Professional Documents
Culture Documents
Fast Facts
Insights from Market Research conducted by Sannam S4
Research Team
November 2014
Industry Overview
2
4,220
3,758
4,000
3,500
3,000
2,500
2,000
3,172
2,562
3,416
2,832
Unorganized
30%
Unorganized
30%
1,500
1,000
500
Organized
70%
Market Segmentation
4
By Product Category
Automotive
Paints
65%
Powder
Coatings
20%
Replacement
Demand
65%
Protective
Coatings
15%
New Demand
35%
By Demand
Industrial Paints
20%
By Product category
Decorative Paints
80%
Medium range
paints
60%
Premium range
paints
25%
Distemper
segment
15%
Source: Company reports, Ambit Capital, Tata Securities, BSE India, Sannam S4
Areas of Consumption
5
Industrial/
Performance
Paints
Areas of
Consumption
Decorative Paints
Areas of Consumption
Automotive paints
(1k, 2k, solvent,
water base)
Automotive industry
Powder coatings
Premium range
(Textured emulsions,
textured enamels,
exterior emulsions.)
Medium range
(economy emulsions,
primers, premium
enamels, wood
care.)
Middle income
households in urban
areas, smaller cities and
towns
Distemper segment
(distempers,
economy primers.)
Protective coatings
Berger Paints
14%
Pros
Cons
Intense competition by
already established
manufacturers/marketers
sets a higher level of
expectation.
Below average monsoons
in a particular year may
restrict the demand for
paints, especially in the
rural areas.
Unstable crude oil prices
may lead to fluctuation in
the price of raw materials
used for manufacturing
paints.
Year
Acquiring company
Target company
Type
Merger
ICI, Dulux
Acquisitio
n
Merger
Nepal Shalimar
Acquisitio
n
Berger International
ltd. (Singapore)
Acquisitio
n
Source: Company reports
Future Outlook
9
The
revenue
is
further
anticipated to grow at a
Projected Revenue
CAGR of 13.6% from 201516
(GBP Million)
to 201718.
7,000
6,180
The industry
players
will
6,000
benefit with higher profit
5,503
margins due to positive
4,794
5,000
measures
taken
by
the
government to control the
4,000
inflation rate.
3,000
As the established players
seek to control the market
2,000
demand and thus scale
operations
to
lesser
1,000
penetrated areas, one can
0
expect
consolidations
2015-16
2016-17
2017-18
between
the
organized/unorganized paints
and coatings manufacturers. Source: Company reports, Tata Securities, BSE India, Sannam S4
Industry Trends
10
Thank You
11
Adrian Mutton
P S Krishna Kumar
CEO
Sannam S4
ABOUT SANNAM S4
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