Equity Research Report – Shalimar Paints
Security Analysis and Portfolio Management
Equity Research Report – Shalimar Paints
Industry Overview:
Indian Paint Industry is today worth INR 275 bn. with ~69 % coming from organized segment and rest coming from unorganized segment. India has one of the lowest per-capita consumption of paints at just 1.5 kg. (World Average = 8 kg.) because of which Indian Paint Industry is projected to sustain its growth momentum to reach ~460 bn. by 2016. Organized segment is a very concentrated one with top 5 companies cornering ~90 % marketshare.
Company Overview:
Shalimar Paints is the India's oldest paint company based in Mumbai. The company is engaged in manufacturing and marketing of paints, industrial coatings, aviation coatings, marine paints and coatings for metal decoration, and food can lacquers. It is currently the fifth largest Paint company of India.
It was founded in 1902 by two British entrepreneurs AN Turner and AC Wright as Shalimar Paints Colour & Varnish Ltd. In 1928, Pinchin Johnson & Associates of UK bought control from the British entrepreneurs AN Turner and AC Wright. In 1963, Company name has been changed to Shalimar Paints Ltd after Turner Morisson & Co stepped in as new management. In 1972 Shalimar went to the public.
Indian Paint Industry can be further subdivided into two segments:
1. Decorative (Architectural) Segment:
It is 70% by value and 77% volumes. In this segment, the company has its products across all categories and price-points viz., Economy, Mid-Range and Premium (with larger contribution from Economy & Mid-Range price-points).
The distribution in different categories is as follows:
2. Industrial Segment:
It is 30% by value and 23% volumes. In this segment, the company has major presence in non-automotive category with it being the 3rd largest player in High Performance Coatings enjoying an overall 9 % market share of India's Protective Coatings market ( just behind Berger & Asian Paints ).
Equity Research Report – Shalimar Paints
Industry Overview:
Indian Paint Industry is today worth INR 275 bn. with ~69 % coming from organized segment and rest coming from unorganized segment. India has one of the lowest per-capita consumption of paints at just 1.5 kg. (World Average = 8 kg.) because of which Indian Paint Industry is projected to sustain its growth momentum to reach ~460 bn. by 2016. Organized segment is a very concentrated one with top 5 companies cornering ~90 % marketshare.
Company Overview:
Shalimar Paints is the India's oldest paint company based in Mumbai. The company is engaged in manufacturing and marketing of paints, industrial coatings, aviation coatings, marine paints and coatings for metal decoration, and food can lacquers. It is currently the fifth largest Paint company of India.
It was founded in 1902 by two British entrepreneurs AN Turner and AC Wright as Shalimar Paints Colour & Varnish Ltd. In 1928, Pinchin Johnson & Associates of UK bought control from the British entrepreneurs AN Turner and AC Wright. In 1963, Company name has been changed to Shalimar Paints Ltd after Turner Morisson & Co stepped in as new management. In 1972 Shalimar went to the public.
Indian Paint Industry can be further subdivided into two segments:
1. Decorative (Architectural) Segment:
It is 70% by value and 77% volumes. In this segment, the company has its products across all categories and price-points viz., Economy, Mid-Range and Premium (with larger contribution from Economy & Mid-Range price-points).
The distribution in different categories is as follows:
2. Industrial Segment:
It is 30% by value and 23% volumes. In this segment, the company has major presence in non-automotive category with it being the 3rd largest player in High Performance Coatings enjoying an overall 9 % market share of India's Protective Coatings market ( just behind Berger & Asian Paints ).