Summer Internship Program

MBA (Class of 2013-15)

3C Report (Company, Competitors & Customer)
Company Profile
Kansai Nerolac Paints has 5 paint manufacturing plants and about 67 contract manufacturers.
The Nerolac owned plants are at 1. Jainpur (Uttarpradesh) 2. Bawal (Haryana) 3.Lote, Chiplun
(Maharastra) 4. Chennai (Tamil Nadu) 5. Hosur (Tamil Nadu)
Kansai Nerolac Paints Ltd. has entered into many technical collaborations with other industry leaders
such as E.I. Du-products.
The Mumbai-based company is the leader in the industrial paints segment with a market share
of over 40%. It is the third-largest player in the decorative paints segment with a modest market share
of 13%. Nearly 75% of the Indian paints industry consists of the decorative segment.
Parent Company
Kansai Paint was founded by Katsujiro Iwai in Amagasaki City, Japan on May 1918. Kansai Paint
is a comprehensive manufacturer of paints and coatings. The Products include- Automotive Coatings,
Industrial coatings, Decorative coatings, Protective coatings and Marine Coatings. They are also present
in U.K., Turkey, U.S.A, Canada, Mexico,UAE.
Products and Services
Technologically innovative products are the company's hallmark. Kansai Nerolac Paint offers
differentiated products with a focus on being eco-friendly and healthy. Kansai Nerolac Paints key
products and brands includes the following:
Decorative Paints: Interior wall paints, Exterior wall paints, Wood surface paints and Metals surface
paints.
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Automotive Coatings :Pre-Treatment Chemicals, Electrodepostition. Intermediate Coats/Primer
Surfacers, Topcoats, Clear Coats, Touch Up Paints, Auto Refinishing Products, Heat Resistant Paints,
Underbody Paints & PVC Sealants & Rapgard Transit Protection Films.
Performance Coatings: Performance Coating are available for wide range of products. For
household appliances and metal fittings in factories, there is a comprehensive range of general
industrial coating systems like P.T. chemicals, Primers and lacquers, Coil Coat, Heat Resistant Paints
& Metal Decoration Coatings. Powder Coating is now increasing in popularity because of its high
quality, resistance to corrosion, the apparent ease of application and the environmental friendliness
of the technology.
Kansai Nerolac Paints Ltd. manufactures a diversified range of products for every surface. The company
is the coating company in India and the market leader in automotive and powder coating. Nerolac paints
has an established brand in decorative paints. The company's products include decorative, automotive
coating and performance coatings. Kansai Nerolac Paints Ltd. was incorporated in 1920 and is based in
Mumbai.
Key Executives
JJ Iraii - chairman
D M Kothari - vice chairman
H Nishibayashi non executive director
Masaru Tanaka Non Executive Director
Y Takahashi Non Executive Director

KEY CUSTOMERS

Kansai Nerolac is the market leader in the Indian automotive industry. Some of our main customers are:








Home decorative
Contractors
Builder
Dealers
Painters
Carpenters
Architects
etc
Competitors
Name Last Price Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total Assets
Asian Paints 543.65 52,146.79 10,418.78 1,169.06 3,640.44
Berger Paints 274.10 9,497.21 3,384.82 234.25 1,287.45
Kansai Nerolac 1,383.20 7,454.34 3,154.40 206.60 1,474.91
Akzo Nobel 1,089.35 5,082.94 2,417.91 150.22 1,105.30
Shalimar Paints 85.75 162.31 483.04 -2.80 163.12
Jenson Nicholso 3.15 11.79 53.96 35.31 -230.94

SWOT Analysis
Strength
1. 2
nd
largest coating company in India and market leader in
automotive and powder coating.
2. Being a subsidiary of Kansai Paint Company Limited, the
technological edge of Kansai has helped company innovate to satisfy
consumers needs in a better way.
3. Key factors to their success are: R&D, Innovation, Quality and
Aggressive Branding and Marketing strategies.
4. Being market leaders in automotive category they have most
coveted customers like Maruti Suzuki, Toyota Kirloskar, GM, Tata
Motors, HM, Yamaha, Honda, Volvo India, Ashok Leyland etc..
5. It has robust supply chain network.
6. Its entering the Decorative segments category in a big way with ad
with celebrity brand ambassadors
Weakness
1. In decorative paints Industry Customer tastes and perceptions
change very fast and products may become obsolete with change in
trends, hence production planning and inventory problem.
Opportunity
1. Leveraging its R&D competencies the company has good scope in
developing new products with PODs which can give them
competitive advantage.
2. Building perception as eco-friendly and greener brand.
3. Capitalizing on Growth potential in rural India and Infrastructure
development.
4. Expansion initiatives can be considered as economies of scale and
possibility of exporting to neighboring emerging economies then
comes into the picture.
Threats
1. Stringent Government rules and regulations regarding the quality
of products and manufacturing facilities as Environment policies are
given more emphasis
2.Raw material scarcity and volatility in prices.
3. Competition from national and international brands as they target
India owing to its large market.






Date:12.06.0214 Signature