Kirloskar Institute of Advanced Management Studies, Harihar, Karnataka (2011-2013)
ACKNOWLEDGEMENT
It has been a privilege that Cipy Polyurethanes Pvt. Ltd has been my stepping-stone into the corporate world. Words cannot express the gratitude I feel towards the innumerable people who have helped me in my endeavor.
I avail this opportunity to express my heartiest gratitude to Mr. Bharath Rajgopal (Asst. General Manager) for giving me the platform to do a project and providing me with an enriching experience, with the right blend of theoretical as well as practical exposure.
I would like to thank Mr. Naveen Sangwan (Business Development Ofiicer) and Ms.Kriti Wadhwa (Business Development Ofiicer) for her guidance, valuable inputs and also for her time. .Their guidance during the internship has proved to be beneficial in many ways.
I would like to express my sincere gratitude to my Faculty Guide, Dr .M. Sivagnanasundaram and my alumni guide, Mr. Siddharth Sharma for taking out their precious time and guiding me throughout my internship.
Last, but not the least, I would like to thank Kirloskar Institute of Advanced Management Studies for giving me this opportunity to get this small but relevant exposure to the corporate sector & also to all the respondents who took time out of their busy schedule and provided valuable inputs for the study.
TABLE OF CONTENTS SL No | Topic | Page No | 1. | TITLE PAGE | 1 | 2. | ACKNOWLEGEMENT | 2 | 3. | TABLE OF CONTENT | 3 | 4. | EXECUTIVE SUMMARY | 4 | 5. | INTRODUCTION | 6 | 6. | OBJECTIVE OF THE STUDY | 15 | 7. | BRIEF DESCRIPTION OF THE CONCEPTS INTRODUCED INTHE STUDY | 15 | 8. | COMPANY PROFILE | 16 | 9. | COMPETITOR’S ANALYSIS | 20 | 10. | METHODOLOGY FOLLOWED | 22 | 11. | FINDING | 23 | 12. | SWOT ANALYSIS | 28 | 13. | PORTER’S FIVE FORCE MODEL | 30 | 14. | RECOMMENDATIONS | 34 | 15. | SCOPE FOR FUTURE IMPROVEMENTS | 34 | 16. | APPENDIX | 35 | 17. | BIBLIOGRAPHY | 36 |
EXECUTIVE SUMMARY
The Indian Paint industry, estimated to be a Rs.21000 Cr. industry, has been growing at a rate of above 15% for the past few years. The organized players of the industry cater to about 65% of the overall demand, whereas the unorganized players take care of the remaining 35%, in value terms. The unorganised players mainly dominate the distemper segment.
The industry consists of two segments, namely * Decorative segment – caters to the housing sector and * Industrial segment - consists of powder coatings, floor coatings and other protective coatings catering to the automobile, marine and other industries.
In the domestic market, Decorative segment accounts for 70% of the total demand for paints whereas the industrial segment accounts for the remaining 30%. Globally, the demand for paints is almost equally distributed, where both the segments account for close to 50% of demand.
My Project is to finding prospects and creating awareness about the products of the CIPY Polyurethanes Private Limited through market research in and around Delhi and Gurgaon. Title of the project is ‘Brand Awareness’ and the area is market research for the prospects.
For this I have visited several companies in this region. I meet the concerned person (like maintenance engineer or contractor etc.) there and give him detail information about our products. I tell them what are advantages of our products (like the life of floors will increase after applying epoxy coating in that, easy to maintain and clean etc.) and what are the disadvantages of simple concrete floor or tiles in industry.
Data collection through field survey:-
I have visited 50 manufacturing companies for my research work and brand awareness.
My first step was to prepare questionnaires and do the primary data collections about what the customers think then compile the data and analyze it so that it helps me to concrete and vouch my findings. I prepared a questionnaire which consists of a set of relevant question. I asked them these question such as their requirements, their contact number, Email address etc and providing all these detailed information to the my company guide after collecting.
Research work through cold calling in the companies:-
I have also searched the data of different industries through internet situated in Baddi and Faridabad . So these data were secondary data. I called in the companies of which data I have collected through internet. I have done cold calling in about 150 companies through phone.
Kiosks were put up at Mini Infra Expo, at Greater Noida for a week:- I and my colleague put up a Kiosk with companies Hoardings/Standee, Brochure, Pamphlets, Sample plates. Many big and well established Infrastructure companies participated in the Expo. This exercise helped us create brand awareness and also gave us an idea about the emerging market segment.
