We have discussed about the SWOT Analysis of Berger Paints as Well as the Porter's 5 Forces Analysis for Paints Industry in India

1. SWOT Analysis and Porter’s 5 Forces

2. Submitted by
Name UID Number
Manish Goswami 2019-1805-0001-0046
Manish Kumar Raj 2019-1805-0001-0037
Neel Sarkar 2019-1605-0001-0018
Neha Sharma 2019-1805-0001-0051

3. ABOUT BERGER PAINTS INDIA
• Second Largest Company in Paint Industry
• Founder: Lewis Berger
• Headquarters: Kolkata, India
• Number of employees: 3,500+ (2018)
• Chairman: Kuldip Singh Dhingra
• Multinational

5. Strength Weakness
• Ranks #2 as per sales Revenue
• Effective supply chain
• Green initiative
• International presence
• Wide range of products
• Diverse Customer Base
• Bad public image
• No premium alternative
• High Dependence on Decorative segment

6. Opportunities Threats
• Business diversification
• Increasing penetration in rural market
• Growth of real estate, automobile , and
home decor
• Innovation with changing trends
• Fluctuation in Raw material price
• Competition eroding the margin
• Threat from New Substitutes like Tiles
and Wallpapers

7. Porter’s Five Forces for Paint
Industry

8. Top Companies in Paint sector based on Revenue (2019)
Akzo Nobel
10%
Asian Paints…
Berger Paints
18%
Hardcastle
0%
Jenson Nicholso
0%
Kansai Nerolac
15%
Mitshi India
0%
Shalimar Paints
1%

9. Threat of New Entrants - LOW
● Asian Paints & Berger Paints alone Accounts to 75% of Revenue
among Listed Paints Companies. So it's difficult for anyone to be the
Emperor in the Paints Industry
● Working Capital Required is High. 300 different kinds of Material is
Used in the Paints Industry
● Shortage in supply of raw materials

10. Competitive Rivalry -Low
● About 80 % of this sector is contributed by top 3 companies
● Large company like Asian paints is the main competitor
● Unorganized sector

11. Bargaining Power of Supplier - Medium
● Over 300 Raw materials are required which includes Solvents, Pigments, Binders,
Additives etc
● Titanium Dioxide is a Key Ingredient used which have huge shortage hence supplier can
bargain
● Import of raw materials
● High fluctuation of price in raw materials

12. Bargaining Power of Buyer - Medium
● Industry and household are the main customer for the industry
● Price Sensitive

13. Threat of Substitutes - Low
• In Rural Areas Lime wash is used as a Substitute
• Wallpaper is Used as a Substitute
• People Use Marbles in case of Paintings as well

14. Competitive
Rivalry
(Low)
Threat of
Substitutes
(Low)
Threat of New
Entrants (Low)
Bargaining
Power
of
Buyer
(Medium)
Bargaining Power of
Supplier (Medium)