Slowdown in auto,
non auto pinches Kansai Nerolac Paints
Paints has reported a sales turnover of Rs 616.05 crore and a net profit
of Rs 57.11 crore for the quarter ended September 2011.
HM Bharuka, the managing director of Kansai Nerolac talks to CNBC-TV18
about his company’s results. He also outlines their future plans.
Below is an edited transcript of his interview. Watch the accompanying
video for more.
Q: Going ahead, will you be able to maintain margins in Q3 and Q4
like you did in Q2. What are you anticipating in terms of volume growth?
A: The second quarter was not as good as the first quarter. We are
expecting Q3 to be more than
Q2 especially in case of industrial paints which is driven by
automotives. The concern is on the automotive side. As far as decorative
is concerned, we expect growth to continue, however, it would be
moderate as compared to what it was in Q1 and Q2
Q: What would you mean by moderation? What kind of a growth rate are you
A: In the first quarter, the industry growth in decorative was about 20%
and second quarter it came down to about 13-14%. According to us, Q3 and
Q4 should be about 10%. From that perspective it has moderated. However,
it is still at double-digit growth.
Q: Your auto segment is facing some pressure because of a slowdown
there. This time around the non-auto industrial paint segment has
actually done better than what the street was expecting. Do you see that
outperformance continuing or are you seeing a sign of slowdown even
there as well. Would you expect the volume growth in the non-auto
industrial segment to hold up?
A: The non-auto industrial segment has also gone down according to
me because the infrastructure is not doing well so non auto has also
been affected. You are seeing value growth because the product mix is
better and there is a price increase.
Q: Titanium Dioxide has been a bit of a problem. Do you expect it to
soften or will that continue to haunt margins?
A: The whole raw material segment for the industry has been going
up. Titanium Dioxide has been going up exceptionally as well. We feel
that going forward it should go down. Unfortunately, for the industry
the rupee depreciation has complicated the problem.
Q: Given that we cannot wish away the rupee deprecation just yet, do
you think margins will be tough to maintain in Q3 and Q4? What kind of
margins will you expect?
A: Margin would be under presser in Q3 and Q4. In Q2, margins for us
were slightly better because of the inventory which we are carrying but
the effect of the cost increase would be there in the third and fourth
Q: Would you go towards 12%?
A: It is difficult to say. It depends on the volume but certainly it
would be under pressure.<more>
SRK to make kids
G.One and health into your home with colour! The association between
Nerolac and SRK is not new, but this festive season they have tied up to
launch a special 'G.One wall' through the company's healthy home
This gives every child a chance to have the superhero from RA.One in
their room through this exclusive wall that comes in two colours - Sunny
Lemon and Clare De Lune.
Shah Rukh Khan says, "I'm the brand ambassador and have been working
with them for a while now. They always try to innovate and do new
things, and the innovation they have come up with this time is great;
like my own children, other kids can now have superheroes painted on
their walls. They have come up with a system where you can have G.One in
either my likeness or a cartoonised version, both of which I think kids
will love. Staying true to its commitment towards safety and well-being,
the brand has found a common platform with G.One - that is, they are
both 'protectors'. G.One protects his family. And with Nerolac paints,
every father can protect his family from harmful VOC and lead. <more>
ties up with Ra One
ties up with the most awaited movie of the year - Ra One.
This association came to a natural culmination in view of the uncanny
similarities that these illustrious brands share with each other. The
role essayed by Shahrukh Khan in the movie stands for the same values
that our brand ambassador is seen enacting in the recent Nerolac TV
commercial. This TVC is seen communicating the paternal instincts that
drive the protagonist to choose a healthy paint devoid of adverse
effects for his family. Akin to this, the movie will see Shahrukh taking
it upon himself to shield his family from the troubles standing in their
As the TVC relays the characteristics of Kansai Nerolac Impressions Eco
Clean to be odorless, stain-free, and sans harmful VOC (Volatile Organic
Compounds) fumes, it makes for an entrusted product for the father to
pick for the well being of his family.
