2. SECTOR INFORMATION
PAINTS SECTOR
■ The market size of the Indian paints sector has been pegged at Rs.170 billion in value terms
and is very fragmented.
■ While in value terms, the industry grew by 17% to 18% in FY15, in volume terms, the
growth stood at 9% YoY.
■ The per capita consumption of paints in India stands at 0.5 kg per annum as compared to 1.6
kgs. in China and 22 kgs in the developed economies.
■ India's share in the world paint market is just 0.6%. ( World Market size- $193 billion)
■ The unorganized sector controls around 35% of the paint market, with the organized sector
accounting for the balance.
■ In the unorganized segment, there are about 2,000 units having small and medium sized
paints manufacturing plants.
■ Top organized players include Asian Paints (30% market share), Kansai Nerolac (20%
market share), Berger Paints (19% market share) and ICI (12% market share).
3. CONTRIBUTION TO GDP REASONS FOR GROWTH OF PAINT INDUSTRY
• Increasing level of income and education
• Increasing Urbanization
• Increasing share of organized sector
• Growth of Realty, Automobile and Infrastructure sector
• Availability of financing options
• Increasing Penetration in the Rural Markets
PROSPECTS
• Growth in the economy
• Government policies and reforms
• Government subsidies
• Increase in demand in industrial and
automobile sector.
3.70%
96.30%
PAINT INDUSTRY OTHERS
Barriers to entry
Bargaining power of
suppliers
Bargaining power of
customers
Competition
THREAT OF
SUBSTITUTES
PORTER’S FIVE FORCES
4. COMPANY INFORMATION
• Founder of brand Berger- Mr. Lewis Berger
• Founded in the year 1760 in UK
• Began operations in India in the year 1923
• Started as Hadlefield’s ( India ) limited
• At that time it had only 1 factory in Howrah, West Bengal
• In 1947, it was acquired by British Paints ( holdings ) limited and came to be known as British Paints ( India )
Limited
• In 1983, it came to be known as Berger Paints India Limited
• Revenues- over and above Rs. 4,500 crores
• 2nd in the market
• Headquartered in Kolkata
• Current CEO- Mr. Abhijit Roy
• 10 strategically located manufacturing units and about 110 stock points
• International presence- Nepal, Bangladesh, Poland and Russia
• Employee strength- above 2,800
• Distribution network- 25,000+ dealers
5. SWOT ANALYSIS
STRENGHTS WEAKNESSES
• 1/5th market share and 3 rank • Focus on decorative segment where competition is
intense
• Wide range of products • High lead content
• Wide supply chain network • Limited liquidity options
• Excellent brand perception and brand awareness
• International presence
• Lone supplier of protective coatings to nuclear power
plants and coatings used by companies like Mercedes
OPPORTUNITIES THREATS
• Innovation with changing trends • New entrants and local companies
• Increasing urbanization • Fluctuating raw material prices
• Diversification • Stiff competition
6. PRODUCT/SERVICES PROFILE
INTERIOR WALL COATING
DESIGNER FINISHES
Silk Illusions Design Metallica
Silk Illusions Metallica
Silk Illusions Marble Finish
INTERIOR EMULSION
Silk Glamor
Silk Luxury Emulsion
Easy Clean
Rangoli Total Care
Bison Acrylic Emulsion
INTERIOR WALL DISTEMPER
Bison Distemper
EXTERIOR WALL COATING
EXTERIOR EMULSIONS
Weather Coat All Guard
Weather Coat Anti-dust
Weather Coat Smooth
Walmasta
Weather Coat Tile Protector
Weather Coat Kool & Seal
TEXTURE FINISHES
Weather Coat Texture
Weather Coat Hi- Build
Weather Coat Tartaruga
BERGER WALL & WOOD
PAINTS
ENAMELS
Luxon Satin Enamel
Luxol Xtra Super Gloss Enamel
Luxol High Gloss Enamel
Berger Butterfly Gp Enamel
Luxol Lustre
CLEAR WOOD
Woodkeeper
Melamine Finish
Woodkeeper Easy Clean 2k Pu
Imperia
Imperia Water Based Pu
Imperia Colour Zone
Imperia Epoxy Block Primer
Wood Keeper Fill-o-dent
Wood Keeper Wood Stainer
7. PRODUCT/SERVICES PROFILE
PROTECTIVE COATING
HIGH PERFORMANCE PROTECTIVE
COATINGS
Epilux- The Range Of Epoxies
Epilux Frx Anticorrosive Coatings
Epilux Super Build St Glass Flake Coating
Epilux 950 Super High Building Coating
Epimax Gpe Coating
Epilux Durebuild Fre Coating
Epilux Stl Coating
Epiphenolic Hbtl
Epilux Floor Coatings
Lumerous- Heat Resistant Coatings
Zinc Anode- Inorganic
Zinc Silicate Coatings
Bergerthane- The Polyurethane Range
Aqugreen Coatings
Anticarb Range
Rebar Range
Sigmark- The Signage Marking Products
UNDERCOATS
Bp Cement Primer (Wt)
Happy Wall Acrylic Putty
Weather Coat Exterior
Primer
Bison Wall Putty
Seal-o-prime
Bp Cement Primer (St)
Bp White Primer (St)
Weather Coat Blowash
Bp White Primer (Wt)
CONSTRUCTION
CHEMICALS
Dampstop
Crack Fill Paste
Advanced Latex Plus
Crack Fill Powder
Tile Adhesive Plus
Tile Adhesive
Latex Plus
Latex Shield 2k
Dampshield 2k
Cementmix Plus
Illusion Sealer
9. MARKETING MIX
PRODUCT
PRICE
• Follows competitive
pricing and varied pricing
• Products are priced in the
range of Rs. 60 (price of
distemper) – Rs. 900
PLACE
PROMOTION
10. STP OF THE PRODUCT
SEGMENTATION
Urban and rural areas
Dry regions where dust-free paints are required
Metro Cities, T2/T3 cities
Working Professionals, House-owners,
Industry users
Income- above Rs. 50000
Upper, Middle, Upper-middle and lower
middle class
People who want their homes to look decorated
TARGETING
Working Professionals,
House-owners,
Industry users
Upper, Middle, Upper-
middle and lower
middle class
POSITIONING
“No Daag No Dhabba”-
Berger provides paints
which are scratch
resistant and dust-free
and provides coatings
which suits the
requirements like
offices have different
coatings and homes
have different coatings.
