Indian Paint Industry
AkashAgarwal182
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Mar 31, 2021
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About This Presentation
Detailed analysis of Indian Paint Industry considering all the scenario related to impact of Covid-19 and post Covid-19 measures
Slide Content
1
ADVANCE FINANCIAL STATEMENT ANALYSIS
REPORT ON PAINT INDUSTRY
Research Guide
Dr. Arindam Banerjee
Submitted By
Group 4
Aaryan Jain (20DM003)
Aayush Garg (20DM004)
Aditya Agarwal (20DM008)
Akash Agarwal (20DM015)
ADVANCE FINANCIAL STATEMENT ANALYSIS
REPORT ON PAINT INDUSTRY
Research Guide
Dr. Arindam Banerjee
Submitted By
Group 4
Aaryan Jain (20DM003)
Aayush Garg (20DM004)
Aditya Agarwal (20DM008)
Akash Agarwal (20DM015)
2
ACKNOWLEDGEMENT
We are grateful to our guide Prof. Arindam Banerjee for his exemplary
guidanance,monitoring and constant encouragement throughout the
course of this project.
We also take this opportunity to express a deep sense of gratitude to
BIMTECH, for providing valuable infornmation and resources.
Lastly, we also extend our heartful thanks to the almighty, our parents
and friends for their constant encouragement without which this
assigment would not have been possible.
ACKNOWLEDGEMENT
We are grateful to our guide Prof. Arindam Banerjee for his exemplary
guidanance,monitoring and constant encouragement throughout the
course of this project.
We also take this opportunity to express a deep sense of gratitude to
BIMTECH, for providing valuable infornmation and resources.
Lastly, we also extend our heartful thanks to the almighty, our parents
and friends for their constant encouragement without which this
assigment would not have been possible.
3
PAINT INDUSTRY
In recent times, growth in India’s paint sector has been an outlier in the overall domestic
consumer space. The industry has been witnessing a gradual shift in terms of consumer
preferences from the traditional whitewash to better quality paints. Besides, it is also witnessing
healthy competitive environment, where players are applying different strategies to tap the
growing demand in the market for a larger regional share. Additionally, rise in disposable
income of the average middle class, urbanization, growing rural market, shortening of
repainting cycle, upgradation, increase in sale of premium-end products and launch of many
innovative products are the major drivers that are pushing the growth of the organized paint
industry. Within the Indian decorative paint segment, Asian Paints (APNT) and Berger Paints
(BRGR) are the two largest players with more than 80% of their overall revenues coming from
the segment and within the industrial paints segment, Kansai Nerolac (KNPL) is the leader
(segment contributes ~45% to its revenue). Since in the current environment there is a
preference for businesses that are relatively more resilient, sector multiples at current levels in
near term will look expensive. We initiate coverage on APNT (Accumulate rating) and BRGR
(Sell rating), as we believe that Indian decorative paints will continue to witness higher demand
within this space, majorly led by steady shift from unorganized to organized players with bigger
players gaining further share.
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920
PAINT INDUSTRY
In recent times, growth in India’s paint sector has been an outlier in the overall domestic
consumer space. The industry has been witnessing a gradual shift in terms of consumer
preferences from the traditional whitewash to better quality paints. Besides, it is also witnessing
healthy competitive environment, where players are applying different strategies to tap the
growing demand in the market for a larger regional share. Additionally, rise in disposable
income of the average middle class, urbanization, growing rural market, shortening of
repainting cycle, upgradation, increase in sale of premium-end products and launch of many
innovative products are the major drivers that are pushing the growth of the organized paint
industry. Within the Indian decorative paint segment, Asian Paints (APNT) and Berger Paints
(BRGR) are the two largest players with more than 80% of their overall revenues coming from
the segment and within the industrial paints segment, Kansai Nerolac (KNPL) is the leader
(segment contributes ~45% to its revenue). Since in the current environment there is a
preference for businesses that are relatively more resilient, sector multiples at current levels in
near term will look expensive. We initiate coverage on APNT (Accumulate rating) and BRGR
(Sell rating), as we believe that Indian decorative paints will continue to witness higher demand
within this space, majorly led by steady shift from unorganized to organized players with bigger
players gaining further share.
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920
4
IMPACT OF COVID-19 PANDEMIC ON PAINT INDUSTRY.
The evolving nature of the Covid-19 pandemic makes near term predictability a challenge.
Considering Covid-19 to be a near term risk to the industry, medium term/long term outlook
remains positive due to structural opportunities as mentioned above. Companies have been
initiating services revolving around safe painting and have received positive response from
many consumers. However, reaction of consumers to the pandemic getting prolonged and
consequent restrictions/lockdowns is yet to be gauged. Further, timing of the return of migrant
workforce to support demand-generating sectors such as real estate and infrastructure
development is dependent on the longevity of the pandemic.
Sensitivity to crude prices and USD/INR exchange rates will remain an inherent risk to the
sector since crude (and its derivatives) and TiO2 are major to raw materials used in paints and
are largely imported.
Paint consumption is positively co-related to GDP growth and therefore a slowdown in GDP
would affect the industry directly. Also, paint being a discretionary spend item, there is a
likelihood of customers putting their paint requirements on hold for some time, thereby
impacting renovation demand.
The vagaries of the monsoon - extended monsoon in some regions and deficit rainfall in
others – affect demand from the rural sector, as an extended monsoon can reduce the number
of dry days before the festive season and deficit rainfall affects income. Slowdown in
infrastructure and construction activities would affect overall demand for paint companies.
Delay in the revival of the auto industry would continue to pose a threat to the growth of
industrial paints demand.
Key highlights from recent channel checks:
APNT - an undisputed leader: Most of the dealers we spoke to stated that demand for the
products of APNT is undoubtedly higher than the other players. There is outright demand for
other companies’ products as well, but not as high as APNT’s. Sale of newer entrant’s or
smaller player’s products requires efforts from the dealer’s end, in terms of convincing the
contractor/painter as to why the product is suitable for their need, which at times they’re not
willing to take.
IMPACT OF COVID-19 PANDEMIC ON PAINT INDUSTRY.
The evolving nature of the Covid-19 pandemic makes near term predictability a challenge.
Considering Covid-19 to be a near term risk to the industry, medium term/long term outlook
remains positive due to structural opportunities as mentioned above. Companies have been
initiating services revolving around safe painting and have received positive response from
many consumers. However, reaction of consumers to the pandemic getting prolonged and
consequent restrictions/lockdowns is yet to be gauged. Further, timing of the return of migrant
workforce to support demand-generating sectors such as real estate and infrastructure
development is dependent on the longevity of the pandemic.
Sensitivity to crude prices and USD/INR exchange rates will remain an inherent risk to the
sector since crude (and its derivatives) and TiO2 are major to raw materials used in paints and
are largely imported.
Paint consumption is positively co-related to GDP growth and therefore a slowdown in GDP
would affect the industry directly. Also, paint being a discretionary spend item, there is a
likelihood of customers putting their paint requirements on hold for some time, thereby
impacting renovation demand.
The vagaries of the monsoon - extended monsoon in some regions and deficit rainfall in
others – affect demand from the rural sector, as an extended monsoon can reduce the number
of dry days before the festive season and deficit rainfall affects income. Slowdown in
infrastructure and construction activities would affect overall demand for paint companies.
Delay in the revival of the auto industry would continue to pose a threat to the growth of
industrial paints demand.
Key highlights from recent channel checks:
APNT - an undisputed leader: Most of the dealers we spoke to stated that demand for the
products of APNT is undoubtedly higher than the other players. There is outright demand for
other companies’ products as well, but not as high as APNT’s. Sale of newer entrant’s or
smaller player’s products requires efforts from the dealer’s end, in terms of convincing the
contractor/painter as to why the product is suitable for their need, which at times they’re not
willing to take.
5
Inventory days: For most dealers, average inventory days hover around 10-15 days – 5-6
days for APNT and 15-18 days for other companies. Further, order placed with APNT is
generally fulfilled within 4-6 hours while for other companies it takes between 12-24 hours.
Preference for returns over margins: While a dealer earns lower margins on products of the
market leader compared to the higher margins offered by other companies, the return
generated on account of higher number of rotations is far ahead of what can be earned from
products of other companies. Thus, it is the return that dealers primarily look at rather than
margins.
Rise in consumer awareness: Many dealers mentioned that for the past few years, demand
is purely dependant on the customer’s preference compared to earlier times when the dealer
could easily influence consumer’s decision. Painters and contractors are much more aware of
the product’s features and applications. That is why it is difficult for dealers to push any specific
company’s brand/product.
Growth in top-end products as well as low end products: Dealers have stated that there is
healthy growth in premium products, especially value-added products like APNT’s Royale
Shield and BRGR’s Easy Clean. Across regions, there is high grown in bottom of pyramid
products like distemper and putty. Sale of Birla and JK Cement’s putty is much ahead of any
other paint companies.
Negligible sale of sanitizers for Paint companies as of now: Some paint companies have
been pushing their dealers to buy sanitizers but there is hardly any pick-up as no consumer
would go to a paint or a hardware shop to buy sanitizers. Few dealers believed that companies
need to advertise for their sanitizers on a local level rather than national level.
MARKET SHARE
Asian Paints has the biggest market share in the industry if 39%. The next company is Berger
Paints with a market share of 12%. Kansai Nerolac Paints too has a market share of around
11%. Akzo Nobel India has a market share of 6%.In the organized segment, Asian Paints led
the decorative market segment, while the industrial segment was led by Kansai Nerolac.
Inventory days: For most dealers, average inventory days hover around 10-15 days – 5-6
days for APNT and 15-18 days for other companies. Further, order placed with APNT is
generally fulfilled within 4-6 hours while for other companies it takes between 12-24 hours.
Preference for returns over margins: While a dealer earns lower margins on products of the
market leader compared to the higher margins offered by other companies, the return
generated on account of higher number of rotations is far ahead of what can be earned from
products of other companies. Thus, it is the return that dealers primarily look at rather than
margins.
Rise in consumer awareness: Many dealers mentioned that for the past few years, demand
is purely dependant on the customer’s preference compared to earlier times when the dealer
could easily influence consumer’s decision. Painters and contractors are much more aware of
the product’s features and applications. That is why it is difficult for dealers to push any specific
company’s brand/product.
Growth in top-end products as well as low end products: Dealers have stated that there is
healthy growth in premium products, especially value-added products like APNT’s Royale
Shield and BRGR’s Easy Clean. Across regions, there is high grown in bottom of pyramid
products like distemper and putty. Sale of Birla and JK Cement’s putty is much ahead of any
other paint companies.
Negligible sale of sanitizers for Paint companies as of now: Some paint companies have
been pushing their dealers to buy sanitizers but there is hardly any pick-up as no consumer
would go to a paint or a hardware shop to buy sanitizers. Few dealers believed that companies
need to advertise for their sanitizers on a local level rather than national level.
MARKET SHARE
Asian Paints has the biggest market share in the industry if 39%. The next company is Berger
Paints with a market share of 12%. Kansai Nerolac Paints too has a market share of around
11%. Akzo Nobel India has a market share of 6%.In the organized segment, Asian Paints led
the decorative market segment, while the industrial segment was led by Kansai Nerolac.
6
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920
Domestic Decorative
The domestic paint industry has grown at a rate of 10.4% from FY08, when the market was
valued at Rs159bn, to FY20, when the market size reached ~Rs520bn. Over the years, the
decorative paint segment (market share of ~75-80%) has grown at a CAGR of 11.4% against
the industrial segment (market share of ~20-25%), which has grown at a CAGR of 7.9%.
Within the industry, the organized sector has been commanding ~70% market share and the
balance 30% is accounted by the unorganized sector. Till the first half of 2010s, the
unorganized sector had ~35% market share, but with demonetisation and implementation of
GST, the organized players have been able to capture market share from the unorganized
players.
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920
Domestic Decorative
The domestic paint industry has grown at a rate of 10.4% from FY08, when the market was
valued at Rs159bn, to FY20, when the market size reached ~Rs520bn. Over the years, the
decorative paint segment (market share of ~75-80%) has grown at a CAGR of 11.4% against
the industrial segment (market share of ~20-25%), which has grown at a CAGR of 7.9%.
Within the industry, the organized sector has been commanding ~70% market share and the
balance 30% is accounted by the unorganized sector. Till the first half of 2010s, the
unorganized sector had ~35% market share, but with demonetisation and implementation of
GST, the organized players have been able to capture market share from the unorganized
players.
7
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920
Industrial
The industrial paint segment includes automotive and auto refinish coating, general industrial
(GI) paints, protective coatings, powder coatings and other niche segments like coil coatings,
marine coatings etc. This segment is dependent on business cycles and economic conditions.