Introduction
In spite of global economic slowdown, the coating industry in India has been doing reasonably well. In fact, according to a market research organization , the industry is growing by around 15% per year. At present, the paint industry in India is estimated to be around Rs. 21000 crore large. Out of this around Rs. 13000 crore is decorative while the remaining Rs.8000 crore is taken up by the industrial segment. The global paint market for the coatings industry is worth an estimated US$ 93 billion in value and 27 billion litres in terms of volume. The Asia-Pacific region has become the largest geographic region consuming more than 35 percent of the total global coatings volume.
The Indian paint and coatings industry is riding high on the crest of growth in the Indian automobile industry, new construction in the housing segments and accelerated thrust to infrastructure like bridges, highways and metro rail lines. Certain segments are likely to see exponential growth. For example, the demand for underwater coating applications used mainly in the marine business and oil and gas companies amongst others is likely to shoot up, increasing business opportunities. The market size in these specialty product lines is expected to be more than double in less than five years when projects like the Reliance Power’s Krishna-Godavari basin off the Bay of Bengal and Cairn Energy in Badmer, Rajasthan will go into full scale production of gas.
The per capita consumption of paints in India, however, still remains at a dismal 1.25 kg low. This compared with Qatar at 51.7kg, Singapore at 38kg, and US at 25.8Kg. Even our neighbour Sri Lanka has a per capita consumption of 3.5kg, with China following close behind at 2.5kg. The industry has great potential for growth in the coming year.
Shipyards are investing big money in creating repair facilities. Shipyards, besides new ship building and offshore oil platforms also engage in ship repair. In India itself, this market is pegged at around Rs 2,000 crore (US$400 million) yearly. Globally, the marine repair and conversion industry is pegged at over US$20 billion
All this means business for the marine coating industry too. For, each ship, depending on its size takes so many tons of anti-corrosion paints and coatings. In addition, the international Maritime Agency has banned the use of environmentally hostile pigments in the coatings and paints. The mandate is that by the year 2018, all existing marine vessels too should be recoated with environmentally friendly materials only. The deadline for this conversion too opens up tremendous business opportunities.
According to industry experts, the marine coatings sector has a lot of potential in India because of the vast coastline and huge infrastructure development of ports. The sector is estimated to grow at a pace of 30 percent per annum. Once the investments in ports and port development reach fruition, higher demand for marine coatings can be expected.
Cipy polyurethanes is a private limited company which manufacture polyurethanes coats for the floor of the different manufacturing industries. This company doesn’t make decorative paints. Cipy produces industrial coats only and many other products. It has over 100 products and brands. Cipy is pioneer of polyurethane coating in India.
Cipy’s Product Profile:-
Other products of CIPY:-
Floor coating:- Cipy have canned the problems associated with concrete floors for the protection against physical and chemical abuses. Cipy offers PU, Epoxy and EPU based floor toppings – thin, thick, trowel and flow applied systems to meet every trafficking requirement.
With over three decades experience and 50 million sq.ft of installations, Cipy assists and guides you in making the right floor coating to match your needs.
ESD floorings:- The first to launch floor coatings in India in mid eighties, Cipy is again the first to come out with conductive and static dissipative floorings for electronic industries, I.T., and Ordnance factories. Formulated with conductive grade antistats to reduce tribo electric charging and create a static dissipative floor surface, Cipy Floorkote ESD systems safeguard sensitive electronic components during manufacture or service. The Floorkote ESD is a multi layer self levelling system that hardens to an attractive durable finish.
Sealants:- Cipy offers polyurethane and poly sulphide sealants for construction industries and concrete pavements.
OEM:- Cipy offers protective cum decorative finish paints for OE and refinishing sectors in three different polymeric versions (PU, Epoxy and Acrylics). Cipy has a versatile range of products to suit to varied substrates like MS, aluminium, GI, cast iron, FRP, ABS, polypropylenes and provides the full system consisting of primer, primer-surface, putty and top coats. Available in glossy, matt and semi glossy versions.
Concrete sealer:- Cipy brings the world’s one of the most renowned concrete sealers ‘Chem Tec One’ from Chemtec Int’l Inc., USA, under our trade name “FloorHard”.
Cipy FloorHard seals masonry, concrete and other cement based materials into a mass that is non porous. This densifying action produces a floor that is resistant to traffic. Rather than eroding, the floor surface self polishes. The more the floor is used, the better it looks. On their own, FloorHard does not change the colour of the concrete.ish.
Adhesives and Grouts:- Cipy offers epoxy based, low viscous, high strength grouts based on a special grade of epoxy cured with modified polyamines.
