Winter Internship Project on Berger Paints

2014-

15 SURVEY OF BERGER XPRESS

PAINTING AMONGST

MASTER APLLICATORS AND LIFT

AND WIN POINT UPDATION AND

COLLECTION OF KYC AMONGST

MASTER APPLICATORS

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A PROJECT REPORT ON

SURVEY OF BERGER XPRESS PAINTING

AMONGST

MASTER APLLICATORS AND LIFT AND WIN

POINT UPDATION AND COLLECTION OF KYC

AMONGST MASTER APPLICATORS

AS PARTIAL FULFILMENT OF PGDM PROGRAM, 1ST

YEAR

SUBMITTED BY- RISHIRAJ DAS

ROLL NO.- DM14B33

IAEER’S PUNE INSTITUTE OF BUSINESS

MANAGEMENT

(APPROVED BY AICTE, MINISTRY OF HRD, GOVT. OF INDIA)

PUNE

BATCH- PGDM 2014-2016

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DECLARATION

I, __________________________________ hereby declare that

this project report is record of authentic work carried out by me

during the period of 15th December 2014 to 15th January 2015 and

has not been submitted earlier to any University or Institute for the

award of any degree/diploma, etc.

Name of the student-

Date-

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CERTIFICATION

This is to certify that Ms. ________________________________

has completed WIP under my guidance.

Date of submission-_______________

.

Signature

(Internal Guide)

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ACKNOWLEDGEMENT

This project has been an honest and dedicated attempt to make the

analysis and marketing material as authentic as it could. And I

earnestly hope that it provides useful and workable information

and knowledge to any person reading it.

During this period, I had the pleasure of working closely with

accomplished organization people who shared with me their

experience and helped me in completion of my research.

I express my sincere thanks to my project guides and my institute

faculty for guiding me.

Lastly I am grateful to my parents who have been my mentors and

motivators. I am also thankful to all my batch mates who have

been directly or indirectly involved in successful completion of

this project.

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INDEX

1. Sectorial Information 6-7

2. Company Profile (About BERGER PAINTS) 8-9

3. Basic Introduction (Day1, Day 2, Day 3) 10-14

4. Detail tasks performed by students with deadlines 15

5. Marketing 16-18

6. Business Finance 19-20

7. Human Resource 21-22

8. Suggestions/ Recommendations 23

9. Conclusion 24

10. Bibliography 25

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Sectorial Information

The paint industry is expected to grow at 12%-13% annually

over the next 5 years from Rs. 280 billion in FY13 to around

Rs. 500 billion by FY18. FY14 was a challenging year for the

industry as a whole due to subdued demand across key

sectors and rising inflation.

The unorganized sector controls around 35% of the paint

market, with the organized sector accounting for the balance.

In the unorganized segment, there are about 2000 units

having small and medium sized paint manufacturing plants.

Top organized players include Asian Paints, Kansai Nerolac,

Berger Paints and ISI.

Demand from paints come from two broad categories :-

a) Decoratives:- Major segments in decoratives

include exterior wall paints, interior wall paints,

wood finishes and enamel and ancillary products

such as primers, putties etc. Decorative paints

account for over 77% of the overall paint market in

India.

b) Industrial:- Three main segments of the industrial

sector include automotive coatings, powder coatings

and protective coatings.

The market size of the paint industry in India is estimated at

around Rs. 290 billion. Industry players expect close to 12%

growth in business volume and 10%-12% rise in sales in

FY15.

The market for paints in India is expected to grow at 1.5 to 2

times GDP in the next 5 years. With GDP growth expected to

be between 5%-6% levels, the top three players are likely to

clock above industry growth rates in the future, considering

that they have a strong brand and good reach.

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Historical Growth Pattern Observed In Last 5 Years

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sales (Rs. In Cr.) 3384.82 3024.21 2649.9 2085.23 1686.66

3384.82

3024.21

2649.9

2085.23

1686.66

0

500

1000

1500

2000

2500

3000

3500

4000

Sales (Rs. In Cr.)

Year End Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sales (Rs. In Cr.) 3384.82 3024.21 2649.9 2085.23 1686.66

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COMPANY PROFILE ( ABOUT BERGER

PAINTS)

Berger Paints has come a long way since its inception in 1923.

Lewis Berger was the founder of Berger Paints. He offered

spectacular shades and chance to transform their homes through

the power of imagination.

It’s the 2nd largest paint company in India with a turnover of Rs.

3,335 cr. Over the past few years, Berger’s success has been

impeccable.

One of the top 10 decorative paint company in Asia.