Growth of the industrial paint segment, which accounts for 20-25% of the market, is highly
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920
Industrial
The industrial paint segment includes automotive and auto refinish coating, general industrial
(GI) paints, protective coatings, powder coatings and other niche segments like coil coatings,
marine coatings etc. This segment is dependent on business cycles and economic conditions.
Growth of the industrial paint segment, which accounts for 20-25% of the market, is highly
8
dependent on the automotive sector. The auto sector has been the leading consumer of
industrial paints with 40-50% of the demand coming from it.
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920.
Company Introduction
Berger Paints India Limited
Berger Paints India Limited was founded in 1923 and is a leader in the Indian paint market.
The company manufactures and markets a range of decorative and industrial paint products
and has operations throughout India with seven manufacturing facilities, more than 135 depots,
approximately 3,000 employees and more than 15,000 dealers. Architectural/decorative
coatings comprise 81.7 percent of sales, general industrial and automotive comprise 10.8
percent, protective coatings comprise six percent and powder are 1.5 percent of sales.
dependent on the automotive sector. The auto sector has been the leading consumer of
industrial paints with 40-50% of the demand coming from it.
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920.
Company Introduction
Berger Paints India Limited
Berger Paints India Limited was founded in 1923 and is a leader in the Indian paint market.
The company manufactures and markets a range of decorative and industrial paint products
and has operations throughout India with seven manufacturing facilities, more than 135 depots,
approximately 3,000 employees and more than 15,000 dealers. Architectural/decorative
coatings comprise 81.7 percent of sales, general industrial and automotive comprise 10.8
percent, protective coatings comprise six percent and powder are 1.5 percent of sales.
9
https://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI0
2
Berger paints due to its good reputation and quality products is able to gain 11.52% of FII and
according to growth plans FII share in future will increase with investors confidence in the
company , Both DII and public holding is low in case of BPIL whereas promotors holds 74.99%
shares.
Asian Paints
The company has come a long way since its small beginnings in 1942. It was set up as a
partnership firm by four friends who were willing to take on the world's biggest, most famous
paint companies operating in India at that time. Over the course of 25 years, Asian Paints
became a corporate force and India's leading paints company. Driven by its strong consumer-
focus and innovative spirit, the company has been the market leader in paints since 1967.
Asian Paints is India’s leading paint company with a group turnover of Rs 202.1 billion. The
group has an enviable reputation in the corporate world for professionalism, fast track growth,
and building shareholder equity. Asian Paints operates in 15 countries and has 26 paint
BERGER PAINTS
https://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI0
2
Berger paints due to its good reputation and quality products is able to gain 11.52% of FII and
according to growth plans FII share in future will increase with investors confidence in the
company , Both DII and public holding is low in case of BPIL whereas promotors holds 74.99%
shares.
Asian Paints
The company has come a long way since its small beginnings in 1942. It was set up as a
partnership firm by four friends who were willing to take on the world's biggest, most famous
paint companies operating in India at that time. Over the course of 25 years, Asian Paints
became a corporate force and India's leading paints company. Driven by its strong consumer-
focus and innovative spirit, the company has been the market leader in paints since 1967.
Asian Paints is India’s leading paint company with a group turnover of Rs 202.1 billion. The
group has an enviable reputation in the corporate world for professionalism, fast track growth,
and building shareholder equity. Asian Paints operates in 15 countries and has 26 paint
BERGER PAINTS
10
manufacturing facilities in the world servicing consumers in over 60 countries. Besides Asian
Paints, the group operates around the world through its subsidiaries Asian Paints Berger, Apco
Coatings, SCIB Paints, Taubmans, Causeway Paints and Kadisco Asian Paints. In the
Industrial coatings space, Asian Paints operates through two 50:50 joint ventures with PPG
Inc, USA., one of the largest automotive coating’s manufacturers in the world.
https://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31
As depicted in the above pie chart promotors hold a majority of shares in the company which
is about 52.79% out of which 10.67% are pledged shares which means that 10.67 percent of
total promotor shares are kept as colletral for financing purpose and Hence investors have to
keep an eye out on the percentage of pledged shares and preferably invest only in companies
with low or modest share pledge percentage.
manufacturing facilities in the world servicing consumers in over 60 countries. Besides Asian
Paints, the group operates around the world through its subsidiaries Asian Paints Berger, Apco
Coatings, SCIB Paints, Taubmans, Causeway Paints and Kadisco Asian Paints. In the
Industrial coatings space, Asian Paints operates through two 50:50 joint ventures with PPG
Inc, USA., one of the largest automotive coating’s manufacturers in the world.
https://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31
As depicted in the above pie chart promotors hold a majority of shares in the company which
is about 52.79% out of which 10.67% are pledged shares which means that 10.67 percent of
total promotor shares are kept as colletral for financing purpose and Hence investors have to
keep an eye out on the percentage of pledged shares and preferably invest only in companies
with low or modest share pledge percentage.
11
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920.
Strong pricing power, good volume growth in the economy products segment and a well-
entrenched distribution network are key positives. Despite the slowdown in the economy, led
by fall in consumption and tight liquidity conditions, Asian Paints has delivered strong double-
digit volume growth driven by the decorative paints segment. In addition, the company’s efforts
to improve market penetration, and expand to newer markets appear to have paid off anThe
company was able to push stocks to dealers at better rates and improve margins. Its operating
margin improved to 19 per cent in the September quarter, up from 18 per cent in the same
quarter last year.
Kansai Nerolac Paints Limited (KNPL)
A subsidiary of Kansai Paints Co. Ltd, Japan; Kansai Nerolac Paints Limited (KNPL) is one of
India’s leading players in the Paint industry, catering to the evolving need for newer Coating
solutions of customers. A future-focussed Company rooted in innovation, KNPL bespeaks
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920.
Strong pricing power, good volume growth in the economy products segment and a well-
entrenched distribution network are key positives. Despite the slowdown in the economy, led
by fall in consumption and tight liquidity conditions, Asian Paints has delivered strong double-
digit volume growth driven by the decorative paints segment. In addition, the company’s efforts
to improve market penetration, and expand to newer markets appear to have paid off anThe
company was able to push stocks to dealers at better rates and improve margins. Its operating
margin improved to 19 per cent in the September quarter, up from 18 per cent in the same
quarter last year.
Kansai Nerolac Paints Limited (KNPL)
A subsidiary of Kansai Paints Co. Ltd, Japan; Kansai Nerolac Paints Limited (KNPL) is one of
India’s leading players in the Paint industry, catering to the evolving need for newer Coating
solutions of customers. A future-focussed Company rooted in innovation, KNPL bespeaks
12
quality and manufacturing excellence that makes it a preferred choice of a growing and ever-
evolving customer base. The company vision says “We design Solutions that Protect, Inspire
and Touch Lives everyday”.
And mission is to leverage superior technology to contribute to our Customers and Society, in
a sustainable manner, with innovative Products and Services, through a competent workforce,
built on a culture o
In we talk about KNPL 74.99% of shares are hold by promotors and there is no pledeing of
shares in the company and DII holds 12.33% of the shares whereas public holding is only 8.5%
and a very low FII holding which indicates very low investor confidence in the company.
Customer Focus, Integrity and Respect to our Stakeholders.
AkzoNobel
AkzoNobel is the world's largest coatings company, with leading market positions and brands
in countries around the world. AkzoNobel is known as much for its innovation and creativity as
for its products and people. Underlying all these have been the inherent values of dedication,
commitment, trust and responsibility that have shaped the organisation through the decades.
AkzoNobel India creates everyday essentials to make people’s lives more liveable and
inspiring, present in India for over 60 years. It is a leading paints and coatings company that
supply essential protection and essential colour to industries and consumers. Backed by a
pioneering heritage their innovative products and sustainable technologies are designed to
meet the growing demands of fast-changing planet, while making life easier. Ranked as a
quality and manufacturing excellence that makes it a preferred choice of a growing and ever-
evolving customer base. The company vision says “We design Solutions that Protect, Inspire
and Touch Lives everyday”.
And mission is to leverage superior technology to contribute to our Customers and Society, in
a sustainable manner, with innovative Products and Services, through a competent workforce,
built on a culture o
In we talk about KNPL 74.99% of shares are hold by promotors and there is no pledeing of
shares in the company and DII holds 12.33% of the shares whereas public holding is only 8.5%
and a very low FII holding which indicates very low investor confidence in the company.
Customer Focus, Integrity and Respect to our Stakeholders.
AkzoNobel
AkzoNobel is the world's largest coatings company, with leading market positions and brands
in countries around the world. AkzoNobel is known as much for its innovation and creativity as
for its products and people. Underlying all these have been the inherent values of dedication,
commitment, trust and responsibility that have shaped the organisation through the decades.
AkzoNobel India creates everyday essentials to make people’s lives more liveable and
inspiring, present in India for over 60 years. It is a leading paints and coatings company that
supply essential protection and essential colour to industries and consumers. Backed by a
pioneering heritage their innovative products and sustainable technologies are designed to
meet the growing demands of fast-changing planet, while making life easier. Ranked as a
13
leader in sustainability, they are dedicated to energising cities and communities while creating
a protected, colourful world.
In case of akzo nobel 74.76% of shares are hold by promotors and there is no pledeing of
shares in the company and have a similer holding percentage in terms of DII and Public and a
very low FII holding which indicates very low investor confidence in the company.
1. Which company demonstrates the growth possibilities?
Berger Paints India Limited
Berger Paints, country’s second largest paints maker in the decorative segment, is aiming to
accelerate and expand its manufacturing capacity. Berger is in the process of setting up a Rs
700-crore plant in Uttar Pradesh and the commissioning of the plant is now being brought
forward on account of high-capacity utilization at its existing facilities and apart from this, a 20-
acre plot in Panagarh has been allocated at an industrial park meant for building materials. The
company will now be applying for requisite permissions after which construction will start and
the plant will be operational a year from then, which would be 2022-23.
Rock Paint of Japan, and the process of forming a joint venture for automotive refinish paints
was underway. The city-based company will hold 51 per cent in the proposed joint venture,
while Rock Paint will own the rest. Berger Paints CEO Abhijit Roy said in the wake of the GST
leader in sustainability, they are dedicated to energising cities and communities while creating
a protected, colourful world.
In case of akzo nobel 74.76% of shares are hold by promotors and there is no pledeing of
shares in the company and have a similer holding percentage in terms of DII and Public and a
very low FII holding which indicates very low investor confidence in the company.
1. Which company demonstrates the growth possibilities?
Berger Paints India Limited
Berger Paints, country’s second largest paints maker in the decorative segment, is aiming to
accelerate and expand its manufacturing capacity. Berger is in the process of setting up a Rs
700-crore plant in Uttar Pradesh and the commissioning of the plant is now being brought
forward on account of high-capacity utilization at its existing facilities and apart from this, a 20-
acre plot in Panagarh has been allocated at an industrial park meant for building materials. The
company will now be applying for requisite permissions after which construction will start and
the plant will be operational a year from then, which would be 2022-23.
Rock Paint of Japan, and the process of forming a joint venture for automotive refinish paints
was underway. The city-based company will hold 51 per cent in the proposed joint venture,
while Rock Paint will own the rest. Berger Paints CEO Abhijit Roy said in the wake of the GST
14
cut on paints to 18 per cent from 28 per cent, the company has decided to pass on the benefits
to its customers. In the pre-GST regime, the tax on paints was 26-27 per cent.
Asian Paints
The Company continued to work on providing a holistic product range to its consumers,
servicing their requirements with best-in-class products at varied price points. This has helped
the Company sustain good growth in the mainline interior and exterior emulsion products. The
Company has been able to register unprecedented growth in the luxury wood finishes segment
by pushing its Polyurethane (PU) and Polyester products, in collaboration with Renner, Italy,
and expanding its network for tinted wood finishes. The Company continued its strong foray in
the waterproofing segment, establishing its SmartCare range of products as a strong No. 2
brand in a short span of time.
The growth has been driven not only by the mainstream product categories but also in the
newer product categories of waterproofing, adhesives and tools. The Retail business saw good
volume growth across all regions, especially led by strong growth in the North and East
markets.
The Paint Total service has gained wide acceptance in the market. The Company’s digital
property – beautifulhomes.com – continues to provide cutting-edge inspiration to millions of
consumers focusing on generating original content and ideas for home décor. Further, to cater
to consumers’ home décor needs, the Company has expanded its fulfilment propositions – AP
Homes Stores and the Beautiful Homes Service. All stores are using advanced digital
technology to provide consultation to consumers and have rapidly enhanced their fulfilment
capability through the Paint Total service and the décor execution service offered at these
stores. The Company has also expanded its Beautiful Homes Service proposition to eight cities
in India, offering complete delivery of home décor to consumers – right through consultation,
design to execution – in a completely professional and seamless manner.