This alliance with Shahrukh Khan dates back to when Kansai Nerolac first
introduced eco-friendly paints in the market. Being trendsetters in the
paint industry, Kansai Nerolac was responsible for the creation of this
category. It is for the awareness of this healthy range that the paint
giants brought in Shahrukh Khan who advocated the cause of sustainable
living for the brand. It is thus delightful that this association has a
come full circle to be seeing Shahrukh Khan essay a similar ro-le in his
latest movie, that of a protector.<more>
to dampen festive sales for paint makers
monsoon will add to the woes of decorative paint manufacturers who have
already seen their sales slow this year as higher prices and rising
interest rates have cooled demand for new homes.
“The months of September and October account for close to 40% of the
overall sales of the decorative paint manufacturers. With rain still
falling, the consumer is not doing any repainting work, which will lead
to a drop of 10-20% in business,” said Percy Jijina, director of
decorative paints at Jotun India Pvt. Ltd.
The organized paints industry market is estimated at Rs.15,500 crore, of
which the decorative paints segment accounts for 65%, according to
Sukhpreet Singh, general manager at Kansai Nerolac Paints Ltd.
“We have accordingly factored a 170-200 basis points moderation in
volume growth for paints,” said a 15 September report by Emkay Global
Financial Services Ltd. One basis point is one-hundredth of a percentage
Over the past year, demand for decorative paints has slowed as companies
including Asian Paints Ltd, AkzoNobel India Ltd, the owner of the Dulux
brand, Kansai Nerolac Paints and Berger Paints India Ltd raised prices
because of a rise in raw material costs. Titanium dioxide, mineral
turpentine oil and other crude oil-linked raw materials are used by the
paint industry. Such raw materials, “pigments, extenders and minerals
account for 36% of total input costs and 17% of sales for Asian Paints,”
said the Emkay Global Financial Services report.<more>
Markets: Indian Paint Industry - 2011 Report - The Indian Paint Market
Has the Potential to Grow Over the Decade at 15-20% Per Annum
DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the
addition of the "Indian Paint Industry" report to their offering.
The Indian paint industry is over 100 years old. Its beginning can be
traced back to the setting up of a factory by Shalimar Paints in
Calcutta (now Kolkata) in 1902. Until World War II, the industry
consisted of small producers and two foreign companies. After the war,
the imports stopped, which led to the setting up of manufacturing
facilities by local entrepreneurs. Still, the foreign companies
continued to dominate the market. Initially British paint companies such
as Goodlass Walls (now Goodlass Nerolac), ICI, British Paints (now
Berger Paints), Jenson & Nicholson and Blundell & Eomite dominated the
The industry has been doing well for the past couple of years. In spite
of global economic slowdown the industry is performing well. The Indian
paint market has the potential to grow over the decade at 15-20% per
annum as the current per capita consumption is much lower as compared to
other developing economies. The per capita consumption of paints in
India is 1.25 kg against 51.7 kg in Qatar, 38 kg in Singapore or 25.8 kg
in the U.S. Even China has a per capita consumption of 2.5 kg and Sri
Lanka 3.5 kg.<more>
Asian Paints Q2
net up 9% at Rs 213 cr
Asian Paints, on a standalone basis, posted a nine per cent rise in net
profit at Rs 213 crore for the second quarter ended September 30, 2011,
as against Rs 196 crore logged in the same period last year.
Net sales increased by 26 per cent to Rs 1,844 crore (Rs 1,470 crore).
The board of directors has recommended payment of an interim
dividend of Rs. 9.50 per share (95 per cent).
“The ‘decorative' products sale was impacted by an extended monsoon
during the second quarter. In most segments, the underlying demand has
been good. Continued upward trend in raw material prices along with
depreciation in rupee remain an area of concern,” Mr P.M. Murty,
Managing Director, said.
