Branded outlets, app to drive Nippon’s growth

The paint industry in India had witnessed a growth of 9 to 9.5 per cent over the past two years. Giving us an idea of the company’s scope of business in this region is S Mahesh Anand, President, Decorative Business, Nippon Paint (India) (P) Ltd, which has its factory in Sriperumbudur. 

He tells us, “South India, more specifically Tamil Nadu, remains the company’s core market. Our decorative paints segment sees 65 per cent of business coming from the repainting market while 35 per cent comes from the new painting category. Within our 10-year experience in this region, we have developed decorative paints in the bandwidth of Rs 100 to Rs 600.” 

The brand has also been relying on innovations such as air-purifying, anti-bacterial and heat ban technology to drive the momentum of sales.” On the retail front, Mahesh informs us about the launch of the Pro Stores in April this year. These are Nippon’s dedicated single store set-up where customers can get a whole range of painting services under one roof. “This concept evolved from our need to develop new entrepreneurs in the painting business. Currently, these stores are limited to Chennai and we hope to have 25 outlets by the end of the fiscal,” he says. The paint maker is also looking at equipping painters with skillsets such as soft skills and technical proficiency. 

It recently opened two new training academies called PROceed in Madurai and Salem to drive this mission forward. Mahesh says, “The job of painting is now included in the skill sector (as per the Centre’s skilling mission). All the paint manufacturers have also come together to form the Paints and Coatings Skill Council (PCSC). Our training centres (PROceed) are waiting for accreditation from the main body (PCSC). We are in the process of training close to 1,000 painters in the next three months. This model will be replicated across other markets too.” Mahesh admits that both demonetisation and the implementation of GST took a toll on the company’s sales for about 2-3 months. 

“Many paint dealers are yet to come under the organised sector. So, these transition months of June to August have been very taxing. Almost 70 per cent dealers are already on board. The entire gamut of dealers should be on board in another six months. However, some of them might even leave this industry owing to their unwillingness to enter the tax regime,” Mahesh remarks. 

The company has recently introduced an Android-based digitised loyalty program for painters called PROChamps. Paints for sanitaryware is one of the new product lines that the company is planning to introduce, and it’s a project that’s undergoing R&D currently.