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Submitted By abhiruchisingh
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A project of this nature calls for intellectual nourishment, professional help and encouragement from many quarters. Summer training constitutes the backbone of any management education programme. A management graduate has to quite frequently do the project work during his or her career plans.

I would like to take this opportunity to thank my Company guide Mr. SITHANSHU SHAH, Project Sales Manager, Kansai Nerolac Paints Ltd. who has taken all the time and effort to guide me through this project.

I would also like to thank Prof. GUPTE, Faculty Member, MET Institute of Management, MUMBAI for giving me an opportunity to execute this project.

I would like to extend my thanks to Miss Pallavi, Mr. Gurvinder Singh for having selected me to do this project as it has been a completely enriching experience for me and has helped me implement my learning’s as a MBA student.

Along with others I would also like to thank Mr.Vinod Sawant, Mr. R G Desai for having supported me in times of need and assistance during the project.

I would like to thank the entire team of Kansai Nerolac Paints Ltd. who have come forward with helping hands whenever any assistance has been sought. The Data Research has been primary and thus, I would like to thank all the respondents who have taken time out to answer my questions during the survey undertaken.

Without the support and guidance of all the people mentioned above it would have been very difficult for me to consummate this project.


The project is related to find the role of services provided by a paint company in acquiring, maintaining and retaining customers (read: co-operative housing societies). This report contains the entire objective, purpose, scope and the procedure taken to complete the project and also the limitations or difficulties faced during the course of the project. To find answers to the above questions a survey was done. The primary objective of this project is to find the potential customers and their requirements and develop business of exterior paint for the company. The secondary objective of this project is to prepare a comprehensive and exhaustive database of customers, thereby helping Kansai Nerolac Paints ltd. to get a good database of customers which will help them in future.

The report is prepared for the partial fulfillment of Management programme and as a part of curriculum.

The project has helped in recognizing likely customers for the company. It has also helped in making awareness about Kansai Nerolac Paints Limited and its products in the exterior paint market amongst the customers. During this project the customers were categorized in three ways i.e. HOT, WARM and COLD.

This training is being conducted by survey in the Housing Societies of South Mumbai. The survey was conducted by personally interviewing each respondent. The data thus collected through survey was organized in a database, which could be referred for future endorsements.
The above mentioned survey was conducted on 380 respondents. The respondents were Co-Operative Housing Societies from South Mumbai.

It is found that still Kansai Nerolac Paints Ltd is the strongest competitor for the private Paints companies like: Asian Paints, Berger Paints, ICI Paints and Shalimar Paints, etc.

|1 |Introduction |
|2 |Origin and evolution of NEROLAC Paints |
|3 |Kansai Paints Co. at a Glance |
|4 |Indian Paint Industry at a Glance |
|5 |Major Players of Indian Paint Industry |
|6 |Objectives of this Report |
|7 |Findings, Data Analysis And Methodology Used |
|8 |Source of Data |
|9 |Swot Analysis and Porters Five Force Model |
|10 |Suggestions |
|11 |Limitation |
|12 |Paint Industry in the Years to Come |
|13 |Conclusion |
|14 |Bibliography |



The Indian paint industry: the Indian paint market is poised to grow at a steady rate over the next decade fueled largely by a growing economy and changing consumer attitudes

The Indian paint industry has been growing at an average rate of 13% over the last five years. However, the per capita paint consumption in India is only 1.2-1.4 liters. The industry is less than half the size of the Chinese market by volume and about one fifth of the U.S. market by volume. Even Sri Lanka and Pakistan have higher per capita paint consumption.

India's market is dominated by the decorative paint and coatings segment. Architectural coatings largely used in households constitute almost three-fourths of the market's value. The other large segments are automotive OEM paints, automotive refinish paints, protective coatings and powder coatings.

There are many players in the Indian paint market. The top four companies--Asian Paints, Berger, Kansai Nerolac and ICI (India)--constitute more than 5.5% of the Indian domestic market. In addition to these, there are more than one thousand other companies in both the organized and unorganized sectors. The unorganized sector itself constitutes 25-30% of the market.

A number of foreign players have subsidiaries in India including: Jotun (powder, marine and decorative); AkzoNobel (powder, protective and automotive refinish); Nippon Paints (decorative); Choguku (marine); DuPont (automotive refinish); and Becker (coil coatings). Others like Sherwin Williams are in the process of entering India. As a result, all the leading international players in the decorative, automotive OEM and automotive refinish paint markets will be operating in India.

The low per capita paint consumption until recently can be linked to the large number of kuccha (temporary), and semi-pucca homes (semi-temporary), low purchasing power, the small size of homes, the long repainting cycle, and use of chuna (lime powder) and French polish (paint substitutes).

India's market has also seen a higher growth of exterior emulsions. Over the last ten years, exterior emulsions have gradually replaced cement paints largely on account of longer life, better looks and ease of usage. This trend is expected to continue with economy exterior emulsions replacing cement paints. The higher-grade cement paints have been largely replaced by emulsions and it is but a matter of time before cement paints on the exteriors cease to be an easily accepted option. Increased advertising by all leading paint companies has educated consumers and made them aware of better exterior products.