Kansai Nerolac Paints Limited (KNPL)
KNPL has its primary operations in India, and it also operates in Nepal, Sri Lanka and
Bangladesh through acquisitions and joint ventures. In the year 2018, it has acquired 55%
stake in RAK Paints to enter in Bangladesh. To match the demands of its expanding product
portfolio, KNPL has been aggressively augmenting its capacity over the past few years. While
cut on paints to 18 per cent from 28 per cent, the company has decided to pass on the benefits
to its customers. In the pre-GST regime, the tax on paints was 26-27 per cent.
Asian Paints
The Company continued to work on providing a holistic product range to its consumers,
servicing their requirements with best-in-class products at varied price points. This has helped
the Company sustain good growth in the mainline interior and exterior emulsion products. The
Company has been able to register unprecedented growth in the luxury wood finishes segment
by pushing its Polyurethane (PU) and Polyester products, in collaboration with Renner, Italy,
and expanding its network for tinted wood finishes. The Company continued its strong foray in
the waterproofing segment, establishing its SmartCare range of products as a strong No. 2
brand in a short span of time.
The growth has been driven not only by the mainstream product categories but also in the
newer product categories of waterproofing, adhesives and tools. The Retail business saw good
volume growth across all regions, especially led by strong growth in the North and East
markets.
The Paint Total service has gained wide acceptance in the market. The Company’s digital
property – beautifulhomes.com – continues to provide cutting-edge inspiration to millions of
consumers focusing on generating original content and ideas for home décor. Further, to cater
to consumers’ home décor needs, the Company has expanded its fulfilment propositions – AP
Homes Stores and the Beautiful Homes Service. All stores are using advanced digital
technology to provide consultation to consumers and have rapidly enhanced their fulfilment
capability through the Paint Total service and the décor execution service offered at these
stores. The Company has also expanded its Beautiful Homes Service proposition to eight cities
in India, offering complete delivery of home décor to consumers – right through consultation,
design to execution – in a completely professional and seamless manner.
Kansai Nerolac Paints Limited (KNPL)
KNPL has its primary operations in India, and it also operates in Nepal, Sri Lanka and
Bangladesh through acquisitions and joint ventures. In the year 2018, it has acquired 55%
stake in RAK Paints to enter in Bangladesh. To match the demands of its expanding product
portfolio, KNPL has been aggressively augmenting its capacity over the past few years. While
15
during FY 2018-19, it started commercial production at Sayakha, Gujarat, during the year under
review, it commenced production at its new state-of-the-art manufacturing facility at Goindwal,
Punjab. Work is currently in progress to set up another high-end manufacturing unit, equipped
with modern production technologies, at Visakhapatnam in Andhra Pradesh. KNPL had
decided to enter new areas with potential, to enhance growth and de-risk the business, in the
space of Adhesives and Construction Chemicals. For Adhesives, it entered a Joint Venture
(JV) with Polygel to form an entity Nerofix with Polygel and for construction chemicals it
acquired Perma Construction Aid Pvt Ltd. This year, the Nerolac Range of products was
launched for construction chemicals. In addition, KNPL also tied up with ICRO Italy, a leader
in high end wood coatings and launched Nerolac ICRO. The Company achieved a significant
milestone with the start of operations at Sayakha Plant in Gujarat in continuation of its
commitment to be closer to the customer base and as part of the contingency planning in line
with its commitment to provide uninterrupted service to its customers. During the year, KNPL
acquired a company engaged in the business of Construction Chemicals (Perma Construction
Aids Pvt Ltd -100%) and launched a JV for Adhesive Business (Nerofix Private Limited). The
Company filed the Scheme of Merger of Marpol Private Limited and Perma Construction Aids
Pvt Ltd (100% wholly-owned subsidiary) with the National Company Law Tribunal, at the
benches in their respective locations.
AkzoNobel
AkzoNobel, the maker of Dulux paints, is aiming a double-digit growth in India, said managing
director, decorative paints South East and South Asia (SESA). Company's focus has been on
bringing premium paints to the Indian market. Currently, decorative paints constitute 60 percent
of company’s revenue, which account for around 80 percent of the overall paint market in India.
Asian Paints is the market leader in this segment, followed by Berger Paints. AkzoNobel
currently has 7 to 9 percent market share. Managing director of AkzoNobel India said that the
paint trend in India has been fairly buoyant, and the focus will continue to remain on the
premium paint’s portfolio along with innovation and renovation for the brand. The premium
category consists of plastic emulsions, the medium-priced category consists of synthetic
enamels and the economy category consists of distempers.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED 1
during FY 2018-19, it started commercial production at Sayakha, Gujarat, during the year under
review, it commenced production at its new state-of-the-art manufacturing facility at Goindwal,
Punjab. Work is currently in progress to set up another high-end manufacturing unit, equipped
with modern production technologies, at Visakhapatnam in Andhra Pradesh. KNPL had
decided to enter new areas with potential, to enhance growth and de-risk the business, in the
space of Adhesives and Construction Chemicals. For Adhesives, it entered a Joint Venture
(JV) with Polygel to form an entity Nerofix with Polygel and for construction chemicals it
acquired Perma Construction Aid Pvt Ltd. This year, the Nerolac Range of products was
launched for construction chemicals. In addition, KNPL also tied up with ICRO Italy, a leader
in high end wood coatings and launched Nerolac ICRO. The Company achieved a significant
milestone with the start of operations at Sayakha Plant in Gujarat in continuation of its
commitment to be closer to the customer base and as part of the contingency planning in line
with its commitment to provide uninterrupted service to its customers. During the year, KNPL
acquired a company engaged in the business of Construction Chemicals (Perma Construction
Aids Pvt Ltd -100%) and launched a JV for Adhesive Business (Nerofix Private Limited). The
Company filed the Scheme of Merger of Marpol Private Limited and Perma Construction Aids
Pvt Ltd (100% wholly-owned subsidiary) with the National Company Law Tribunal, at the
benches in their respective locations.
AkzoNobel
AkzoNobel, the maker of Dulux paints, is aiming a double-digit growth in India, said managing
director, decorative paints South East and South Asia (SESA). Company's focus has been on
bringing premium paints to the Indian market. Currently, decorative paints constitute 60 percent
of company’s revenue, which account for around 80 percent of the overall paint market in India.
Asian Paints is the market leader in this segment, followed by Berger Paints. AkzoNobel
currently has 7 to 9 percent market share. Managing director of AkzoNobel India said that the
paint trend in India has been fairly buoyant, and the focus will continue to remain on the
premium paint’s portfolio along with innovation and renovation for the brand. The premium
category consists of plastic emulsions, the medium-priced category consists of synthetic
enamels and the economy category consists of distempers.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED 1
16
ASIAN PAINTS
3
KANSAI NEROLAC PAINT S LIMITED (KNPL)
2
AKZONOBEL 4
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920.
Top three companies in the Indian paint market are continuously exploring new ways to tap the
untapped market and main focus is on to increase the top line of the company and same is
interpreted through the bar graph which shows that Asian paints since 2015 to 2020 had setup
three new manufacturing facilities whereas BPIL has aggressive expansion plans had set up 4
new manufacturing facilities where KNPL had set up 2 new manufacturing facilities.
2.Which company is more persistent in form of earnings?
Berger Paints India Ltd
ASIAN PAINTS
3
KANSAI NEROLAC PAINT S LIMITED (KNPL)
2
AKZONOBEL 4
https://images.assettype.com/bloombergquint/2020-09/162fc669-fb6f-4001-ae74-
26c54252da3d/Nirmal_Bang_Paint_Sector_Update_010920.
Top three companies in the Indian paint market are continuously exploring new ways to tap the
untapped market and main focus is on to increase the top line of the company and same is
interpreted through the bar graph which shows that Asian paints since 2015 to 2020 had setup
three new manufacturing facilities whereas BPIL has aggressive expansion plans had set up 4
new manufacturing facilities where KNPL had set up 2 new manufacturing facilities.
2.Which company is more persistent in form of earnings?
Berger Paints India Ltd
17
The third quarter for Berger has been one of its best quarterly performances. Revenues were
up 25 per cent, on a year-on-year (YoY) basis; EBITDA saw a growth of 40 per cent and net
profit 51 per cent.
Roy explained that typically April and October are the strongest months for paint companies.
But last April was a wash-out due to the lockdown following the Covid-19 pandemic. “The pent-
up demand that was there in Q1 started coming back in Q2 and then more strongly in Q3,” he
said. Rural was a major contributor to the increase in demand. Also, migration from the
unorganized sector to organized, boosted sales. But Roy believed that Q4 would also be
strong. “Growth rate in Q4 will be higher than what we registered in Q3; Q1 (next fiscal) will be
higher than Q4 (this fiscal),” he said
Quarter 3 saw a volume growth of almost 32 per cent; capacity utilization at factories at high-
80s levels. Speeding up new plant in Uttar Pradesh, expected to be commissioned in
December 2021. Setting up third plant in West Bengal.
Asian Paints
During FY 2019-20, revenue from operations on standalone basis increased to Rs. 17,194.1
Crores as against Rs. 16,391.8 Crores in the previous year – a growth of 4.9%. The Profit After
Tax (PAT) for the year was Rs. 2,654.0 Crores against Rs. 2,132.2 Crores in the previous year
– a growth of 24.5%. Despite the economic slowdown, the Decorative business has done
extremely well among the organised players. While the Company has been able to maintain
its operating profitability by efficiently reducing formulation costs and continued focus on cost
control measures, it was also supported by the softening raw material prices. The top line
growth was at 9.5% in value terms and there was a strong double-digit growth in volume terms
till the end of third quarter. The growth was impacted in particular by the abrupt seizure in
business during the last fortnight of the year. This has resulted in revenue growth declining
from the high growth trend witnessed for the first nine months of the financial year to the 4.9%
growth registered for the full year. However, in volume terms, the Company was still able to
close the financial year with a healthy double-digit growth.
Kansai Nerolac Paints Ltd.
FY 2019-20 saw a prolonged and unprecedented slowdown in the key sector of Auto, which
spilled into other markets and finally, even into Decorative. A prolonged monsoon, floods in
many states, along with disturbances due to change in policy, also had an impact on demand.
The COVID-19 pandemic that hit businesses worldwide towards the end of the fiscal further
The third quarter for Berger has been one of its best quarterly performances. Revenues were
up 25 per cent, on a year-on-year (YoY) basis; EBITDA saw a growth of 40 per cent and net
profit 51 per cent.
Roy explained that typically April and October are the strongest months for paint companies.
But last April was a wash-out due to the lockdown following the Covid-19 pandemic. “The pent-
up demand that was there in Q1 started coming back in Q2 and then more strongly in Q3,” he
said. Rural was a major contributor to the increase in demand. Also, migration from the
unorganized sector to organized, boosted sales. But Roy believed that Q4 would also be
strong. “Growth rate in Q4 will be higher than what we registered in Q3; Q1 (next fiscal) will be
higher than Q4 (this fiscal),” he said
Quarter 3 saw a volume growth of almost 32 per cent; capacity utilization at factories at high-
80s levels. Speeding up new plant in Uttar Pradesh, expected to be commissioned in
December 2021. Setting up third plant in West Bengal.
Asian Paints
During FY 2019-20, revenue from operations on standalone basis increased to Rs. 17,194.1
Crores as against Rs. 16,391.8 Crores in the previous year – a growth of 4.9%. The Profit After
Tax (PAT) for the year was Rs. 2,654.0 Crores against Rs. 2,132.2 Crores in the previous year
– a growth of 24.5%. Despite the economic slowdown, the Decorative business has done
extremely well among the organised players. While the Company has been able to maintain
its operating profitability by efficiently reducing formulation costs and continued focus on cost
control measures, it was also supported by the softening raw material prices. The top line
growth was at 9.5% in value terms and there was a strong double-digit growth in volume terms
till the end of third quarter. The growth was impacted in particular by the abrupt seizure in
business during the last fortnight of the year. This has resulted in revenue growth declining
from the high growth trend witnessed for the first nine months of the financial year to the 4.9%
growth registered for the full year. However, in volume terms, the Company was still able to
close the financial year with a healthy double-digit growth.
Kansai Nerolac Paints Ltd.
FY 2019-20 saw a prolonged and unprecedented slowdown in the key sector of Auto, which
spilled into other markets and finally, even into Decorative. A prolonged monsoon, floods in
many states, along with disturbances due to change in policy, also had an impact on demand.
The COVID-19 pandemic that hit businesses worldwide towards the end of the fiscal further
18
impacted growth. Cumulatively, these factors prevented the company from achieving the stated
top line goals for the year. Also, raw material costs were benign and displayed a slow declining
trend, and prices continued to be impacted negatively due to exchange rate and crude oil
volatility. Against this backdrop, with companies’ efforts to aggressively reduce cost and tighten
overhead control, company were successful in improving the operating margins as a
percentage. The Company was able to achieve this due to concentrated effort on dynamic
formulation management and product mix change.
