3C REPORT

BY-SWABHAGYA RANJAN KAR

MBA 1ST YEAR.
COMPANY
ABOUT BERGER PAINTS INDIA LTD -

Vision - to be the most admired Indian paint & coating Solutions Company with
globally recognised competencies.

Mission- to maximise shareholder value by developing and delivering

innovative and best solutions for our customers ,consistently outperforming
our peers and providing a dynamic & challenging work enivorment for our
employees.

Berger Paints India Ltd is the second largest paint company in India. Founded in
the year December 27, 1923. They are having their manufacturing facilities in
West Bengal Uttar Pradesh Pondicherry Goa and Jammu & Kashmir. The
company also has an international presence in 4 countries viz. Nepal
Bangladesh Poland and Russia. They are offering their customers a variety of
innovative painting solutions decorative or industrial. The company is
headquartered in kolkata and services the market through a distribution
network comprising of about 110 stock points and more than 25000 dealers.

Starting out as Hadfield's (India) limited, it had just one factory in Howrah,
West Bengal. By the close of 1947, Hadfield's was acquired by British Paints
(Holdings) Limited, UK and came to be known as British Paints (India) Limited.
In 1983, the name of the Company was changed to Berger Paints India Limited.
Currently, the majority stake is with the Delhi based Dhingra brothers. Berger
Paints has established itself through a long course of time.

TYPE OF FIRM – Public Company.

INDUSTRY – Paints.

FOUNDER - Lewis Berger.

REVENUE – RS.5165.73 Crore (2018).

OPERATING INCOME –Rs.718.55 Crore (2018).

NET INCOME – Rs.460.83 Crore (2018).

TOTAL ASSETS – Rs. 3504.70 Crore (2018).

 BOARD OF DIRECTORS

 MR.KULDIP SINGH DHINGRA (CHAIRMAN)

 MR.GURBACHAN SINGH DHINGRA(VICE-CHAIRMAN)

 MR.ABHIJIT ROY (MANAGING DIRECTOR & CEO)

 MR.KAMAL RANJAN DAS(DIRECTOR)

 MR.PULAK CHANDAN PRASAD (DIRECTOR)

 MR.NARESH GUJRAL(DIRECTOR)

 MR.GOPAL KRISHNA PILLAI(DIRECTOR)

INTERNATIONAL PRESENCE

IN INDIA
Growth –With GST rate coming down from 28% to 18%, the Indian paint
industry is looking at 10%-plus growth in sales in the current fiscal.

“Since the reduced GST rate will push up demand, we expect a 10-15% growth
in sales this fiscal,” said Mr Mahesh Anand, vice president, Indian Paint
Association, at the 55th annual general meeting held in Kolkata on Tuesday.

“The benefits of lower tax rates should entirely be passed on to consumers.

FINANCIAL PERFORMANCE -

PRODUCT MIX IN THE MARKETING MIX OF BERGER PAINTS:

The company offers a varied portfolio of products and services.

Its range of products includes:

 Interior Wall Coating

 Exterior Wall Coatings
 Berger Metal and Wood Paints
 Undercoats
 Construction Chemicals
Its range of services includes:

 Express Painting
 Expert Advice
 Powder Coatings
 GI & Automotive Coatings
 Protective Coatings

VARIOUS PRODUCTS OF BERGER

Some Interior Wall Coatings

1. SILK GLAMOR

Silk Glamor Luxury Emulsion is formulated using the

Crystal Reflective Technology to give an ultra-smooth
finish to the walls and retain its freshness for a long
timeThe product is free of added APEO, formaldehyde
and is low in VOC. Silk Glamor is available in metallic and
non-metallic shades.

2. SILK LUXURY EMULSION

Berger Silk epitomises luxury for your walls due to its
sensual finish, supreme lustre and exotic colors.
Formulated with 100% acrylic binders to enhance
scratch resistance, anti-fading pigments for those rich
hues and bio-resistant additives for enhanced durability.
Berger Silk is the treat of a lifetime for your walls.

