The idea that is taking the Indian paint industry by storm is that smaller players are looking to reset strategies to take on the big names.
Chennai-based Sheenlac Paints wants a brush with a bigger market, one that’s different from just wood coating.
Last week, the 50-year-old paint company tied-up with Jenson and Nicholson to manage and distribute JNL’s flagship products across the country, which includes manufacturing these products.
Sudhir Peter, MD, Sheenlac Paints said: “The marketing, manufacturing, technical know-how and distribution is controlled by us. By this, we’ll be able to get a lot of leverage in the North and Western markets where we are not present today, where we will sell Jensen and Nicholson products.”
The JV allows Sheenlac to break new ground in the decorative segment, and could potentially bring in new business worth Rs 400 crore over the next two years. The target for this year alone is Rs 100 crore.
These strategic partnerships have enabled smaller paint manufacturers like Sheenlac to push their market share forward.
Even as smaller paint manufacturers like Nippon, are choosing to focus on portfolio expansion, to achieve the same goal.
Less than a month ago, Nippon paints launched three new products targeted at the decorative segment. This range of do-it-yourself paints targets not just new home-owners, but even those who want a quick and inexpensive way to re-paint their homes.
Mahesh Anand, President – Decoratives, Nippon Paint India said: “We are trying to ease out the painting process, which will reduce re-painting intervals for customers. So, on one hand, we are addressing new-home painting and new-construction and on the other hand, we are also addressing the re-painting segment. So, these put together will increase per-capita consumption of paints.”
Nippon is betting on these new products to double its market share in the decoratives segment to 4 percent. The reasoning behind these tweaks and overhauls to strategy are simple. With giants like Asian Paints having a stranglehold in India, smaller players are finding it more and more difficult to break new ground. So a shake-up within could well mean a brush with national success.