SUMMER TRAINING REPORT

ON

“MARKETING ANALYSIS OF FVB TRADE HOUSE PVT LTD”

Submitted in Partial Fulfillment Of The Degree Of

(BACHELOR OF BUSINESS ADMINISTRATION )

SESSION : (2017-2020)

MERI COLLEGE OF ENGINEERING AND TECHNOLOGY,

SAMPLA, HARYANA

(Affiliated To Maharshi Dayanand University, Rohtak)

SUBMITTED TO : SUBMITTED BY:

DR. MANJU SINGH ABHISHEK PARASHAR

(HEAD OF DEPARTMENT) Reg NO. :- 17J9130030
BBA :- 5th Sem
UNIV. ROLL NO.
 ACKNOWLEDGEMENT

I take this opportunity to extend my sincere thanks to everybody associated directly or

indirectly in completion of the project. My special thanks to Dr. Manju Singh ( Head Of
Department), I am highly thankful to my esteemed Manager Mr Pawan Kumar for this
valuable and innovative guidance in preparing and computing this project well in time.

I would also like to convey my thanks to all the faculty members of the department for their
kind help and guidance in preparing my project.
 DECLARATION

I undersigned hereby declare that the rewards report entitled “MARKETING ANALYSIS
OF FVB TRADE HOUSE PVT LTD” submitted by me to the MDU, Rohtak for the partial
fulfillment of the requirement for the award of degree for Bachelor Of Business
Administration under the guidance of Mr. Pawan Kumar is my original work and the
conclusion drawn herein are based on the material collection by myself.

Date:

Place: ABHISHEK PARASHAR

 PREFACE

The summer training Is an integral of curriculum. During the training , a student gets an
opportunity to understand the practical of theory. Training makes the concept clear. This
project report is the outcome of the summer training that I have undergone at FVB Trade
house Pvt Ltd. (Delhi) for the partial fulfillment of BBA programme.

“MARKETING ANALYSIS OF FVB TRADE HOUSE PVT LTD”

I have tried my level best to make a good report, However, no one can claim for perfection
entirely. So I apologize for the discrepancy, if any crept in. Preparation of project requires
perseverance, initiatives, proper guidance and direction. So it is mandatory to take the aid of
various departments.

Actually a project is a summarized from of the following seven activities.

 Planning
 Resource Collection
 Organizing
 Joint Efforts
 Efficiency
 Communication
 Transparency
 Executive Summary
This report is mainly based on “Marketing Analysis of FVB Trade House Pvt. Ltd. where
FVB Paints is one of the leading paints company in India. We found that the potentiality of
increasing marketing Analysis of FVB Trade House Pvt. increasing day by day. Because the
Paint companies and individuals are investing here more compare to other area of Delhi city.
But the rivalry among the paints companies is so much high in here. But FVB Paints is the
good choice able paint company in case of individuals. In my survey 15% individuals use
FVB Paints. Because most of the individuals prefer quality paints. In that sense FVB Paints
providing high quality paints in the market. They are quality and price leader in the market.
Companies‟ preference depends on its project location, price per square feet and motive of the
company. In case of high price project a company prefers FVB Paints. At Delhi industry
environment says another thing that is here already has a great competition among the
companies. Some are too strong in the market and their market share is also competitive. So to
sustain in the strong competitive situation FVB Paints Company must to have some core
competencies or uniqueness in the product which is not have to others. Quality can be
considered as the core competencies of the company. Now FVB Trade House Pvt. Ltd. is one
of the major market share capturer. They have some excellent strategies, which I discussed in
this report. I also discussed about their future direction and assumption behind such strategy.
Their strength is more than their weakness. For this reason FVB Trade House Pvt. Ltd. is one
of the best companies in Delhi. Major findings of my report are, in India the Paints sector is
too much competitive and there are some large paints organizations who have the majority of
market share and who have too much experienced in this sector. In this situation, I have
recommended some things to entry in this competition.
 Table Of Contents
S No. Topic
1. Title

2. Certificate

3. Acknowledgement

4. Declaration

5. Preface

6. Executive Summary

7. Chapter -1 – Introduction

8. 1.1 Origion

9. 1.2 Scope

10. 1.3 Methodology

11. Chapter -2- Company Profile

12. 2.1 Vision and Mission

13. 2.2 Swot Analysis

14. 2.3 Objective Of The Study

15. 2.4 Scope Of The Study

16. Chapter -3- Research Methodology

17. Chapter -4- Industry Analysis

18. Chapter -5- Market Share Analysis

19. Chapter -6- Observation And Finding

20. Chapter -7- Questionnaire

21. Chapter -8- Conclusion

22. Bibliography
 CHAPTER – 1

INTRODUCTION
The Indian Paint Industry, estimated to be around Rs. 6,000 crores, including the Rs. 1,500
crore unorganized sector, is showing signs of emerging from the difficult phase it had
undergone for the last three years.
The Organized paint sector constitutes 65 per cent of the market and is growing at 3-4 per
cent. India's per capita paint consumption is 200 gm against 5 kg in developed countries.
India, the world’s fifth largest economy in terms of purchasing power, is emerging as an
attractive market for global investors in the paints industry. The Indian paints industry offers
lucrative scope for stable revenue streams to manufacturers of both decorative and industrial
paints. Presently, the domestic paints sector, dominated by decorative paints, is expected to
undergo a structural shift towards industrial paints.
This particular Project deals with one of the Strategic Management of paints in India. We line
out firstly about the History of paints’ Industry.

Paint is a term used to describe a number of substances that consist of a pigment suspended in
a liquid or paste vehicle such as oil or water. With a brush, a roller, or a spray gun, paint is
applied in a thin coat to various surfaces such as wood, metal, or stone. Although it’s primary
purpose is to protect the surface to which it is applied, paint also provides decoration. The
paint industry worldwide is classified into two segments viz. decorative and industrial
segment in India constitutes nearly 70% of the market whereas the scenario is just the reverse
in the developed countries.

In India, the market for industrial paints (30% of the overall market) is growing faster than
that for decorative paints. The paints majors were switching over to industrial paints sensing
better prospects of the segment. The industrial paints are produced principally by the
organized sector as this segment is relatively more technology driven. Decorative Segment is
dominated by the unorganized sector which now accounts for 70% of the total paint
production as against 75% three to four years ago. The unorganized sector has an advantage
over the organized sector since it is fully exempted from the 20% excise duty and other
government levies.
The major players in the decorative segment are Asian Paints, Kansai Nerolac (earlier
Goodlass Nerolac), Berger Paints, ICI, Jenson & Nicholson, Shalimar Paints and Garware
Paints. Each company has its relative strength in one or the other types of paints: Asian Paints
has the widest range; Kansai Nerolac is strong in distempers; Berger Paints and ICI focus on
emulsions; and Jenson & Nicholson in enamel paints. Kansai Nerolac has a higher proportion
of industrial paints while others generally have a high proportion of decorative paints. Most of
these major players, however, also produce other types of paints in which they are not
dominant. Paints and their allied products like enamels, varnishes, pigments, printing inks and
synthetic resins protect national assets from corrosion. These are increasingly being and
consumer durable sectors.

