1. Pendant Coating Industry in India

2. Pedant Group and Pendant Coating Industry IUPAC definition Pendant group Side-group An offshoot, neither oligo-meric nor polymeric, from a chain. A pendant group (sometimes spelled pendent) or side group is a group of molecules attached to a backbone chain of a long molecule. Usually, this molecule would be a polymer. Pendant groups are different from pendant chains, they are neither oligomeric nor polymeric. A "pendant" group on a polymer is a small group of atoms (even a small chain sometimes) that hangs off of the main chain (that is, the backbone of the polymer). Examples of pendant groups are the methyl group in polypropylene and the benzene ring in polystyrene. polypropylene polystyrene Advantage of Pendant Group in Paints/Coating Large, bulky pendant groups such as adamantly usually raise the glass transition temperature (T g ) of a polymer by preventing the chains from sliding past each other easily. Short alkyl pendant groups may lower the T g by a lubricant effect.

3. Pendant Coating Industry Basics Paint is any liquid, liquefiable, or mastic composition that, after application to a substrate in a thin layer, converts to a solid film. It is most commonly used to protect, color, or provide texture to objects. Paint Constituents include pigment(s),binder (resin), extender, solvent (sometimes called a thinner), and additives. binder (resin) - a polymer, often referred to as resin, forming a matrix to hold the pigment in place. The binder may be dissolved as a solution or carried as a dispersion of microscopically small particles in a liquid. The three most important binders (resins) used in modern paints are: acrylic polymers (resins),alkyd polymers (resins) and epoxy polymers (resins) Acrylic Polymers(resins)-- homopolymers or co-polymers of ethenyl ethanoate (vinyl acetate) ---ethyl propenoate, butyl propenoates, or a copolymerof butyl propenoate and methyl 2-methylpropenoate and a propenoate (acrylic). Pendent groups are inherently found in Acrylic Polymers. Alkyd polymers (resins)– polyol such as propane-1,2,3-triol (glycerol) with a dibasic acid such as benzene-1,2- dicarboxylic (phthalic) anhydride and a drying agent as linseed oil. Epoxy polymers (resins)—binders in industrial coatings (primers). made from 1-chloro-2,3-epoxypropane (produced from 3-chloropropene) and substituted phenols, such as bisphenol A

4. Pendant Coating Industry International Perspective Important Statistics on Pendant Coating Industry Sales figure surpassed 41.75 million tons with sales value of 127.3 billions us dollars. The sect -oral break-up for the industry is as follows Building-40%, Industry—20%, Transportation— 5.42%, Package-5.01, Others—6.01%. The annual demand growth is increasing at the average rate of 5.4% for the industry Key Performers World’s Top Ten Paint Companies Name of Company Revenue Estimate(*2013) AKZONOBEL(N.L.) US$ 15.053 billion PPG INDUSTRIES(U.S.) US$ 14.924 billion SHERWIN-WILLIAMS(U.S.) US$ 9.85 billion DUPONT(U.S.) US$ 5.76 billion BASF(D.E.) US$ 5.187 billion VALSPAR(U.S.) US$ 4.165 billion DIAMOND Paint(U.S.) US$ 3.968 billion SACAL(U.S.) US$ 3.881 billion NIPPON Paint(J.P.) US$ 3.026 billion RPM Inc.(U.S.) US$ 3.002 billion (Data Source– World’s Top Ten Paints Company 2013 Annual Report; published by WPCIA on January 5, 2013 Washington)