The cash from operating activities was Rs. 620.6 Crores during FY 2019-20, as compared to
Rs. 110.4 Crores in the previous year. The Company spent Rs. 217 Crores towards capital
expenditure related to various projects of capex requirement. The Company was able to reduce
and control ‘other expenses’ at Rs. 834.6 Crores during FY 2019-20, as compared to Rs. 873.7
Crores in the previous year. The EBITDA of the Company is at Rs. 781.6 Crores with, an
improvement of 5.3%, mainly on account of improved margins and higher realisation. The basic
earnings per share stood at Rs. 9.9 for FY 2019-20, as compared to Rs. 8.6 in the previous
year.
AkzoNobel
The Company is Persistent in generating Earnings of nearly Rs. 200 crores in the last five
years. There has been an unprecedented downturn in business activity sharpest in the decade
owing to countrywide lockdowns and lack of demand. With cases on the rise a second phase
of COVID in the offing and reverse urbanisation causing migrant labour to move back to their
villages there are indeed challenges in returning to normalcy once markets open up. During
this unprecedented situation AkzoNobel focus has been on the safety of its employees &
operations while ensuring stay connected with their customers preserve Cash & liquidity and
work on reducing costs. During Covid times company was able to maintain its profitability which
shows company has an Earning Persistence.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
1
ASIAN PAINTS
2
impacted growth. Cumulatively, these factors prevented the company from achieving the stated
top line goals for the year. Also, raw material costs were benign and displayed a slow declining
trend, and prices continued to be impacted negatively due to exchange rate and crude oil
volatility. Against this backdrop, with companies’ efforts to aggressively reduce cost and tighten
overhead control, company were successful in improving the operating margins as a
percentage. The Company was able to achieve this due to concentrated effort on dynamic
formulation management and product mix change.
The cash from operating activities was Rs. 620.6 Crores during FY 2019-20, as compared to
Rs. 110.4 Crores in the previous year. The Company spent Rs. 217 Crores towards capital
expenditure related to various projects of capex requirement. The Company was able to reduce
and control ‘other expenses’ at Rs. 834.6 Crores during FY 2019-20, as compared to Rs. 873.7
Crores in the previous year. The EBITDA of the Company is at Rs. 781.6 Crores with, an
improvement of 5.3%, mainly on account of improved margins and higher realisation. The basic
earnings per share stood at Rs. 9.9 for FY 2019-20, as compared to Rs. 8.6 in the previous
year.
AkzoNobel
The Company is Persistent in generating Earnings of nearly Rs. 200 crores in the last five
years. There has been an unprecedented downturn in business activity sharpest in the decade
owing to countrywide lockdowns and lack of demand. With cases on the rise a second phase
of COVID in the offing and reverse urbanisation causing migrant labour to move back to their
villages there are indeed challenges in returning to normalcy once markets open up. During
this unprecedented situation AkzoNobel focus has been on the safety of its employees &
operations while ensuring stay connected with their customers preserve Cash & liquidity and
work on reducing costs. During Covid times company was able to maintain its profitability which
shows company has an Earning Persistence.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
1
ASIAN PAINTS
2
19
KANSAI NEROLAC PAINT S LIMITED (KNPL)
3
AKZONOBEL 4
3.Which company has better embraced the new technology?
Berger Paints India Ltd
Paints major Berger Paints India Ltd (BPIL) has, through its subsidiary Poland-headquartered
Bolix SA, brought “the energy performance technology” External Thermal Insulation and
Composite Systems (ETICS) to the Indian construction industry.
Berger paint has also launched the BERGER VISUALIZER APP which enables the consumers
to experience colours and textures virtually. Witness the walls of the house much before they
are painted. The 3D format coupled with the 360-degree rotational ability of this app makes it
a joyful experience. Express Painting – The latest innovation from Berger Paints cuts down on
the hassles of home painting, promising a faster, cleaner and better way to paint homes using
automated tools to complete the painting process in 40 percent less time.
The introduction of ETICS would help air-conditioned buildings lower energy consumption and
reduce their carbon footprint, making them environmentally sustainable and resource efficient.
This is also the need of the hour, considering national initiatives such as Smart Cities and
Swachh Bharat, according to BPIL.
Asian Paints
KANSAI NEROLAC PAINT S LIMITED (KNPL)
3
AKZONOBEL 4
3.Which company has better embraced the new technology?
Berger Paints India Ltd
Paints major Berger Paints India Ltd (BPIL) has, through its subsidiary Poland-headquartered
Bolix SA, brought “the energy performance technology” External Thermal Insulation and
Composite Systems (ETICS) to the Indian construction industry.
Berger paint has also launched the BERGER VISUALIZER APP which enables the consumers
to experience colours and textures virtually. Witness the walls of the house much before they
are painted. The 3D format coupled with the 360-degree rotational ability of this app makes it
a joyful experience. Express Painting – The latest innovation from Berger Paints cuts down on
the hassles of home painting, promising a faster, cleaner and better way to paint homes using
automated tools to complete the painting process in 40 percent less time.
The introduction of ETICS would help air-conditioned buildings lower energy consumption and
reduce their carbon footprint, making them environmentally sustainable and resource efficient.
This is also the need of the hour, considering national initiatives such as Smart Cities and
Swachh Bharat, according to BPIL.
Asian Paints
20
Asian Paints has always been on the forefront in terms of leveraging technology for the
business. This year too, the Company has continued to invest in digital technologies such as
AI, ML, Robotic Process Automation (RPA), security systems and advanced analytics. They
have been used to create immersive customer experiences, improve the operational
productivity and aid in better decision making.
The Company has successfully implemented RPA to automate its existing business processes
and new processes/opportunities to further drive efficiencies, increase throughput and scale
operations during high volumes of transactions.
The Company has carried out the migration of the decentralised Microsoft ERP to a single
global instance of SAP S/4HANA for its international units in Sri Lanka, Bangladesh, Indonesia,
Egypt, Ethiopia, the UAE and Oman. Except for the units in Fiji and SP Islands, the Company
runs its global business operations on a single digital core. Information security and data
privacy continue to remain the Company’s focus.
Asian Paints on Friday it would deploy intelligent systems that will run on wire and wireless
technologies at its recently upgraded plants in Mysore and Visakhapatnam.
By deploying technologies such as augmented reality, virtual reality and the principle of ‘byte-
sized’ learning, we have eliminated routine activities through automation, and an unique
material handling system, across the entire range of activities at our factories from unloading
of raw materials and packaging materials to loading of the finished product.
Kansai Nerolac Paints Limited (KNPL)
KNPL has always viewed Information Technology (IT) as strategic. It has been consistently
investing in cutting-edge IT business solutions to bring agility, responsiveness and
competitiveness to the ever-changing market needs. Beginning with the Enterprise Resource
Planning (ERP) implementation in 2000, KNPL has over the years leveraged various solutions
from SAP to IT-enable all aspects of operations. To further leverage this integrated IT
landscape and to harness the full potential of ever-increasing digital adoption, the Company
has embarked on a journey to implement a digital roadmap.
Digital Strategy
The main objective of the roadmap is to rethink each business and its processes to further
improve stakeholder experience and bring about significant operational efficiency via use of
customised digital solutions. The roadmap envisages building digital assets by combining
Asian Paints has always been on the forefront in terms of leveraging technology for the
business. This year too, the Company has continued to invest in digital technologies such as
AI, ML, Robotic Process Automation (RPA), security systems and advanced analytics. They
have been used to create immersive customer experiences, improve the operational
productivity and aid in better decision making.
The Company has successfully implemented RPA to automate its existing business processes
and new processes/opportunities to further drive efficiencies, increase throughput and scale
operations during high volumes of transactions.
The Company has carried out the migration of the decentralised Microsoft ERP to a single
global instance of SAP S/4HANA for its international units in Sri Lanka, Bangladesh, Indonesia,
Egypt, Ethiopia, the UAE and Oman. Except for the units in Fiji and SP Islands, the Company
runs its global business operations on a single digital core. Information security and data
privacy continue to remain the Company’s focus.
Asian Paints on Friday it would deploy intelligent systems that will run on wire and wireless
technologies at its recently upgraded plants in Mysore and Visakhapatnam.
By deploying technologies such as augmented reality, virtual reality and the principle of ‘byte-
sized’ learning, we have eliminated routine activities through automation, and an unique
material handling system, across the entire range of activities at our factories from unloading
of raw materials and packaging materials to loading of the finished product.
Kansai Nerolac Paints Limited (KNPL)
KNPL has always viewed Information Technology (IT) as strategic. It has been consistently
investing in cutting-edge IT business solutions to bring agility, responsiveness and
competitiveness to the ever-changing market needs. Beginning with the Enterprise Resource
Planning (ERP) implementation in 2000, KNPL has over the years leveraged various solutions
from SAP to IT-enable all aspects of operations. To further leverage this integrated IT
landscape and to harness the full potential of ever-increasing digital adoption, the Company
has embarked on a journey to implement a digital roadmap.
Digital Strategy
The main objective of the roadmap is to rethink each business and its processes to further
improve stakeholder experience and bring about significant operational efficiency via use of
customised digital solutions. The roadmap envisages building digital assets by combining
21
unstructured data, like voice, video, pictures, machine data with its extensive transactional data
and use of Artificial Intelligence powered intelligent automation and predictive capabilities to
disrupt the current ways of working and lead to new business models.
Creation of Digital Council
To enable the Company to implement its digital strategy and deepen the integration of Digital
within the organisation, the Company has set up a Digital council comprising Cross functional
leaders under the guidance of the Management Committee. This team is charged with the task
of identifying and implementing digital solutions across the entire stakeholder landscape.
During the year, KNPL has piloted many interventions in building its digital capabilities in line
with its roadmap.
Operational Efficiencies:
Process Automation
KNPL digitised and automated a host of internal processes and activities for employees with
an intent to further improve productivity and satisfaction and increase the reliability of the
processes.
Sales Force Effectiveness
KNPL has developed a mobile application leveraging SAP Leonardo’s machine learning
capability to drive effectiveness of its retail frontline team. It has also successfully implemented
chatbots to support the sales team with instant answers and analytics.
Internet of Things (IoT)
KNPL has piloted a project to harness the power of IoT at the dealer end.
Digital Factory
Company’s new state-of-the-art manufacturing facility at Goindwal is a Digital factory with end-
to-end automation. The digital platform is capable of capturing real-time machine parameters
and production data. It will help the Company with increased equipment efficiency, improved
predictive maintenance, and enhanced safety.
Decision-Making
unstructured data, like voice, video, pictures, machine data with its extensive transactional data
and use of Artificial Intelligence powered intelligent automation and predictive capabilities to
disrupt the current ways of working and lead to new business models.
Creation of Digital Council
To enable the Company to implement its digital strategy and deepen the integration of Digital
within the organisation, the Company has set up a Digital council comprising Cross functional
leaders under the guidance of the Management Committee. This team is charged with the task
of identifying and implementing digital solutions across the entire stakeholder landscape.
During the year, KNPL has piloted many interventions in building its digital capabilities in line
with its roadmap.
Operational Efficiencies:
Process Automation
KNPL digitised and automated a host of internal processes and activities for employees with
an intent to further improve productivity and satisfaction and increase the reliability of the
processes.
Sales Force Effectiveness
KNPL has developed a mobile application leveraging SAP Leonardo’s machine learning
capability to drive effectiveness of its retail frontline team. It has also successfully implemented
chatbots to support the sales team with instant answers and analytics.
Internet of Things (IoT)
KNPL has piloted a project to harness the power of IoT at the dealer end.
Digital Factory
Company’s new state-of-the-art manufacturing facility at Goindwal is a Digital factory with end-
to-end automation. The digital platform is capable of capturing real-time machine parameters
and production data. It will help the Company with increased equipment efficiency, improved
predictive maintenance, and enhanced safety.
Decision-Making
22
Company also successfully piloted highly visual dashboards with predictive capability to
empower its business leaders with quick and efficient decision-making.
Cloud
During the year, Company moved to Office 365 platform giving KNPL the capability of
leveraging the cloud for meetings and discussions.
Security
Increasing digital interactions across the stakeholder landscape place even greater emphasis
on the need for secure and reliable IT systems.
AkzoNobel
A new research centre which will develop pioneering products for the rapidly growing area of
powder on wood has been opened by AkzoNobel. The new R&D facility – which features an
application lab, process lab, and analytical and testing lab is dedicated to delivering low cure
powder coatings for use on heat-sensitive substance. AkzoNobel to build global leadership
position and enter new markets while bringing more surfaces to life for their customers.
Strengthening their position as a technology leader, the new facility will also help to accelerate
their speed to market so they can reach their customers even faster. This is only the first phase
of the company’s expansion into powder on wood, with plans in place to open additional R&D
centres in Asia and North America.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
3
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
2
AKZONOBEL 4
4.Which company is engaging in making most Innovative
Products/ Services?