Berger receives IPE Corporate Excellence Award in 2013,

Secured the 1st position as FASTEST GROWING COMPANY in

the Indian Paint Industry by Construction World 2012-13.

The company provides an excellent service, prompt response and a

wider reach to the dealers and the customers. Perhaps it is this

attitude that is responsible for all its successful endeavours.

Market through a distribution network of more than 82 stock

points and 12,000+ Paint retailers.

Some of the Paints available in this company:-

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INTERIOR COLLECTION EXTERIOR COLLECTION

Silk Luxury Emulsion

Breathe Easy Emulsion

Rangoli Total Care

Bison Arcrylic Emulsion

Weather Coat All Guard

Weather Coat Smooth

Walmasta Kool and Seal

ENAMELS WOOD FINISH

Breathe Easy

Luxol Satin

Luxol Lustre

Luxol Hi-Gloss

Polyurethene Finish

Melamine

WoodKeeper

TEXTURES

Tartaruga Hi-Build

Tartaruga

Illusion Exterior Texture

Products offered by BERGER PAINTS

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Shareholders of the Company

Name of the Shareholders Total Shares held (Rs.)

UK Paints India Pvt. Ltd. 168,398,702

Jenson & Nicholson Asis Ltd. 50,234,555

Big Investment & Finance Ltd. 2,840,150

Meeta Dhingra 7,964,896

Vinu Dhingra 7,300,447

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BASIC INTRODUCTION (Day1, Day2, Day3)

Day 1 (17.12.2014)

Briefed about Berger Paints.

15000 dealers

2nd position in India after Asian Paints

1st in West Bengal

Has 95 depots

7 manufacturing units

Spreaded over many countries like Bangladesh, Nepal,

Poland, etc.

The Managing Director of Berger paints is Mr. Abhijit Roy

The ways of painting a wall:-

a) Cement Paint ( white paint)

b) Putty ( smoothens the wall)

c) Primer ( to hold the paint)

d) Emulsions ( for decorating and protecting the walls)

There are three categories of products:-

a) Advance (most expensive)

b) Premium (little less expensive than advance)

c) Economy (cheap)

They have different points for each category. Whatever the dealer

buys they get points according to that. And get a % discount in the

next purchase after the marked points are been covered.

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The steps taking for viable marketing are:-

a) More networks

b) More dealers

c) Add more painters

The dealers are categorized in the following ways:-

a) Dead Category ( lift from 0-29litres/month)

b) Inactive Category ( lift from 30-99litres/month)

c) Active Category (lift more than 100litres/month)

The way they know in which category which dealer is are

through:-

a) Filling of KYC (Know Your Customer) form

b) Point Updation

c) XP (Xpress Painting) survey form

Xpress Painting is the new concept they have launched. It is

painting through different kinds of new equipments that they have

designed, for making painting faster cleaner and better. These are

electronic machines which makes painting easier. The following

are the different machines:-

a) Multipurpose (6500/-)

b) Short Handle Sand (10000/-)

c) Long Handle Sand (18000/-)

d) Airless Spray (58000/-)

e) Jet Washer (24000/-)

f) Electronic Roller (6000/-)

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Day 2 (18.12.2014)

Main work was assigned to us. The works are:-

a) Filling of KYC form

b) Point updation of the dealers

c) Filling of XP survey form

The Questionnaire that we had to prepare form the survey form are

as follows:-

a) Name of the applicant

b) Contact no.

c) Dealer attached

d) Do you know the concept of XP?

Yes

No

e) Have you purchased any product of XP?

Yes

no

f) If yes, are you comfortable with the equipment?

Yes

No

g) If yes, rate the machines ( between 1-5)

HSS

LHS

Putty Mixer

Jet Washer

Airless Spray

h) Service rating ( between 1-5)

Spares availability

Consumable

After sale service

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i) If not been purchased, then what is the reason behind?

Financial Problem

Disagree with the concept

Tied up with the competitor companies

Lesser jobs

j) Are you aware of the benefits of XP equipments?

More jobs

Labour saving

MP (Master Painter) schemes

Faster cleaner better

k) Are you interested in purchasing XP equipment?

Yes

No

l) If yes, then within how many days?

Within 1 week

Within 15 days

Within 1 month

Don’t know

m) Do you require any training from Berger?

Yes

No

n) If yes, then in which department you require training?