We embarked our journey in 1920 as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Bombay. In 1930, three British companies merged to formulate Lead Industries Group Ltd. In 1933, Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in 1933 and thus, Goodlass Wall (India) Ltd. was born. Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.) Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac Paints Ltd. In 1976, Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak. In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical collaboration agreements with Kansai Paints Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan. In 1986, Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai Paints with the latter acquiring 36% of its share capital. In 1999, Kansai Paints Company Ltd., Japan took over the entire stake of Tata Forbes group and thus GNP became a wholly owned subsidiary of Kansai Paints Company Ltd.

We are esteemed to be a subsidiary of Kansai Paint Company Limited, which is the largest paint manufacturing company in Japan and among the top ten coating companies of the world. We are the second largest coating company in India with a market share of around 20%. We are the market leader in industrial / automotive segment supplying over 90% of the OEM requirements.

We are the leader in powder coatings. Goodlass Nerolac Paints Ltd. (GNPL), the Indian subsidiary of Japan based Kansai Paint Co. Ltd, is the second largest paint company in India with presence in decorative paints as well as industrial paints & marine paints, enamels, varnishes, coatings, resins etc. It is the second largest coating company in India. The company markets its products under the brand names Nerolac, Glossolite, Goody, Allscapes, Excel, in decoratives. The stake of Kansai Paints in the company now stood at 64.52% of the total equity of the company. The company has five manufacturing facilities at Kanpur, Ratnagiri, Ahmedabad, Perungudi and Rewari spread across India. The company has strong presence in automotive paints as it controls 45% of the organized Industrial paint segment. Its major clients include OEMs like Maruti Udyog, Bajaj Auto, TELCO and Mahindra & Mahindra.

The company has two wholly owned subsidiaries namely Saurashtra Paints and GNP (Madras).The above subsidiary companies were amalgamated with the company from April, 2002 with consent approval from both the state’s High courts.


Kansai Paints Co. Ltd., our parent company is the number one paint company in Japan. It is a global leader in innovation and is known best for its product innovation, R&D and sensitivity towards the environment, Kansai commands a leadership position in providing state-of-the-art solutions in décor and in industrial applications in South East Asia, also parts of Africa, Europe and America.

• It is one of the top paint companies in the world. • It has 39 Joint Ventures, subsidiaries and licensees around the world and has recorded a turnover of over 2 billion USD. • The biggest strength of Kansai of course is its unmistakable belief in innovation through R&D.

Kansai Paint Company Ltd. is one of the world's top ten producers of paints and coatings for the automotive, industrial, marine, decoration, and other industries.

Listed on the Osaka and Tokyo Stock Exchanges, Kansai posted sales of Y196 billion ($1.84 billion) in 2005. In 1983, Kansai entered a technology cooperation partnership with India's Goodlass Nerolac Paints, part of the Tata group, and Japan's Nihon Tokushu Toryo. In 1986, Kansai acquired a 36 percent stake in Goodlass Nerolac.

Back in the United States, Kansai formed a joint venture with DuPont to develop automotive coatings for that market in 1990. The two companies had been cooperating on the development of automotive coatings since the late 1970s.

Through 2005, Kansai Paint continued to build up its stake in Goodlass Nerolac, boosting its share from 64.5 percent to nearly 80 percent.


The market size of the Indian paints sector has been pegged at Rs 170 bn in value terms and is very fragmented. While in value terms, the industry grew by 17% to 18% in FY09, in volume terms, the growth stood at 9% YoY, the lowest in the last five years. The per capita consumption of paints in India stands at 0.5 kg per annum as compared to 1.6 kgs in China and 22 kgs in the developed economies. India's share in the world paint market is just 0.6%.

The paint industry worldwide is classified into 2 segments viz. decorative and industrial segment in India constitutes nearly 70% of the market whereas the scenario is just the reverse in the developed countries.

Decorative Segment is dominated by the unorganized sector which now accounts for 70% of the total paint production as against 75% three to four ago. The unorganized sector has an advantage over the organized sector since it is fully exempted from the 20% excise duty and other government levies.

The Industrial segment is dominated by the organized sector due to being highly technologically oriented. The industrial paint sector is technology intensive. The Indian cost of production is 24 percent more expensive than the international cost. In fact, Indian majors like Asian paints and KNL have embarked on hectic R&D to face the competition and also reduce their cost of production. Industrial segment is also the more profitable segment of the industry as compared to decorative paints due to value addition in the form of specialized functions that these paints perform.

The industrial paint market is split into five segments: automotive coatings. High performance coatings. Marine paints, powder coatings and coil coatings.

Major Players in the Indian Paint Sector

In the organized sector Asian is the market share of 31% followed by Goodlass Nerolac with a share of 16%.

There is tremendous potential for the paints manufacturers in India because as against an average per capita consumption of paints in India is very less. Economic liberalization is attracting international giants like BASF Germany; Curt lauds UK and Jotun Norway, International Paints UK. The share of organized sector has increased from 20% to 25%.

Distribution channel plays an important role in the industry. Awareness and perception of specific brand is more important than the corporate brand equity. Asian Paints, the market leader has around 16,000 dealers in its network which are spread across the country. Kansai Nerolac comes second with around 9,000 dealers.

