Packaging in Paint. Cannovation thnov. Welcomes You!

Transcription

1 Packaging in Paint Cannovation thnov Welcomes You!

2 Vision 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. Corporate Overview KNP -A subsidiary of Kansai Paint Co., Japan India s second largest paint company with a turnover USD 320 Million for Market leader in the Industrial & Automotive Coatings business in India. Reputation for innovation, Superior Technology, Value Engineering (VAVE), Quality, and Service. 1 USD = INR 50

3 Kansai Paint Co., Japan No. 1 in Japan & one of the top 10 paint companies in the world. Sales of over USD 2560 Million for Joint Ventures, Subsidiaries and Licensees around the world. Nerolac Group Kansai Nerolac Paints Ltd. Industrial, Automotive & Decorative Coatings Nipa Chemicals Ltd. Chennai Pre-Treatment Chemicals

4 Strategic Partnership Kansai Paints Japan Automotive Coatings Electro-deposition Primers Nihon Parkerizing Japan Pre-Treatment Chemicals Ameron/ PPG Coatings USA High Performance Coatings Oshima Kogyo Japan Heat Resistant Paints Indian Paint Industry Indian Paint Industry is valued at approx Rs.168,000 Mn(USD 3360 Mn). Rs.58,800 MN (USD 1176 MN) 35% 65% Organized Unorganized Rs.109,200 MN (USD 2184 MN) The organized sector has grown at a CAGR of 13-14% in the past 5 years.

5 Indian Paint Industry Rs.57,500 MN (USD 1150 MN) 34% Market Size 66% Decorative Paint Industrial Paint Rs.110,500 MN (USD 2210 MN) Per Capita Consumption $9 11 U.S. $3 2 Mexico $3 6 Brazil $4 6 $5 8 UK Germany $4 5 $1 0.5 India South Africa $3 1 Russia $2 1 China Price per Liter Paint Consumption per capita Values indicate $/liter and liters/capita

6 Future Outlook The market for paints in India is expected to grow at a CAGR of approximately 14 %, in the next five years-1.5 to 2 times of Real GDP. Decorative paints will increase at a faster rate Shift from unorganised to organised sector Increase in automotive requirements more than ever before Importance of Packaging Product Offerings by major companies are similar Differentiators can be marketing but most most companies also invest heavily in the same At the point of Sale, at the moment of truth a good attractive pack can be the major differentiator to create the pull

7 Packaging Used Cans 4 l, 1 l, 500 ml, 200 ml, 100 ml,50 ml Barrels open mouth and bung type 200 l Drums 20 l, 10 l Plastic Barrels 200 l Plastic Pails 1 l, 4 l,10 l, 20 l Cartons for protection of cans Packaging Cost approx 13 % Break up of Packaging Tins 33 % Drums 25-30% Plastics 35-40%

8 Trends in Paint Industry Shift from Solvent based to Water based Better aesthetics of containers Shift to environmental friendly products Faster filling lines More automation of lines Stricter quality norms from OEMs Very competitive atmosphere Returnable Packaging What it means for can manufacturers Plastic Containers will increase at faster rate than tins. Absolute volumes will increase for existing applications albeit at a lower rate Reduction in volumes as percentage of total consumption of packaging Requirement of more consistent quality Consolidation of manufacturers No leakages from seams / top etc Usage of lead free, heavy metal free inks and additives etc

9 Expectations Vendor Managed inventory with bi hourly replenishment Lower Weight tins with better thickness control Value addition proposals Attractive printing quality Cost effectiveness Local tin plate price competitiveness Tin Container

10 Plastic Containers Plastic container have advantage in that More attractive Containers with no limitation on design Base bucket can be plain. Designs can be shrink sleeved, heat formed or IML whereas tin require preprinted sheets. Flexibility is more and inventory is less Less damages

11 Opportunities Replacement for Metal Drums Conical pails - Transportation cost reduction Tin plate drums ( round or rectangular ) for supply to OEMS Adaption to Indian conditions, type, thickness, design of containers Availability of local material at competitive prices and quality Dust proof, contamination proof Usage of tins for water based paints A Innovation challenge Containers which are resealableeasily to promote part by part use In short, things are going to be more competitive and value addition, innovative products, delivery systems are the way forward

12 Thank you