub-segments within these two product segments. The typical characteristics
of the Indian paints industry have been discussed in depth covering the typical features of the
Indian industry viz., raw material intensiveness, working capital intensiveness, seasonality of
The current global scenario with reference to the paint industry has been covered in the report with
special focus on auto-coats market, which is a key growth area in the International market.The
current scenario prevailing in the Indian paint industry has been pictured in detail. The share of the
organized and unorganized sector has been dealt with in detail, discussing the impact of recent
issues and trends (like excise duty rationalizations, quality consciousness in user segments) on the
industry dynamics. The demand-supply scenario existing in the industry has been covered, detailing
paint production trends in India, consumption across user segments, the trends in the exports and
imports front and factors influencing pricing. Raw material is a major cost-driver in the paint
industry, and thus the report provides comprehensive coverage on duty structure applicable for raw
materials, The organized sector has been given an in-depth focus detailing major players, their
forte, market shares of majors across product mixes and price categories.
METHODS OF DATA COLLECTION
Secondary Data
Secondary data means data that are already available i.e., they refer to the data which have already
been collected and analyzed by someone else. When the researcher utilizes secondary data, then he
has to look into various sources from where he can obtain them. In this case he is certainly not
confronted with the problems that are usually associated with the collection of original data.
Secondary data may either be published data or unpublished data.
LIMITATIONS OF STUDY

There are two limitations that need to be acknowledged and addressed regarding the present study.

 The first limitation concerns the cross-disciplinary nature of this research project. The
commitment phenomenon was studied within the context of software process improvement.
There is an apparent danger involved whenever concepts are borrowed from related
disciplines, i.e. from the fields of organizational behavior and information systems, and
then applied in the present context. The author of this thesis does not have any degree in
psychology, but he has had several discussions with scholars specializing in psychological
phenomena.
 The second limitation has to do with the extent to which the findings can be generalized
beyond the project studied. The number of cases is too limited for broad generalizations.