Rural market has emerged as the new segment for the players in the decorative market and most of the players have identified this segment as a thrust area and are launching new economy brands to cater to the need of this segment.

Company |Premium Brand |Rank |Intermediate Brand |Rank |Economy Brand |Rank | |Asian Paints |Royale |2 |Apcolyite & Tractor |1 |Utsav & Tractor |1 | |Goodlass Nerolac |Allscape |4 |Nerolac & Nerocem |2 |Goody Synthetic |2 | |Berger Paints |Luxol |3 |Rangoli |3 |Butterfly |3 | |ICI India |Dulex |1 | | |Maxilite |3 | |Comparative position of major players in the decorative segment of the paint industry




Asian Paints Ltd. was established in 1942. More than half a century down the lane, Asian Paints is India’s largest and Asia’s third largest paint company today. Asian Paints operates in 22 countries and has 29 paint manufacturing facilities in the World. Besides Asian Paints, the group operates around the world through its subsidiaries, Berger International Limited, Apco Coatings, SCIB Paints and Taubmans. Asian Paints along with PPG Inc, USA is one of the leading manufacturers of automotive coatings in the world. Asian Paints Industrial Coatings Limited caters to the Industrial coatings market and has tied-up with Protech Chemicals, a world leader in powder coatings.



Berger Paints was the creation of Mr. Lewis Berger, who in 1760, through his shades had offered people a chance to transform their homes through the power of imagination. Berger Paints India Limited has been in India since 1923.



Imperial Chemical Industries (ICI) is a major paint, adhesive and specialty products business with products and ingredients developed for a wide range of markets. ICI is present in Asia Pacific, Europe and the Americas. However, in the beginning of 2008 ICI became a part of Akzo Nobel, the world’s largest coatings manufacturer, the number one in decorative paints and performance coatings, and a leading supplier of specialty chemicals. ICI Paints, headquartered in UK and manufactured in 24 countries, has some of the world’s top paints and decorative product brands. ICI’s Paints division in India is a subsidiary of ICI Dulux Institutional, a world leader in paints. The Indian subsidiary, ICI Dulux India which is popularly known as Dulux Paints India, owes its success to strong brands such as ICI’s exterior emulsion brands – Weathershield and Supercote and retail brands like Dulux Velvet Touch, Acrylic Emulsion and Gloss.



Jotun group, a Norwegian paint manufacturer which is headquartered in Sanderfjord, Norway, is one of the world’s leading manufacturers of paints, Coatings and powder coatings. The group has 71 companies and 40 production facilities on all continents. In addition, Jotun has agents, branch offices and distributors in more than 70 countries.

Jotun Paints inaugurated its first manufacturing facility in India, in April 2008 at Ranjangon in Pune and will soon set up a manufacturing unit in North India. The manufacturing unit in Pune mainly caters to Kerala, Karnataka, Tamil Nadu and Maharashtra and will move to the northern

markets such as Gujarat, Delhi and Haryana subsequently. Jotun has launched retail outlets in a many towns and cities of India.



The history of Nerolac Paints dates back to 1920. Nerolac Paints was established as Gahagan Paints and Varnish Co. Ltd. in Mumbai. In 1933, it was renamed to Goodlass Wall India Ltd. and later became Goodlass Nerolac Paints Pvt. Ltd in 1957. And recently in 2006, it acquired the present name Kansai Nerolac Paints Ltd.

Kansai Nerolac Paints is a subsidiary of Japan based Kansai Paint Company Limited that is one of the top ten coating companies in the world. Nerolac is the second largest in India with a leading position in industrial and automotive paints and also in powder coatings.



The company was first founded in Japan as Komyosha in 1881 by brothers Haruta and Jujiro Moteki together with their chief engineer Heikichi Nakagawa. In 1898, Nippon Paint was established as Japan’s first true paint manufacturing company.

Nippon Paint has over 126 years experience in the paint industry. Since its establishment the Nippon Paint group has consistently been a leader in the paints and coatings Industry. After making inroads into Singapore, Malaysia, Thailand, Philippines, Korea, Vietnam, Hong Kong, Taiwan, Nippon Paint also garnered a sizeable share of the decorative paints market in China. Nippon Paint has operations in Europe and America as well. Now the Nippon Group is recognized as the leader in Asia. Nippon Paint India started its operations from Chennai, in June 2006 and the Decorative paint division has its Office in Chennai. Apart from the retail chain network Nippon Paints is present in Noida, Ahmedabad, Bangalore and Hyderabad through HomeTown hypermarket chain.



Oikos Paints from Italy, known for decorative wall art, has launched three collections in India – The Top Interior Decorative line, The Top Exterior Decorative line, Flat Paint (Acrylic Paint) for interior as well as exterior. All three ranges have unlimited decorative possibilities in a spectrum of colours and a variety of feels and textures.



Shalimar Paints was incorporated in India in 1902 as Shalimar Paint Color & Varnish Co. Ltd. It became a public limited company in 1961 and adopted the present name Shalimar Paints Limited in 1963. Shalimar Paints was the first large-scale manufacturing unit in India and also in the whole South-East Asia region. Shalimar Paints have their corporate office in Mumbai.