The first to introduce PU based flocking adhesive to flock nylon / rayon powder on EPDM rubber profiles, Cipy offers various grades of adhesives to bond metals, concrete, rubber crumbs etc.
Water Proofing:- Cipy’s Terra Waterproof systems offer total solution for leaking and seeping walls and roofs. Cipy’s technologies such as polyurethanes, acrylics and poly-sulphides, with or without the aid of hydraulic binders, deliver a complete zero seepage system comprising of coatings, liquid applied membranes and sealants. We, at Cipy, employ polyurethane resins (1K and 2K), epoxies, poly sulphides, pure acrylics, styrene acrylics, SBRs and polymer modified cementitious compounds to offer ultimate solutions for below and above grade water proofing applications.
Spray applied polyurethanes:- Spray applied elastomeric, solvent less polyurethanes coating, applied by plural component airless spray. This finds extensive uses in application areas where high build coatings are needed to protect steel/concrete structures against aggressive corrosive environments. Protects against microbiologically induced corrosion (MIC), making it ideal for municipal wastewater applications. Being non toxic, Durathane 100 finds uses in municipal drinking water applications.
Spray applied polyureas:- This is a two component, 100% solids elastomeric aromatic pure Polyurea coating. It sets and cures rapidly to form highly durable film exhibiting a high degree of abrasion and chemical resistance.
Green coating:- Cipy green coatings are developed very recently based on Cipy’s green chemistry, and are designed to meet all the parameters required for green performance. Cipy green coatings are specifically designed to protect and decorate metal and concrete substrates that reduce negative impacts on human health and environments. They are greener than the conventional organic solvent based formulations. Cipy Green systems consist of water borne or solvent free epoxy and PU components and do not contain any toxic substrates.
Customers:
Automobiles:-
SKODA
FIAT
HYUNDAI
TOYOTA
HERO HONDA
BMW
HONDA
TVS
BAJAJ
FORD
TATA
VOLVO
EICHER
SUZUKI
ASHOK LEYLAND
Engineering:-
AREVA
SIEMENS
JCB
L & T
SKF
BOSCH
LUMAX
MINDA
CROMPTON GREEVES
ABB
HARSHA
CUMMINS
Protective Coating:-
LANCO
IMC
RELIANCE INDUSTRIES LIMITED
CIPLA
HP
BEML
SI GROUP
DU PONT
TATA POWER
CABOT
Spray applied PU and Polyurea coating:-
ONGC
HP
INDIAN OIL
NTPC
GSECL
LANCO
JSW
Markets:
Cipy polyurethane Pvt ltd. has a much diversified market. It offers products to capture almost every market in its industry domain. Ranging from public civil works to private industrial use, Cipy offers all types of products to meet customer requirements.
With over 100 million sq ft flooring installations nationwide, covering a wide spectrum of industries, you can trust in the knowledge, the experience and the expertise of over three decades of Cipy’s flooring leadership in India. * Automobile. * Light & Heavy engineering. * Pharmaceuticals. * Food processing unit. * Auto ancillaries. * Light engineering. * Car parks. * Chemicals& fertilizers. * Aviation. * Hospitals & Health care. * IT & electronics. * Steel. * Warehousing. * Dairies. * Shopping malls.
Over the last two decades, Cipy has pioneered the art of hybrid polymer technology by bringing EPU (epoxy-urethane) concepts in India, engineered for excellence in floor protection and decoration. Cipy Floorkote systems offer the highest abrasion resistance against wear and tear, among the available systems in the market. They combine quality with variety, giving you a wide choice of options for creating a functional or decorative floor.
Approvals
Cipy has got several approvals from different institutions for different products and offerings. Some of those are:- * Det Norske Veritas (DNV) for use in Port trusts. * Kvaerner Power Gas India Limited for floor coatings. * Dalal consultants for floor coatings and anti corrosive coatings. * Specified by Indian Rare Earths Ltd for floor coatings. * Indian Oil Corporation for PU coatings for their signage. * Tested and approved by CFTRI, Mysore for food grade coatings. * GNFC, Bharuch for anti corrosive coatings. * Field tested and approved by RCF, Chembur. * JNPT, Nhava seva, Mumbai for anti corrosive coatings. * NTPC for anti corrosive coatings. * Engineers India, Delhi for 100 % solids, elastomeric PU coatings. * International Airport Authorities for wall coatings. * Anti corrosive coatings tested by National Chemical Laboratory, Pune. * Tested by CQME, Pune, CPRI, Bangalore and DMSRDE, Kanpur for antistatic floor coatings. * All products are tested by IIT, Mumbai for physical & chemical parameters. * Kvaerner Cementation ,Mumbai for anti corrosive coatings. * MTNL for Re enterable PU castings. * Engineer-in-Chief, New Delhi for floor coatings, esd floorings at MES.