The industrial business, especially the auto OE segment, saw some
pressure due to a subdued demand. Political events and macro-economic
uncertainty in some countries continue to affect international
performance though South Asia has done well, he added.<more>
Akzo Nobel India
Q2 net profit declines 28% to Rs263 million
Akzo Nobel India total income for the quarter is Rs3,015 million
compared to a total income of Rs2,393 million; a QoQ growth of 26%
Akzo Nobel India Ltd has announced its unaudited results for the quarter
ended 30 September of the fiscal 2011-12.
The company’s total income for the quarter is Rs3,015 million compared
to a total income of Rs2,393 million; a QoQ growth of 26%. Its profit
after tax (PAT) for the quarter is Rs263 million compared to a PAT of
Rs365 million; a QoQ decline of 28% <more>
Berger Award for
Award recipients at the programme.
Berger Paints Bangladesh Limited (BPBL) organised an award giving
ceremony for the students of architecture (2010), in collaboration with
the Department of Architecture, Bangladesh University of Engineering and
Technology (BUET) on October 22. The event was held at BUET auditorium,
says a press release.
Professor Habibur Rahman, Pro-Vice Chancellor of BUET, was present as
the chief guest. Professor S.M. Nazrul Islam and Rupali Chowdhury,
managing director of Berger Paints, were present as special guests.
Architect Jalal Ahmed, general secretary of Institute of Architecture
Bangladesh; noted painter Hashem Khan; Dr. Shabbir Ahmed, Professor
Shaheda Rahman and Ahsan Ullah Majumder -- from the Department of
Architecture, BUET, were the members of the jury<more>
Coatings expands manufacturing facilities with Izmir Plant
Coatings has expanded its facilities at the manufacturing plant in Izmir,
Turkey. Opened on September 23, 2011 by Leif Darner, AkzoNobel board
member responsible for performance coatings. The extensions include
office buildings, a new warehouse and a new SBU R&D lab which will
become a Center of Expertise for both standard and special effect
products. The manufacturing facility started operations in July 2000, as
part of a joint venture with the Altan family. The Izmir site has become
increasingly important over the last few years and now produces a
significant proportion of high quality architectural products for
Europe. "This is an excellent example of our commitment to the emerging
markets," said AB Ghosh, managing director BU Powder Coatings. "Our
operations in Turkey have grown steadily over the years and we continue
to strengthen our position and develop our organizational structures as
well as grow capacity there.<more>
PPG to Form Fiber Glass
Joint Venture with Harsha in India
PPG Industries (NYSE: PPG) announced today that it has signed a letter
of intent with Harsha Exito Engineering Private Limited (India) to
establish a 50-50 joint venture for the manufacture and sale of fiber
glass reinforcement products. The transaction is subject to the
completion of due diligence and the negotiation of definitive
documentation. Financial information was not disclosed.
“Over the next several months, PPG and Harsha will be working to
finalize a fiber glass joint venture in the Indian state of Tamil Nadu
to primarily serve the Indian market,” said Thomas P. Kerr, PPG vice
president, fiber glass. “We are encouraged by the prospect of continuing
to expand PPG's global reach, particularly in emerging markets.” <more>
Huntsman to Build New
Asia Pacific Technology Center in Shanghai
The Woodlands, Texas - Huntsman Corporation (NYSE: HUN) today announced
that it will invest approximately $40 million to build a new Asia
Pacific Regional Technology Center (ATC) in Shanghai’s Minhang Economic
& Technological Development Zone, to support the rapidly growing demand
for world-class technology and innovation from customers across the Asia
The state-of-the-art facility will comprise machine halls, laboratories
and offices, accommodating up to 400 technical experts, and will replace
the existing Technology Center, located nearby, which was first opened
in September 2008. This facility will complement existing Technology
Centers in The Woodlands, Texas and Brussels, Belgium as well as smaller
Construction for the new ATC is expected to commence in January 2012,
with completion planned for mid-2013. In parallel, part of the existing
Technology Center will be converted into an auditorium and display area,
which together with the new facility will form an integrated technology
and innovation campus.