Company also successfully piloted highly visual dashboards with predictive capability to
empower its business leaders with quick and efficient decision-making.
Cloud
During the year, Company moved to Office 365 platform giving KNPL the capability of
leveraging the cloud for meetings and discussions.
Security
Increasing digital interactions across the stakeholder landscape place even greater emphasis
on the need for secure and reliable IT systems.
AkzoNobel
A new research centre which will develop pioneering products for the rapidly growing area of
powder on wood has been opened by AkzoNobel. The new R&D facility – which features an
application lab, process lab, and analytical and testing lab is dedicated to delivering low cure
powder coatings for use on heat-sensitive substance. AkzoNobel to build global leadership
position and enter new markets while bringing more surfaces to life for their customers.
Strengthening their position as a technology leader, the new facility will also help to accelerate
their speed to market so they can reach their customers even faster. This is only the first phase
of the company’s expansion into powder on wood, with plans in place to open additional R&D
centres in Asia and North America.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
3
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
2
AKZONOBEL 4
4.Which company is engaging in making most Innovative
Products/ Services?
23
Berger Paints India Limited
Berger Paints’ vision is to be a world-class Research & Technology led organisation. Driven by
innovation, Berger Paints is agile and responsive to changing customer and market needs, as
well as evolving technology. Through R & T, we will align ourselves with future customer needs
and drive expansion. Continuous R & T will enable us to grow bigger in size and better in
quality. Even with the onset of the Covid-19 pandemic, Berger Paints launched products which
were relevant for consumers amidst the crisis. Silk Breathe Easy, a luxury interior emulsion
kills bacteria, viruses (including Covid-19) present on the wall and reduces indoor pollution (by
reducing SOx, NOx gases). The company also launched Breathe Easy Safe 24 to give assured
24-hour protection from viruses (including Covid-19 viruses) and bacteria on a variety of
surfaces. The product was manufactured under technology license from IIT Guwahati, one of
India’s premium research institutes. The company also introduced a slew of innovative hygiene
products amidst the pandemic for creating safer environments.
Berger became the first Indian company to introduce Fire Protection using paint sprays which
are normally imported to cater to Indian Market with its Pondicherry Plant (certified as per
Under Writers Laboratories), thereby delivering an international product at affordable Indian
rates.
Asian Paints
Product Innovation has been the hallmark of Asian paints strategy and they have been
expanding the paint market as a leader over the years. Asian Paints launched a first-of-its-kind
SmartCare Ultron, which by itself sets a platinum standard benchmark in waterproofing liquid
applied membrane category.
Woodtech GloMax Ultra Polish offers best-in-class gloss and grain filling in the polish category
at a price point 40% cheaper than its biggest competitor. Nilaya Naturals, a completely pure
and organic paint. It is formulated using 95% natural ingredients sourced from soya bean
extracts, casein, castor oil, among others.
Ace Sparc is a water and acrylic based exterior emulsion, designed for moderately humid
climatic conditions. Woodtech NC Sanding Sealer marked their foray into the untapped large
undercoat market. This was followed by the introduction of Woodtech A1 Thinner and
Woodtech A1 Gold Thinner. They come with quality variants and were launched in some states
in India.
Berger Paints India Limited
Berger Paints’ vision is to be a world-class Research & Technology led organisation. Driven by
innovation, Berger Paints is agile and responsive to changing customer and market needs, as
well as evolving technology. Through R & T, we will align ourselves with future customer needs
and drive expansion. Continuous R & T will enable us to grow bigger in size and better in
quality. Even with the onset of the Covid-19 pandemic, Berger Paints launched products which
were relevant for consumers amidst the crisis. Silk Breathe Easy, a luxury interior emulsion
kills bacteria, viruses (including Covid-19) present on the wall and reduces indoor pollution (by
reducing SOx, NOx gases). The company also launched Breathe Easy Safe 24 to give assured
24-hour protection from viruses (including Covid-19 viruses) and bacteria on a variety of
surfaces. The product was manufactured under technology license from IIT Guwahati, one of
India’s premium research institutes. The company also introduced a slew of innovative hygiene
products amidst the pandemic for creating safer environments.
Berger became the first Indian company to introduce Fire Protection using paint sprays which
are normally imported to cater to Indian Market with its Pondicherry Plant (certified as per
Under Writers Laboratories), thereby delivering an international product at affordable Indian
rates.
Asian Paints
Product Innovation has been the hallmark of Asian paints strategy and they have been
expanding the paint market as a leader over the years. Asian Paints launched a first-of-its-kind
SmartCare Ultron, which by itself sets a platinum standard benchmark in waterproofing liquid
applied membrane category.
Woodtech GloMax Ultra Polish offers best-in-class gloss and grain filling in the polish category
at a price point 40% cheaper than its biggest competitor. Nilaya Naturals, a completely pure
and organic paint. It is formulated using 95% natural ingredients sourced from soya bean
extracts, casein, castor oil, among others.
Ace Sparc is a water and acrylic based exterior emulsion, designed for moderately humid
climatic conditions. Woodtech NC Sanding Sealer marked their foray into the untapped large
undercoat market. This was followed by the introduction of Woodtech A1 Thinner and
Woodtech A1 Gold Thinner. They come with quality variants and were launched in some states
in India.
24
Asian Paints has launched a new campaign on the theme of ‘budget wala paint, to give
further impetus to consumers to move from distemper to Tractor Sparc upgrades.
Kansai Nerolac Paints Limited (KNPL)
Innovation is what Kansai Nerolac Paints Limited (KNPL) is passionate about and has
manifested over the years in a number of unique or first of its kind initiatives or ideas; be it
products, technology or services that KNPL has brought to the market. During the last few
years, KNPL has been strategically investing in a number of ideas which would help the
Company offer better value to its stakeholders.
It launched multiple new products and upgraded customers across passenger vehicles, two
wheelers, auto ancillaries and tractors besides for various industries in Performance coatings
and Powder coatings during the year which created huge value for their customers as well as
helped customers in energy consumption reduction. KNPL remains committed to provide
upgrades and to be the first to upgrade customers to the latest technological products using
the vast knowledge of various lines. They also launched functional coatings for Decorative
aimed at reducing indoor pollution of formaldehyde as well as aiding fast painting turnaround
through quick drying and no odour formulations. Powering this thrust will be commitment to
continuous adoption of the latest technologies at the plants, and in systems and processes.
AkzoNobel
AkzoNobel was awarded for Dulux Weathershield Flash, a premium exterior paint that delivers
the dual benefits of primer and paint at the same time.
In 2019, AkzoNobel launched global value brand, Wanda, in India. Apart from the launch, they
ensured that we had a mass contact program with the painters in both the B and C class
garages who are generally marginalised. The objective of the program was to upgrade their
skills so that they get better employability options with best practices around safety and
sustainability.
Dulux Weather shield Flash is a first of its kind offering in the exteriors paint category that
combines the benefits of paint and primer. In comparison to the conventional three-coat paint
system, Dulux Weather shield Flash reduces the painting time by 30%. It offers the best in
quality, durability and speed, while delivering the assurance of the trademark all-weather
protection.
Asian Paints has launched a new campaign on the theme of ‘budget wala paint, to give
further impetus to consumers to move from distemper to Tractor Sparc upgrades.
Kansai Nerolac Paints Limited (KNPL)
Innovation is what Kansai Nerolac Paints Limited (KNPL) is passionate about and has
manifested over the years in a number of unique or first of its kind initiatives or ideas; be it
products, technology or services that KNPL has brought to the market. During the last few
years, KNPL has been strategically investing in a number of ideas which would help the
Company offer better value to its stakeholders.
It launched multiple new products and upgraded customers across passenger vehicles, two
wheelers, auto ancillaries and tractors besides for various industries in Performance coatings
and Powder coatings during the year which created huge value for their customers as well as
helped customers in energy consumption reduction. KNPL remains committed to provide
upgrades and to be the first to upgrade customers to the latest technological products using
the vast knowledge of various lines. They also launched functional coatings for Decorative
aimed at reducing indoor pollution of formaldehyde as well as aiding fast painting turnaround
through quick drying and no odour formulations. Powering this thrust will be commitment to
continuous adoption of the latest technologies at the plants, and in systems and processes.
AkzoNobel
AkzoNobel was awarded for Dulux Weathershield Flash, a premium exterior paint that delivers
the dual benefits of primer and paint at the same time.
In 2019, AkzoNobel launched global value brand, Wanda, in India. Apart from the launch, they
ensured that we had a mass contact program with the painters in both the B and C class
garages who are generally marginalised. The objective of the program was to upgrade their
skills so that they get better employability options with best practices around safety and
sustainability.
Dulux Weather shield Flash is a first of its kind offering in the exteriors paint category that
combines the benefits of paint and primer. In comparison to the conventional three-coat paint
system, Dulux Weather shield Flash reduces the painting time by 30%. It offers the best in
quality, durability and speed, while delivering the assurance of the trademark all-weather
protection.
25
AkzoNobel, the leading global paints and coatings company and makers of Dulux Paints has
been honoured with the prestigious “Golden Peacock Innovative Product Award” 2019 for its
premium exterior paint - Dulux Weather shield Flash.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
2
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
4
AKZONOBEL 3
5.Which company has incomparable Corporate Governance?
BERGER PAINTS INDIA LIMITED
BERGER PAINTS INDIA LIMITED believes that credibility vests in good Corporate
Governance procedures which help maintain professional, transparent, ethical and perpetual
business. It encourages all its stakeholders’ co-operation and such co-operation is enhanced
as the Company adheres to the best governance practices.
The Company has always been committed to good corporate governance practices, including
in matters relating to Related Party Transactions (RPTs). Endeavour is consistently made to
have only arm’s length transactions with all parties including Related Parties.
Composition of board of directors-
Kuldip Singh Dhingra – chairperson and promotor
Gurbachan Singh Dhingra – vice-chairperson and promoter
Executive Directors – 3
Independent non- executive – 5
AkzoNobel, the leading global paints and coatings company and makers of Dulux Paints has
been honoured with the prestigious “Golden Peacock Innovative Product Award” 2019 for its
premium exterior paint - Dulux Weather shield Flash.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
2
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
4
AKZONOBEL 3
5.Which company has incomparable Corporate Governance?
BERGER PAINTS INDIA LIMITED
BERGER PAINTS INDIA LIMITED believes that credibility vests in good Corporate
Governance procedures which help maintain professional, transparent, ethical and perpetual
business. It encourages all its stakeholders’ co-operation and such co-operation is enhanced
as the Company adheres to the best governance practices.
The Company has always been committed to good corporate governance practices, including
in matters relating to Related Party Transactions (RPTs). Endeavour is consistently made to
have only arm’s length transactions with all parties including Related Parties.
Composition of board of directors-
Kuldip Singh Dhingra – chairperson and promotor
Gurbachan Singh Dhingra – vice-chairperson and promoter
Executive Directors – 3
Independent non- executive – 5
26
Mr Kuldip Singh Dhingra and Mr Gurbachan Singh Dhingra are brothers.
• Ms Rishma Kaur is the daughter of Mr Kuldip Singh Dhingra and Mr Kanwardip Singh Dhingra
is the son of Mr Gurbachan Singh Dhingra. Other directors are not related inter-se except the
above.
REF- Annual Report 2020
Asian Paints
Asian Paints has always adopted a robust governance framework which played a critical role
in ensuring that we remain true to our culture and values. The highest standard of corporate
governance is the cornerstone of their long termism and continued success. the Company
was conferred upon the ‘Golden Peacock Award for Excellence in Corporate Governance -
Mr Kuldip Singh Dhingra and Mr Gurbachan Singh Dhingra are brothers.
• Ms Rishma Kaur is the daughter of Mr Kuldip Singh Dhingra and Mr Kanwardip Singh Dhingra
is the son of Mr Gurbachan Singh Dhingra. Other directors are not related inter-se except the
above.
REF- Annual Report 2020
Asian Paints
Asian Paints has always adopted a robust governance framework which played a critical role
in ensuring that we remain true to our culture and values. The highest standard of corporate
governance is the cornerstone of their long termism and continued success. the Company
was conferred upon the ‘Golden Peacock Award for Excellence in Corporate Governance -
27
2019’, by the Institute of Directors and the ‘Excellence in Corporate Governance’ Awards 2018
– 19, by the Indian Legal Era Journal of Law
Employees of the Company created and adopted a Charter for the organisation which sets out
the purpose for the organisation and outcomes which emanate from the Charter have been
identified to bring about infinite celebrations for its consumers and enable the Company to
enrich the experience of its stakeholders. It constantly strives to adopt emerging best practices
being followed worldwide.
