A

PRESENTATION
ON
PAINT INDUSTRY
COMPREHENSIVE PROJECT
WITH REFERANCE
BEEPEE COATINGS PVT LTD
PRESENTED BY:
( SNEHA.H.PAREKH)

( 138290592014)

[BATCH : 2013-15]
MBA SEMESTER-III &IV
(MBA)
SHIVAM INSTITUTE OF MANAGEMENT

PLAYERS IN PAINT INDUSTRY

Asian paints
Kansai Nerolac Paints Ltd
Berger Paints India Limited
Shalimar Paints
Jenson & Nicholson(I) Ltd
Snowcem Paints
British Paints
Sheenlac
Dulux Paints
Nippon Paints

INTRODUCTION OF BEEPEE COATINGS COMPANY

The company is established in 1983.
Bee Pee Coating Pvt Ltd is a subsidiary company of BERGER PAINTS
INDIA LTD.
The company manufacturing of water based paints, Enamel paints, Auto GI
and Industrial Paints, Alkyd Resins and Emulsions.
100% subsidiary unit of Berger Paints India Limited( processing unit).
Berger Paints India Limited is second largest Paint company in India.
2nd highest Market Share in the Indian paint Industry.
12000 plus paints retailers, 86 stock points , 7 production unit.
Turnover of Rs.1900 crs in decorative Business.

PRODUCT PROFILE
Paints and their allied products like
enamels, varnishes, pigments, printing
inks and synthetic resins protect national
asset from corrosion.
The Beepee Coatings Pvt Ltd is
manufacturing this product.
Varnishes
Alkyd Resins
Synthetic Enamel
Epoxy Paints

OVERVIEW OF FUNCTIONAL DEPARTMENT

There are Four department in beepee coating pvt ltd.

PRODUCTION DEPARTMENT

FINACIAL ANALYSIS B.P.C.PVT LTDRATIO ANALYSIS

2.5

liquid ratio

current ratio
1.2

1.5
Axis Title
1

0.8
Axis Title0.6

0.5

0.4

0.2
0

2011-2012 2012-2013 2013-2014

capital turnover ratio

2012-2013

2013-2014

Return &total assets Ratio

27

8
7

26

25

24

Axis Title 4
3

Axis Title

23
22

1
0

2011-2012

21
2011-2012

2012-2013

2013-2014

20

2011-2012

2012-2013

2013-2014

CONTINUE
Return on capital employed

Return on equity on shareholder fund

27.00%
26.00%
25.00%
24.00%
23.00%
Axis Title 22.00%
21.00%
20.00%

21.40%
21.20%
21.00%
20.80%
Axis Title 20.60%
20.40%
20.20%
20.00%

2011-2012

2012-2013

2013-2014

Net profit Ratio

Operating Profit ratio

7.20%
7.00%

11.50%

6.80%

11.00%

6.60%

10.50%

Axis Title 6.40%

6.20%

10.00%
Axis Title

9.50%

6.00%

9.00%

5.80%

8.50%

5.60%

2011-2012

2012-2013

2013-2014

8.00%

2011-2012 2012-2013 2013-2014

CONTINUE
Total Assets debt Ratio

Debt Equity ratio

12

0.35
0.3
0.25
0.2
0.15
0.1
Axis Title 0.05
0

10
8
Axis Title

6
4
2
0

Proprietary Ratio

2011-2012

2012-2013

2013-2014

Fix assets turnover ratio

95.00%

10.4

90.00%

10.2
85.00%

10
9.8

Axis Title 80.00%

Axis Title

75.00%

9.6
9.4

70.00%
65.00%

9.2
2011-2012

2012-2013

2013-2014

9
8.8

2011-2012

2012-2013

2013-2014

CONTINUE
Gross profit ratio

Net working capital turnover ratio

80.00%

30.00%
25.00%
20.00%
15.00%
10.00%
Axis Title 5.00%
0.00%

79.00%
78.00%
77.00%
Axis Title 76.00%
75.00%
74.00%
73.00%
72.00%

Net Worth Turnover

3.15
3.1
3.05
3
Axis Title 2.95
2.9
2.85
2.8
2.75

2011-2012

2012-2013

2013-2014

2011-2012

2012-2013

2013-2014

LEVERAGE ANALYSIS
Operating Leverage

Financial Leverage

1.16
1.15
1.14
Axis Title 1.13
1.12
1.11
1.1

2011-20122012-20132013-2014

1.02
1.02
1.02
1.01
Axis Title 1.01
1.01
1.01
1.01
1

2011-2012

Combined Leverage
1.3
1.25
Axis Title

1.2
1.15
1.1
1.05

2011-2012 2012-2013 2013-2014

2012-2013

2013-2014

SWOT ANALYSIS
STRENGTHS
-This company has excellent
brand perception and brand
awareness amongst its potential
customer.
-It is a lone supplier of proactive
coatings to necluar power plant.
- its industrial and automotive
coating is used by the best
automobile companies