XP tool

Illusion Design

Putty

Interior/Exterior Emulsion

Wood Coating

o) Suggestions for improvement

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Day 3 (19.12.2014)

Mainly we had to print out the survey forms. We were divided into

groups of 2, total 5 groups. And each group were assigned to a

particular area. From that area we have to go to each dealer and get

all the details. Each dealer has a head, and we were given the

contact details of that person, so that we do not face any problems

of getting in touch with each and every dealer. I was assigned

territory 8 (South Kolkata Region). We had to visit each dealer

within the assigned territory. There we have to collect all the KYP

form and XP survey form from the Master Painter.

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DETAIL TASKS PERFORMED BY STUDENTS

As mentioned above the tasks (day2 and day3) that we had to do as

directed and supervised by our external mentor Mr. Rakesh

Biswas. We were handed the KYP forms and Survey forms of

Xpress Painting and were asked to call all the Master Painters (the

painters who are in the scheme of Berger Paints of being an Active

Painter, Inactive Painter and Dead Painter) and fix the time and

date of meeting them. Mainly we met them at the dealers’ shop and

got the KYP and Survey forms filled up by them. We also had to

ask for their suggestions of how Berger Paints can improve in their

business and are there any problems that they are facing in using

Berger Paints, and if they are, then what are they, and we had to

make notes of that and had to make sure that those problems are

conveyed to the person concerned and those are been solved by

him. These were the tasks that we had to perform for 1st three

weeks. In the last week, each day we had to drop down to the

office and make calls to the Master Painters (only those who are

Inactive Painters and Dead Painters) and ask them update their

points and to be an Active Painter for their good, so that they could

win points and get the benefits that they were promised by Berger

Paints at the end of the scheme (which lasts till 28th of February

2015). From 13th of Jan we have to call the painter and discuss our

TAP which is a training school of learning painting. We asked

them whether they are interested to take some painters to work

who were trained by TAP which was introduced by Berger Paints.

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MARKETING

SWOT Analysis

Strengths:-

a. Berger Paints has excellent brand perception and brand

awareness amongst its potential customers.

b. It provides with high quality products and has very high

market space both in terms of visibility and sales.

c. With nearly one-fifth market share and is ranked 2nd in India.

d. Its industrial and automotive coating is used by the best

automobile companies like Mercedes.

Weakness:-

a. Dependence on Decorative Segment where competition is

intense.

b. High levels of lead found leading to negative publicity.

c. Limited liquidity options.

Opportunities:-

a. New product launches and innovation with changing trends.

b. Strong growth potential in Indian owing to urbanization.

c. Business diversification.

d. Product diversification.

Threats:-

a. New entrants in the industry and local companies.

b. Fluctuations in raw material prices.

c. Stiff competition.

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S

• Middle class and upper class segment.

T

• Home owners, professions and industry users.

P

• Fulfill your imagination of colours.

SEGMENTING. TARGETING AND POSITIONING

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PRODUCT LIFE CYCLE

INTRODUCTION Xpress Painting Machine

GROWTH Wood Coatings, Textures

MATURITY Berger Emulsions

DECLINE In the era of financial crunch & downtrend

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Promotional Strategies of Berger Paints

a. Inspire creativity

b. Continue to run business business as best in class, with

customer (painter) satisfaction as the ultimate goal.

c. To use the strong cash flows to improve returns to the

shareholders.

d. Reaffirm our commitment to highest level of integrity and

professionalism throughout our business.

e. Continuous innovation to stay ahead of the curve and seize

growth opportunities.

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Boston Consulting Group (BCG) Matrix

Star Stage- Crack Fill Powder, Super Latex Plus, Tile Adhesive.

Question Mark Stage- Luxury interior paint brand- SILK.

Cow Stage- BP Cement Primer, BP White Primer, Weather Coat

Exterior Primer, Happy Wall Acrylic Putty, Melamine Sealer,

Illusion Sealer, Weather Coat Biowash.

Dog Stage- Damp shield 2k, Latex shield 2k, Tile Cleaner.

STAR - Where investment is more,

overhead cost high and profits are low

QUESTION MARK-Investment more,

sales low, profit low, new launch

COW- Maturity stage, diversifying money in

new products, production cost

nominal, profit high

DOG - Decline stage, leaves the market, sales

low, profit low

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BUSINESS FINANCE

Net Profit:-

Particulars March 2014 (Rs. In cr.) March 2013 (Rs. In cr.)

PBDIT 420.23 367.08

Interest 34.26 27.67

PBDT 385.97 339.41

Depreciation 58.27 46.28

Profit Before Tax 227.7 293.13

Tax 93.45 83.33

Direct Costs:-

Indirect Costs:-

Expenditure Mar' 14 (Rs. In cr.) Mar' 13 (Rs. In cr.)

