PAINTS: LOSING ITS COLOUR
Article Abstract:
The Rs4,000-crore paints industry, with an estimated output of 5.4 lakh tonnes, recorded a growth of 8-9 percent in 1997-98. The per capita annual consumption of paints in India is 0.5 kg. Increasing industrialistion and higher disposable incomes are expected to boost the paints industry. The decorative paints segment, with a market of Rs2,800 crore, accounts for around 70 percent of the sales. The industrial paints segment accounts for the rest. To increase their market share, paint companies are offering customisation. In line with global patterns, a shift is taking place in the domestic paints industry with paint majors realigning their product mix in favour of industrial paints. The industry is witnessing a slew of tie-ups with multinational paint companies. The industry is being hit by a shortage of titanium dioxide, the chief raw material, and has to depend on imports for its needs. The Indian paints industry is characterised by the presence of a large unorganised sector made up of around 2,500 units and accounting for 40 percent of the production. The organised sector is stated to benefit from the reduction of excise duty from 40.25 percent to 18 percent and the narrowing down of the price differential. This sector is dominated by 5 players which together account for around 75 percent of the sector's estimated turnover. While Asian Paints dominates the decorative paints sector with a market share of 38 percent, Godlass Nerolac dominates the industrial paints sector with a market share of 41 percent. The demand for decorative paints is projected to be normal and that for industrial paints is likely to be hit by the slowdown in the automobiles and the white goods sector. (tsm)
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1999
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ASHWIN DANI SHOWS HIS BRUSH STROKES
Article Abstract:
The new Vice-chairman & Managing Director designate of the Rs1,019-crore Asian Paints, Ashwin Dani, has chalked out a blueprint for progress for his company. Asian Paints holds 35 percent of the Rs2,800 crore decorative paints market and this segment account for 80 percent of the company's turnover with industrial paints accounting for the rest. Dani has restructured the company's operating style by splitting its operations into two strategic business units -one for the domestic decorative paints business and the other clubbing industrial paints, chemicals, international business and its 50:50 automotive paints joint venture (JV) with PPG Industries (PPG) of the US. Asian Paints international business amounts Rs40 crore and Dani aims to increase it to Rs250 crore by 2003 AD. Asian Paints has manufacturing bases in the Fiji Islands, Nepal, Vanuatu and Australia. A full fledged supply chain management system is being inducted with six manufacturing plants, six distribution centres and over 60 sales offices apart from numerous raw material suppliers. Ashwin Dani will also focus on its automotive paints business and the Asian PPG JV will be an exclusive upper to Hyundai's Santro and Daewoo's Matiz. (tsm)
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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