Some of the most commendable achievements by the Shalimar Paints R & D units are being the first Indian company to develop a radiation resistant paint for nuclear power plants coating and another would be aviation coatings epoxy/ vinyl system for ester lubricant resistant aircraft finish.


The Sherwin-Williams Company (SHW) is an American company which primarily engages in the manufacture, distribution, and sale of coatings and related products to professional, industrial, commercial, and retail customers primarily in North and South America. The company is mostly known through its Sherwin-Williams Paints line.

Founded by Henry Sherwin and Edward Williams in 1866, the company has not only grown to be the largest producer of paints and coatings in the United States, but is among the largest producers in the world. It operates through four segments: Paint Stores (known as Sherwin-Williams Stores), Consumer, Automotive Finishes, and International Coatings.

Sherwin-Williams Paints acquired Nitco Paints, an Indian paint company, in April 2007, marking its entry into the Indian paint market. The Sherwin-Williams stores will offer a wide range of interior and exterior paints, painting accessories and tool, and market the company’s wood-care products under the ‘Ronseal’ brand. They will also offer a “touch and feel” experience for the customers.


The objective of the report is to understand the following………………….

The report will help in recognizing and identifying potential customer requiring exterior paint job done and providing such customer paint related services. It will also help in maintaining an elaborative database of the potential customer. It will also help to infer some key aspects like,

✓ It will mainly help in recognizing the kind of services to be provided to the co-operative housing societies (customers). ✓ This study will help in segmenting the different societies and areas on the emergence of paint ✓ To categorize the customers in terms of their preference for exterior paint, i.e. for a term of 3 years, 5 years or 7 years ✓ To understand the behaviour of customers towards the brand KANSAI NEROLAC PAINTS LIMITED. ✓ To specifically explore opportunities in terms of new contracts thereby increasing sales for the company. ✓ To prepare a strong database for the company of its customer for future use and building good relations ✓ This report will also help to identify the kind of market opportunities waiting for the company. ✓ Ultimately, this report will help the company to create a direct communication with above mentioned and to boost up sales in this competitive market thereby retaining their existing customers as well as new customers

This report will also help the company to identify those who can help the company improve its presence in the market thereby building awareness about the company and its products, resulting in sales boost for the company in both the segments, i.e. industrial as well as decorative segments.



The different research tools that have been used in the project are enumerated as under:

1. Due to less number of co-operative societies come up in certain areas like Charni Road, Grant Road and nearby localities, a collective decision had to be taken for such areas. A large number of development projects are being undertaken at various places and many new buildings have come up in certain areas have open more opportunities for the company.

2. Personal in-depth interview: The survey was conducted by taking personal in-depth interview of mainly the co-operative housing society’s managers, representatives.

3. Probing and prompting: In order to get full information related to the project, frequent probing and prompting was done during the interview process.

4. Almost everybody knows about Kansai Nerolac Paints Ltd.

5. Asian paints are a more favored brand in comparison to the other private Paints company brands.

6. During this survey, a total of 379 co-operative housing societies were considered out of which 17 have been classified as hot sites providing immediate business, 79 warm sites which may consider painting in next six months and remaining 283 buildings as cold sites.

7. Out of 283 cold sites, there are 7 new buildings, 47 buildings have been recently painted, a few sites were privately owned, few already had the contract given to other companies, few were already under painting and the remaining had been painted a few years back.

8. Out of all the paints work in progress many contract were with PAINTERIOR, VAZIR SURFACE, VELDON, and VORA ASSOCIATES. All these contractors and consultants are considered big in the business of renovation and repair as well as repaint.


Primary Sources

The data collected for the survey was basically primary as all the data was constituted from South Mumbai area covering from Colaba to Mahalaxmi



1. Quality of the Product is the best in the present market. 2. Being a subsidiary of Kansai Paints Limited, Japan that is among the leading 10 paints manufacturing company in the world had given Kansai Nerolac Paints Limited a huge boost. 3. Kansai Nerolac Paints Limited is the leaders in the Industrial segment in India. It has the largest share in automotive segment and Powder segment. 4. Kansai Nerolac Paints Limited has a brand image 5. Good technology backup. 6. Increasing share in the decorative market


1. Low market share in India as compared to the leader Asian Paints. (approx half of the Asian Paints ) 2. High working capital requirement. 3. Raw materials – scarcity 4. Real estate in a depression phase. 5. Maintain large inventory level as sales is seasonal.


1. Government relaxing norms for foreign companies to enter the Indian market.

2. Boom in Indian Housing Sector: Increasing urbanization, cheaper housing loans and a shift from semi-permanent to permanent housing structures Increasing urbanization, cheaper housing loans and a shift from semi-permanent to

permanent housing structures have been driving growth in decorative paints segment, which constitutes 70% of the $2 billion paint industry in India

3. Strong Industrial growth: An average growth of about 10% in the in automobile sector which provides 50% of the revenues in the industrial paints segment. Industrial paints account for 30% of the paint industry revenue in India.

4. Heavy Infrastructure Spending: New projects in roads, ports and industrial segments increases revenues from protective coatings for civil applications and road-marking paints to all parts of the building paints sector, whether interior, exterior, waterproofing or floor coatings.