Anthony P Hankins, Huntsman’s CEO Asia Pacific commented: “The expansion
of our research and technology capability in this key region reflects
Huntsman’s desire and commitment to grow in partnership with our
customers by delivering innovative solutions more effectively and
efficiently. The Huntsman technology center will be completely aligned
to support Asia's fast-growing industries, including developing new
energy-saving material solutions for the strategic industries as
outlined in China's 12th Five-Year Plan.” <more>
Dr Voytek Gutowski:
developing multifunctional polymer surfaces and interphases
Gutowski is known nationally and internationally for his work in
developing and commercialising multifunctional surfaces and interphases
for bonding and electrostatic coating of polymers, composites, wood and
What are multifunctional interphases?
What are multifunctional interphases?
The interphase is an intermediate molecular structure between two
different materials, for example between the surface of:
a plastic bumper bar and painted coating
aluminium cladding panels and silicone adhesive.
The role of this nano-thin layer of specialty multifunctional molecules
is to make two entirely different materials compatible, so that they can
be effectively joined together and function as an integral system for
the intended service life.
'In our work we design and make specific molecular structures that
provide strongly-bonded multiple molecular bridges between various
surfaces and coatings, for example between a plastic bumper bar and its
finishing coat, which once baked will not peel, scratch or chip under
normal wear and tear,' says Dr Voytek Gutowski.
Dr Gutowski is currently applying his work on multifunctional
interphases on polymeric materials and composites for end uses in a
range of industries, including: <more>
White ousts silver
as America's favorite automotive paint color
When it comes to tastes in automobiles, Europeans and Americans tend to
be on opposite sides of the spectrum. Small trumps big. Manual over
automatic. Car against truck. Black versus white.
That's right, automotive paint supplier PPG says 20% of new cars in
North America were white in 2011, while black dominated Europe with 26%.
The Asian market preferred the neutrality of silver, which colored 25%
of vehicles sold there.
Truth be told, none of the three major global markets embraced any real
colors, as white, silver, and black made up the top three in each
region. In North America, the order was white-silver-black, Europeans
had it black-white-silver, while Asians chose silver-white-black. White
took over the top spot globally with, of course, silver and black tied
for second. Last year, silver topped PPG's list.<more>
Akzo Nobel profit
down 37 percent in Q3
Akzo Nobel NV, the world's largest maker of paints and coatings, says
profits fell sharply in the third quarter as higher raw materials costs
ate away margins. The company plans a restructuring but did not say how
many jobs it will cut.
Net profit at Wal-Mart's main paint supplier fell 37 percent to euro149
million ($205 million), while sales rose 4.8 percent to euro4.05
billion, the company said Thursday in a statement. Chief Executive Hans
Wijers noted the revenue growth but called the commodity cost increases
that hit margins "unprecedented" and said he does not expect
macroeconomic conditions to improve in the short term.<more>
buying Dyrup in $157.2M deal
PPG Industries Inc. finalized a deal to buy European coatings company
Dyrup A/S from public holding company Monberg & Thorsen for a total of
115 million euros ($157.2 million).
The transaction's value includes assumed debt, the company said Tuesday.
PPG, which makes paints, coatings and a number of specialty products,
did not break out the debt amount.
"Once finalized, the acquisition of Dyrup will enable PPG to continue to
expand its geographic reach within Europe as well as its product
portfolio to include Dyrup's established strong brands, particularly in
wood care products," PPG Executive Vice President J. Rich Alexander said
in a statement.<more>
PPG clearcoat for new Lexus supercar
Oct. 10, 2011—PPG
Industries on Monday announced Toyota has endorsed the use of its Global
Refinish System D8113 clearcoat for refinish repair on the new Lexus LFA
super sports car.