3. EASY CLEAN
Easy Clean gives a rich luxurious finish backed up by
Cross-Linking Polymers which ensure that even stubborn
stains can be cleaned easily from the wall, keeping your
home looking spot-less & beautiful day after day.
4. RANGOLI
Rangoli Total Care gives the best-in-class coverage,
whiteness, smoothness & finish to the walls. Its enhanced
bio-resistant formula prevents the walls from fungal &
algal attacks and the fine extenders helps in giving a
butter-like smooth finish to the walls.

Some Exterior Wall Coatings

1. WEATHERCOAT LONG LIFE

Weathercoat Long Life is a luxury category exterior

emulsion, a first in the paint industry to use PU & Silicon
Technology. The product is designed for heavy rainfall
areas and provides excellent protection against extreme
rain and exterior walls issues.

2. WEATHERCOAT ALL GUARD

WeatherCoat All Guard carries forward the Legacy of

WeatherCoat. The products unique chemical composition
provides your walls all round protection from all external
challenges from the environment. Its Unique Silicon
Technology imparts visible water repellency to the paint
film and its Polymer composition doesn’t allow dust to
settle on the exterior walls.

3. WEATHERCOAT ANTI DUSTT

One of the most innovative offerings from the house of

Berger Paints is an ideal product for today’s India. The
country, which is continuously evolving and developing,
creates a number of avenues to create dust in the
environment.
4. WALMASTA

Berger's Walmasta is a-100% water based exterior paint.

The Paint is ideal for use in dry climates. It has higher
resistance to cracking and its matt finish makes it a better
alternative to cement paint.

PLACE IN THE MARKETING MIX OF BERGER PAINTS:

The company has factories in 7 locations within India situated in all four major
regions of the country. It is present in more than 80 locations in India.
Internationally, it is present in 4 countries like Nepal, Russia, Poland, and
Bangladesh. All the locations have dedicated sales team to service the
customer needs.

PRICE IN THE MARKETING MIX OF BERGER PAINTS:

The pricing of Berger Paints is affordable and comparatively less than some its
closest competitors like Asian Paints and Nerolac.For example, for a 100-125
sq. ft. area, Primer by Berger Paints costs Rs. 1880. But for the same area, it
will cost Rs.1980 in both Asian Paints and Nerolac.The rate of Primer is Rs.
65/Litre by Berger Paints. For Asian Paints and Delux it is labelled at Rs. 70/kg
and Rs. 68 respectively. The rate of wall putty is labelled by Berger Paints at Rs.
60 /Kg, whereas Dulux and Asian Paints price it at Rs. 68 /Kg and Rs. 70/Kg
respectively.

One of the best products By Berger Paints is Berger Easy clean luxury emulsion.
One litre of Berger Easy and clean emulsion costs between Rs. 434- Rs362 in e-
commerce sites like Snap deal. The most popular product by Asian Paints, on
the other hand, is Asian Paints Royale Luxury Emulsion- Gold Standard which is
labelled at a much higher price at Rs. 4,004.

PROMOTIONS IN THE MARKETING MIX OF BERGER PAINTS:

The company does a comparative analysis of its performance with respect to

its closest competitors to gauge its position in the market. The
company’s strategy is to select the target market and position its product with
the help of product differentiation, service differentiation, and image
differentiation. This helps to capture the market by providing better quality
products at a reasonable price.Television is an important medium for
advertising its products especially the high-end emulsions. Its aim is to focus
on its product range for emulsions and improve its supply chain across villages
and small towns.