5. Indian Pendant Coating Industry snapshots SWOT Analysis (Paint and Global Coating Industry) Strengths Weaknesses i). Continued Recovery of global economy and rapid i). Revenue generation model dependent mainly industrialization. upon end user industries—steel, automobile, ii). Rapidly growing developing emerging markets with ii). Profitability of individual company depending Asian markets registering 48% growth. upon technical expertise and efficient production. iii). Average rise of 5.4% annually iii). Solvent based coating would continue to face decline in market share Opportunities Threats i). Unique formulation technology and product development i). Competitive Business environment. ii). More investment in non hazardous chemical material ii). Price rise pressures iii). Threat of environmental regulations and environmental iii). Threat of environmental regulations and alternatives. issues is driving the paint and coating industry continually Updated. (Data Source– World’s Top Ten Paints Company 2013 Annual Report; published by WPCIA on January 5, 2013 Washington) Indian Pendant Coating Industry snapshots First Paint/ Coating unit being set up in 1902. About 4.3% of the global coatings market Net Worth of Industry is about INR 23,600 crores (USD 5.3 billion) Market size of about 2.9 million tons Per capita consumption of about 1.6 kg Quantum of exports from (0.25%) and imports into India (4% -mainly niche decorative, UV systems and other specialized forms) of paints is minimal (Data Source– Paint India Website) (

6. Indian Pendant Coating Industry—Key facts Top 7 players in Indian Pendant Coating industry include Industrial Corp.--Asian Paints, Berger Paints India Limited, Kansai Nerolac Paints Ltd, Shalimar Paints, Jenson & Nicholson (I) Ltd, British Paints, Dulux Paints (Source www.todaytoptrends.com/2014/05/top-7-wall-paint- brands-in-india/)www.todaytoptrends.com/2014/05/top-7-wall-paint- brands-in-india/ ( Revenue Estimates Source –Wikipedia) Company Name Pendant Coating ProductsTotal Revenue Asian PaintsApcolite Premium EmulsionUS $1.7 bn Berger Paints India Limited Berger Bison Acrylic Emulsion, WeatherCoat Longlife US $27mn Kansai Nerolac Paints LtdExcel Anti-Peel Acrylic Exterior EmulsionUS $390mn Shalimar paintsSuperlac Acrylic EmulsionUS $61mn Jenson & Nicholson (I) LtdRainbow Acrylic Insta Color EmulsionUS $500mn British PaintsAcrylic SealerUS $500mn Dulux PaintsDulux Weather shield Low Sheen AcrylicUS $30bn

7. Indian Pendant Coating Industry Lead Operators Profitability valuation Key Financial Performance Indicators (Data Source—Rediffmoney.com) CompanyNet Sales (Rs Crore) (2014) Net Sales Growth Rate(5 - year) Net profit (In Crore Rs)(2014) Net Profit Growth Rate(5- year) Net Profit Margins (%) (2014) Asian Paints Rs. 10,418.7818.617Rs. 1,169.0611.9111.03 Berger Paints India Limited Rs. 3,384.8219.162Rs. 234.2518.2456.85 Kansai Nerolac Paints Ltd Rs. 3,154.40 16.782 Rs. 206.60 8.5556.52 Shalimar paints Rs. 483.047.617Rs. -2.80224.9492.07 Jenson & Nicholson (I) Ltd Rs.53.969.455Rs.35.31579.4692.73 British Paints *** Dulux Paints ***

8. Indian Pendant Coating Industry--Porter Five Force’s Analysis Bargaining power of Buyers The diverse earning potential of Indian populace has originated different product categories—High end Acrylic Emulsions, Enamel Paints, Distemper Range, Consumer Durables and Marine Paints. Bargaining power of the Suppliers The huge initial start up investments, promotional expenses for the pull campaigns through brand ambassadors, environmental reinforcement through use of advance technology has increased the bargaining power of suppliers in pendant coating industry. The higher proportional of additives, binder resins and primers has provided leverage to suppliers to command privileged premium price for the superior product. Entry Barriers The tighter environment laws, industry regulation and scaling competitive pricing has acted as the entry barrier for the new entrants in the industry. Rivalry among Competitors The growing industry due to sustained economic growth has turned into a boom for the existing operators. Also technology innovation is an opportunity to command new segments and expansion. The rising variable costs, channel expenses and promotional expenditure has increased the rivalry among the competitors to explore new paradigms for the product basket Availability of Substitutes Availability of high end products acrylic emulsion paints, Alkyd pendant coatings, epoxy resins paints and silicon ate industrial coating and low priced products distempers, powered coat paints and wall putty's for the masses has increased the purchase options for a buyer. The rising competition levels has further lead to improved products and innovator brand and distributor labels in the market adding to the diverse product basket.