Thus economic development has a direct bearing on the paint industry. More investment in
housing and infrastructure would mean greater demand for paints as most people aspire for
better lifestyles. There is tremendous potential for the paints manufacturers in India because as
against an average per capita consumption of paints in India is very less. The Indian paints
market may grow over the next decade at 15 to 20 per cent per annum. There is a very bright
future in paint industry and new entrepreneurs should venture into this segment.

Few Indian Major Players are as under: Addisons Paints & Chemicals Ltd. Advance Paints
Pvt. Ltd. Akzo Nobel India Ltd. American Paints (India) Ltd. Arofine Polymers Ltd. Asian
Paints Industrial Coatings Ltd. Asian Paints Ltd. Asian Ppg Inds. Ltd. Bangalore Paints Ltd.
Beepee Coatings Pvt. Ltd. Berger Paints India Ltd. D I C Coatings India Ltd. Deve Paints Ltd.
Elantas Beck India Ltd. Jenson & Nicholson (India) Ltd. Kansai Nerolac Paints Ltd. Mercury
Paints & Varnishes Ltd. Multilac Surface Coating (India) Ltd. Mysore Paints & Varnish Ltd.
N C L Alltek & Seccolor Ltd. Pelican Paints Ltd. Rajit Paints Ltd. Ravi Paints & Chemicals
Ltd. Rich Paints Ltd. Sarika Paints Ltd. Shalimar Paints Ltd. Sigma Paints Ltd. Special Paints
Ltd. Tamil Nadu Paints & Allied Products Ltd.
The 29th Indian Paint Conference, the largest trade-show of the estimated Rs. 500 billion (Rs.
50,000 crores) Indian Paints and Coatings industry was organized in Agra from 11th to 13th
January 2019.

The 3-Day Conference organized by Indian Paint Association (IPA), the apex body of the
Indian paint industry was inaugurated by Sumit Sawhney, CEO & MD - Renault India and
Jayant Krishna, former Executive Director & Chief Operating Officer, National Skill
Development Corporation (NSDC) in presence of stalwarts from the Indian paint industry and
senior officials from industry bodies like CII.

Speaking on the occasion, Abhijit Roy, President - IPA said, "The Indian Paint Industry
currently valued at around Rs. 50,000 Crores is poised to grow at a healthy rate and is
expected to reach around Rs.70, 000 Crores by 2021-22. There is a strong co-relation between
the Indian Paint Industry and the GDP growth of the country. It has historically surpassed
India's GDP growth by 1.5 to 2 times."

"Although the implementation of GST regime came in as a challenge initially; the reduction of
GST rates from 28% to 18% has come in as a breather for the paint industry," he further
added.

During the Conference; Paint & Coatings Skill Council (PCSC), a body affiliated with IPA
announced the launch of an Apprenticeship Training Programme in association with National
Skill Development Corporation (NSDC) for developing skilled manpower for the industry.

"Skill development has always been one of our prime focus areas. The paint Industry
spearhead by the IPA and PCSC has taken big strides in skilling across the country and today
our painters have been exposed to not only national but also international painting best-
practices," elaborated Mr. Roy.

The theme of the 29th Indian Paint Conference was 'Paint Pe Charcha - Naye Aayaam'
signifying in-depth deliberations (Charcha) to discover new dimensions (Naye Aayaam). The
Conference witnessed knowledge sharing sessions from leading paint industry stalwarts from
India; in addition to select global speakers.

Dignitaries Present at the Media Briefing for the 29th Indian Paint Conference

• Mr. Abhijit Roy, President - IPA (MD & CEO, Berger Paints India Ltd.)

• Mr. S Mahesh Anand, Vice President - IPA (President Decorative, Nippon Paints India)

• Ms. Nita Karmakar, Secretary General IPA & Regional Director CII
• Mr. K B S Anand (MD & CEO, Asian Paints Ltd.)

• Mr. Anuj Jain (Executive Director, Kansai Nerolac Paints Ltd.)

• Mr. P K Khanna, Convenor - 29th Indian Paint Conference (Director, Punjab Paint Colour &
Varnish Works (P) Ltd.).

The secret behind its superior performance coatings is commitment to craft a specific product
to deliver specific benefits:

 Extraordinary application properties,

 Durability,
 Scrub ability,
 Longevity.

For this we keep on investing in people, business process improvement, innovation and
technologies.

FVB Paint knows that it is what is in the can that counts. That is why it strictly adheres to the
British Standard Specifications and maintains strictest quality assurance and quality control
monitored by highly seasoned technical staff throughout our value chain. At present, the
company has an enviable reputation in the coating industry for professionalism, innovation,
continuous improvement and commitment to sustainable growth and expansion. The company
looks forward to the future with hope, fortitude and imagination.
1.1 Origin:
An internship is real life experience in a business organization that required after completion
of the academic courses in order to complete the Bachelor of Business Administration
Program in MDU University. An Internship position at FVB Paints Pvt. Ltd. was acquired and
topic of the report was proposed to the supervisor of my internship course. With his approval
and conscience this report was prepared.

General Objective-
The report serves mainly the following purpose:
To find out the market share of FVB Trade House Pvt. Ltd. at Delhi area.

Specific Objectives-
The specific objectives of this report are as follow: These are -
To find out the interior sharer of FVB PVT. LTD. at Delhi area.
To find out the exterior sharer of FVB PVT. LTD. at Delhi area.
To find out the market share of competitors of FVB PVT. LTD..
Direct contribution of the company.
To find out the individual preference.
To find out the company preference.
To find out the strategy of key competitors of FVB PVT. LTD. that elements are used to
capture the market share of Paint Industry.
Positive and Negative sides of FVB PVT. LTD. at Delhi area
1.2 Scope:
This intern report is mainly based on the market share of FVB Paints Pvt Ltd. in Delhi region.
There is also the mention about the competitors of FVB Paints and their position in market in
comparison to FVB Paints. It is also mentioned about both the preferences of company and
end users choice of using paints. This report has mainly based on the answers of the
questionnaire survey and some in depth interview. Though this report has been established
through a one months time span, it would be much better if the time was bit extended.