The PPG clearcoat is the first to pass Toyota’s specification criteria
for the $400,000 vehicle’s signature matte black finish, according to
DuPont Said to
Seek Buyers for Teijin Venture, Powder Paint Unit
DuPont Co., the third-biggest U.S. chemical maker, is seeking buyers for
a polyester-film joint venture and a business that makes powder-based
paint, said people with knowledge of the matter.
Goldman Sachs Group Inc. is advising DuPont on the sale of DuPont Teijin
Films Ltd., owned jointly by Wilmington, Delaware- based DuPont and
Osaka, Japan-based Teijin Ltd. (3401), said the people, who declined to
be identified because the process is private. Greenhill & Co. is working
with DuPont on the powder- coatings sale, the people said. The assets
would likely fetch less than $1 billion each, the people said.
The powder-coatings business is part of DuPont’s performance-coatings
operations, a unit that accounted for 12 percent of the company’s $31.5
billion in revenue last year. Ellen Kullman, who became chief executive
officer in January 2009, has been steering DuPont toward faster-growing
products such as food enzymes and biofuel with her $7.1 billion purchase
of food-ingredient maker Danisco A/S this year.
“DuPont has made very few divestitures since Kullman took over,” Mark
Gulley, a New York-based analyst at Ticonderoga Securities who rates the
shares “buy,” said in a telephone interview. “This is probably overdue.”
DuPont has completed six separate sales of assets in the past three
years, according to data compiled by Bloomberg. One of the deals fetched
$40 million, while prices for the others weren’t disclosed.
DuPont is also considering buying the 28 percent stake it doesn’t
already own in its Solae LLC soy-products joint venture with Bunge Ltd.
(BG), one person said. DuPont had been seeking a buyer for the venture
since July and has now put that process on hold while it decides whether
to merge the business with Danisco, the person said.
Danisco may have provided DuPont with the infrastructure and expertise
it needs to make Solae more profitable, Gulley said. Combining Danisco’s
dairy-focused food business with Solae would be “very complementary” and
“enable higher growth,” Kullman said in a Jan. 10 conference call
discussing DuPont’s bid for Danisco.
DuPont and Bunge formed Solae in 2003 when they merged two businesses.
Solae makes more than 1,000 products, including soy proteins used in hot
cereals, sports drinks, vegetarian foods and meat products. The venture
employs about 2,400 people.<more>
Colorcon and BASF
Announce Collaboration to Develop Film Coating Applications Using
Kollicoat® Smartseal 30 D
and LUDWIGSHAFEN, Germany, Oct. 20, 2011 /PRNewswire/ -- Colorcon, Inc.
and BASF have announced a collaboration for the development of future
film coating systems using Kollicoat® Smartseal 30 D, and a new Colorcon
Colorcon has developed a pre-formulated additive system for use with
Kollicoat Smartseal 30 D which enables efficient preparation and
application of this polymer in taste masking applications. The
pre-formulated additive lowers the number of materials to be dispensed
by 50% and reduces the preparation time by almost 40%.
"We have chosen Kollicoat Smartseal 30 D because it is the best-in-class
reverse enteric polymer for taste masking," saidKamlesh Oza, General
Manager Film Coating at Colorcon. "Kollicoat Smartseal 30 D is the first
water-based dispersion having both taste masking and moisture barrier
properties. It was developed to simplify and accelerate aqueous film
coating operations, and opens new doors for formulating tablet, pellet,
and particle coatings. Our collaboration to develop the additive will
bring batch-to-batch color consistency, performance, speed and
simplicity enabling easy reconstituting of the film former in
pharmaceutical coating operations while maintaining functionality."
"Smartseal 30 D is the latest innovation in our Kollicoat portfolio,
which completes the formulator toolbox by adding taste masking and
moisture protection to the functionalities. We are very happy that the
market leader in film-coating will closely collaborate with us in this
application area," said Dr. Ralf Fink, Vice President Global Marketing
Pharma Ingredients at BASF.<more>
Products Partner to Reinforce Rilsan Pipe Coating Solutions
RMB Products has
entered into a working partnership with Arkema’s Technical Polymers
division to reinforce Arkema’s Rilsan high-performance fine powder
coatings for applications such as water desalination and water
In the water industry, Rilsan fine powder coating solutions have been
utilized for coating fittings, valves, pumps and pipes. The engineering
bio-plastic is produced from a renewable resource based on vegetables.