My SIP was basically for floorings and sealants. Cipy offers polyurethane and poly sulphide sealants for construction industries and concrete pavements. In flooring i was asked to do brand awareness of Epoxy, PU and EPU floor toppings. Cipy has a proven track record of installing millions of sq.ft. of floor coatings in virtually every automobile company of India.
Cipy Floorkote systems, epoxy and PU, which with chemical resistant aggregates deliver the toughest performance in most aggressively abused areas and provide scientifically superior polymer technology, engineered for excellence in concrete protection.
From heavy manufacturing to light engineering, Cipy has a wide range of floor toppings to suit the varied trafficking from 3 tons to over 20 tons dynamic loads. Cipy offers hygienic, anti microbial floor coatings for pharma industries, where stringent hygienic controls are observed. Cipy Clean Coatings employ a special anti-microbial additive, Ultra Fresh, in floorings to offer 100% inhibition against over 30 types of micro organisms. Cipy’s Duracrete, water borne PU Concrete flooring, is recommended for steam cleaning areas where other floor coatings fail due to thermal cycles.
From occasional spillages to continuous immersion, Cipy’s PU based Floorkote systems are extremely resistant to withstand aggressive chemicals, acidic and alkaline environments. Cipy’s also offer Novalac based epoxy floorings which have excellent resistance to concentrated sulphuric and hydrochloric acids.
Multi Storey Car Parks (MSCPs)are an integral and increasingly important part of country’s infrastructures. Cipy Floor deck systems transform these dark and gloomy areas into lighter and brighter zones.
Cipy’s FloorDeck Systems are based on solvent free, polyurethane elastomeric coatings designed to form seamless, anti skid coatings in attractive colours.
FloorDeck systems protect the concrete, bridge the cracks, stop water infiltration and provide anti skid surfaces and are ideal for parking decks, the parking stalls, the drive aisles, the turn lanes and the access ramps.
OBJECTIVE OF STUDY * To finding prospects and creating awareness about the products of the company. * To determine the current position of the company in the market. * To find ways the company can use to move higher in the market by increasing its market share and achieving the position of market leader.
Brief description of the concepts introduced in the study
Sampling:
The target sample chosen for the study are:
* Various manufacturing industries * Mainly automobiles industries * Consultants * Real Estate Agents
Total sample size: 50
Collection of data:
Market Survey is an organized effort to gather information about markets or customers. It is a very important component of business strategy. Market Survey is for discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market your product. a) Primary data:
The primary data was collected by doing field survey through personal talking to people of various industries (automobile, pharrma etc.) over a period of three weeks.
I had prepared a questionnaire and done personal interview through that.
b) Secondary data:
Secondary data was collected through other sources like internet, directories etc.
The data regarding the different companies was obtained from the internet.
Company Profile Company: Cipy Polyurethanes Pvt. Ltd.
Major Industry: Paint
Country: India
Business Profile
Cipy Polyurethanes is a private limited company founded in 1976. They are the pioneers of urethanes and epoxy coating in India. Company’s first product was ‘U-Coat’, the two component PU clear coating. The company was started with the vision of ‘innovation’ and ‘versatility’. Cipy has grown rapidly in recent years into a globally recognized and respected maker of specialty coatings for diverse market needs. The innovative research led to a new coating market segment based on the synergy of toughness and flexibility to cater to varied surface coating requirements such as floor coatings, spray applied coatings, adhesives, sealants, membranes, wall coatings, metal coatings, wood coatings.
This is a Pune based company. Its headquarter is in Pune (Maharastra). Cipy, with more than 100 products and brands, now stands at the forefront of innovative polymer technology, with the latest addition of spray applied polyurethane and polyurea coatings, water borne urethane floorings and walling to our product portfolio.
History
Cipy pioneered the development of polyurethane technology more than 33 years ago to provide a new breed of coatings- from glass hard to rubbery, elastomeric coatings. This innovative research led to a new coating market segment based on the synergy of toughness and flexibility to cater to varied surface coating requirements such as floor coatings, spray applied coatings, adhesives, sealants, membranes, wall coatings, metal coatings, wood coatings.
