INTRODUCTION 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 that should be a huge boost to the paint industry.[1] The Indian Paint industry, estimated to be a Rs.21,000 Cr. industry, has been growing at a rate of above 15% for the past few years. The organized players of the industry cater to about 65% of the overall demand, whereas the unorganized players take care of the remaining 35%, in value terms. The unorganized players mainly dominate the distemper segment.[2] The industry consists of two segments, namely:

Decorative segment - which caters to the housing sector and Industrial segment - consists of powder coatings, floor coatings and other protective coatings catering to the automobile, marine and other industries.

In the domestic market, Decorative segment accounts for 70% of the total demand for paints whereas the industrial segment accounts for the remaining 30%. History The history of Indian Paint Industry is as old as the history of the Indian people. The earliest examples of Indian painting are cave paintings going back to 10,000 B.C. The tradition of painting in Indian subcontinent grew and developed over time, resulting in a fully developed and finest style, incorporating the culture and faith of the region and religion. Indian paints always embrace rich color and clear symbolism, using specific iconography to make religious figures clearly recognizable. History of Indian Paint has fascinated culture throughout the years. Color has been the major attraction for more than 20,000 years. Two anthropologists conducted a worldwide study of color naming in 1960's. Many languages only contained two color they are the white (light) and black (dark).Today after all the research and finding we have numerous combination colors of : black, white, red, orange, yellow, green, blue, purple, pink, grey and brown. Paint is generally made up of a pigment. PAINTS AVAILABLE IN THE MARKET The types of paints available in the market and their utility are:

Acoustic Paint: specially designed for acoustic tiles

[1] http://www.researchandmarkets.com/reports/2391/indian_paint_industry [2] http://www.indianmirror.com/indian-industries/2012/paint-2012.html

Alkyd Resin Paint: good trim, doors, faux finishes and other maximized use areas Drip less Paint: This paint is thicker and is most suitable for application on ceilings Latex Paint: good for applicability and it dries much quickly & easier to wash. One-Coat Paint: It is the more expensive version of the latex and alkyd paints and is mostly chosen for surfaces that require flawlessness in color.

[1] http://www.researchandmarkets.com/reports/2391/indian_paint_industry [2] http://www.indianmirror.com/indian-industries/2012/paint-2012.html

Primers: paint used in the initiation for all interior paint works. Rubber-Base Paint: This is best for concrete and bricks. Textured Paint: If need is to cover any flawed surface in your house get this paint. It works well on ceilings.

Size Of the Industry A large number of Paint outlet or shops have automated/manual dealer tinting systems. Today India has more than 20,000 outlets in operation, probably the highest for any country. There are only approximately 7,000 tinting systems in China for a market two and half times of India's size. 30% to the paint industry revenue in India is accumulated from Industrial Paints. The size of the Paint Indian industry is around 940 million litres and is valued at approximately $2 billion. The organized sector comprises 54% of the total volume and 65% of the value .In the last ten years, the Indian Paint Industry has grown at a compounded annual growth rate (CAGR) of 1213%.[3] Top leading Companies

Asian Paints India Nerolac India Paints Berger Dulux India Paints Shalimar Paints

Latest developments Indian Paint Industry today is about Rs 49 billion sector which has demands for paints which is relatively price-elastic but is linked to the industrial and economical growth. Indian per capita consumption of paints is at 0.5 kg per annum if compared with 4 kgs in the South East Asian nations and 22 kgs in developed countries. the hands of nearly 2000 small-scale units. 0% accounts for the industrial paint segment in paint Industry while the decorative paint segment accounts for 70 % of paints sold in India.

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Production of Paints & Varnishes Apr-Feb Apr-Feb 09-10 10-11 753,289 943,324 -0.4 25.2

Feb 09 In Tonnes YoY % growth Source:CSO 63,526 -4.7

Feb 10 86,200 35.7

Indian housing sectors boom, increasing urbanization had made easy availability of housing loans and a shift from semi-permanent to permanent housing structures have been driving growth in the decorative paints segment accounting for nearly 65-70% of the Indian paint industry. Seasons are also involved in the demand for decorative paints, where consumption peaks around festive time. Globally, Indian Industrial Paints segment accounts for a major share which indicates that this segment offers many opportunities for paint manufacturers. In June 2009 with a recovery in realty sector, the production volumes in the sector have substantially recovered. In the year 20092010 the Production of paints grew by a robust 25.2% during as compared to a 40 basis points drop in production in the corresponding year-ago period. As the production of passenger cars is expected to grow by 15.3% in 2010-11 the demand for automotive paints will continue to remain healthy as sales are expected to grow in double-digits. And with realty majors launching new projects, construction activity is expected to gain momentum and generate demand for decorative paints. Rise in demand is expected to be supported by higher supply as the industry is expected to commission additional capacity in 2010-11.

