XTRAS: Berger Paints is known for developing new products. It launched India’s first washable paint Easy Clean in 2008 and also first to launch weather anti-dust for exterior walls and express painting services.
SWOT Analysis
Strengths
• Berger Paints offers a wide variety of products which includes home to industrial paints. They also offer decorative paints option which is the latest offering and in demand in the market.
• It acquired the decorative paints unit from the Indian arm of US-based Sherwin Williams Paints.
• They have international operations in few countries that include Nepal, Bangladesh, Russia, Poland, and Cyprus.
Weakness
• Berger Paints depends on one segment heavily for its maximum revenue and that is the decorative segment. This is not a long-term strategy and high growth rate cannot be sustained for long.
• Due to a duopoly in the market they do not have the pricing power in their hands. They need to keep their prices in check with the market going paint prices.
• Berger paints is known to have a weaker distribution network.
Opportunity
• Berger paints need to up its game where Marketing communications is concerned, where nerolac and Asian paints are advertising left and right, Berger paints is left far behind and the frequency of advertisement is lesser.
• With marketing, it will bolster its brand values and create a demand from consumer end.
• Usage of paints in Indian households is very low. There is a high scope of growth in this segment. Also due to urbanization there is a growth in demand for paint.
Threat
• There is stiff competition amongst the top three – Asian paints, Nerolac and Berger paints. Amongst these, Berger paints seems to be left behind resulting in penetrative pricing and lesser margins. This is a threat to Berger paints.
• Changing government laws may lead to new companies in this sector. That means an increase in competition.
Future Prospects
• The overall thrust on housing for all/affordable housing measures by the Government has aided fresh painting demand and will aid repainting demand in future.
• The Indian coating industry is expected to attract the attention of new investors and is well poised to take the benefit of the favourable demand swing while following the COVID 19 protocols in the near future.
• Right from reinventing their supply chains and firming up process innovations to making inroads in new product categories, every act has been the outcome of a strong foresight along with meticulous planning, that helped them to steer out of the crisis and scale newer heights.
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