1976 The first baby of Cipy: ‘U-Coat’, the two component PU clear coating.
1978 Introduction of second product, now obscure, Urelac
1980 The launch of the MCU of the country: Duraseal
1982 The commission of the first plant at J-62 in MIDC, Pune.
1984 The take off of complete range of PU and corrosive system.
1985 The very first product of Floor coat was emerged.
1988 Flocking adhesives were launched.
1991 The firm became a corporate entity.
1995 The second plant at J-446 in MIDC, Pune commissioned
1996 The continuous R&D brought in novel products: Adhesives, Sealants and OEM paints.
1998 Became an ISO 9001 accredited company
1999 Ventured into complete range of epoxy based coatings under brand name: Cipoxy
2000 The emergence on India’s first hybrid epoxy-PU system: EPU. Protective coating got approval from Engineers India.
2001 Silver jubilee year. The launch of spray applied, elastomeric PU coating, water dispersible epoxy and PU, ESD floorings and MCU’s.
2002 Shifted to the current location T-127, MIDC, Bhosari, Pune.
2003 Completes 25 millions square feet of floor coat installations.
2004 Developed PU based self levelling floorings: Floorkote SL.
2005 Developed hybrid polyurea coating: Three component waterborne PU self levelling floorings.
2006 Development of PUD’s.
2007 Developed all range of polyurea, aromatic and aliphatic soft feel coatings.
2008 Developed EPU based high strength screed. Completes 50 millions sq.ft. of flooring installations.
Philosophy our philosophy is to produce urethane, epoxy and acrylic coatings in solvented, solventless and aqueous media to conform to true international standards for use across a wide range of application areas.
Mission
Our mission is to set new standards in surface care and to remain the technology leaders in high performance coatings, specifically in niche markets.
Safety , Health and Environment
To Cipy, Safety is as important as Quality. safety for the production personnel, the applicators, the end users and the environment.
We are aware of our environmental responsibilities. The focus is always on developing eco friendly products such as solvent less, water borne and low voc coatings and also to ensure that the emissions onto land, into air and water are closely monitored. We boast of a high level of eco - commitment and concern for health and safety of our employees, customers, neighbours and our planet.
Quality Policy All products, incoming raw materials and outgoing finished goods, are subjected to a rigorous quality testing regime under our ISO quality management systems. Customers are assured that quality standards are stringently maintained during our production cycles and our quality procedures are in line with the latest industry standards.
Computerised controls are extensively used to ensure the consistency of every product we manufacture. All the colour shades of pigmented coatings manufactured at our facilities are synchronized by computerised spectro photometers to assure colour consistency of every batch we produce.
Research
At Cipy, we staunchly believe that novel products and concepts are imperative to our innovation based growth. Cipy’s research activities combining with market stimuli bring innovative products in to the market every year. Cipy’s position as a technology driven company is due to the incessant outputs from our innovation based activities.
Today, Cipy is the recognized national leader in a number of product segments such as industrial floor toppings, conductive floorings, thin-set terrazzo floorings and polyureas.
Cipy employs the world’s best chosen polymers such as epoxies, urethanes, acrylics, polyureas and their hybrids to formulate a variety of coatings, adhesives, sealants and elastomers in three different media : solvented, solvent free and aqueous. Our product innovation strategies and hybrid technologies integrate the ever evolving needs of the market segments we cater to.
The core strength of Cipy is the focused team of researchers who conceive, design and develop innovative products, which enables to stay ahead of the global challenges. Cipy’s R & D plans are programmed to ensure that the end products meet the evidently identified market segments. Striving to stay tuned, Cipy incessantly churns out innovative products to meet the varied surface coating requirements.
Equipped with the state-of-art testing equipments and pilot plants, Cipy employs the new generation resins, hardeners, additives and rheology modifiers globally to synthesize novel coatings by using world class polymer technology.
In pursuit to attain greater heights in the field of specialty coatings, Cipy puts focused efforts to make the coatings more and more innovative and technically superb.
Cipy enjoys many first time credits in their impressive product portfolio:-
• The First to launch PU coating in the country in 1976
• The First to launch floor coatings in the country in 1987
• The first to introduce moisture curing urethanes in 1978
• The First polyurethane company to get coveted ISO 9001 accreditation in 1998
• The First to introduce EPU systems in 2000
• The first to cover 100 million sq ft of industrial floor coating installations in India
• The first to launch Elastomeric polyurethanes in 1999
• The first to get field test approval for our protective coatings from ONGC (Oil and Natural Gas Commission) for the country’s offshore platforms
• The first to get approval from Engineers India for elastomeric PUs
• The first to develop Polyurea and Polyaspartic coatings in 2010
• The first to develop Duracrete, a waterborne PU self levelling floor topping, equivalent to BASF_s world renowned U_Crete.