1.3 Methodology-
Type of Research:

I have done this research to gain better understanding of the dimensions of the problems. My
study provides information to use in analyzing a situation. Usually exploratory research is
conducted with the expectations that subsequent research will be required to provide
conclusive evidence. It is serious mistake to rush into detailed surveys before less expensive
and more readily available sources of information have been exhausted. I have done this
research to help FVB PVT. LTD. for better understanding of market condition at Delhi. That’s
why exploratory research is appropriate for this study.

Sources of data:
In this report all necessary information to prepare are collected from both sources of data.
These are:

Primary Data

Consist of Information that is collected from the market initially. Primary data is known as
raw data.
Secondary Data
This source of data contains all the information and that are already exists somewhere.

Data collection procedure:

Primary data: Primary data collection process includes:

Questionnaire survey.

Observation.

In-depth interview.

Research Approach:
The primary data has collected through the market survey at the Delhi. It took probably 1
Month to complete the survey. . The secondary information required for the industry part and
organization part was collected from the credentials, unclassified reports, website of FVB
Paints Pvt Ltd.

This main part of this report has been prepared on the basis of primary data through interview.
The interview has been conducted by structured questionnaire survey. The questionnaire was
predetermined by my instructor Pawan Kumar (Sales Officer,). All the questions have been
designed to know the market share scenario of products of FVB at Delhi.

To collect the primary data through:

-Direct data gather from the projects Engineer, supervisor, owner (Individual Houses) and
painter.
Secondary data:
The secondary data comes from:

Website of FVB Paints Pvt Ltd.

The secondary information required for the industry part and organization part was collected
from the credentials and unclassified reports.

Organizational broachers

Research Instrument (Questionnaire):

Questionnaire is very flexible and easy to collect answer than other instrument. So I choose
questionnaire as research instrument to collect primary data for the report. All details about
questionnaire are given bellow-

No of question: 14 questions are in the questionnaire.

Questionnaire format: Unstructured.

Question type: Close ended liker scale and open ended.

Required time to complete answers of questionnaire: as much as needed.

Data Collection Process:-

The report is prepared on the basis of primary data and secondary data. The secondary data
collection sources are given below:

-Organizational broachers

-Web site
Data analysis:
The data which I gathered from the primary sources and secondary sources those represented
and analyzed by Pie chart, Bar and Table method. To represent this data I use some software
those are MS Word and MS Excel. After analysis I have been able to reach findings.

Sample size of the study:

This is a survey based report so I use a sample size that is 150(approximately) in numbers.
This sample size was determined by the organization and which was selected only based on
user of paints.

Study period:
My internship period is 1 Months

Limitations
The following was the main limitations that were faced while preparing the report:
During the survey few people are not interested to give proper information about their
projects.
At some projects I cannot find proper person to communicate.
At Delhi, it is very difficult to find the actual owner of the projects.
 CHAPTER – 2

COMPANY PROFILE
Fvb Trade House Private Limited is an unlisted private company.

Fvb Trade House was incorporated on 21 August, 2017. The company has 3 directors and no
reported key management personnel. The registered office of the company is at HOUSE NO
245 G/F BLOCK-M, SECTOR-5 DSIDC, BAWANA, BAWANA, North West, Delhi.

The company has 3 directors and no reported key management personnel.

The longest serving director currently on board is Gaurav Jain who was appointed on 05 July,
2018. Gaurav Jain has been on the board for 1 years and 2 months. The most recently
appointed director is Tribhuwan Narayan Joshi, who was appointed on 03 July, 2019.

Tribhuwan Narayan Joshi has the largest number of other directorships with a seat at a total of
2 companies. In total, the company is connected to 1 other companies through its directors.

05 July, 2018

GAURAV JAIN
Director

07 May, 2019

VAIBHAV JAIN
Director

03 July, 2019

TRIBHUWAN NARAYAN JOSHI

Director
2.1 Vision and Mission of the Company:

FVB Paints Pvt Ltd. operates with a very clear and concrete vision and mission. The vision
and mission statement of the company is given below:

Vision-

“We shall remain as the benchmark in the Paint industry by:

Being an innovative and technology driven Company consistently delivering world-class
products by ensuring best consumer satisfaction through continuous value added services
provided by highly professional and committed team.”

Mission-

“We shall increase our turnover by 100% in the next five years. We shall remain socially
committed ethical Company.”

Focus of FVB Pvt. Ltd.

FVB Paints Pvt Limited focuses on the following things:

 Commitment to achieve total customer satisfaction.

 Commitment to project the company as an ethical and socially responsible one.
 Commitment to continue as the market leader through consistent sales growth,
increasing productivity and developing new products befitting customer needs.
 Ensuring continuous improvement in operations through utilization of highly
professionals and dedicated team, proper process management and participation of the
stakeholders.
 Setting measurable targets at appropriate stages and continuously monitoring them.
ORGAN GRAM:
Managing

Director

Director Manager GM Manager HR

GM Supply GM, Mfg &
& GM HR
Finance System

Chain Projects
Manager Manager
G
Manager F.G Manager

Finance Planning
& Distribution

Deputy Officer F.G & Planning Assistant Assistant

Finance Distribution Officer Manager Manager

Assistant Plant Production Q.C System H.R

Manager Manager Officer

Manager Manager Officer

Finance

Officer Officer Officer Officer

General Sales
Marketing

Manager
Manager

Assistant Branch Regional

Manager
Mkt.
Manager Sales

Area Sales
Sales
Officer Manager
Officer

Sales

Officer
Products of FVB Paints

FVB Paints Pvt Ltd. offers a complete paint solution more than hundreds of products. Only
major products are shown here under three broader classifications on the basis of users
segments.

MOST COMMON PRODUCTS USED:

Interior Paints:-
1. Robbialac Acrylic Distemper (SPD): A specially formulated acrylic co-polymer
emulsion based washable distemper for elegant, smooth, durable, matt finish for
interiors.
2. Radiance Interior: A medium category plastic paint. Recently FVB PVT. LTD.
launch in the market.
3. Robbialac Acrylic Plastic Emulsion (APE): One kind of standard emulsion paint
formulated with acrylic.
4. Luxury Silk: A marvel of international emulsion technology, Luxury Silk combines
the best of aesthetic appeal with the best of functional properties like.
5. Easy Clean: one kind of high quality interior paint, which can clean dust and spot very
easily. It is an expensive but very high quality full paint.
6. Breathe Easy: It is the latest product introduced by FVB PVT. LTD.. It has low
volatile organic compound which confirms the product is environment friendly. The
product is also stain free.
Exterior Paints:-
1. Durocem Cement Coating: Durocem is an exceptional formulation based on selected
raw materials and specially treated white cement that makes it ideal for both indoor and
outdoor applications.
2. Radiance Exterior: One type of water based medium category exterior wall finish.
3. Weather Coat Smooth: Weather coat is smooth water based super exterior wall finish
formulated to give exceptional durability in adverse climatic conditions.
4. Tartaruga Textured Coating: This is one of the most famous FVB formulations in
the world. The product is paste like having special aggregate to facilitate drawing
desired textured patterns on the surface.
5. Weather Coat long life: The highest quality water based exterior wall finish with 7
years warranty.

