Page 1 of 10
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 1
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 311
A Study on Brand Preference among the Paint Users in
Dharmapuri Town
Dr. R. Venkatesh
Assistant Professof PG Research Department of Commerce Don Bosco College Dharmapuri –636 809
Abstract:
Paint has been in use for time
immemorial. The evidence can be found in
the Cave paintings. The Chinese are
considered to be the pioneers of
manufacturing paints is made artificially
and is used in many different ways. Paint
is a mixture of four elements solvents,
binders, pigments and additives. Solvents
give the paint a liquid flow while the
binder binds it to the surface. Pigments
impart color and capacity to the paint and
the additives give is special resistance
properties.
INTRODUCTION
The Indian paint industry is over
100 years old. Its beginning can be traced
back to the setting up of a factory by
Shalimar paints in Calcutta (now Kolkata)
in 1902. Unit World War II, the industry
consisted of small producers and two
foreign companies. After the war, the
imports stopped, which led to the setting
up of manufacturing facilities by local
entrepreneurs, still, the foreign companies
continued to dominate the market. Initially
British paint companies such as Good lass
Walls (now Berger paints), Jenson &
Nicholson and Blundell & Emote
dominated the market.
Indian Paint market
Indian paint market consists of
both organized and unorganized sectors,
with 43 percent coming under the latter.
So the majority is under the organized
sector. Altogether the total turnover of this
industry is estimated to the A.11, 200 Cr.,
and the growth rate was put at 16 percent
per annum during 2006-2007.
Specifically speaking, the
decorative paint market in India, a highly
competitive segment with a few major
players at national level and a large
number of regional players, enjoyed a total
turnover of A. 7880 Cr., during 2006-
2007. Its fragmented retail had an
exponential growth in the last ten years
with an ever increasing “Dealer
Tinting Systems”. It is reported there are
16000 companies in this market.
Facets of paint Industry in India
There are various dimensions of paint
industry in India. They are as follows.
Page 2 of 10
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 1
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 312
1. Promotional Bodies.
2. Quality parameters.
3. Price Sensitivity factors.
1. Promotional and Regulatory Bodies.
CAPEXIL (formerly Chemicals
and Allied Products Exports Promotion
Council) a non-profit making organization,
was set up in March 1958 by the Ministry
of commerce and Industry, Government of
India over the years has been playing an
important role to promote exports of paints
from the country.
Established in 1962, the Indian
Paint Association is the apex body of the
Indian paint industry, which represents
both the organized sector and the small
scale sector in the paint industry. It is a
voluntary non-political and non-profit
organization which promotes the interest
of the paint industry and the society. The
IPA is a unique forum in which even the
very small scale manufacturers are
members beside all the major paint
producers in India. The representative
character of the association is amply
demonstrated by the fact that more than 80
percent of the total paint production in the
country is accounted for by members of
IPA.
When paint is manufactured in a
factory, because of the ingredients used, it
can harm the environment and the workers
who work in the factory. In order to void
the damage to the environment and
humans every country has a regulatory
body. Keeps an eye on the procedures used
by the companies.
In order to regulate such a huge
volume of paint trade inland and abroad,
every country has rules and regulations. In
India, there are many as follows.
(i) Pollution control Act and
Regulations of India is
responsive to control and
regulate the pollution part of
the paint manufacturing
process.
(ii) Packing Commodity Rules.
(iii) Standard weights & Measures
Act.
(iv) Industries, Energy and labour
Department Act
(v) Factory Act, 1948 lists paints,
varnished, lacquers or thinners
as flammable solvents so due
care has to take.
(vi) MRP Rules under packaged
Commodity Act.
(vii) Petroleum Act.
Bureau of Indian standard has some
specifications are
Page 3 of 10
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 1
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 313
(i) General requirements.
(ii) Products specific requirements.
2. Quality parameters:
Paint manufacturers very careful to
produce high quality paints. They
normally use different quality control
measures. All the ingredients and the paint
manufacturing processes are put through
very rigorous standard tests and the
finished product is once again checked
observed for the quality. So the paint is
inspected for its.
i) Density,
ii) Dispersion,
iii) Viscosity and
iv) Fineness of grind, then
the paint is applied to
test the drying time and
the texture.
3. Price Sensitivity Factors
In accordance to the fluctuating
cost of raw materials, the ultimate price
level of paints would change
correspondingly. So the price level of
paints in hypersensitive mainly on account
of raw material cost and of course
marketers. Various factors that have
influenced the pricing of paints are
summarized below:
(i) The industry is raw-material
intensive of the 300 odd raw
materials, nearly half of them
are imported petroleum
products. Thus, any deficit in
oil reserves affects the bottom
line of the player.
(ii) The major raw materials
titanium dioxide, ophthalmic
anhydride and peutarithrithol
constitute 50 percent of the
total cost. Besides, these there
are other raw materials such as
castor, linseed soybean oils and
turpentine. The costs of raw
materials sum up to almost 70
percent. Any increase in the
prices of these raw materials
could adversely affect prices of
paint.
(iii) Most of the paint majors have
to import nearly 30 percent of
their raw materials
requirements, thus changes in
import policies can affect the
industry.
(iv) The Prices of packing materials
as HDPE, BOPP and tinplate
have reduced considerably.
However, the decision of the
Central Government to ban
import of tinplate waste could
lead to a spurt in the prices of
the tinplate in the near future.