5. Increase in manufacturing activities: Over 40% of the industrial sector takes the form of OEM finishes, which is expected to grow steadily as a result of increasing demand for consumer goods in India as well as India’s position now as a leading manufacturing hub for the supply of goods to the Southeast Asian and other world markets

6. Rise in Income: Lifestyle based spending by Indian middle class is helping this industry. Contemporary wood finish formulations are replacing the more traditional lacs and exterior emulsions take over from cement paints. 7. Demand for paints from new housing is expected to constitute approximately 30 percent of total demand; the rest comes in from repainting, mainly after the monsoon rains and before the festive season. This is a function of disposable income, so improvement in rural incomes will boost the growth in the paint sector. 8. Within the decorative coatings segment, considerable growth is being observed in the exterior coatings segment. Paint manufacturers have launched premium products in this category which are doing well due to superior quality and durability.


1. Entry of foreign players in the Indian paint market. 2. Aggressive marketing by Asian & Berger Paints, and other competitors. 3. Availability of cheaper substitutes. 4. Government making automotives expensive.


The porter’s 5 forces model states the following in relation with Nerolac paints and the paint industry as a whole:

1. Industry competitors: The competition in the industry is intense as there are a number of companies with various offerings such as Asian Paints, ICI Paints, Berger Paints, Shalimar Paints, all trying to increase their market share by their products and services.

2. Buyers’ power: The bargaining power of the buyer is more and is increasing day by day as they have a number of options to choose from since various companies are providing various semi-homogenous products.

3. Threat of new entrants: The threat for entry of new entrants is high as many international companies are making their way into the country. Also initiatives taken by the government is encouraging entry in this industry.

4. Suppliers’ power: Price increase constrained with the presence of the unorganized sector for the decorative segment. Sophisticated buyers of industrial paints also limit the bargaining power of suppliers. It is therefore that margins are better in the decorative segment.

5. Threat of substitutes: Large number of substitutes are available in the market such as chuna (limestone), neru, glass frames, etc.



1. Company should promote the advertisement on a large scale in order to compete with industry leader and new entrants.

2. Company should take feedback from customers to analyze the quality of products and to judge the satisfaction level of customers.

3. Company should enter in rural areas as these markets largely unexplored and have great potential.

4. Company should try to pay attention on after sale service.

5. To collect data of all institutions, i.e. schools, colleges, co-operative housing societies, etc, the company can start promotional scheme on lucky draw basis where it invites the required data from these institutions and maintain and use the database for the benefit of the company.

6. The company should provide schemes to its retailers, dealers such as providing valuable incentives to them thereby encouraging sales of products the company only.

7. The delivery cycle should be quick. The lead time between order placement and delivery of goods to the end user enables favorable image for the company and a satisfied customer.

8. The company should come up with competition scheme for its dealer retailers and its associates, encouraging competition amongst its dealers for boost sales and giving rewards for the same.

9. Company can come up with a new product offering on the lines of “Disney” characters adopted by the company. Such as associating Hindu gods with color scheme- “Connect with God” divine theme- offering color shades associated with GOD.

10. Increase manpower, this can lead to more sales operation and awareness of the company.

11. Maintain an advertisement campaign and don’t switch to jingle creating confusion amongst customers such as the “ghar ki ronak badani ho, deewaro ko sajana ho, Nerolac Nerolac” was a successful campaign.


1. In the research conducted all the due efforts are made with full effort and diligence but still there might be some error due to the following reasons:

• Human behavior is too complex to determine. So the information disclosed by them may not be very accurate.

• There was a time constraint while conducting the report.

• It might be possible that the answers given by the respondents are full of biasness.

• Some of the respondents were not willing to reply the questions.

2. In some of the co-operative housing societies, collection of data had become tough because of the absence of the concerned person. In such case judgmental decision is to be taken.

3. In some of the cases, due to the unwillingness of the concerned person, data collection could not be carried out.

4. Due to lack of awareness about the society decision, the concerned person could not provide proper details.

5. In some of the co-operative housing societies, due to lack of sincerity among respondents it had become difficult to get the correct information which might have increased the error percentage in the sample.

6. In some cases our team was late to approach for a contract as the society had already gone for painting with a contract with the company competitors, thereby company losing business.

7. In some areas, judgmental sampling had to be done, thereby inviting more room for error.


The Indian paint market has the potential to grow over the next decade at 15-20% per annum as the current per capita consumption is much lower than other developing countries and less than half of China

In the decorative segment, the next decade should see a value growth in the region of 15-20% per annum due to reduction in poverty levels, construction of new homes, higher inclination to spend, increasing decor-consciousness and gradual replacement of chuna.

The automotive OEM segment too should grow at least at 15% per annum powered by the projected high growth in the automotive segment. Thus if the Indian economy maintains its growth rate at the recent high levels, we should see value growth of at least 15% annually in the Indian paint industry over the next five years.

Lastly, the absence of the DIY market, which constitutes between 25-50% of the decorative markets in the West, is not present in India. Indians depend on the skilled painter largely on account of lower labor costs, greater necessary surface preparation and an inherent laziness among the Indian consumer when it comes to painting. Hence the range of products sold and the manner in which they are sold and used are very different in India.