Others Products: -
1. Illusion: FBV illusions is not just a paint it‟s a whole new lifestyle for your walls. A
range of designer wear for walls with thousands of color options.
2. Robbialac Super Gloss Synthetic Enamel (RSE): Robbialac Super Gloss Synthetic
Enamel is hardworking, premium quality synthetic enamel formulated to retain its
gloss and film integrity in the face of extreme climatic variations.
3. Jhilik Synthetic Enamel (JSE): Jhilik Synthetic Enamel is economy synthetic enamel
formulated for interior and exterior application to give a glossy durable surface.
4. Robbialac Aluminium Paint: Robbialac Aluminium Paint is a superior 2- pack
aluminium paint with a brilliant silver-like luster. It is ideal for application on the
exteriors of storage tanks for water, petrol, oil.
5. Robbialac Damp Stop: This specially formulated two-pack compound is based on
selected binder system incorporated with inert pigments' and fillers, which seals the
surface by eliminating the permeability of moisture and water that actually cause
dampness.
6. Rust Blaster: Very effective liquid which can able to clean Rust from any Metal
Elements.
7. Power Bond: This product is basically the Glue which is use for join the wood and
ceramic based product.
Sales Department (Decorative)
This department is headed by GM- Mkt., Sales (D) & Distribution who is assisted by GSM
(D).

Activities of all strategic depots are monitored and controlled by the Sales (D) Office situated
in Corporate Office. Time to time sales review meeting with the representatives of all sales
depots is conducted to evaluate the current sales position of the Co., discuss the reasons for
current success or failure, determine the next action plans to strengthen current position of the
Co., kinds of incentives offered to boost up sales and etc.
Major Functions of Sales (Decorative) Department:

 To prepare National Sales Budget detailing sales value, volume & growth and
translates it into monthly and half-yearly budget.
 To express the national sales budget in terms of Sales Area, Zone, Product & Color
Shade.
 To develop sales strategies to achieve sales budget.
 To respond to complaints of customers efficiently and take necessary action(s) for
arriving a favorable solution to the problem.
 To maintain relationship with existing dealers of the Co. and develop new dealers.
 To suggest marketing department to introduce incentive programs to enhance sales
volume.
 To scan current market condition including competitors‟ current and probable future
action pattern, customers‟ preference, dealers‟ business situation and etc.
 To monitor sales position of the Co. and initiate necessary actions if any deviation
exists.
 To arrange sales review meeting timely basis.
 To ensure smooth distribution of paints.
 To train the sales personnel to handle customers efficiently.

2.2 SWOT Analysis of FVB Paints Pvt Ltd

Strengths:

 It is the pioneer in this industry and therefore enjoys first mover advantages.
 At the moment they are the market leader as they are paying discount in the different
categories of product, Bonus Share to its shareholders, which is more than any other
paint company in the country.
 Strong brand name.
 FVB PVT. LTD. has very high skilled, energetic, hard working and motivated human
resources.
 FVB PVT. LTD. believes and practices participative management.
  FVB PVT. LTD. is engaged in product diversification, this year they are expanding the
illusion product division and also introduced Excellent Home Decoration to their
product.
 Favorable access to distribution networks.
 FVB PVT. LTD. has a very strong client base among the paint companies; most of
which are the giant local and multinational organization.

Weaknesses:

 Their lacking of punctuality for delivering products to the dealer.

 Another major weakness of FVB PVT. LTD. is lack of marketing activities to the
customer.
 High cost for importing raw materials.

Opportunities:

 With growth in our corporate sector, the demand for painting is also growing and
consequently, the paint industry.
 By introducing new products such as floor painting, illusion design & automobile
paints FVB PVT. LTD. can expand its market.
 Arrival of new technologies.
 Increasing product line.

Threats:

 There is a clear trend of increasing competition in the paint market with the entry of
more paint companies.
 A new competitor in home market.
 The competitors have new, innovative product or service.
 Competitors have superior access to the price.
 Two more multinational paint companies are coming next year.
2.3 Objectives of the Study

Broad Objective:

 The broad objective of this paper was to carry out an intensive strategic study on Fvb
Paints Pvt Ltd., gather and compile all possible relevant data regarding the paint
industry in Delhi and provide an accurate depiction of the recent development
in this sector relating to the concepts of Business Strategy learned in classroom
sessions till date.

Specific Objective:

 Understanding the principles of mission, vision, core values, objectives and their
application in respect of Fvb Paints Pvt Ltd. and the relevant industry.
 External and internal environment analysis of Fvb Paints Pvt Ltd. in the sector.
 Evaluation of resource and position of Fvb Paints Pvt Ltd.
 Analysis of generic competitive strategies for Fvb Paints Pvt Ltd.
 Identification of important business strategy choice and their effect on the overall
organization.
 Investigation on the strategies for competing in the Indian market, ethical business
practices, managing internal operations and promotion of good governance.
 Effects of balanced scorecard for Gobi’s Fvb Paints Pvt Ltd.
 Recommendations for enhancement and growth for Fvb Paints Pvt Ltd.

2.4 Scope of the Study:

The geographic scope of this research is confined within Delhi city. Information was
drawn from Fvb Paints Pvt Ltd. Officials and existing potential buyers within Delhi city
additionally executives of Fvb Paints Pvt Ltd. and employees of the organization were
interviewed.
 CHAPTER- 3

RESEARCH METHODOLOGY
The study was conducted on two sets of population, one representing the demand side and the
other the supply side of the paint sector. On the demand side, the population consists of
existing and potential consumers, and the supply side consists of interview with employees of
the organization. Interviews and questionnaires consisted much of the way through which
information was gathered for this study.

 Sources of Data

This study was conducted based on both primary and secondary data. The secondary study
was mainly required for the background study on this sector. Besides, some secondary
sources like small scale research reports conducted will also be used. Primary sources will be
from existing and potential clientele. Primary source of information came from the interview
and questionnaire conducted for the purpose of the study.