Kansai Nerolac Paints Limited (KNPL)
KNPL continues to uphold the highest traditions of Corporate Governance. Strong Internal
Audit focus with a focus on the Control Efficiency Index and Robust Control Index have helped
the Company improve from a design, policy, people and control perspective. Company tracks
various compliance through the Legatrix online compliance monitoring system. The Company
has been using the online Enterprise Risk Management Framework to monitor various risk
elements and prepare contingency plans to address evolving situations. The Company also
continues with its good practices of Corporate Governance through the Whistle Blower Policy,
encouraging growth of individuals irrespective of gender, religion, caste or community, as well
as its policy on “Appropriate Social Conduct at Workplace”. KNPL attempt to support and
uphold the organisation’s short- and long-term goals by fostering an engaging work
environment in a dynamic business scenario.
2019’, by the Institute of Directors and the ‘Excellence in Corporate Governance’ Awards 2018
– 19, by the Indian Legal Era Journal of Law
Employees of the Company created and adopted a Charter for the organisation which sets out
the purpose for the organisation and outcomes which emanate from the Charter have been
identified to bring about infinite celebrations for its consumers and enable the Company to
enrich the experience of its stakeholders. It constantly strives to adopt emerging best practices
being followed worldwide.
Kansai Nerolac Paints Limited (KNPL)
KNPL continues to uphold the highest traditions of Corporate Governance. Strong Internal
Audit focus with a focus on the Control Efficiency Index and Robust Control Index have helped
the Company improve from a design, policy, people and control perspective. Company tracks
various compliance through the Legatrix online compliance monitoring system. The Company
has been using the online Enterprise Risk Management Framework to monitor various risk
elements and prepare contingency plans to address evolving situations. The Company also
continues with its good practices of Corporate Governance through the Whistle Blower Policy,
encouraging growth of individuals irrespective of gender, religion, caste or community, as well
as its policy on “Appropriate Social Conduct at Workplace”. KNPL attempt to support and
uphold the organisation’s short- and long-term goals by fostering an engaging work
environment in a dynamic business scenario.
28
REF- Annual Report 2020
AkzoNobel
AkzoNobel aspires to uphold the highest standards of corporate governance and seeks to
consistently enhance its corporate governance performance, emphasizing transparency and
embedding a sustainable culture of long-term value creation; its corporate governance
practices reflect its values and principles. AkzoNobel takes utmost care to safeguard the
interests of all its stakeholders. The Board represents the shareholders’ interest in optimizing
long-term financial returns and is committed to its responsibility towards all the stakeholders
viz. customers, employees, suppliers, regulatory bodies and the public in general. All significant
REF- Annual Report 2020
AkzoNobel
AkzoNobel aspires to uphold the highest standards of corporate governance and seeks to
consistently enhance its corporate governance performance, emphasizing transparency and
embedding a sustainable culture of long-term value creation; its corporate governance
practices reflect its values and principles. AkzoNobel takes utmost care to safeguard the
interests of all its stakeholders. The Board represents the shareholders’ interest in optimizing
long-term financial returns and is committed to its responsibility towards all the stakeholders
viz. customers, employees, suppliers, regulatory bodies and the public in general. All significant
29
matters are decided after due examination by the Board with full participation of non-executive
directors, who impart the benefit of their vast experience and skills to bring qualitative
improvement to the decision-making process. AkzoNobel has adopted a Code of Conduct
based on three principles viz. Safety, Integrity and Sustainability, to drive a culture of good
governance. To make informed decisions, the Board has constituted Committees viz. Audit
Committee, Risk Management Committee, Nomination and Remuneration Committee,
Stakeholders Relationship Committee and CSR Committee, to oversee specific areas within
their purview.
Composition of board of directors-
Mr Amit Jain- Chairman
Mr Rajiv Rajgopal- Managing Director
Mr Lakshay Kataria- Wholetime Director and CFO
Non-Executive Director-1
Independent Director- 4
matters are decided after due examination by the Board with full participation of non-executive
directors, who impart the benefit of their vast experience and skills to bring qualitative
improvement to the decision-making process. AkzoNobel has adopted a Code of Conduct
based on three principles viz. Safety, Integrity and Sustainability, to drive a culture of good
governance. To make informed decisions, the Board has constituted Committees viz. Audit
Committee, Risk Management Committee, Nomination and Remuneration Committee,
Stakeholders Relationship Committee and CSR Committee, to oversee specific areas within
their purview.
Composition of board of directors-
Mr Amit Jain- Chairman
Mr Rajiv Rajgopal- Managing Director
Mr Lakshay Kataria- Wholetime Director and CFO
Non-Executive Director-1
Independent Director- 4
30
REF- Annual Report 2020
REF- Annual Report 2020
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
4
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
2
AKZONOBEL 3
REF- Annual Report 2020
REF- Annual Report 2020
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
4
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
2
AKZONOBEL 3
31
6.Which company has unparalleled CSR policy?
Berger Paints India Ltd
Various activities have been undertaken at the corporate and manufacturing units in the areas
related to environment, health education, child development, etc through the following
programmes Participation in Polio Immunisation Programme for the eradication of polio.
Partnering with organizations for sponsoring under privileged and destitute children.
Sponsorship of education of children who come from poor financial background. Initiatives for
a cleaner environment through the awareness programmes, plantations and green belt
development programmes. Donations have been given to the charitable institutions and social
welfare organizations working for the cause of the upliftment of the poor and downtrodden.
Infrastructure development at the vicinity of the various manufacturing locations. Company
continues to pursue its CSR project through its iTrain programme which continued to focus on
skilling painters – both fresh and existing. The fresh painters were introduced to the painting
process for creating employability.
PARTICULARS R.s (in Crores)
Prescribed CSR Expenditure 13.48
Total amount spent for the financial year 16.79
Asian Paints
Asian Paints is committed to playing a larger role towards making a tangible difference in the
lives of beneficiaries we work with. During the financial year ended 31st March, 2020, the
Company incurred CSR Expenditure of 74.64 crores The CSR initiatives of the Company were
under the thrust area of health & hygiene, education, water management and vocational
training. Colour Academy Co. aims with this singular endeavour is to hone talents in India, so
that the nation may become a hub for outstanding skills in the paint application trade. Provides
scholarships for students who require financial support in completing their education and we
also renovate school buildings. Gyan Shakti programme for school adoption. Digital literacy
through learning management systems. Project Drishyam at Ankleshwar, Project Drishyam is
catering to diseases related to eyesight and distribution of spectacles. They are currently
6.Which company has unparalleled CSR policy?
Berger Paints India Ltd
Various activities have been undertaken at the corporate and manufacturing units in the areas
related to environment, health education, child development, etc through the following
programmes Participation in Polio Immunisation Programme for the eradication of polio.
Partnering with organizations for sponsoring under privileged and destitute children.
Sponsorship of education of children who come from poor financial background. Initiatives for
a cleaner environment through the awareness programmes, plantations and green belt
development programmes. Donations have been given to the charitable institutions and social
welfare organizations working for the cause of the upliftment of the poor and downtrodden.
Infrastructure development at the vicinity of the various manufacturing locations. Company
continues to pursue its CSR project through its iTrain programme which continued to focus on
skilling painters – both fresh and existing. The fresh painters were introduced to the painting
process for creating employability.
PARTICULARS R.s (in Crores)
Prescribed CSR Expenditure 13.48
Total amount spent for the financial year 16.79
Asian Paints
Asian Paints is committed to playing a larger role towards making a tangible difference in the
lives of beneficiaries we work with. During the financial year ended 31st March, 2020, the
Company incurred CSR Expenditure of 74.64 crores The CSR initiatives of the Company were
under the thrust area of health & hygiene, education, water management and vocational
training. Colour Academy Co. aims with this singular endeavour is to hone talents in India, so
that the nation may become a hub for outstanding skills in the paint application trade. Provides
scholarships for students who require financial support in completing their education and we
also renovate school buildings. Gyan Shakti programme for school adoption. Digital literacy
through learning management systems. Project Drishyam at Ankleshwar, Project Drishyam is
catering to diseases related to eyesight and distribution of spectacles. They are currently
32
working in eight villages near the plant locations and have treated over 1,000 patients in the
year.
PARTICULARS R.s (in Crores)
Prescribed CSR Expenditure 57.51
Total amount spent for the financial year 74.64
Kansai Nerolac Paints Ltd.
Kansai Nerolac Paints Ltd. (KNPL) believes that business and society are interdependent. This
belief drives the Company's commitment to create mutual benefit and shared progress. KNPL
will make a positive and significant contribution to the society by targeting social and cultural
issues, maintaining a humanitarian approach and focusing on areas in and around our plants
and where our establishments are located. The Mission and philosophy of this function is "To
contribute positively to the development of the society, by acting as a good neighbour,
considerate of others, playing the role of a good corporate citizen with passion and
compassion". KNPL will lend a helping hand to the society in which it operates, in the area of
health, education, environment preservation and community development and such other
activities as specified in Schedule VII of the Companies Act 2013. ; Company strive to be a
responsible corporate by proactively partnering in the Environmental, Social and Economic
development of the communities through the use of innovative technologies, products as well
as through activities beyond normal business" is the company CSR vision. The Company
would continue to carry out CSR activities as it has been carrying out over the years in the
areas of Environment, Health, Education and Community Development. In particular, the
Company will undertake CSR activities as specified in Schedule VII to the Companies Act,
2013 (including any amendments to Schedule VII and any other activities specified by the
Government through its notifications and circulars).
PARTICULARS R.s (in Crores)
Prescribed CSR Expenditure 14.48
Total amount spent for the financial year 16.91
working in eight villages near the plant locations and have treated over 1,000 patients in the
year.
PARTICULARS R.s (in Crores)
Prescribed CSR Expenditure 57.51
Total amount spent for the financial year 74.64
Kansai Nerolac Paints Ltd.
Kansai Nerolac Paints Ltd. (KNPL) believes that business and society are interdependent. This
belief drives the Company's commitment to create mutual benefit and shared progress. KNPL
will make a positive and significant contribution to the society by targeting social and cultural
issues, maintaining a humanitarian approach and focusing on areas in and around our plants
and where our establishments are located. The Mission and philosophy of this function is "To
contribute positively to the development of the society, by acting as a good neighbour,
considerate of others, playing the role of a good corporate citizen with passion and
compassion". KNPL will lend a helping hand to the society in which it operates, in the area of
health, education, environment preservation and community development and such other
activities as specified in Schedule VII of the Companies Act 2013. ; Company strive to be a
responsible corporate by proactively partnering in the Environmental, Social and Economic
development of the communities through the use of innovative technologies, products as well
as through activities beyond normal business" is the company CSR vision. The Company
would continue to carry out CSR activities as it has been carrying out over the years in the
areas of Environment, Health, Education and Community Development. In particular, the
Company will undertake CSR activities as specified in Schedule VII to the Companies Act,
2013 (including any amendments to Schedule VII and any other activities specified by the
Government through its notifications and circulars).
PARTICULARS R.s (in Crores)
Prescribed CSR Expenditure 14.48
Total amount spent for the financial year 16.91
33
AkzoNobel
CSR forms an integral part of AkzoNobel sustainability agenda as company strive to make a
positive difference to the world. AkzoNobel engage with local communities and stakeholders
to partner them in supporting sustainable social developmental projects and causes.
AkzoNobel CSR agenda is based on pillars of education economic development through skill
building community health and safety. Over the years commitment to the development of our
country and our communities has always remained significant and a guiding principle of the
way we do business. Some of the highlights of the CSR activities conducted are given below:
AkzoNobel Paint Academy
AkzoNobel continued its focus on empowering the youth in India by providing skill training in
painting. AkzoNobel trained 2680 youngsters and post training they were linked to employment
with painting contractors and automobile body shops.
E Arogya Kendra Project
AkzoNobel initiated the second E-Arogya Kendra at Bengaluru. With this there are two E
Arogya Kendra’s which provide access of super specialist doctors to ~10000 villagers through
tele medicine.
Education Projects
AkzoNobel in partnership with Government Education Department schools and non-formal
schools continue to support education to underprivileged children in six states of India.
PARTICULARS R.s (in Crores)
Prescribed CSR Expenditure 5.61
Total amount spent for the financial year 5.89
COMPANY NAME RANK
AkzoNobel
CSR forms an integral part of AkzoNobel sustainability agenda as company strive to make a
positive difference to the world. AkzoNobel engage with local communities and stakeholders
to partner them in supporting sustainable social developmental projects and causes.
AkzoNobel CSR agenda is based on pillars of education economic development through skill
building community health and safety. Over the years commitment to the development of our
country and our communities has always remained significant and a guiding principle of the
way we do business. Some of the highlights of the CSR activities conducted are given below:
AkzoNobel Paint Academy
AkzoNobel continued its focus on empowering the youth in India by providing skill training in
painting. AkzoNobel trained 2680 youngsters and post training they were linked to employment
with painting contractors and automobile body shops.