Competitor’s Analysis
Sika Group
Sika India is one of the most trusted names in the construction chemical industry. It is also highly respected by the entire fraternity of construction and manufacturing industry professionals. Its solutions ensure high quality and durability of complex infrastructure projects as well as all types of constructions. Sika solutions are suitable for various advanced manufacturing industries such as automotives, transportation (surface and marine), and wind energy amongst others. Sika also has an effective network of competent distributors and capable applicators to serve the needs of construction activity of any size.
The company had started its operations in 1985 as an Indian company and was known as Qualcrete India Limited.In 1987, Qualcrete India Limited forged an alliance with Sika AG, Switzerland and was renamed as Sika Qualcrete Limited.In 2002, Sika AG, Switzerland acquired 100% stake in the company and since then the company has been rechristened as Sika India Pvt. Ltd. It is a wholly owned subsidiary of Sika AG.Sika India has 11 branch offices and requisite strength of sales personnel spread across India to meet the varied needs of the market.
It has 5 state-of-the-art manufacturing units at Verna (Goa), Kalyani (West Bengal), Jaipur (Rajasthan), Navi Mumbai (Maharashtra), and Kanchipuram (Tamil Nadu).Sika India also serves five export markets namely Sri Lanka, Nepal, Bhutan, Maldives and Bangladesh through a network of associates. Currently, Sika India has 450 employees covering Sales and Marketing, R&D, Technical, Production, Finance and other functions. Sika India is an ISO 9001-2008 Company and our Research and Development Centre is recognised by the Ministry of Science and Technology, Government of India.
Sika has many products in its product portfolio, out of which it gives tough competition to three products of Cipy Polyurethanes Pvt Ltd- they are ‘Floor coating, Sealants and Water Proofing. As it is mentioned earlier Sika has an effective network of competent distributors and capable applicators to serve the needs of construction activity of any size but in the case of Cipy they don’t have good network and marketing team.Network in the sense proper contact with good consultants, contractors and clients. Price is also very competitive of Sika’s product. Sika is the biggest competitor of Cipy in the area of industrial floorings.
Asian Paints
Asian Paints is India’s largest paint company and Asia’s third largest paint company, with a turnover of Rs 96.32 billion. The group has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. Asian Paints operates in 17 countries and has 24 paint manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.
Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company. Asian Paints is the only paint company in the world to receive this recognition. Forbes has also ranked Asian Paints among the Best under a Billion companies in Asia In 2005, 06 and 07.The company has come a long way since its small beginnings in 1942. Four friends who were willing to take on the world's biggest, most famous paint companies operating in India at that time set it up as a partnership firm. Over the course of 25 years Asian Paints became a corporate force and India's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India. Asian Paints manufactures a wide range of paints for Decorative and Industrial use.In Decorative paints, Asian Paints is present in all the four segments v.i.z Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative concepts in the Indian paint industry like Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting solutions for kid’s room), Colour Next (Prediction of Colour Trends through in-depth research) and Royale Play Special Effect Paints, just to name a few.
Asian Paints has always been ahead when it comes to providing consumer experience. It has set up a Signature Store in Mumbai where consumers are educated on colours and how it can change their homes. Vertical integration has seen it diversify into products such as Phthalic Anhydride and Pentaerythritol, which are used in the paint manufacturing process. Asian Paints also operates through APPG (50:50 JV between Asian Paints and PPG Inc, USA, one of the largest automotive coatings manufacturer in the world) to service the increasing requirements of the Indian automotive coatings market. Another 50:50 JV with PPG has been proposed which will service the protective, industrial powder, industrial containers and light industrial coatings markets.
Asian Paints mainly compete with floor coating products of Cipy. Asian Paints is one of the biggest competitors of Cipy. They are the best known brand in this industry in India. They also have one of the best marketing team and they also advertise well their products. Their supply chain and reach to the customer is excellent.
Pidilite Industries Ltd..
Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and specialities chemicals in India. Over two-third of the company’s sales come from products and segments it has pioneered in India.
Our product range includes Adhesives and Sealants, Construction and Paint Chemicals, Automotive Chemicals, Art Materials, Industrial Adhesives, Industrial and Textile Resins and Organic Pigments and Preparations. Most of the products have been developed through strong in-house R&D.
The Group's turnover is about 2500 Crores for the year 2010-11.
Pidilite Industries is the market leader in adhesives and sealants, construction chemicals, hobby colours and polymer emulsions in India. Our brand name Fevicol has become synonymous with adhesives to millions in India and is ranked amongst the most trusted brands in India.
Pidilite is also growing it's International presence through acquisitions and setting up manufacturing facilities and sales offices in important regions around the world. Fevicol is now the largest selling adhesives brand in Asia.