The Indian paint market is poised to grow at a steady rate over the next decade fueled largely by a growing economy and changing consumer attitudes. Paint marketers have to continually meet the needs of the changing Indian consumer and regularly provide him with newer products and services to meet his requirements.

Decorative paints are expected to witness higher growth going forward. The fiscal incentives given by the government to the housing sector have benefited the housing sector immensely. This will benefit key players in the long term.

This apart, above normal monsoons in the current year would lead to higher agricultural output thereby increasing demand for paint from rural areas. We expect paint demand to grow by 12% to 15% in the next two to three years, largely led by post festive season demand.

Demand in case of industrial segment is also expected to increase going forward. This is on account of increasing investments in infrastructure. Domestic and global auto majors have long term plans for the Indian market, which augur well for automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased industrial paint demand, especially powder coatings and high performance coatings will also propel top line growth of paint majors in the medium term.

The reduction in peak customs duty from 12.5% to 7.5% will lower the import cost of key raw materials. With more residual income with the population, home loan disbursals are expected to grow at 25% CAGR in the next three years, which is a positive for paint companies.


All in all, India's coatings and paints industry is experiencing a rapid development of the course, which is the automotive industry, infrastructure construction and other related industries, the rapid development of the history of inseparable. Of course, look at the policy level, the Indian government implemented the infrastructure for the paint industry with a very broad application platform.

Consumption, consumers and users are looking forward to for some specific applications of paint come on the market. As coatings businesses, are also broken down by customer demand for specific customers customized services and training programs, including providing customers with a special paint effects, and so a series of value-added services to increase market share and customer satisfaction degrees.

With the traditional white paint that corresponds to a new generation of interior latex paint market is also experiencing a massive expansion phase. In India, consumers substitute the use of economic-based low-cost white latex paint, has become an increasingly popular consumer trends. In the outdoors, the latex-based coating products are gradually replacing the traditional solvent-based enamel. More and more consumers, the price slightly higher emulsion coating products, incremental goodwill. Because they know that, although the input is a number, but the emulsion paint products can be durable for a longer time for them, more beautiful paint effects, and more color choices. These advantages are the traditional products cannot do.

It should be noted that for the next couple of year’s time, India also has huge growth coating strength. Comparison of decorative coatings and industrial coatings, industrial coatings in India will be accompanied by a strong rebound in the domestic auto industry, but also showing a more substantial growth rate.

In India, using an active marketing strategy and rapid development of new coating products companies, will in the future be more rapid pace of development. Along with India's paint technology and market activity further strengthened the leading paint companies in India today, is likely to further consolidate its leading position, and possession of a higher market share.


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...Berger Paints India Limited 1 CONTENTS • INDIAN PAINT SCENARIO • CORPORATE PROFILE • INDIA WIDE PRESENCE – DEPOTS & FACTORIES • BOARD OF DIRECTORS & MANAGEMENT TEAM • COMPANY PHILOSOPHY & CORE VALUES • FINANCIAL PERFORMANCE • BUSINESS DIVISIONS • REWARDS & RECOGNITION • WHAT WE WISH FROM YOU • CAREER PROGRESSION AT BERGER PAINTS • SELECTION & INDUCTION • INDUCTION & ON THE JOB TRAINING • WHAT WE WISH TO OFFER Berger Paints India Limited 2 INDIAN PAINT SCENARIO (2012 Market Share) Key Players Asian Paints 53.5 % Berger Paints 19 % 16 % 8% 2.5 % 1% 0 10 20 30 40 50 60 3 Kansai Nerolac Paints Ltd Akzo Nobel India Ltd Shalimar Paint Ltd Others Berger Paints India Limited BERGER PAINTS - CORPORATE PROFILE  2nd largest paint company in India.  Amongst the Top 25 paint companies in the world Top 10 paint companies in Asia.  Present in Nepal, Bangladesh, Cyprus, Russia & Poland.  15,000 plus paint dealers across India.  Total Consolidated Gross Turnover of Rs. 3182 crs in 2011 –12  Turnover of Rs. 2065 crs only in the Decorative Paints Business  Recorded the fastest growth in the decorative paint segment in India growing @ 28% “WE ARE THE NUMBER TWO.THATS WHY WE TRY HARDER” – WAS THE SLOGAN OF THE David AVIS WHICH RACED PAST THE Goliath HURTZ... Berger Paints India Limited 4 INDIA-WIDE PRESENCE 90 + depots across India Dedicated Sales Teams in all locations with empowered support staff to cater to customer needs Berger......

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A Study on Brand Preference of Wallcare Putty

... [ ] 11. Mentions the company that you have dealerships? a) Birla wall care putty [ ] b) J.K. wall care putty [ ] c ) ASIAN [ ] d) Berger [ ] e) Nrolee [ ] f ) Nippon [ ] g) Other’s name:______________ 12. Please ranking the following brands customer will prepare to buy? |1 |Birla wall care putty | | |2 |J.K. wall care putty | | |3 |ASIAN | | |4 |Berger | | |5 |Nerolac | | |6 |Nippon | | |7 |Other`s name | | 13) The Birla white wall care putty mostly used for the buildings? a) Fresh building [ ] b) Old building [ ] c) government building [ ] d) Other`s name :______________ 14) Mention the opinion about the brand a) Very much satisfied [ ] b) Satisfied [ ] c) Not satisfied [ ] 15) Are you satisfied with the Birla white wall care putty? a) Yes [ ] b) No [ ] If No /state the reason: 16) What is......