SWOT ANALYSIS –

STRENGTHS –

1. With nearly one-fifth market share and is ranked one of the top 2 in India.
2. Manufactures and markets wide range of decorative and industrial paint
products under various product brands and has a substantial market share
3. It has well established operations & supply chain network spanning
throughout the country with 7 manufacturing facilities, 85 depots, several
regional & area offices with 2500 employees and over 15000 dealers.
4. Green Horizon an initiative taken towards reducing waste and conserving
natural resources; launching eco-friendly and energy efficient products
5. Berger Paints has excellent brand perception and brand awareness amongst
its potential customers.
6. It provides with high quality products and has very high market space both
in terms of visibility and sales.
7. The Company has international presence: it has 4 manufacturing facilities
abroad; operations in Russia, Nepal, Europe and Bangladesh.
8. Berger Paints is a lone supplier of protective coatings to Nuclear Power
Plants.
WEAKNESS –
1. Dependence on decorative segment where competition is intense
2. High levels of lead found leading to negative publicity
3. Limited liquidity options
OPPORTUNITIES -
1. New Product launches and innovation with changing trends
2. Strong growth Potential in India owing to urbanization
3. Business diversification
4. Product diversification
THREATS -
1. New entrants in the industry and local companies.
2. Fluctuations in raw material prices
3. Stiff competition

BERGER PAINTS IN LIGHT OF THE PORTERS FIVE FORCES

Bargaining power of supplier -

The power of suppliers ranges from medium to high in the paint industry.
However it could be understoodthat most of the inputs were usually produced
internally itself for Berger Paints.The Company ensured that they were not too
reliable on the suppliers. Hence, this reduced the power of suppliers and
Berger Paints had more control on the quality as well as the cost effectiveness
of the raw materials.

Competitive rivalry -
The existing competitor rivalry has been indeed high in the organized sector of
the paint industry butBerger paints has been one of the strong competitors in
the market. Though Asian paints was the marketleader and Berger paints came
only about half of Asian Paints market share, Berger paints still had a
verystrong foothold in the market and the competitors have always been
aware of the past effective innovations introduced by Berger Paints.

Bargaining power of buyers -

Switching costs for the buyers are very low and hence branding and product
differentiation becomes a keyin surviving the market. Berger paints decided to
attract the premium market and have introducednumber of products known
for its enamel finish, emulsion and weather resistant paints. Also,
the brandingof the products and creating a trust worthy name has also helped
in reducing the buyer power and increase the loyalty of the customers
substantially over the years

Threat of substitute products -

In rural areas lime wash is used as substitute.Another alternative for
decorative wall paints available today is wallpaper.Availabilities of paint
varieties are there.buyer propensity to substitute is low.Relative price
performance of decorative walls is high.
Threat of new entrants -
Paints industry is dominated by few players, making it difficult for anyone
newly entering the industry to compete.It is estimated that 18-20% of the total
raw materials used in the industry are imported.Working capital needed is high
cause’s difficulty to local players.

COMPETITORS –

 1. Asian Paints:-
Asian Paints Ltd is an Indian multinational paint company headquartered
in Mumbai, Maharashtra. It was founded in the year 1942. The Company
is engaged in the business of manufacturing, selling and distribution of
paints, products related to home decor, coatings, bath fittings and
providing related services. It is one of the top 10 paint companies in
India. Today, the Asian Paints group operates in 16 countries across the
world across fourregions viz. Asia, Middle East, South Pacific and Africa
through the eight corporate brands viz. Asian Paints, Asian Paints Berger,
SCIB Paints, Apco Coatings, Berger, Taubmans, Causeway Paints and
Kadisco

 2. AkzoNobel:-
Akzo Nobel India Ltd (also known as Dulux Paints) was founded in the
year 1993. It is headquartered in Amsterdam, Netherlands. Its product
range includes Basic and industrial coatings, chemicals, decorative
paints, industrial (re)finishing products. The company is known for its
innovative products.IT creates paints and performance coatings for both
industry and consumers worldwide. Headquartered in Amsterdam, the
company has activities in more than 80 countries, and employs
approximately 46,000 people. Sales in 2016 were EUR 14.2 billion.

 3. Shalimar Paints:-
Shalimar Paints Ltd was founded in the year 1902. It is headquartered in
Gurgaon, Haryana. It is founded by AC Turner and AC Wright. The
company is involved in manufacturing and marketing of industrial
coatings and decorative paints. Many of Indian iconic buildings are
painted by Shalimar Paints Ltd. The company is engaged in
manufacturing and marketing of decorative paints and industrial
coatings. Some of India’s buildings and structures such as the Howrah
Bridge, Rashtrapati Bhawan, Salt Lake Stadium, All India Institute of
 Medical Sciences, and many others, continue to be painted with
Shalimar Paints.