Dr. Fixit and M-Seal are the two products of Pidilite which mainly compete with Cipy’s Product. Dr. Fixit is a water proofing product, so this competes with water proofing products of Cipy and M-Seal with Sealants. Other adhesive products of Pidilite also give competition to Cipy’s product.
Methodology Followed
1. Preparing a plan: making a road map how to go about the project
2. Sampling: deciding over the type and size of the sample
3. Preparation of questionnaire: The questionnaire is prepared containing closed ended questions.
4. Collection of primary data: making field survey by personally talking to people.
5. Analysis: analyzing the data collected.
6. Report: finally writing an exhaustive report of the findings and making appropriate suggestions.
Finding 1. Which one is preferred by the consumers so far?
(a)Concrete (b)Tiles and Marble (c)Floor Coating
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Concrete 85%
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Tiles and marbles 12%
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Floor Coating 3%
Most of the industries I have visited are still having concrete floors. I found tiles floors also in some companies. Very few (only 3% of the industries visited by me ) were have floor coatings. So, there is immense opportunity for the company to grow and tap the market. Many of the companies have shown interest for doing floor coating in the near future.
2. Which brands are you aware of ? Cipy | 20 | Sika | 45 | Asian Paints | 100 | Pidlite | 100 |
Almost all the person I have interviewed were aware of the Asian paints and Pidilite. Most of them have also been used some products of these two companies. But only 20% and 45% of them were aware of Cipy and Sika respectively. Also the persons knowing about Cipy and Sika most of them was employed in the companies in which floor coating have been done before. So, Cipy must need to advertise and create awareness through different mediums about their products and brands.
3.Which brand would you prefer to use? Cipy | 50 | Sika | 65 | Asian Paints | 100 | Pidlite | 75 |
While doing my research work I used to give the detailed information about our products to the person I was interviewing. I also used tell them the various advantages of using our products. After that I asked them which brand our brands they would like to use if they need that. Only 50% have shown interest in Cipy while 100% were ready to apply Asian paints products on their floors, 65% people agreed for Sika’s product and 75% for Pididlite’s.
4.Rate the following brands according to their demand in the market on a scale of 1 to 5 : 1- Very High, 2 – Above average, 3- average demand, 4- below average, 5- very low Brands | 1 | 2 | 3 | 4 | 5 | CIPY | 6 | 10 | 52 | 32 | | Sika | 68 | 27 | 5 | | | Asian Paints | 71 | 22 | 7 | | | Pidlite | 40 | 60 | | | |
There is very poor demand for Cipy’s product in the market. Even though the companies where floor coating have been done have not shown interest in Cipy’s product. Sika’s product has good demand in the companies where floor coating have been done .Asian paints has very huge demand and Pidilite also has good demand.
5.Rate the following features on the basis of importance on a scale of 1 to 5 : 1- Very important, 2- important, 3- moderately important, 4- of little importance, 5 – unimportant. Feature | 1 | 2 | 3 | 4 | 5 | Price | 68 | 4 | 7 | 12 | 9 | Quality | 59 | 22 | 10 | 9 | | Warranty | 25 | 54 | 10 | 11 | | Brand Name | 71 | 15 | 8 | 6 | |
According to the data collected by me ‘brand name’ is the most important feature as 71% of the people voted this as very important and ‘price’ is second to it which is voted as very important by 68% people. ‘Quality’ is also an important feature while people were not too much bothered about ‘warranty’.
SWOT analysis of CIPY Polyurethanes Pvt. Ltd.
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weakness, Opportunities and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective. To arrive at this ‘SWOT’ conclusion, first we need to do a Situational analysis. Situational analysis means knowing about everything that can impact the Victory. Many businesses don’t, but should be constantly evaluating their position in the market.
The internal method uses data and information from within the business. It includes efficiency productivity, costs, strength and weakness. The external method uses data and information from outside the business. It includes Competitors, the market and opportunities and threats.
Strengths:- * Pioneer in polyurethanes coating and having experience of more than 35 years. * A long pool of trained and experienced applicator and other technical staffs. * Market leader in floor coating.
Weaknesses:-
* Less popular in northern part of the country. * Lack of good marketing team. * No advertisements done through Television or other medium.
Opportunities:- * Floors in very few industries are coated .So, there is a lot of opportunity available to do so and grow. * Can become market leader in each of its product by doing excellent sales by making good marketing team in each industrial area and doing good advertisement.
Threats:-
* It’s all competitors are very well known to the customers .They all do advertisements so they have advantage over CIPY. * MNC’s like Sika have excellent marketing team .So their reach, contact with consultants and contractors are better than CIPY. * Price range of Sika’s product is also less than that of CIPY.