 Instruments of Data Collection

Various articles, websites and newspapers were taken into account to get the necessary
secondary information. Interviews enabled specific information relating to identifying
strategic decisions and their effects on the organization.

 Sample Design

As mentioned above, this study was conducted on two sets of population, one representing the
demand side and the other the supply side of the paint sector.

 Sampling Technique

Non-probabilistic sampling methods was selected because the complete sampling frame for
the target population was not available that is necessary to conduct the usual probabilistic
sampling techniques. Besides, limited time and budget guided the researchers to go for non-
probabilistic methods.
  Sample Size

The sample size of the interviews was small. The interview sessions provided much in depth
knowledge and information required for the fulfillment of the study

TECHNICAL ASPECTS

1. Production detail & Process of Manufacture:

The process of manufacturing consists of various steps, as follows:

a) Mill base Preparation:

Solution of hydroxy ethyl cellulose (HEC) is made with the help of water and
ammonia. All the pigments and extenders are mixed with the small quantity of
water and weighting agents with the help of high speed stirrer having the rpm of
1500.

b) Grinding:

The prepared mill base is passed through the sand mill with the flow rate of 3 –
4 litrs per minutes. For light colour mill based is passed once through the sand
mill and for dark colour it is passed through twice or thrice depending upon the
hardness of pigment.

c) Make up:

The grinded material is mixed with the remaining water and emulsion at a low
rpm with the high speed stirrer. Thickener, coaleasing agents, defoamer, buffer
solution are added under slow speed to get the right consistency.

d) Tinting:

Various water based stainers are added to the prepared paint to get the required
shade of paint.
 e) Packing/Despatching:

After preparation and thorough checking of quality parameters the acrylic paint is
packed to different small containers. Now it is ready for dispatch at various places.

2. Quality Control & Specification:

BIS:15489 – 2004 Type – II for exterior acrylic paints is used as quality standard.
Under this wet opacity, drying time, finish colour, resist to alkali, wet scrubbality
tests are performed to check the quality.

Production Capacity ( per annum )

a) Quantity : 2,88,000 Ltrs.

b) Value (Rs.) : 1,87,20,000/-

3. Motive Power Requirement:

35 HP

4. Pollution Control:

NOC from Pollution Control Board is necessary to be obtained before starting the
industrial activity. Suitable equipments are to be provided to check the harmful and
non-permissible contents in the effluent. Hence, effluent water may be treated
suitably to remove harmful contents before discharging the effluent.

5. Energy Conservation:

Suitable provisions like shunt capacitor for electric motors, thermal insulation, air
driven automatic exhaust etc. are required to save energy. All energy devices are
required to be used with care and judiciously.
STUDY OF EXISTING SCENARIO The project was a market survey targeting the FVB club
card dealers. The students was asked to do this project with dealers confined to Madurai
depot. The students had two day induction program to know about the paint industry, about
FVB paints, current market scenario and competition, company schemes working in the
market,about colour bank scheme.

The first day students learned about the company profile, activities, product varieties, painting
methodology, alternate channels, club card dealers, profit margin fixation, master painter
schemes, schemes for dealers.

The students learned about the dealer acquisition process and the benefits a new dealer would
get from FVB for starting a dealership. The students learned about the credit period
calculation and discount rates. The students learned about the competitors product and there
market schemes. The students gained knowledge about the sales contributors of paint industry.
This constituted Dealers, painters, contractors/engineers and customers.

The students learned the new dealer attracting scheme of FVB and these include the following

1. Initial investment of Rs. 75,000, which includes an initial investment of Rs. 25,000 for
tinting machine and Rs. 50,000 for products
2. Once the dealer gives the check for Rs. 75,000, the dealer would be given products
worth of Rs. 1,00,000 and a tinting machine worth of Rs.1,25,000
3. The tinting machine costs Rs.1, 25,000. Dealers have to pay this amount in five yearly
installments.
4. When the dealers pay Rs. 50,000 for products, they would get products worth Rs. 1,
00,000 which includes products given in credit worth Rs. 50,000
5. The shop space needed is just 200 sq. ft.
6. One dedicated sales person is needed for paint, whom the company will give adequate
training to operate the tinting machine
7. Credit note will be given at the time of order itself. Depending upon the timely
payments of due, dealers could enjoy full credit notes. If the dealers delay the payment,
the credit note will be decreased accordingly.
8. Promotion will be taken care by the depot and staff members of FVB Adequate
promotion programs will be conducted to educate Painters and Engineers frequently
The students also learned about the profit obtained in Cement, Steel, Tile and other hardware
business. The students came to know that profit obtained would be greater in Paint sales than
any other hardware business the club card dealers are indulged in.

Field work The students were give opportunity to learn the market trends and activities
through field work(astall management activity). The students had to do direct interaction with
the customers, painters who are visiting a FVB dealer counter. The students were asked to
brief the customers about FVB “Home painting scheme” and Painters about the “Master
painter scheme”. The students were asked to do interaction with the dealer to gain knowledge
about the dealer’s perception about the brand and current market scenarios.

The students learned that current market scenario for FVB needs reconsideration. The
customers of Madurai region are unaware of the brand FVB. The customers are driven by the
painters to choose a brand on their behalf. Though there are some exceptions they constitute a
very low percentage of the total consumer potential. The Painters are incentive oriented. The
dealers would look for both profit margin and quality. They expect good relationship and
individual concentration.

The students were involved in conducting a Painter meet along with other similar aspirants.
They were asked to collect painter details and also to generate valuable leads for Master
painter schemes. The main aim of the painter meet is to interact with the painters and to earn
their loyalty. Painter contribution in FVB sales is a considerable one. Shop meets are also
conducted frequently to keep them in touch with the company. The students conducted shop
meet in one of the exclusive outlet of FVB paint.
Field Study The questionnaire for the survey contained details mostly regarding the existing
business of the dealers and other basic information. Survey was the key to find the details
form the dealers regarding the current business environment.

The list of information obtained from the survey is as follows:

1. Name of the dealer

2. Contact number of the dealer

3. Type of products in the counter

4. Key volume contributor for the counter

5. Turnover

6. FVB sales volume

7. Expected increase in sales every year 16

8. Profitable product in the counter

9. Inventory

10. Awareness about FVB market schemes

11. Fastest moving brand in the outlet

12. Key driver for the product

13. Ratings for company sales team, service and product quality.

14. Number of master painters in the counter.

15. Feedback about the problems faced by the dealers

16. Potential influencer of Paint product.

When the survey gets over the students would have basic idea about the dealers in the market.
How they rate the brand against the competitors, the working of sales team and service of the
company, the key drivers and contributors that the company should focus on. The problems
faced by the dealers could be obtained from the feedback this would help to take corrective
actions

Market Study The geographical area covered by the students coveredunder Madurai district.
The students targeted the dealers under Madurai depot.Madurai which is a relationship market
covers around 25 dealers. The market is very sensitive as dealer’s value relationship. Asian is
dominating the market with its wide market presence. Rotation of Asian if faster than FVB
this allows the dealers to have more liquidity. Multi branded outlets enjoy the availability of
profit margin from different brands. The highest profit margin is provided by Nippon which is
emerging as a major competitor for FVB.

