Paint Market Analysis Essay

Sri Lankan Fresh paint Industry

By simply Roshan Attanayake

Industry Review

Size of Sri Lankan fresh paint market,

- Rs. 12-15 billion in value

- 30-35 mil liters in volume.

Consists of 60 companies.

06 big players managing 97% from the market.

CIC

Lankem

- Dulux / Akzo / Glidden

- Robbialac

Oriental Paints

- Royale as well as Permoglaze

Causeway

Silicon Coatings

Macsons Kemzryn?

- High-class / Kenlux

- Nippolac

- Multilac

1

Market Overview

Attractive and commercial paint sectors contribute 85% and

15% respectively to the total volume level.

Western province generates 50% revenue.

Seasonal trend,

Seasonal sales deliver on Dec & March.

Volumes obtain doubled in comparison to an average month.

Industry keeps growing in-line with the GDP growth rate unless of course

special improvements occur (eg: construction boom).

Average value level has shown a 8%-10% year on year development.

99% dependence on imported raw materials.

2

Industry Overview

In 2007,

forty one establishments

# 1343 individuals involved in the sector

# Simply 5 organizations had more that 25 employees

produced an output of Rs. 7, 092, 199, 787

# 0. 35 % of total manufacturing sector output (Rs. 2, 046, 816, 469, 680) # 5 main players accounted for 99% (Rs. 7, 021, 504, 787)

with a value addition of Rs. 2, 711, 060, 603.

# 0. thirty four % of total developing sector worth addition (Rs. 793, 818, 688, 939) # 5 major players accounted for 98% (Rs. 2, 655, 812, 453)

Origin - Office of Census & Stats

3

Goods & Services

Interior

Ornamental

Exterior

In house

Premier emulsion - intended for interior wall space

Enamel & wood completes

Primers & wall fillers

Exterior

Weather shield -for exterior walls

Roofing paints

Coatings

Professional

Industrial paints

Automotive chemicals

Epoxy – for commercial floors

Ancillaries

Ancillaries - thinner, turpentine

After sales solutions – eg: 5 12 months warranty

for weather defend

4

Target audience

House owners

Various other building owners

Architects

Building contractors

Specialist / low professional painters

Engineers

your five

Market Stocks of Key Players

Other folks

3%

Causeway

15%

Dulux

34%

Multilac

10%

Nippolac

14%

Cookware Paints

10%

Robbialac

14%

6

Well-known Brands

Emulsion

Enamel & Automotive

7

Demand Individuals of Fresh paint

Quality

-- durability, last finish

Cost

- cost

Colour selection

Free of inconvenience - simplicity of application

Division - supply

Services including after sales providers

Quality worth perception (equilibrium between quality & price) is the highest factor generating the demand for a particular brand. Seasonal impact is known as a critical require driver for the sector as a whole.

almost 8

Market Segmentation

Geographical Basis – depending on hardware density

Based on salary / obtaining power,

High end – high income earners.

generates a revenue of 40%.

Mid tier – middle level income earners.

accounts for maximum volume & 40% income.

Low tier– low income earners.

builds 20% income.

9

Latest Drawback

In 2008 and 2009 amounts dropped by simply 32% and 18%

respectively due to,

- economic downturn

- then ongoing war

- oil value escalation.

Petroleum price,

-- directly affects the price of recycleables

- indirectly affects different costs

(fuel for machinery, transportation).

twelve

Oil Value Vs Fresh paint Price

100

700

80

600

five-hundred

70

60

400

40

300

forty

30

200

20

75

10

zero

0

2005

2005

2006

2007

2008

11

2009

2010

Rs. / Fresh paint ltr.

$/Oil barrel

70

Oil

Paint

Construction Index

Average Producer Prices 2k – 2009

Building

Elements

1, 500

Bricks

2150

(Rs. )

2001

(Rs. )

2002

(Rs. )

2003

(Rs. )

2005

(Rs. )

2005

(Rs. )

06\

(Rs. )

2007

(Rs. )

08

(Rs. )

2009

(Rs. )

one particular, 736В

you, 815В

one particular, 921В

one particular, 995В

two, 297В

two, 999В

several, 462В

some, 183В

some, 922В

a few, 320В

600В

708В

843В

945В

1, 282В

you, 938В

a couple of, 475В

several, 168В

3, 633В

several, 682В

two, 648В

a couple of, 741В...



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