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Marketing Strategy of Asian Paints

...for 79.1% of the Company's sales. Decorative paints include wall finishes for interior and exterior use, enamels, wood finishes and ancillary products, such as primers and putties. Industrial Coatings comprise high performance coatings, powder coatings and auto refinish coatings. The automotive coating segments are catered to by the joint venture Asian PPG Industries Ltd. The Company also has chemicals businesses consisting of phthalic anhydride and pentaerythritol manufactured at Ankleshwar, Gujarat and Cuddalore, Tamil Nadu, respectively. The Indian paint market is highly saturated with many paint companies with varieties of product. Kansai Nerolac paints Ltd. Berger paints India Ltd. ICI India Ltd. Shalimar Paint Ltd, Snowcem India Ltd are the main competitors of Asian Paints. Among them Nerolac Paints have a very good market share in the Industrial Paint segment. Asian Paints adopted some marketing objectives & strategies. Asian paint is ready to achieve its corporate objective by taking care of the Customers, Employees, Brand image, Dealer Vendor relationship & technology. Company’s three divisions are not equally performing well. So it has different objective & planning to gain the top most position in the Indian paint market. Asian Paints has different marketing strategy for the urban as well as the rural market in India. The company always maintaining some alternate strategy & keeping in track with the......

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Bse and Nifty

...LimitedCastrol IndiaCentury Textile and IndustriesCineMAXClariant ChemicalsCoal India LimitedCrompton GreavesDDLF LimitedDatamatics Global ServicesDhanlaxmi BankEEclerxEssar GroupFFame CinemasFederal BankFerro Alloys CorporationFinancial Technologies GroupFinolex CablesFirstsourceGGAILGeometric LimitedGitanjali GroupGlaxoSmithKline Pharmaceuticals LtdGlenmark PharmaceuticalsGodrej Industries LtdGranules India LimitedGrasim IndustriesHHOV Services | H cont.Hexaware TechnologiesHindustan Construction CompanyHindustan Copper LimitedHindustan Organic Chemicals LtdHindustan PetroleumIICICI BankIndian Oil CorporationInfinite Computer SolutionsIpca LaboratoriesIRB InfrastructureJJSW EnergyJain Irrigation SystemsJet AirwaysJSW Steel LtdKKPIT CumminsKansai Nerolac PaintsKotak Mahindra BankLLarsen & ToubroLiberty ShoesList of companies by revenueList of conglomerates in MaharashtraLupin Ltd.MMahanagar Telephone NigamMaruti SuzukiMercator LinesMinerals and Metals Trading Corporation of IndiaMOIL LimitedMphasiSNNational Mineral Development CorporationNational PeroxideNational Stock Exchange of IndiaNational Thermal Power CorporationNetwork 18Nilkamal PlasticsOOandoOil and Natural Gas CorporationOnMobileOnward TechnologiesOriental Bank of CommercePPersistent SystemsPower Finance CorporationPowerGrid Corporation of IndiaPunjab National Bank | P cont.PVR CinemasRR Systems International LimitedRamco SystemsRaymond LtdReliance CommunicationsReliance IndustriesReliance MediaWorks LtdRolta......

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...coordination. Their policy of offering tailor-made products to suit customer need has resulted in an ever growing product range; ➢ In-house production, no outsourcing, high reliability in suppliers, superior in quality assurance; ➢ Leader in profit and operating margins, ROI of Banglar Rong is 40% while ROI of the rest of the industry is 22%, Net worth of Rs 204 crores against Rs 58 crores of Goodlass Nerolac and Rs 41 crores of Berger. Weaknesses of our company ➢ In industrial paints, Banglar Rong has only a 14% market share. It is far behind the leader Goodlass Nerolac, which has a market share of 43%. Since this is going to be the major growth segment in the future, a lag in this segment will end up as a major weakness; ➢ Widening product mix puts strain on production distribution, accounting and administration; ➢ Innovation in developing new products is adequate; ➢ Banglar Rong has a major weakness on the technology front in industrial paints. Most paint firms have technology tie-ups with manufacturers abroad. For example, Goodlass Nerolac has a tie-up with Kansai paints, which has provided the company with Cathodic Electro Deposition (CED) technology. Since Kansai is the supplier to Suzuki, Japan, Goodlass with its Kansai connection finds it easy to tap Maruti in Banglar Rong has not been able to make any significant advances either with Maruti or the auto segment in general. Berger has a technical tie up wuth Herbets,......