Exclusive show room dealers are good contributors but they find it difficult to convert the
customer mentality which is fixed on to the bran Asian. FVB is trying to retain its dealers by
imparting a colour bank scheme. Painters and dealers influence the sales in the market.
Painters are provided with schemes and tokens in par with their contribution. Dealers are
provided with very good profit margin. But customer awareness of FVB is very low in the
market. From the market the students could find the marketing system of FVBthe flow of
product is indicated by the flow of arrow. Product Product 17 Depots Customer FVB.
 CHAPTER-4

INDUSTRY ANALYSIS
Definition of Paint

The general definition of paint is that, paint is a mixture of chemicals which creates color,
increases beauty and protects from fading away when it is implemented on a surface. The
functional definition of paint is that, paint can be described as any fluid material that can be
spread over a solid surface and dried or harden to an adherent, coherent, colored skin or film.

Contents of Paint

Here are four basic chemicals that are found in all types of paints. These are:

 Pigments and Fillers – Pigment is the component of the paint which is responsible for
creating color and opacity or hiding power. On the other hand, fillers are used to fill up
the gaps of pigments. Fillers are necessary for Matt Finish paints as these reduce the
gloss of the paint. But these are not always necessary for the Gloss Finish paints. These
are sometimes used in the paints to reduce the costs. As Fillers fill up the gaps of the
pigments and extend the performance of the pigments by reducing cost, fillers are also
called extenders.

 Resin or Binder – Resins are the components which bind the various chemicals of
paint together. Resins also bind the paint with the surface and create a film on the
surface. So, resin is responsible for the adhesive power of the paint. For Water-based
paints, Emultex is used as binder.

 Solvent/ Thinner – Solvent or thinner is the component of the paint which dissolves
the resin and makes the paint liquid. It is also used to control viscosity of the paint.
Water works as the solvent or thinner for the water-based paints whereas various
solvents or thinners do the work for the solvent-based paints.

 Additives – These are basically various chemicals used in very small quantity for
specific purpose. For example, Dryers (various oxidizing agents) are used to make the
paint easy and fast dry one, Preservatives (used only for water-based paints) are used to
 preserve the paint till use and of the paint, Anti Fungal Solution is used in the exterior
paints to protect from fungal attack, De-foamer is used in the water-based paints to
protect the creation of foam in the paint. give the paint the desired shelf life, Dispersers
are used to faster the dispersion process.

Types of paints
Paint can be divided into various types by considering different aspects.

 Painting is mainly of three categories:

1. Decorative (about 84% – 85%)
2. Industrial
3. Marine

 In Decorative sector, the two major classifications are:

1. Exterior
2. Interior

 From the application sequence, paints can be categorized as:

1. Primer
2. Under coat
3. Finish coat

 Paints can be divided into two categories according to thinner/ solvent usage:
1. Water-based
2. Solvent-based
Parameters to categorize paint
There are seven parameters, using which we can categorize different paints into major
categories. These are:

Whether the paint is Water-based or Solvent-based

If the paint is Solvent-based, what is the solvent
Whether the paint is Decorative or Industrial or Marine
Whether the paint is used as Primer or Undercoat or Finish coat
Whether the paint gives Matt finish or Gloss Finish
On what type of surface the paint can be used
Whether the paint is used in exterior or interior surface.

Paint Sector Analysis Report:

Demand for paints comes from two broad categories:

 Decoratives:

Major segments in decoratives include exterior wall paints, interior wall paints, wood
finishes and enamel and ancillary products such as primers, putties etc. Decorative
paints account for around 80% of the overall paint market in India. Asian Paints is the
market leader in this segment. Demand for decorative paints arises from household
painting, architectural and other display purposes. Demand in the festive season
(September-December) is significant, as compared to other periods. This segment is
price sensitive and is a higher margin business as compared to industrial segment.

 Industrial:

Three main segments of the industrial sector include automotive coatings, powder
coatings and protective coatings. Kansai Nerolac is the market leader in this segment.
 User industries for industrial paints include automobiles engineering and consumer
durables. The industrial paints segment is far more technology intensive than the
decorative segment.

 The paints sector is raw material intensive, with over 300 raw materials (50% petro-
based derivatives) involved in the manufacturing process. Since most of the raw
materials are petroleum based, the industry benefits from softening crude prices.
 2017-18 was an eventful year for the domestic market. The introduction of GST
ushered in a new era in Indian business. The Paint industry successfully adopted the
new Tax system put in place.
 The industry did feel the impact of demonetization as well as GST and demand as a
whole for the industry was subdued in both the segments. The organized players are
expected to perform better than the small and medium scale players. The industry
however views GST as positive and beneficial in the long run.
 Under the make in India initiative, the government of India aims to increase the share
of the manufacturing sector to the gross domestic product (GDP) to 25% buy 2022
from existing 16%.
 Manufacturing sector has the potential to reach US$ 1 trillion by 2025 and India is
expected to rank amongst the three growth economies and manufacturing destinations
of the world by 2020. These factors expected to significantly boost industrial paint
consumption.

HOW TO RESEARCH THE PAINTS SECTOR (KEY POINTS)

Supply

Supply exceeds demand in both the decorative as well as the industrial paints segments.
Industry is fragmented.

Demand

Demand for decorative paints depends on the housing sector and good monsoons. Industrial
paint demand is linked to user industries like auto, engineering and consumer durables.
Barriers to entry

Brand, distribution network, working capital efficiency and technology play a crucial role.

Bargaining power of suppliers

Price increase constrained with the presence of the unorganised sector for the decorative
segment. Sophisticated buyers of industrial paints also limit the bargaining power of suppliers.
It is therefore that margins are better in the decorative segment.

Bargaining power of customers

High due to availability of wide choice.

Competition

In both categories, companies in the organised sector focus on brand building. Higher pricing
through product differentiation is also followed as a competitive strategy.

