Nerolac Paints New Plans For Home Segment

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New Delhi: : The Rs 760-crore Goodlass Nerolac group, the second largest paint entity in India after Asian Paints and market leader in the industrial paints segment, is painting a fresh coat of distribution and promotional strategy to bolster its presence in the decorative paints market.

The Rs 2,800-crore decorative paints segment, which addresses domestic retail consumers, includes products like acrylic and oil-bound distempers, enamels and plastic emulsions. The decorative segment in India accounts for around 70 per cent of the overall paints market unlike in the mature markets where the ratio of industrial paints (like paints for automobiles) vis-a-vis decorative paints is 50:50.

Goodlass Nerolac, which has a market share of around 45 per cent in the industrial segment and 15 per cent in the decorative segment, decided to focus on the decorative segment two years ago. As such its advertising and marketing spend shot up from Rs 11 crore in 2000-01 to Rs 23 crore in 2001-02 and is expected to be maintained at around Rs 23-Rs 25 crore this fiscal.

Says Goodlass Nerolac Paints vice-president (marketing and sales) Anuj Jain: ‘‘We’re relatively weak (including Maharashtra) in west, east and north-east. So next year our focus will be to develop our distribution presence in these markets even as we consolidate in other regions. We’ve also decided to continue to expand our ColorScape project (ColorScapes are colour dispensing machines )’’

The company deals directly with around 11,000 dealers who service around one lakh retail outlets across the country.

Goodlass Nerolac has plans to develop a ColorScape-installed network of 2,000 retail outlets up from 1,700 outlets now. The ColorScape network accounts for around 40 per cent of the company’s retail sales.

In the colour dispensing arena, Goodlass Nerolac has also started developing a pioneering concept ‘‘MagicEye’, which is a colour measurement device capable of detecting 50 lakh shades and preparing any shade instantly.