E Arogya Kendra Project
AkzoNobel initiated the second E-Arogya Kendra at Bengaluru. With this there are two E
Arogya Kendra’s which provide access of super specialist doctors to ~10000 villagers through
tele medicine.
Education Projects
AkzoNobel in partnership with Government Education Department schools and non-formal
schools continue to support education to underprivileged children in six states of India.
PARTICULARS R.s (in Crores)
Prescribed CSR Expenditure 5.61
Total amount spent for the financial year 5.89
COMPANY NAME RANK
34
BERGER PAINTS INDIA LIMITED
2
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
4
AKZONOBEL 3
7.Which company has most progressive Work Culture?
Berger Paints India Ltd
At Berger, we believe in an attitude of innovating perpetually. This belief has helped us to
constantly challenge our existing paradigms and perform at improved higher levels. And the
guiding company values of "Performance, Customer First, Ethical Practices and Valuing
People", emerge from this belief. Employees of Berger endeavour to maintain a unique culture
of co-operation and camaraderie, fun at workplace and pride in our achievements while working
in the organization. There is transparency in our communication and this reflects in shared
accountability for our business goals, our aggressiveness in pursuing these goals and our
adaptability in finding new and better products and ways to work. At Berger, we understand the
importance of benefits and perks, and the role it plays in encouraging our employees and
boosting their growth. And they continue to form an essential component of our entire
employee's package. Besides this, we are also dedicated to our employees, their health,
wellbeing and creating a healthy work-life balance. We also support our employees by giving
them the independence to create roles and responsibilities, thus inspiring leadership traits out
of each and every one in our workforce.
Asian Paints
The organisation continued its endeavour of attracting best-in-class talent through multiple
talent engagement initiatives for both campus as well as lateral talent pool. The culture of
competency-based structured interviewing was further strengthened this year and has helped
in building a talent pipeline that can be fostered along its values.
BERGER PAINTS INDIA LIMITED
2
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
4
AKZONOBEL 3
7.Which company has most progressive Work Culture?
Berger Paints India Ltd
At Berger, we believe in an attitude of innovating perpetually. This belief has helped us to
constantly challenge our existing paradigms and perform at improved higher levels. And the
guiding company values of "Performance, Customer First, Ethical Practices and Valuing
People", emerge from this belief. Employees of Berger endeavour to maintain a unique culture
of co-operation and camaraderie, fun at workplace and pride in our achievements while working
in the organization. There is transparency in our communication and this reflects in shared
accountability for our business goals, our aggressiveness in pursuing these goals and our
adaptability in finding new and better products and ways to work. At Berger, we understand the
importance of benefits and perks, and the role it plays in encouraging our employees and
boosting their growth. And they continue to form an essential component of our entire
employee's package. Besides this, we are also dedicated to our employees, their health,
wellbeing and creating a healthy work-life balance. We also support our employees by giving
them the independence to create roles and responsibilities, thus inspiring leadership traits out
of each and every one in our workforce.
Asian Paints
The organisation continued its endeavour of attracting best-in-class talent through multiple
talent engagement initiatives for both campus as well as lateral talent pool. The culture of
competency-based structured interviewing was further strengthened this year and has helped
in building a talent pipeline that can be fostered along its values.
35
The Company acknowledges the need for employees to stay physically and mentally healthy
and stays committed to creating fulfilling lives for them. Towards building a culture of personal
care and responsibility, various health challenges, financial awareness sessions and safety
campaigns were taken up. The Company is implementing a robust safety culture improvement
programme in the manufacturing plants with the aim of reaching the highest regenerative
maturity stage. Towards this, the Company has tied up with reputed agencies for regular
assessment and has launched programmes in all plants towards taking the employees and
contractors on a journey of cultural change in areas of behaviour-based safety.
Kansai Nerolac Paints Ltd.
Nerolac believe in offering careers and not just jobs to our employees. Their employees are
the pulse of the organisation; hence it has always been the company endeavour to create an
atmosphere of “trust, confidence and transparency.” Company new talent hiring process is
rooted in this vision. KNPL has created a work culture where people get big responsibilities
early in their career and are also able to constantly experiment. It has a very strong
management trainee programme, that provides extensive cross-functional experience through
live projects and assignments. This holds true on the ground as more than 50% Management
Committee members are Campus recruits who joined the Company as Management Trainees.
Nerolac employee turnover was 20% in FY 2019-20.
AkzoNobel
AkzoNobel India believes a great corporate culture seamlessly integrates goals of corporations
with goals of individuals. In the process of achieving goals, there have to be enough checks
and balances to make sure that high performance does not lead to employee burnout.
AkzoNobel India's case attrition rate from the western region is low, which is a proof of high
level of employee engagement and further translates into high performance.
AkzoNobel's continued commitment to offering the best conditions for its employees has been
recognized by the Top Employers Institute, with the company receiving official certification in
three of its key markets: Brazil, China and the UK.
The Company acknowledges the need for employees to stay physically and mentally healthy
and stays committed to creating fulfilling lives for them. Towards building a culture of personal
care and responsibility, various health challenges, financial awareness sessions and safety
campaigns were taken up. The Company is implementing a robust safety culture improvement
programme in the manufacturing plants with the aim of reaching the highest regenerative
maturity stage. Towards this, the Company has tied up with reputed agencies for regular
assessment and has launched programmes in all plants towards taking the employees and
contractors on a journey of cultural change in areas of behaviour-based safety.
Kansai Nerolac Paints Ltd.
Nerolac believe in offering careers and not just jobs to our employees. Their employees are
the pulse of the organisation; hence it has always been the company endeavour to create an
atmosphere of “trust, confidence and transparency.” Company new talent hiring process is
rooted in this vision. KNPL has created a work culture where people get big responsibilities
early in their career and are also able to constantly experiment. It has a very strong
management trainee programme, that provides extensive cross-functional experience through
live projects and assignments. This holds true on the ground as more than 50% Management
Committee members are Campus recruits who joined the Company as Management Trainees.
Nerolac employee turnover was 20% in FY 2019-20.
AkzoNobel
AkzoNobel India believes a great corporate culture seamlessly integrates goals of corporations
with goals of individuals. In the process of achieving goals, there have to be enough checks
and balances to make sure that high performance does not lead to employee burnout.
AkzoNobel India's case attrition rate from the western region is low, which is a proof of high
level of employee engagement and further translates into high performance.
AkzoNobel's continued commitment to offering the best conditions for its employees has been
recognized by the Top Employers Institute, with the company receiving official certification in
three of its key markets: Brazil, China and the UK.
36
The latest accreditation means that AkzoNobel has now achieved Top Employer status for six
years in a row in the UK and five consecutive years in China, while in Brazil it's the second
year running.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
2
ASIAN PAINTS
3
KANSAI NEROLAC PAINTS LIMITED (KNPL)
1
AKZONOBEL 4
8.Which company has the most leading reputation?
According to the survey we conducted, we found that the most preferred company is Asian
Paints while the least preferred company is Akzonobel paints.
The latest accreditation means that AkzoNobel has now achieved Top Employer status for six
years in a row in the UK and five consecutive years in China, while in Brazil it's the second
year running.
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
2
ASIAN PAINTS
3
KANSAI NEROLAC PAINTS LIMITED (KNPL)
1
AKZONOBEL 4
8.Which company has the most leading reputation?
According to the survey we conducted, we found that the most preferred company is Asian
Paints while the least preferred company is Akzonobel paints.
37
38
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
2
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
3
AKZONOBEL 4
COMPANY NAME RANK
BERGER PAINTS INDIA LIMITED
2
ASIAN PAINTS
1
KANSAI NEROLAC PAINT S LIMITED (KNPL)
3
AKZONOBEL 4
39
QUANTITATIVE ANALYSIS
Quantitative Analysis consists mainly of Financial Statement Analysis.
The review of the financial statements is the method of reviewing the financial statements of
a company for the objectives of decision forming. It is used by external stakeholders to consi
der an organization's overall safety, and to assess financial results and market interest. Finan
cial accounting calls for all businesses to draw up a statement of balance sheet, income state
ment that forms the basis for financial statement analysis. Horizontal, vertical, and ratio
analysis are three techniques that are used for analysing financial statements.
Financial reporting calls for all entities to maintain a balance sheet, statement of income and
statement of cash flow which form the basis for the assessment of the financial statements
Here in this project, financial statements from FY 2016-2020 have been taken from the financial
reports of the companies and on the basis of common sizing, ratios, growth patterns, and other
aspects, the analysis has been done for the financial performance of these companies.
COMMON SIZE ANALYSIS
Balance Sheet
If we see the reserve and surplus, we can find that the Nerolac paints have highest R&S with
respect to the total assets that implies highest earnings of around 76 % of the total assets,
while Asian paints stands at the 2
nd
position with 62 % of earnings with respect to total assets.
0%
10%
20%
30%
40%
50%
60%
70%
80%
R&S/ Total Assest
R&S To Total Assest
NerolacAsian
QUANTITATIVE ANALYSIS
Quantitative Analysis consists mainly of Financial Statement Analysis.
The review of the financial statements is the method of reviewing the financial statements of
a company for the objectives of decision forming. It is used by external stakeholders to consi
der an organization's overall safety, and to assess financial results and market interest. Finan
cial accounting calls for all businesses to draw up a statement of balance sheet, income state
ment that forms the basis for financial statement analysis. Horizontal, vertical, and ratio
analysis are three techniques that are used for analysing financial statements.
Financial reporting calls for all entities to maintain a balance sheet, statement of income and
statement of cash flow which form the basis for the assessment of the financial statements
Here in this project, financial statements from FY 2016-2020 have been taken from the financial
reports of the companies and on the basis of common sizing, ratios, growth patterns, and other
aspects, the analysis has been done for the financial performance of these companies.
COMMON SIZE ANALYSIS
Balance Sheet
If we see the reserve and surplus, we can find that the Nerolac paints have highest R&S with
respect to the total assets that implies highest earnings of around 76 % of the total assets,
while Asian paints stands at the 2
nd
position with 62 % of earnings with respect to total assets.
0%
10%
20%
30%
40%
50%
60%
70%
80%
R&S/ Total Assest
R&S To Total Assest
NerolacAsian
40
If we talk about total debt of the companies then Akzo Nobel is a debt free company while
Berger paints is an outlier which stands at 11 % of total debt with respect to its total assets.
Total fixed assets with respect to total assets of Akzo Nobel is 25% while other companies are
around 40% of their total assets.
Profit & Loss Account
On common size analysis of income statement, we found that depreciation expense, finance
cost, total expense, profits after tax are almost same for all of the above 4 companies.
0%
2%
4%
6%
8%
10%
12%
Asian Berger Nerolac Akzonobel
TOTAL DEBT/ASSETS
COMPANY
Total Debt/Assets
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Fixed Asset/Total Assest
Fixed Assest-Total Assest
Akzo NobelOthers
If we talk about total debt of the companies then Akzo Nobel is a debt free company while
Berger paints is an outlier which stands at 11 % of total debt with respect to its total assets.
Total fixed assets with respect to total assets of Akzo Nobel is 25% while other companies are
around 40% of their total assets.
Profit & Loss Account
On common size analysis of income statement, we found that depreciation expense, finance
cost, total expense, profits after tax are almost same for all of the above 4 companies.
0%
2%
4%
6%
8%
10%
12%
Asian Berger Nerolac Akzonobel
TOTAL DEBT/ASSETS
COMPANY
Total Debt/Assets
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Fixed Asset/Total Assest
Fixed Assest-Total Assest
Akzo NobelOthers
41
TREND ANALYSIS
Balance Sheet
Talking about the trend analysis, R&S of Akzo Nobel & Berger paints shows around 175%
growth from FY’16 to FY’20 while the other two companies have around 150% growth.
Akzo Nobel is debt free from the beginning while Nerolac Paints debt has decreased by 20%
from FY’16-FY’20 while Berger paints borrowings has increased drastically.
175%
172%
156%
AKZO BERGER ASIAN
RESERVE & SURPLUS
0%
2%
4%
6%
8%
10%
12%
Asian Berger Nerolac Akzonobel
TOTAL DEBT/ASSETS
COMPANY
Total Debt/Assets
TREND ANALYSIS
Balance Sheet
Talking about the trend analysis, R&S of Akzo Nobel & Berger paints shows around 175%
growth from FY’16 to FY’20 while the other two companies have around 150% growth.
Akzo Nobel is debt free from the beginning while Nerolac Paints debt has decreased by 20%
from FY’16-FY’20 while Berger paints borrowings has increased drastically.