FINANCIAL YEAR '18

 The year FY18 started retail off-take in May-June was curtailed due to GST
implementation from 1 July 2017. As a result, first quarter fell of expectations. The
retailer channel continued to be uncertain during the second quarter but on account of
an early Diwali, growth returned.
 On the cost front, the first half of the year saw a deflationary trend, which led to
reduction in raw material prices. From the second half of the year, the industry
witnessed an inflationary trend. This trend is expected to accelerate in the new financial
year, further putting pressure on costs.
 Rupee volatility also contributed to uncertainty on the cost front and continued to
create challenges for the industry.
 The manufacturing component of the IIP recorded 4.4% growth in FY17 and 8.4% in
December 2017. The production levels are expected to pick up growth again as the
Goods and Services Tax (GST) has finally been implemented.
PROSPECTS:

 Decorative paints segment is expected to witness higher growth going forward. The
fiscal incentives given by the government to the housing sector have immensely
benefited the housing sector. This will benefit key players in the long term.
 The Indian paint and coating industry is expected to grow steadily in the short and
medium term on the back of strong growth in Indian economy. India’s young
population represents a huge opportunity as more young Indians join the workforce and
will have disposable income available.
 Manufacturing sector grew at a CAGR of 6.9% between FY12 and FY18.
 Huge domestic market with a rapidly increasing middle class and overall population.
By 2030, Indian middle class is expected to have the second largest share in global
consumption at 17%. (Source IBEF)
 Just like GST, the Government is expected to continue with its reforms agenda, with
policy decisions to come in sectors like infrastructure and power. These reforms would
provide great impetus to the economy as well as to the paint industry.
 Decorative paints segment is expected to witness higher growth going forward. The
fiscal incentives given by the government to the housing sector have immensely
benefited the housing sector. This will benefit key players in the long term.
 CHAPTER- 5

Maket Share Analysis

Market Share Analysis:
Types of projects in terms of ownership:

Number of

Types of projects Houses

No. of Individuals

Project 7

No. of company‟s

Project 3

Total Projects visit 15

Individual Company

In Delhi 15% projects are initiated by individuals. There are very few developers. Most of the
developers are local and are not that popular. Some developers are Urmi properties Ltd, Usha
properties Ltd etc.
Preference in Number of Individuals and Companies:

FVB Paints preferred by individuals 17

Others Paints preferred by individuals 80

FVB Paints preferred by companies 18

Others Paints preferred by companies 5

We can see here 17 individuals prefer FVB Paints out of 80 individuals where as 18
companies prefer FVB Paints and 5 companies prefer paints of other companies.
Preference in Percentage (%) of Individuals and Companies

Most of individuals prefer FVB Paints to paint their home that‟s one kind opportunity for FVB
Paints. Almost 76% individuals choice FVB paints.
In case of companies the using percentage of FVB Paintsis 78%. The reason behind this I have
described at Findings
Types of Projects in terms of construction level:

Types of the Projects Number of

Houses

Full completed house 67

Paint on going house 34

Foundation, piling level & no project 4

Wall construction, roof construction 16

projects

Plaster complete house or plaster ongoing 29

Total 150
As we can see that 44% projects are full complete and 3% are paint on going but 19% projects
are now at plaster completed or plaster ongoing level which can be the most potential
customer for next three months.
Customer Analysis:-

Number of houses

Corporate Client 18

Direct Contact of 79
Customer

By contractor 47

Not found 6

Total 150

In Delhi 53% are direct contact customers. Corporate clients are very few in numbers and has
12%, 31% are by Contractor.
 CHAPTER -6

OBSERVATION AND FINDINGS

Reasons for Buying Paints from other companies:

 Lower price preferable: Suppose if a company use paints of other company they can
save Tk. 20000-25000 per project (Consider project sizes 5 katha & 6 storied building).
 Painters get commission if they influence owner and buy paint of other company.
 Influence of dealer and sub-dealer.
 Personal relationship.

Most common complaints against Berger Paint: (Weakness)

 Fvb paint is thinner than two or three years back specially Acrylic Plastic Emulsion
(APE).
 Price is not competitive.
 The „End Users‟ who mainly assist the „Sales Officer‟ are not very much motivated to
their job for which they do not have a high-level productivity.

Marketing Strategy of Asian Paint to capture the Market: (Threats)

 Asian Paint is capturing market by advertising at Hindi channel. Because Pvti people
have vast interest to Indian channel.
 Asian Paint is capturing both Indian & Pvti market by advertising at hindi channel. So
in one sense, they are minimizing their promotional cost and other sense they are
diverting those promotional savings to Dealer, Sub-dealer and Paint contractor as
commission to capture market.
 Asian Paint & Elite Paint is influencing people by offering more discount rate.
 Asian Paint is influencing dealer, sub-dealer and paint contractor of Berger Paint by
providing more extra benefits such as commission, gift and party as well as personal
relation
 Two more multinational paint companies are coming next year.
Major factors affecting paint industry and sectored change
The dormant paint industry has turned three shades pinker. It has been aroused out of its
perennial slumber. Sleepy days are gone, an MNC in its midst has done a volte-face, and
grabbed a pie out of the largest Indian player, Asian Paints. ICI's entry into Asian Paints
heralds a new era in the industry. There are two ways of looking at the new era -- either as an
era marked by consolidation among the top players, or as an era where Indian market shares,
painstakingly built through decades of protected existence, being sold out to stronger foreign
companies in an era of free competition. The ICI-Asian Paints tussle is just a case in point --
the entire paint industry is undergoing a metamorphosis.

Traditionally Indian managements are averse to destabilization but are open to a technological
tie-up. While a political debate rages between the swadeshi and videshi lobbies on the issue,
there is room for analysis on core, hard business issues. What are the factors that underline
MNC presence in the paint industry?

Why MNCs must be here: It is almost impossible to import paint, because it is difficult to
carry the huge inventories of shades that the market wants. Housewife whims decide that they
must be here and now, therefore an Indian manufacturing operation should turn out on
demand the shades that blow the Indian minds. And in these manufacturing operations, what
may allow them a competitive edge in future is their technology. Raiding MNCs bring in
certain innovative attitudes and strategies.

Technology:

Cross-border tie-ups in industrial paints are becoming the order of the day with massive
investment thrusts in automobiles and consumer durables. None of the Indian paint
manufacturers possess the requisite technology to manufacture auto-paints. What this means is
more collaborations on the cards, mainly for auto paints. Besides technological assistance, tie-
up with an international paint manufacturer catering to a foreign auto company translates into
orders from the latter's local venture (for instance, Asian Paints is the sole supplier of paints to
DCM - Cielo and Opel Astra to whom PPG of the US caters abroad). Such tie-ups will
involve imparting technology for a specific fee or setting up of separate joint ventures. The
lack of technology also affects the chances of Indian paint companies in setting up
manufacturing units abroad. Only Asian Paints has being innovative in setting up a number of
subsidiaries abroad with independent manufacturing units to broaden its base. APL has a
holding of 51 per cent in two of them - Asian Paints Fuji& Asian Paints Nepal, while 25 per
cent is held in subsidiaries at Tonga and Queensland. APL owns 45 per cent in the subsidiary
at Solomon Islands, and 20 per cent in Asian Paints, Vanuatu. Jensen & Nicholson has the
honour of being the first paint company in India to join the prestigious Nova Paint Club - an
association of eight exclusive paint companies all over the world. This enables it to access the
latest technology in the paint industry.