Selling and Admin Expenses 0 0

Miscellaneous Expenses 745.32 641.45

Interest 34.26 27.67

Depreciation 48.27 46.28

Expenditure Mar' 14 (Rs. In cr.) Mar' 13 (Rs. In cr.)

Raw Materials 2084.7 1919.93

Power & Fuel Cost 33.61 28.04

Employee Cost 158.74 139.96

Other Manufacturing Expenses 0.00 0.00

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Direct Costs:-

Indirect Costs:-

2084.7

33.61158.74

0.00

1919.93

28.04139.96

0.00

0

500

1000

1500

2000

2500

Raw Materials Power & Fuel Cost Employee Cost Other ManufacturingExpenses

DIRECT COSTS

Mar' 14 (Rs. In cr.) Mar' 13 (Rs. In cr.)

0

745.32

34.26 48.270

641.45

27.67 46.28

0

100

200

300

400

500

600

700

800

Selling and Admin Expenses Miscellaneous Expenses Interest Depreciation

INDIRECT COSTS

Mar' 14 (Rs. In cr.) Mar' 13 (Rs. In cr.)

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Working Capital:-

Working Capital = Current Assets – Current Liabilities

Working Capital for the year (Rs. In cr.)

Current Assets 1292.99

Current Liabilities 627.09

Working Capital 665.9

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HUMAN RESOURCE

Organizational Structure – It is an explicit and implicit

institutional rules and policies designed to provide a structure

where various work roles and responsibilities are delegated,

controlled and coordinated.

Organizational Hierarchy:-

General Manager (Bhaskar Dasgupta)

State Manager (Jaydeep Sikdar)

Admin Manager (Amit Chatterjee)

Business Development Manager (Mainag Ghosh)

Branch Manager (Satadal Ghosh)

. Supervisor (Rakesh Biswas)

S

Sales Executive (Bijoy) Sales Executive (Argha) Sales Ex.)

(Sourav

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Career Opportunities in Berger Paints:-

a. Sales and Marketing- They operate in a regional and

national level and are quick to respond to the evolving

and expectations of the clients, distributors and end

users.

b. Supply Chain Management- The smooth functioning

and running of the supply chain is essential at every

point as its plays a huge role in the day to day operation

of the business.

c. Paint Engineering- The paint engineers not just design

and select the correct paint depending on the project,

but also have to study in depth the surfaces involved,

the environmental factors involved, ease of application,

levels of adherence, corrosiveness and much more, to

ensure the durability and optimization of the paint.

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SUGGESTIONS/RECOMMENDATIONS

According to me, they lack in better communication with the

painters that they must work on, to make it much better for more

sales. There is a head to all the dealers, and they should be more

active in immediately solving the problems of the painters assigned

to them.

Another important thing is that, the Master Painters are promised

that they would be provided with different gifts if they have a

certain amount of points at the end of each scheme. But

unfortunately they are immediately not provided with the gifts that

they are promised.

So these are the two drawbacks that I came across in this one

month working at Berger Paints. These two things should really be

taken care of.

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CONCLUSION

The work that we had to do was mainly to call the Master Painters

and to meet them at the dealers’ shop and get the KYP and the

Survey forms filled up by them. So from this we got to know what

the problems that they are facing and tried to solve those problems,

and if it could not be solved by us we conveyed the problems to

our seniors. There were many problems that they were facing and

solving them were a great challenge for us. And the problems that

our seniors helped to solved, we could learn from that a lot, that

what to do and what not to do in those difficult situations.

The survey forms (for Xpress Painting) that we were asked to

filled, that helped us to know the positions of the products that are

newly launched in the market. The equipments of Xpress Painting

are newly launched in the market, so we had to know how the

equipments are being received at the customers’ end, through the

help of the survey forms. If they have bought it yet, if not, then

why, if yes, then are there any problems they are facing using

them, any training required by them of the know-how of the

equipments work, and what are the after sales services provided by

Berger Paints, all these were also known from filling out the

survey forms.

The phone calls that we had to make for the last 1 week, through

that we had an idea of who is satisfied by Berger paints and who

aren’t.

Overall we had a great and challenging one month working at

Berger Paints. We now have a little bit of the experience how the

corporate world works, that we will be serving within a year.

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BIBLIOGRAPHY

a. PPT provided by our external mentor (Mr. Rakesh Biswas)

b. A brochure provided by the office

c. www.moneycontrol.com

d. economictimes.indiatimes.com

e. www.bergerpaints.com

f. www.mbaskool.com

g. www.equitymaster.com