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TRENDS IN THE INDUSTRY Perception Change from Aesthetic to Protective Coating Focus on Research and Development Launch of Various Innovative Product Offerings Increased Thrust on Brand Creation and Distribution Water Based Paints Substituting Lower End Paints Tinting Systems a Trend Now.[4]

Market Player The number of listed and non-listed companies in the industry is 57.However, the unorganized sector has around 2500 SMEs. Production was 1.15 million tons in 2011. Decorative paints are less technologically intensive and hence unorganized players are more active in this segment. This is the prime reason why decorative paints in India has grown at a faster rate compared to industrial paints. On the other hand, industrial paints are highly technology intensive and the segment is controlled only by organized players who have alliances with leading global players. Major players in the industry are Asian Paints, Kansai Nerolac, Berger Paints, Azko Nobel India, Shalimar, Nippon Paint (India) Ltd, and Jenson and Nicholson. Asian Paints is the largest player in the Indian industry, a market leader in decorative coating, and Asias third largest paint company. Kansai Nerolac is the 2nd largest market player in the Indian industry, a leader in industrial paints with a market share of over 40%, and the 3rd largest player in decorative paints with a market share of 13%. Berger Paints is the 3rd largest market player in the Indian Industry.[5] Shalimar paints was incorporated in India, on December 16 1902 by A.N Turner and A.C. Wright, under the name of Shalimar Paints Colour and Varnish Co. Limited. Their prime objective was to expand the goodwill and assets of paints, colours and varnishes to Shalimar Works Limited in Shalimar and Goabaria districts of West Bengal. They succeeded in taking over the reins of the business. But, to begin with they did not have the basic raw materials to start manufacturing paints. So, they started importing their raw materials from the then superpowers of the world, USA and Europe. As a matter of fact, even when the World Wars had severely influenced the importing routes and routines of the company, it still managed to produce an upward treading graph for paints in the domestic market. For about a decade, Shalimar paints was the only company to own the legal rights of mining their own raw materials. Seeing the upward trending graph, several other multinationals too had the urge to plant manufacturing units in India, particularly in cities in and around Kolkata. These companies included Elephant Oil Mills, Good lass Wall, British Paints and Jenson & Nicholson among several others. Soon, the spiking graph of Shalimar Paints attracted many wealthy business men and multinationals. They eyed Shalimar Paints are a golden opportunity for expanding and extending their business in India. Thus, many multinationals wooed Shalimar for buyouts.

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Finally in 1928, the change of ownership took place. Shalimar paints was now owned and run by a UK based multinational Company, Pinchin Johnson & Associates. They made it a part of their parent company, Red Hand Composition Company. On April 1, 1954; the word Private was added to the company name as per Section 24, of the Companies Act of 1956. On May 27, 1961 the company became a public limited company .By now; Pinchin had governed the company for about thirty six years, till 1964 when Pinchins Red Hand composition was taken over by the International Paints Plc. Later, the name of the company was changed to Shalimar Paints limited on September 1, 1966. So now, Shalimar was under two multinational companies, and by now had cast an eminent footprint in the paint industry. It became the first company to set up a large-scale unit for paint manufacturing in India. It gained access to high end technology which was mainly required for Industrial coating and brushing segment. This widened the horizons of Shalimar industry, exploring the newer fields of aviation, marine coating, and thermal power plants and many others. The range of products had broadened and the production had gone up like a shooting star. In the year 1971, about 1 lakh shares were issued as a bonus, which increased to about seven times in the following year. Out of the 7 lakh and twenty thousand shares, about forty one thousand shares were reserved for cash subscriptions by Indian Employees, while more than three lakh seventy thousand shares were put at par for public subscriptions. In 1973, the problems surfaced with the FERA (Foreign Exchange Regulation Act) regulation as majority of the company was owned by foreigners, which eventually a switch to a change in ownership hands. In 1989, the company was sold to the Hong-Kong based S.S. Jhunjhunwalas group, which was popular for its real estate and hospitality establishments and the O.P. Jindal Group who had steel as their major field of interest. They decided to jointly manage and rein over the company. By now, Shalimar Paints had done a great deal of research and development in the field of paints. With the advent of the colored computers in 1986, they became an important and indispensible part of the industry. In the following decade the company had set up a manufacturing plant at Igatpuri, near Nasik (Mahararashta). It went through a great struggling and challenging time in the year of 1997, with trades falling down. From then on, they never looked back. From the year 2000, the demand went up with the increased boon in the fields of housing and infrastructure. In 2003, it established a new plant in Sikanderabad, near Delhi. Most recently, in April 2012, the Chennai plant came into operation.[5]

[5] http://www.naukrihub.com/career-builder/indias-oldest-companies-and-their-success-storiesshalimar-paints.html