Kansai Nerolac Paints Limited is a popular chemical industry that was formed during the year 1920 and is headquartered in Mumbai, India. It is the largest industrial and decorative paint company. It is a comprehensive manufacturer of coatings and paints. The products of Kansai Nerolac Paints are Industrial Coatings, Automotive Coatings, Protective coatings, Marine Coatings, and Decorative Coatings. The company produces and supplies paint systems applied on cycle, finishing lines of electrical components, material handling equipment, containers, bus bodies, and furniture industries.
The company has about five paint manufacturing plants and about six to seven contract manufactures. The company’s own manufacturing plants exist in Jaunpur in Uttar Pradesh, Bawal in Haryana, Lote in Maharashtra, Hosur in Tamil Nadu, and Sayaka in Gujarat. The company has collaborated with much technical collaboration with many other industry leaders.
Through this article, let us discuss the SWOT analysis of Kansai Nerolac Paints.
Strengths in the SWOT analysis of Kansai Nerolac Paints
- Huge product range – Kansai Nerolac Paints offers huge product types. The main hallmark of the company is the technology innovative product. The company provides unique eco-friendly products. The main products of this brand are decorative paints – interior and exterior wall paints, wood and metal surface paints, automotive coatings – top, clear coats, touch up paints, heat resistant paints, auto refinishing products, underbody paints, and PVC sealants, performance coatings.
- Large paint company – Kansai Nerolac Paints is one of the largest coating companies in India and it is also a market leader in powder coating.
- Tech-savvy – The technology edge of the company has helped to innovate and serve the customers in a better way.
- Excellent Research and Development – The main factor of Kansai Nerolac Paint is its excellent research and development. The company gives more focus on research and develops new quality products to meet the customer’s requirement.
- Branding and Marketing strategy – Kansai Nerolac Paint’s excellent branding and marketing strategy has led them to the top in the industry and to achieve more visibility among the people.
- Top customers in the list – The company being great market leaders in the automotive category have served many top customers from the automotive sector like Toyota Kirloskar, Maruti Suzuki, Tata Motors, GM, Honda, Yamaha, Volvo, Ashok Leyland, etc.
- Strong supply chain – The Company has an excellent supply chain network to make the products available to customers.
- Celebrity ambassadors – To add to the company’s success, Kansai Nerolac Paint is proud to have celebrities as its brand ambassadors.
- Awards and Achievements – Kansai Nerolac Paints has received many awards across various functions.
Weaknesses in the SWOT analysis of Kansai Nerolac Paints
- Change in market demand – The decorative paint industry is a look and feels one, where the customer’s taste and perception keep changing quite often. The products become outdated soon with the change in trend. This is a big weakness for the brand as there will be issues in product planning and inventory.
- The Business model of Kansai Nerolac Paint – Kansai Nerolac Paint’s business model can be copied easily by its competitors. Hence the company will have to build a platform model where they can integrate vendors, suppliers, and end users.
- Revamp supply chain and logistics – The business model of the Basic Material industry finds its way to flourish using the Internet and Artificial Intelligence. Hence owing to this, Kansai Nerolac Paints supply chain has to be in a robust way that is extremely expensive.
Opportunities in the SWOT analysis of Kansai Nerolac Paints
- Scope in new products – Kansai Nerolac Paints has a good scope to develop new products with PODs which highlights the brand in the midst of a competitive environment.
- Enhanced technology innovations – Technologies increases industrial productivity, thereby allowing suppliers to manufacture many types of products and services. This provides an opportunity to Kansai Nerolac Paints to consider undertaking new products.
- Online opportunities – Online services are increasing and customers tend to avail them quite often. This also provides new offerings to the customers.
- Low Inflation rate – Low inflation rate brings out more stability in the market. It provides credit at a low-interest rate to the company’s customer. This increases the consumption of the company’s products thereby providing them with huge opportunities.
Threats in the SWOT analysis of Kansai Nerolac Paints
- Variations in Government rules – Strict Government rules and regulations with regards to the quality of the products and manufacturing facilities is a big threat to the company’s business. The environment policies are given more importance and the company will have to take care of that on regular basis.
- Scarce in raw material – Scarcity in raw material and instability in prices is also a huge threat to the company. The production is very much dependent on the raw materials; hence it gets affected when there is unavailability in the raw material or when the prices keep fluctuating.
- The threat from competitors – Even though Kansai Nerolac Paints is the leader in the paint manufacturing segment, it faces a rigid competition from the local and international market.