175%
172%
156%
AKZO BERGER ASIAN
RESERVE & SURPLUS
0%
2%
4%
6%
8%
10%
12%
Asian Berger Nerolac Akzonobel
TOTAL DEBT/ASSETS
COMPANY
Total Debt/Assets
42
If we talk about the fixed assets Berger paints, Nerolac paints & Asian Paints share has
increased to 219%,210% & 183 % in FY’20 as compared to FY’16 while Akzo Nobel was able
to increase only by 11%.
Akzo Nobel cash & cash equivalents is increased to 1000% in FY’20 as compared to FY’16
increment is quite large as compared to other 3 companies.
210%
219%
183%
NEROLAC BERGER ASIAN
FIXED ASSET ANALYSIS
If we talk about the fixed assets Berger paints, Nerolac paints & Asian Paints share has
increased to 219%,210% & 183 % in FY’20 as compared to FY’16 while Akzo Nobel was able
to increase only by 11%.
Akzo Nobel cash & cash equivalents is increased to 1000% in FY’20 as compared to FY’16
increment is quite large as compared to other 3 companies.
210%
219%
183%
NEROLAC BERGER ASIAN
FIXED ASSET ANALYSIS
43
Profit & Loss Account
Nerolac Paints, Asian paints and Berger paints revenue from operations has increased to 150%
in FY’20 in comparison with FY’16 while AkzoNobel revenue from operations has decreased
by 3%.
144%
209%
185%
1003%
N E R O L A C B E R G E R A S I A N A K Z O
CASH AND CASH EQUIVALENTS
0%
20%
40%
60%
80%
100%
120%
140%
160%
NEROLAC BERGER ASIAN AKZO
REVENUE FROM OPERATIONS
Profit & Loss Account
Nerolac Paints, Asian paints and Berger paints revenue from operations has increased to 150%
in FY’20 in comparison with FY’16 while AkzoNobel revenue from operations has decreased
by 3%.
144%
209%
185%
1003%
N E R O L A C B E R G E R A S I A N A K Z O
CASH AND CASH EQUIVALENTS
0%
20%
40%
60%
80%
100%
120%
140%
160%
NEROLAC BERGER ASIAN AKZO
REVENUE FROM OPERATIONS
44
If we see the profitability then Berger and Asian Paints profits has increased by 78% and 75%
while Nerolac Profits has decreased by 42% from FY’16 to FY’20.
RATIO ANALYSIS
Profitability ratio is used to evaluate the company's ability to generate income as compared to
its expenses and other cost associated with the generation of income during a particular period.
EBITDA Margin- Over the years except Nerolac all the other 3 companies were able maintain
their Ebitda margin but the Nerolac Ebitda margin was decreased from 20.61% to 15.61%.
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
NEROLAC BERGER ASIAN AKZO
PROFITABILITY CHART
0 5 10 15 20 25
Nerolac
Asian
AkzoNobel
Berger
EBIDTA Margin
EBITDA MARGIN 2020 EBITDA MARGIN 2017
If we see the profitability then Berger and Asian Paints profits has increased by 78% and 75%
while Nerolac Profits has decreased by 42% from FY’16 to FY’20.
RATIO ANALYSIS
Profitability ratio is used to evaluate the company's ability to generate income as compared to
its expenses and other cost associated with the generation of income during a particular period.
EBITDA Margin- Over the years except Nerolac all the other 3 companies were able maintain
their Ebitda margin but the Nerolac Ebitda margin was decreased from 20.61% to 15.61%.
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
NEROLAC BERGER ASIAN AKZO
PROFITABILITY CHART
0 5 10 15 20 25
Nerolac
Asian
AkzoNobel
Berger
EBIDTA Margin
EBITDA MARGIN 2020 EBITDA MARGIN 2017
45
Net Profit Margin- Nerolac Paints NP margin decreased from 23.94% to 9.76% while Asian
paints and Berger paints NP margin in FY’20 13.74% and 10.43% respectively, AkzoNobel NP
margin was 8.91%.
Return on Capital Employed- Asian paints and Berger paints ROCE was around 30% while
Nerolac ROCE was 17.34%.
0 5 10 15 20 25 30
2016
2020
Net Profit Margin
Net Profit Margin
BergerAkzoNobelAsianNerolac
0
5
10
15
20
25
30
35
ROCE
ROCE
NerolacAsianBerger
Net Profit Margin- Nerolac Paints NP margin decreased from 23.94% to 9.76% while Asian
paints and Berger paints NP margin in FY’20 13.74% and 10.43% respectively, AkzoNobel NP
margin was 8.91%.
Return on Capital Employed- Asian paints and Berger paints ROCE was around 30% while
Nerolac ROCE was 17.34%.
0 5 10 15 20 25 30
2016
2020
Net Profit Margin
Net Profit Margin
BergerAkzoNobelAsianNerolac
0
5
10
15
20
25
30
35
ROCE
ROCE
NerolacAsianBerger
46
Return on Assets- ROA of Asian and Berger paints are 16.74% and 13.41% in the FY’20
which is good as compared AkzoNobel and Nerolac i.e., around 10%.
Assets Turnover Ratio – Berger paints and Asian paints ATR is 129.78% and 125.11% while
AkzoNobel and Nerolac stands at 114.44% and 108.11%.
0
2
4
6
8
10
12
14
16
18
ROA
Return On Assest
NerolacAsianBergerAkzoNobel
0
20
40
60
80
100
120
140
ATR
Assest Turnover Ratio
NerolacAsianBergerAkzoNobel
Return on Assets- ROA of Asian and Berger paints are 16.74% and 13.41% in the FY’20
which is good as compared AkzoNobel and Nerolac i.e., around 10%.
Assets Turnover Ratio – Berger paints and Asian paints ATR is 129.78% and 125.11% while
AkzoNobel and Nerolac stands at 114.44% and 108.11%.
0
2
4
6
8
10
12
14
16
18
ROA
Return On Assest
NerolacAsianBergerAkzoNobel
0
20
40
60
80
100
120
140
ATR
Assest Turnover Ratio
NerolacAsianBergerAkzoNobel
47
LIQUIDITY RATIOS-
Liquidity ratios tells us about whether a company's cash flow is sufficient to meet its short-and
long-term liabilities.
CURRENT RATIO- CR of Berger paints, AkzoNobel and Asian paints is between 1.5-1.75
times while Nerolac CR is 2.71 times.
SOLVENCY RATIOS -
DEBT TO EQUITY RATIOS- AkzoNobel is a debt free company while Asian paints and Nerolac
debt to equity ratio is 0.03 and 0.05 that is also negligible but if we see the Berger paints debt
to equity is 0.2 which is higher as compared to other three companies.
LIQUIDITY RATIOS-
Liquidity ratios tells us about whether a company's cash flow is sufficient to meet its short-and
long-term liabilities.
CURRENT RATIO- CR of Berger paints, AkzoNobel and Asian paints is between 1.5-1.75
times while Nerolac CR is 2.71 times.
SOLVENCY RATIOS -
DEBT TO EQUITY RATIOS- AkzoNobel is a debt free company while Asian paints and Nerolac
debt to equity ratio is 0.03 and 0.05 that is also negligible but if we see the Berger paints debt
to equity is 0.2 which is higher as compared to other three companies.
48
DU PONT ANALYSIS-
A DuPont analysis is used to evaluate the component parts of a company's return on equity
(ROE). This allows an investor to determine what financial activities are contributing the most
to the changes in ROE. It consists of three ratios- 1. Net Profit Margin 2. Assets Turnover Ratio
3. Financial Leverage.
If ROE is increasing due to net profit or assets turnover then it is good and if it increasing due
to the financial leverage ratio then it means the company is increasing its ROE by leveraging
which is not good. Here we have analysed the company on the basis of DU Pont Analysis.
By analysing we found that net profit margin and assets turnover ratio of Asian paints and
Berger paints are much better than Akzo Nobel and Nerolac.
0
0.05
0.1
0.15
0.2
0.25
NEROLAC BERGER ASIAN AKZO
DEBT/EQUITY
DU PONT ANALYSIS-
A DuPont analysis is used to evaluate the component parts of a company's return on equity
(ROE). This allows an investor to determine what financial activities are contributing the most
to the changes in ROE. It consists of three ratios- 1. Net Profit Margin 2. Assets Turnover Ratio
3. Financial Leverage.
If ROE is increasing due to net profit or assets turnover then it is good and if it increasing due
to the financial leverage ratio then it means the company is increasing its ROE by leveraging
which is not good. Here we have analysed the company on the basis of DU Pont Analysis.
By analysing we found that net profit margin and assets turnover ratio of Asian paints and
Berger paints are much better than Akzo Nobel and Nerolac.
0
0.05
0.1
0.15
0.2
0.25
NEROLAC BERGER ASIAN AKZO
DEBT/EQUITY
49
If we talk about the financial leverage then Nerolac and Asian paints are better than the other
two companies. In this analysis we found that Asian Paints is the first priority for investing
purpose after that Berger paints stands at the second position.
Revenue from operations:
0
5000
10000
15000
20000
25000
Mar-16 Mar-17 Mar-18 Mar-19 Mar 20
REVENUE
YEAR
Revenue
Berger Nerolac Asian AkzoNobel
DuPont Analysis
Berger
Piants
Nerolac
Paints
Asian
Paints
AkzoNobel
Paints
Net Income/Sales 0.10449141 0.099232439 0.1349325 0.090269592
Sales/Total Assets 1.28345304 1.075104124 1.2410155 1.130945214
Total Assets/ Common
Equity 1.84389861 1.298731484 1.5947201 1.879414855
Du pont Analysis 0.24728491 0.138555434 0.2670412 0.191869393
If we talk about the financial leverage then Nerolac and Asian paints are better than the other
two companies. In this analysis we found that Asian Paints is the first priority for investing
purpose after that Berger paints stands at the second position.
Revenue from operations:
0
5000
10000
15000
20000
25000
Mar-16 Mar-17 Mar-18 Mar-19 Mar 20
REVENUE
YEAR
Revenue
Berger Nerolac Asian AkzoNobel
DuPont Analysis
Berger
Piants
Nerolac
Paints
Asian
Paints
AkzoNobel
Paints
Net Income/Sales 0.10449141 0.099232439 0.1349325 0.090269592
Sales/Total Assets 1.28345304 1.075104124 1.2410155 1.130945214
Total Assets/ Common
Equity 1.84389861 1.298731484 1.5947201 1.879414855
Du pont Analysis 0.24728491 0.138555434 0.2670412 0.191869393
50
CFO/Revenue:
Cash Flow from Investing Activities:
-10%
-5%
0%
5%
10%
15%
20%
Mar-17 Mar-18 Mar-19 Mar 20
GROWTH RATE %
YEAR
Revenue YOY Growth
Berger Nerolac Asian AkzoNobel
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
Mar-16 Mar-17 Mar-18 Mar-19 Mar 20
CFO/REVENUE
YEAR
CFO/REVENUE
Asian Berger Nerolac AKzoNobel
CFO/Revenue:
Cash Flow from Investing Activities:
-10%
-5%
0%
5%
10%
15%
20%
Mar-17 Mar-18 Mar-19 Mar 20
GROWTH RATE %
YEAR
Revenue YOY Growth
Berger Nerolac Asian AkzoNobel
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
Mar-16 Mar-17 Mar-18 Mar-19 Mar 20
CFO/REVENUE
YEAR
CFO/REVENUE
Asian Berger Nerolac AKzoNobel
51
Compounded Annual Growth Rate:
Market Price Asian Berger Nerolac AkzoNobel
Mar-15 807 149 216 1400
Mar-20 1594 497 387 2213
CAGR 15% 27% 12% 10%
R&D/Revenue:
R&D/Revenue Mar-20 Mar-19
Asian 0.434% 0.480%
Berger 0.576% 0.586%
Nerolac 0.646% 1.375%
AkzoNobel 9.050% 9.097%
Conclusion- Finally on the basis of all the analysis we came on the conclusion that Asian
Paints Is the best company to invest after that Berger Paints, followed by Nerolac and
AkzoNobel respectively.
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
Mar-17 Mar-18 Mar-19 Mar 20
CFI YOY GROWTH
YEAR
CFI YOY GROWTH
Berger Asian Nerolac
Compounded Annual Growth Rate:
Market Price Asian Berger Nerolac AkzoNobel
Mar-15 807 149 216 1400
Mar-20 1594 497 387 2213
CAGR 15% 27% 12% 10%
R&D/Revenue:
R&D/Revenue Mar-20 Mar-19
Asian 0.434% 0.480%
Berger 0.576% 0.586%
Nerolac 0.646% 1.375%
AkzoNobel 9.050% 9.097%
Conclusion- Finally on the basis of all the analysis we came on the conclusion that Asian
Paints Is the best company to invest after that Berger Paints, followed by Nerolac and
AkzoNobel respectively.
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
Mar-17 Mar-18 Mar-19 Mar 20
CFI YOY GROWTH
YEAR
CFI YOY GROWTH
Berger Asian Nerolac
52
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