Global And Indian Paint Industry: A Case Study

The Indian paint industry is divided into two main market segments-industrial and decorative paints. While industrial paints are used for protection against corrosion and rust on steel structures, vehicles, white goods and appliances, decorative paints are used in protecting valuable assets like buildings. As sophisticated technology is not a prime requisite for manufacturing decorative paints, the industry is flooded with a number of small players catering to the lower-end of the market by supplying low value unbranded products in small quantities. On the contrary, the share of the unorganized sector in the industrial paints segment is relatively limited. This is because technology is the overriding factor in this segment and industrial paints require constant up gradation and servicing. Indian Paints & Coatings industry was highly unorganized and fragmented before 1990s due to high excise duties levied on paints manufactured by organized sector players, making their products unaffordable. This was the period during which the unorganized sector flourished because of a substantial price difference between paints manufactured by the unorganized and organized players. In the 1990s, helped by a growing economy, the Indian paint industry recorded a healthy growth of 12-13% annually. This was mainly due to a drastic reduction in excise from a staggering 40% to 16%. Today, the Indian paint industry is 11000 crores industry and is growing at the rate of more than 15% p.a. Business research reports document the progress and provide analyst with a means of comparing periods of time, project details, and history of growth. While Analyst may rely on a superior memory or the amount of profits companies make each year to gauge their progress, the data Analyst collects in reports can serve a number of important purposes. It can help formulate budget and marketing plans for the upcoming year. It also can allow realizing which products or services are the most successful, and which markets company may have overlooked. Company reports provide information on the health of your company to shareholders, stakeholders, the Media and your community. A business report provides information on the company’s fiscal year. Graphs or charts can be included to break down complicated information and make it more understandable. Business reports include a trends, income statement, financial summary and cash flow statement. Financial notes also may be added to explain accounting methods the company uses to report and record its transactions. Additional information found in notes may detail. Business reports provide information on the company’s mission and history and summarize the company’s achievements in the past year. While financial achievements are included, other achievements also are noted, such as research advances, market share gains or honors awarded to the company or its employees. The achievement section also may include information on such things as sales increases or new machinery that increases profitability and productivity. The chief purpose of the achievements section is to make shareholders and stakeholders feel good about their investments or participation in your company.
 


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