11. PLC OF THE PRODUCT
PLC OF THE PRODUCT
INTRODUCTION
GROWTH
MATURITY
DECLINE
SALES
TIME
12. BUSINESS FINANCE
GROSS PROFIT AND NET PROFIT MARGIN
– Gross Profit Margin= Sales – COGS (Gross Profit)/Sales*100
• Gross Profit Margin= 4,107.57-2,620.53/4,107.57*100=36.20% (2016- 43.31%)
– Net Profit Margin=Net Profit/Sales*100
• Net Profit Margin= 446.45/4,107.57*100=10.87% (2016- 8.61%)
DIRECT AND INDIRECT COSTS
DIRECT COST 2017 In Rs. ( Cr.) 2016 In Rs. ( Cr.) % CHANGE
Cost of Materials Consumed 2,111.25 1,926.56 95.86%
Change in inventories of FG,
WIP, And Stock-In Trade
(119.28) (24.00) 397%
TOTAL 1,991.97 1,902.56 4.70%
INDIRECT COST 2017 In Rs. ( Cr.) 2016 In Rs. ( Cr.) % CHANGE
Purchase of Stock In Trade 390.00 385.08 1.28%
Employee Benefit Expenses 227.92 204.43 11.49%
Finance Costs 7.41 17.20 (56.92)%
Depriciation And Amortisation
Expenses
97.07 87.97 10.34%
Other Expenses 848.80 1,033.08 (17.84)%
TOTAL 1,571.2 1727.76 (51.65)%
13. BUSINESS FINANCE
• FIXED ASSETS ADDED DURING THE YEAR
2017
FIXED ASSETS= Rs. 939.37 Crore
2016
FIXED ASSETS= Rs. 751.66 Crore
FIXED ASSETS ADDED= Rs. (937.37 – 751.66) Crore
= Rs. 185.71 Crore
• WORKING CAPITAL FOR THE YEAR 2016-17
Working Capital= Current Assets – Current Liabilities
= 1,840.96 - 1,063.72= Rs.777.24 Crore (2016- Rs. 621.01 Crore)
• DEBT-EQUITY RATIO
Debt-Equity Ratio= Long-term borrowings/Shareholder’s Funds
= 66.53/ 1,922.14= 0.03(2016- 0.03)
14. HUMAN RESOURCES MANAGEMENT
ORGANIZATION STRUCTURE
MANAGINGDIRECTOR&CEO
DIRECTOR, FINANCE
VICE-PRESIDENT-IT
SENIOR VICE-PRESIDENT & COMPANY
SECRETARY
SENIOR VICE-PRESIDENT- R&D
SR. VP - MARKETING PROTECTIVE COATINGS
DIVISION
VP- MARKETING, RETAIL DECORATIVE PAINTS
VP- SALES, RETAIL DECORATIVE PAINTS
VP- MATERIALS
VP- CORPORATE HR &
PERSONNEL
SR. GENERAL MANAGER- SALES & MARKETING
AUTO & GI DIVISON
VP- MANUFACGTURING
GM- POWDER COATINGS SALES
AND MARKETING
15. RECRUITMENT SOURCES
Internal Sources
Temporary or casual
employees
Referral
Promotions and transfers
Absorption of trainees
Internal advertisement
External Sources
Campus recruitment
Online portals
Advertisement
Waiting list
Consultancies
17. INDUCTION PROGRAMME PERFORMANCE APPRAISAL
MODEL
• Top performers: Reward and recognition
• Average performers: Motivate, training
• Below performers: Motivate, training,
Performer’s Improvement Plan (P.I.P.)
Employee benefits
• Medical facilities
• Insurance benefits
• Vacation Policy
• Retirement benefits
• Various discount for employees
IMMEDIATE SUPERIORS
IDENTIFY
DEVELOPMENT
OBJECTIVES
BANDHAN PROGRAMME
18. CAREER PLANNING
Positive Culture Negative Culture
Good company for career growth
Fix timings and good work environment
Seniors are supportive
Encourages innovation
Good Learning Environment
Treating employees negatively
Employees have to fight for their rights
HR function needs much improvement
Too much bossism and in order to grow you have
to follow your manager
Lack of professionalism
ORGANIZATION CULTURE