 4. Kansai Nerolac Paints:-

Kansai Nerolac Paint Ltd was founded in the year 1920. It is
headquartered in Mumbai, Maharashtra. Its product range includes
decorative paints, coatings, industrial (re)finishing products, basic and
industrial chemicals etc. It develops and supplies paint systems used on
the finishing lines of the cycle, material handling equipment, bus
bodies, electrical components, containers and furniture industries. It is
engaged in the industrial, automotive and powder coating business. It
develops and supplies paint systems used on the finishing lines of
electrical components, cycle, and material handling equipment, bus
bodies, containers and furniture industries.
Kansai Nerolac Paints has 6 paint manufacturing plants and about 6–7
contract manufacturers. The Nerolac owned plants are at 1. Jainpur
(Uttar Pradesh) 2. Bawal (Haryana) 3. Lote, Chiplun (Maharashtra)
4. Hosur (Tamil Nadu) 5. Sayakha (Gujarat) 6. Goindwal (Punjab).

 5. Acro Paints Ltd:-

Acro brands represent product excellence and customer satisfaction.
The products are market leader in their respective fields. The range
includes Silicon acrylic emulsions, Acrylic emulsions for interiors and
exteriors, Range of Italian Designer Finishes, World Class Textured Wall
Finishes, Premium Cement paints, Range of High performance and
Specialized coatings, World standard Construction chemicals, Water
proofing systems, Concrete additives and admixtures, etc.
TOTAL MARKET SIZE –

Today India has more than 20000 outlets in operation probably the highes
for any country.There are only approx. 7000 tinting systems in china for
market two and a half times of india’s size.30% to the paint industry revenue
in india is accumulated from industrial paints.The size of the indian paint
industry is around940 million litres and is valued appro2 billion.
 COMPARISION OF INTERIOR PAINT PRODUCTS

BERGER PAINTS ASIAN PAINTS NEROLAC DULUX PAINTS

PAINTS

Silk Royale syrne Impression 24 Velvet touch

carat

Easy clean Royale luxury Pearl emulsion Pearl glow

Rangoli Premium Lotus touch Gloss ready mix

emulsion

Bison emulsion Tractor Beauty silver Super clean

emulsion

COMPARISION OF EXTERIOR PAINT PRODUCTS

BERGER PAINTS ASIAN PAINTS NEROLAC DULUX PAINTS

PAINTS

Weathercoat Apex duracast Excel Rain Diamond

allguard Guard Exterior

Weathercoat Apex ultima Excel mica Weather guard

antidust marble maximum

Weathercoat Apex Crosstex Excel everlast Weather guard

Smooth

Walmasta Apex pebbletex Suraksha Dulux

STRENGTH AND WEAKNESS OF COMPETITORS
1. Strengths

1. Asian Paint has very strong potential in terms of market share in the
organized sector.
2. Different segment required by different customer and industry has its own
growth area and market.
3. Widest product range in terms of products, shades, pack sizes - different
decorative, some in 150 shades, 20 different pack sizes; are available
4. The pricing strategy is oriented to middle/lower end consumers

2. Weaknesses

1. In industrial paints, AP has only a 14% market share. It is far behind the
leader Goodlass Nerolac, which has a market share of 43%. Since this is
going to be the major growth segment in the future, a lag in this segment
will end up as a major weakness;
2. Widening product mix puts strain on production distribution, accounting
and administration;
3. Innovation in developing new products is inadequate;
4. Seasonal demand and hence in off seasons it can lead to cash flow
problems.
EMERGING TRENDS –

Market Trends & Developments

 Be Home & Dry with Digitalization

 Paints using water in place of solvent
 Introduction of solar Reflective Coating
 Emulsion & Enamel paints taking over Traditional White wash
 Introduction of Tinting machines to lower working capital cost
 Eco-Friendly Paints