Kansai Nerolac Paints Limited SWOT and PESTLE Analysis
COMPANY PROFILE -Kansai Nerolac Paints Limited
Business Sector :Chemicals, Paints
Operating Geography :India, Asia, Global
About Kansai Nerolac Paints Limited :
Kansai Nerolac Paints Limited (formerly Goodlass Nerolac Paints Ltd) is a Mumbai-based industrial paint and third-largest decorative paint company. It is a subsidiary of Japan's Kansai Paint. It designs and manufactures paint systems for the electrical component, cycle, material handling equipment, bus bodies, containers, and furniture industries. In 1920, it was founded as Gahagan Paints & Varnish Co. Ltd. in Lower Parel, Mumbai. Goodlass Nerolac Paints Ltd. was acquired by Tata Forbes Group in 1976 after Forbes Gokak acquired a portion of the foreign shareholdings. In 1999, Kansai Paint Co. Ltd. of Japan acquired the entire stake of the Tata Forbes group, and Goodlass Nerolac Paints became a wholly owned subsidiary of Kansai Paint Company Ltd. Kansai Nerolac Paints Ltd. (KNPL) has been placed in the 'Leadership' category in the CRISIL Sustainability Yearbook 2022 in recognition of its unwavering commitment to sustainability and the environment. Furthermore, among paint and manufacturing companies, Kansai Nerolac Paints Ltd. has the highest ESG score. As of early 2022, Kansai had over 7,748 employees.
The USP of Kansai Nerloac lies in it being the largest industrial paints company in India. Kansai Nerolac mission is, “To leverage global technology, for serving our customers with superior coating systems built on innovative and superior products and world class solutions, to strengthen our leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the delight of our stakeholders.”
Kansai Nerolac Paints Limited Revenue :
INR 5981.76 crores – FY ending 31st March 2022
INR 4,809.46 crores – FY ending 31st March 2021
Competitive Analysis of Kansai Nerolac Paints Limited
Strengths | Weaknesses |
1. Diversified paints portfolio with constant new launches 2. One of the leading players in Indian paints industry 3. Strong focus on branding with a new branding initiative launched in 2022 4. Focus of R&D on product innovation provides a competitive edge 5. Wide range of digital applications for each personnel reflecting strong digital capabilities 6. Strong manufacturing footprint with plants in various states | 1. The products will become obsolete quickly due to the demand for vinyl-based wallpaper |
Opportunities | Threats |
1. Expansion into new market segments through increase in product portfolio 2. New product launches in the automotive coatings segments to provide growth 3. Planning of capacity expansion in the country | 1. Inflationary pressures are weighing down the margins 2. Tough competition from some large players like Asian Paints, Berger Paints as well as from new entrants 3. Rising supply constraints due to raw material shortage |
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Detailed SWOT Analysis of Kansai Nerolac Paints Limited
Strength
1. Diversified paints portfolio with constant new launches: The product proposition of Kansai Nerolac is designed to meet the changing needs of customers in the key segments of Decorative and Industrial. The Decorative segment consists of interior range, exterior range, designer range, primers, enamel, wood finish, waterproofing, adhesives, solider, etc. with various products under each division. The Industrial segment is divided into two division that are Automotive and Performance coatings liquid. Paints under Automotive division is applicable for Passenger Vehicles, Commercial Vehicles, Tractors, Two-Wheelers, Three-Wheelers, Wheels and Auto Ancillaries whereas paints under Performance coating liquid is also applicable in various industries such as for Petroleum, Metal Industries, Chemicals and Fertiliser, Infrastructure, Cement Industry, Railways, Pipes PreCoated Steel, Bridges, Drums and Barrels, Cylinders, Electricals, Helmet, Pre-engineered Buildings, Construction Equipment. In FY21-22 new products were launched in decorative segment such as Excel Mica Marble Stretch & Sheen, Beauty Ceiling Emulsion, Nerolac AquaSmart, etc. Similarly, new additions in Industrial paints included high solid anti-chip primer for 4 wheelers, Matt Lacquer for Petrol tank of Motorcycle, High Weatherable Topcoat for Three-Wheeler, Neropoxy Solvent Free Coating” for Water Pipeline Internal Coating, etc.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Asian Paints
- Berger Paints
- Akzo Nobel
- Indigo Paints
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References used in Kansai Nerolac Paints Limited SWOT & PESTLE Analysis Report
1. Annual Report - https://www.nerolac.com/sites/default/files/uploads/Financial-Results/2021-22/kansai-nerolac-paints-limited-annual-report-2022.pdf
2. Why Wallpaper Is More Popular Than Wall Paint These Days? - https://gharpedia.com/blog/people-prefer-wallpaper-over-wall-paint/
3. India in the Global Supply Chain Disruptions: A Geoeconomics’ Perspective - https://finsindia.org/india-in-the-global-supply-chain-disruptions-a-geoeconomics-perspective/
4. How Kansai Nerolac plans to fight rising competition in paints industry - https://economictimes.indiatimes.com/markets/stocks/news/can-kansai-nerolacs-latest-strategy-help-stock-regain-valuations-of-good-old-day/articleshow/92379593.cms
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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