Unorganized sector:

The unorganized players usually small, have been relegating to lower priced paint producers
and conversion agents for the bigger players. The paint majors in the organized category will
in due course expand their reach and consolidate their positions taking advantage of the lower
tax differential between the organized and the unorganized sector. Lower excise duties and
extension of MODVAT benefits to petro-based inputs have been the reasons for the lowering
of the differential in price. This factor, coupled with the large amounts of expenditure required
in the industry will mean that the small scale sector will slowly get edged out. However, the
flexibility of the SSIs and their ability to move from one product to the other or from one
specification to the other will continue to stand them in good stead. The big players therefore
stand to gain by sourcing from the SSIs.

Rising demand:

The industry can broadly classified into decorative and industrial segments with the former
accounting for a major chunk of 70 per cent of the total market in value terms. While there
undoubtedly is currently a slowdown in demand, this is part of the economic cycle. Looking
ahead, analysts estimate substantial lag in demand till the end of the century. Sluggish capital
markets too have been responsible for the failure of capacity creation to catch up with
demand. The response of paint companies to this scenario will be to initially increase
outsourcing. Paint companies had developed subsidiaries and processing units for sub-
contracting of high-volume-low value products. But all that has changed. As of now, with
captive capacity shortages, the trend is towards outright purchases from external sources. As a
matter of fact, the lag in capacity creation is likely to force existing companies to takeover the
weaker players to enable quick augmentation of capacities.
Expansion:

Yet another fast-changing aspect is geographical expansion. Earlier days, when a fragmented
market was served by different companies, seem to be destined to end. On a longer horizon,
paint companies would be setting up new plants in regions where they do not have a
manufacturing facility presently. While this will mean more expenditure on fixed capital, the
presence in different territories will enable paint manufacturers to bring down their investment
in working capital and distribution costs. These costs are very high in the industry, not only
because of the distribution network required but also because of the requirement of stocking
different shades and pack sizes. Needless to say, taking over companies would serve the
purposes of geographical expansion just as well, and will even work out cheaper.The huge
logistics requirements and money needed for large advertising budgets as a result of
increasing competition mean that cost-cutting is all-important. This is one reason for the trend
towards backward integration in the industry. Asian Paints, for instance, is getting into the
manufacture of pthalic anhydride and pentaerythritol and Goodlass Nerolac is getting into
pigment manufacturing.

Rural market:

The huge rural market in India offers huge potential for paint companies. For example ICI Plc
which till now has a presence in the premium segment, after having taken a stake in Asian
Paints might try to penetrate the rural segment by forging strategic alliances with APL.
Recommendation:

From our findings we can say that Asian & Elite Paint is the key competitor of FVB Paint.
Strategically Asian Paint is trying to hit Berger Paint and also to get the market position.
Generally competitors hit the weak spot of the company.

So FVB should tries to retain its quality of product forever and to improve better than the
present. Here we are telling specifically for quality improvement because in our some of data
we found complain against Acrylic Plastic Emulsion (APE), this paint look like thin than
before and reduced its coverage area.

So we suggest that FVB Paint should concentrate on complain against their product and try to
understand the perception about general public.
 CHAPTER-7

QUESTIONNARIE
 Interviewee :

Designation :

Contact Number:

Interviewer :

File No: Questionnaire Date:…../….../2019

Projects Name:

Type ofProject:1. Company 2. Individual

No. of floor

Contact Number :

Paint contractor:
Painting Status:1. Complete 2. Running 3. Incomplete

Category : i) U (Within1 month) ii) A (1-3 months)

iii) B (3-6 months) iv) Above 6 months

a) Is painting decision made or not?

1. Yes 2. No

If yes

b) Which paint company is being selected for interior?

1. Fvb Paint 2. Asian 3. Elite 4. Roxy 5. Others

c) Which paint company is being selected for exterior?

1. Fvb Paint 2. Asian 3. Elite 4. Roxy 5. Others

d) Dealer Attachment: 1. Uttara 2. Outside of Zone-11 3. Corporate client

e) Dealer Name:

Note:
CHAPTER -8

CONCLUSION
FVB Paints is one of the established organizations in Pvt. As it is a Indian company and
in Pvt it is expanding its business, so it always focuses on following many criteria of an
identical organization. By improving their product quality to the fullest and by providing
end user proper motivation to increase their productivity, FVB paint can reach their
actual goal in less time. While analyzing its market share it is clear that they are the
market leader today and they tried their level best to stay as market leader for the further
future.

In the decorative segment, rising dominance of the top companies coupled with improved
profitability will provide the large existing companies with the critical mass and the
internal generation to fund creation of greater capacities. Major global players will be
reluctant to enter this area because it is not technology-intensive and a strong distribution
network is a necessary condition for success. In the future only players well integrated in
the value added chain as also in the various product segments with a wide distribution
reach will be the gainers. In the future the new corporate mantra in this industry would be
brand wars, product innovations and superior distribution logistics.

The industrial paints are slated to grow at an annual rate of 10 to 12 per cent per annum for
the next few years. The industrial paint manufacturers would benefit from the burst in the
passenger car sales. The two-wheeler industry has also registered a good show in the
current year. The commercial vehicles segment, a star performer last year with 33 per cent
growth, is expecting to average a growth of only 15 per cent this year.

However, the raising titanium dioxide prices and the negligible growth in agriculture this
year will play spoilsport. Considering the past trend, the paint industry is expecting to
show at least twice the growth of Indian GDP in the ensuing years. The reduction of excise
duties from a high of 40 per cent to 16 per cent in the last five years, has made the
numerous small-scale units unviable, as they no longer have a price advantage over the
organized sector. This has helped the organized paint Industry a lot. The industry is in a
consolidation phase and only those Indian paint companies with a strong technical alliance,
better distribution network and an ability to compete in the global markets would emerge
victorious in the paint war.
Bibilography

1. FVB Trade house Pvt Ltd.

2. WWW.GOOGLE.COM
3. WWW.YAHOO.COM