WEAKNESS
-Dependence on decorative
segment where competition is
intense
- High levels of lead found
leading to negative publicity
-Limited liquidity options

OPPORTUNITY
-New Product launches and
innovation with changing trends
- Strong growth Potential in India
owing to urbanization
-Business diversification
-product diversification

THREATS
-New entrants in the industry and
local companies.
- Fluctuations in raw material
prices
- Stiff competition

FINANCIAL ANALYSIS OF CHOSEN

COMPANIES
There are four companies chose of the financial
analysis and comparing to the paint industry.
Asian Paint Ltd
Kansai Nerolac Paints Ltd
shalimar Paints
Jenson& Nicholson India Pvt Ltd

FINANCIAL ANALYSIS OF
CHOSEN COMPANIES
Current Ratio of Paint's Company

Liquid Ratio of Paint's company

1.3
1.28
1.26
1.24
Axis Title 1.22

Axis Title

1.2
1.18
1.16
1.14

2011-2012

2012-2013

2013-2014

0.59
0.58
0.57
0.56
0.55
0.54
0.53
0.52
0.51
0.5

2011-2012

2012-2013

2013-2014

Net Working Capital Turnover Ratio of Paint's Companies Gross Profit Ratio of Paint's companies
72.00%

25

70.00%

20
Axis Title

68.00%

15

Axis Title 66.00%

10

64.00%

5
0

62.00%
2011-2012

2012-2013

2013-2014

60.00%

2011-2012

2012-2013

2013-2014

FINANCIAL ANALYSIS OF
CHOSEN COMPANIES
Net Worth turnover of paint's companies Operating Leverage of Paint's companies
4
3
Axis Title 2

Axis Title

1
0

2011-2012

2012-2013

2013-2014

1.14
1.13
1.12
1.11
1.1
1.09
1.08
1.07
1.06

2011-2012

2012-2013

2013-2014

Financial Leverage of Paint's companies Combined Leverage of Paint's companies

1.02
1.02
Axis Title 1.01
1.01
1

2011-2012 2012-2013 2013-2014

1.16
1.15
1.14
1.13
Axis Title 1.12
1.11
1.1
1.09
1.08
1.07

2011-2012

2012-2013

2013-2014

PORTER FIVE FORCES

MODEL
Beepee coatings pvt ltd five forces model
Porters five
forces

High

Threat of new
Entrants

Medium

Supplier Power

Competitive
Rival

Customer
Power
Threat of
Substitutes

Low

GENERAL PROBLEM & FINANCIAL

PROBLEM OF PAINT INDUSTRY

In 1986 the California Department

of Health Services
commissioned a waste minimization study (DHS 1987) of
two paint manufacturing firms, called Plants A and B in this
guide.
The results of the two waste assessments were used to
prepare waste minimization assessment worksheets to be
completed by other paint manufacturers in a self-audit
process.
The worksheets were sent to a third paint manufacturer, to
test their effectiveness in guiding an assessment.

CONCLUSION
-

In India 30% accounts for the industrial paint segment in paint

Industry while the decorative paint segment accounts for 70 % of
paints sold in India.
Indian Paint Industry today is about Rs 49 billion sector.
Organized sector in India controls 70% of the total market with the
remaining 30% being in the hands of nearly 2000 small-scale units.
Raw material conversion period for the company is increased by 24
days in 2012-2013 as compared to previous year is not good sign.
Finished goods conversion period in 2011-2012 is highest which 14
days which has increased by 4 days as compared to next year
should be reduced.
.The ROI of Inventory management will be seen in the forms of
increased revenue and profits, positive employee atmosphere, and
on overall increase of customer satisfaction.

BIBLIOGRAPHY
--https://www.equitymaster.com/research-it/sector-info/paint/p
aint-products.html
-http://www.indianmirror.com/indian-industries/paint.html
http://www.pcimag.com/articles/print/96754-new-report-profiles
-indian-paint-industry
http://www.niir.org/profiles/profile/328/thinners.html
http://www.niir.org/profiles/tag/z,,1518_78_a/index.htm