PORTER’S FIVE FORCE MODEL
It is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven down to zero.
Threats of New Entrant
The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate will tend towards zero.
There are already so many players present in this industry like Asian Paints, Sika etc. But many other major players of decorative paints (like Berger etc.) segment have not entered industrial segments. As I have already mentioned that this industry is growing at the rate of 15% per year and we have also seen in findings that there is a huge opportunity in this area as floors of more than 80% industries are still not coated . So there is possibility of entering of new player and players of decorative segments who have not entered this segment as well. Entry of new companies would increase the competition. So Cipy should try to create a strong brand equity and customer base to stand firmly if that situation comes.
Bargaining Power Of The Supplier
The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labour, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources.
Bargaining Power of Buyers
The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price change. Also when the buyers purchase in large quantities then buyer can use their purchasing power as leverage to bargain for price reductions.
As we all know customers of the modern era are very savvy. Most of the customers today do research even before buying a small thing. Floor coating is a different type of product which is used in industries only means its customers are also unique. It also requires huge investment for doing floor coating. So any customer does a lot of query before doing this from other floor coating provider. Price is one of the most important features rated by the customers as I have shown in findings. Buyer always does bargaining. Presence of other players also enables them to do so.
Threat of Substitutes
The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. The main issue is the similarity of substitutes. Also relative prices and performance of the substitutes.
Threat of substitute is always there. But like other industries it is not very threatening in this industry. The reason behind saying this is most of market is untapped and not a very large number of substitutes are available there. It all depends on how you approach a client and what quality you are providing? For example if you do floor coating in Honda motors in Okhla and they are pleased with your work, then you can make a good relation with them and they will get it done from you only in their other locations also. You can do that in other automobile company and other companies in that area by showing your work.
Competitive Rivalry within Industry
For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. This describes the intensity of competition between existing firms in an industry. Highly competitive industries generally earn low returns because the cost of competition is high
Asian paints and Sika are the major players in industry. Cipy is also a good player and emerging as one of major players. It has reached the position of market leader in floor coating. Its turnover was 100 crore in the last 5 years and projected turnover is 500 crore in the next 5 years. Quality is the main strength of Cipy. Its R&D department is very strong. So, It can differentiate itself on the basis of high quality and a large pool of trained technical people associated with itself.
Recommendations * Although CIPY is pioneer of polyurethanes coating in India and they present for over 35 years in the market despite that also they are very less known brand. So company should do good advertisement through different mediums like visual media, print media etc. * This is a Pune based company and they do most of their major wworks from there but there is a huge lack of good marketing people and team in the company. They should appoint experienced and enthusiastic marketing team in almost all part of the company. Especially in the industrial cities like Jamshedpur, Kanpur, Gurgaon, Delhi, Noida etc. * Company should also open offices in the main cities and near the industrial cities for proper working and for the ease of its employees in their work. * As India’s Paint industry is growing at the rate of 15% every year despite global recession .So there is also very huge opportunity in decorative segments and they can enter in this segment also by launching products. * Quality of the products of CIPY is excellent but price is slightly higher than its competitors. So , by making their price competitive they can become market leader.
Scope for future Improvements
* CIPY’s present turnover is around 100 crore but it could be reach to 500 crore in the next few years by doing excellent sales. It could be happen if they follow the above recommendations. * It can become a big organization by entering into decorative segments.
APPENDIX
QUESTIONNAIRE
1. What is the type of industry?
2. What is customer need ? I.e; flooring , water proofing and other?
3. Do you know about Epoxy , PU and EPU coating and Cipy Polyurethanes Pvt Ltd.?
4. Would you like to do epoxy coating on the floor of your company?
5. When would you like to do this?
6. To understand what do your customers manufacture?
7. What is the total area?
8. What is the status of the floor?
-Age of the floor?
-Concrete floor or tiles or marbles?
-Already done epoxy and only only repairing is needed?
9. Client details? (name, designation, contact number , email id etc. of the concerned person).
These are the basic questions through which I was supposed to do the market research and brought responses and relevant data for the company. Apart from above nine questions, I also asked them those five questions which are used in findings.
BIBLIOGRAPHY * Marketing Management - By Philip Kotler, Keller, Koshy and Jha * Research Methodology -- C.R. Kothari * www.okhla.in * www.vyoms.com * www.gurgaonindustry.com * www.baddionline.com * www.hotgurgaon.com/yellowpages * www.gurgaonworkersnews.wordpress.com