Rilsan coating solutions protect pipes from common corrosion and pitting
problems when utilized in water desalination and treatment piping and
are able to reduce a piping system’s installation expenditure by half.
Extensive study by Arkema proves that carbon steel coated with Rilsan
fine powder decreases CO2 emissions by over 40% than super duplex
Adrien Lapeyre, who serves as Sales and Business Development Manager of
Rilsan fine powders at Arkema’s North American Technical Polymers
business, stated that the Rilsan-coated carbon steel is an economical
and technically accepted replacement to stainless steel in water
treatment and desalination plants. Rilsan-coated carbon steel pipe
provides an extensive range of chemical resistance and high aging
resistance, and protects components during storage and handling, he
AXSON unites BS
Coatings, Revocoat and Axson Technologies
The new AXSON
group unites BS Coatings, Revocoat and Axson Technologies to create a
specialist in high performance polymer formulation.
BSR Group, a holding company owning Revocoat and BS Coatings, acquired
AXSON Technologies, a manufacturer of epoxy resins and polyurethanes
systems, earlier this year. In September 2011, the BSR Group changed its
name to AXSON.
Revocoat supplies sealers and anti-corrosion products to the automotive
industry. BS Coatings develops coating solutions intended for the
hydrocarbons, water, industry and building markets.
“Our three businesses together represent a major asset for AXSON’s
customers who will now have access to a broader range of solutions,”
says Charles Churet, Chairman of AXSON. “And every customer will benefit
from the synergy of the expertise, R&D facilities and worldwide presence
of these three businesses”.
The new AXSON group, headquartered in France, has 800 employees and 25
subsidiaries and 16 production and R&D sites around the world.<more>
companies seek to expand overseas
Most of the
investment projects being undertaken by Japan's chemical companies are
located overseas, where the fast-growing Asian market and ready
availability of cost-competitive raw materials promise an improvement in
competitiveness and profitability. With a strengthening Yen and little
growth potential in the domestic market, investment in Japan is limited
to small-scale projects for high-performance products and business
MITSUBISHI CHEMICAL PARTNERS
Mitsubishi Chemical Group, the largest chemical company in Japan, aims
to "expand operations through partnerships with overseas leading
companies," according to Yoshimitsu Kobayashi, president and CEO
ofMitsubishi Chemical Holdings.
The company signed an agreement with China's Sinopec for a comprehensive
partnership which is gearing up to open new plants for bisphenol A (BPA)
and polycarbonate (PC) resins in Beijing in the fourth quarter of 2011.
Other projects are under negotiation for implementation by the end of
this fiscal year (ending March 31, 2012).<more>
factory' discovered in South Africa
kits used by humans over 100,000 years ago have been found in a cave in
The discovery includes red and yellow dyes, as well as shell containers
that could have been used as paint pots.
Stones and pieces of bone used to make the paint paste were also
discovered at the site.
Researchers say the extraordinary findings show that humans were
thinking in a modern way hundreds of thousands of years ago.
Prof Christopher Henshilwood, who was part of the team, says the paint
could have been used to paint bodies, leather bags or other objects.
If this is true, it shows the human mind advancing ahead of the rest of
the animal world.
Blombos Cave, the site where the discovery was made, is famous for its
remarkable archaeological treasures.
Scientists have been scraping down through its sandy floor for twenty
years and have found several artefacts left by the Middle Stone Age
people who lived there.<more>
Fire at a
paintshop in Pithampur
A fire erupted on Monday Oct 31st due to short circuit in Rajshree
Engineering, Pithampur, in its paintshop. The company manufactures
vehicle chassis <more>