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Paint Industry announce the 26th edition of the Indian Paint Conference.” “It gives us immense pleasure to host the 26th Indian Paint Conference this year. Through the various sessions and seminars, the conference will provide a common platform for the industry as a whole to congregate and deliberate on various issues concerning our industry,” said  Pravin Chaudhari, Director Kansai Nerolac Paints Ltd & Convener of 26th Indian Paint Conference. The three-day conference will witness power packed sessions on Global Coatings Trends, Shaping Sustainability Concepts in Coatings, Shifts in Consumer Profile, Performance Coating Opportunity for India amongst others by the senior management from A.T Kearney, Dupont, Toyota, Dow Chemicals, BASF, Asian Paints, Kansai Nerolac Paints Ltd, Tata AutoComp Systems, Berger Paints, Akzo Nobel amongst others. The conference will also host a concurrent exhibition which will allow industry partners to interact and take benefits of new technologies on display. The conference will witness participation from over 270 associates and 75 paint companies including Asian Paints, Kansai Nerolac Paints Ltd, Berger Paints, Nippon Paints, Akzo Nobel, Premium Coatings amongst others. | | |...

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Paint Industry

...Paints Industry Report June 15, 2011 SPA Securities Ltd. C o n t e n t s Executive Summary Industry Description Asian Paints Akzo Nobel Kansai Nerolac Berger Paints : : : : : : 01 - 01 02 - 05 07 - 12 14 - 19 21 - 26 28 - 33 Executive Summary Paint Industry Indian paint industry is in the sweet spot. Rising income and aspiration levels of young demography along with changing lifestyle has catapulted the demand for both repainting and fresh paints. Despite slowdown in FY09, paint industry reported robust double digit growth in last two years on back of higher demand. Going ahead, we believe demand scenario to remain strong backed by higher discretionary spend, increasing penetration, high construction activities and robust growth in auto & consumer durables industries. Paint industry has witnessed strong growth of 1.5-2x GDP growth since liberalization. There has been considerable reduction in average number of years required for repainting from 10-11 years 5 years back to 4-5 years now. This is the stark evidence of changing lifestyle with rising income levels. Repainting the home is not just a discretionary spend as it used to be as changing lifestyle resulted in people aspiring for cleaner and beautiful looking homes. Robust construction activities on back of higher housing demand has further boosted the growth of paint industry. The share of fresh paints in total demand has increased significantly in last decade on back of increasing urbanization and higher......

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...manufacturing plant at Gujarat (capacity – 25,200 MT) and PENTA manufacturing facility at Tamil Nadu (capacity – 3000 MT). The company consumes nearly 50% of its production as captive consumption and sells the remaining in the open market. This business contributes around 3% to company’s consolidated revenues. Investment Rationale High Growth in Industry (Source: ACMIIL Research) Indian Paint industry will grow 1.5 time the GDP growth As seen from the graph, the Indian paint industry is expected to grow at a CAGR of 11.85% from Rs. 112 bn. in FY07 to Rs. 156.7 bn. in FY10E, Assuming the country GDP grows @7.5% p.a. and the Indian Paint Industry growing at 1.5 times the GDP growth. Capex Plans Company Name 1. Asian Paints 2. Kansai Nerolac Paints Ltd. 3. Berger Paints 4. Shalimar Capex Plan Increasing the capacity by setting up plant at Rohtak, Haryana The board has passed a resolution of setting up new plant worth Rs.690 mn. with capacity of 24,000 mt. Besides this company also announced two brownfield projects with total capex of Rs.1000 mn. brownfield projects. N.A. Plans to increase the capacity by 25% from current 45,000 tonnes has identified 4 companies as acquisition targets. Completion Period 150,000 tonne capacity being added in FY10 and subsequent quantity will be added later in phase manner. Work for the same has not been started, but is expected to be operational by FY10E of this one project was already completed last year. This year additional capacity......

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Field Study for Channel Management

...the channel structure followed by the company. Appendix 1 Select any one of the following companies. 1. HUL Foods division 2. HUL personal care division 3. HUL beverages division 4. P&G 5. GlaxoSmithkline 6. Dabur 7. Cavin Care 8. Anchor 9. Britannia 10. Parle Soft drinks (Frooti,Appy Bisleri) 11. Reckitt Benkiser 12. Pepsi brands 13. United Breweries 14. Movies 15. Bennet & Coleman Group of Publication 16. Bajaj Home Appliances 17. Kenstar Home Appliances 18. LG (CTVs,WM,Refrigeratores,Microwaves) 19. Samsung (CTVs,Washers,Refrigeratores,Microwaves) 20. ITC 21. Godfrey Philips of India. 22. Amul products 23. Nestle 24. Asian Paints/Berger Paints/Nerolac/ICI 25. MRF/Apollo/Goodyear tyres 26. Lubricants Servo/Mobil/Veedol 27. Crompton Greaves/ Surya/ Philips/Wipro lights and luminaries. 28. Hardware items eg pumpsets of TULU/Crompton Greaves. 29. Hind ware/Jaguar bathroom fittings 30. APPLE/Samsung/Nokia phones 31. Maruti/Hyundai/Nissan cars(distribution +service channel, economics of service, spares,logistics management) Distribution channels will vary according to the company of your choice. You may have to modify the nomenclatures accordingly. 1. A presentation of the group members with soft copy of the report to be submitted . 2. Groups selecting any other companies other than the list, should be with prior approval. 3. Groups are to......

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Toyo Ink

...introduction cycle considerably. This has helped expand the range of shades for each product category, offering a choice of shades to consumers in the hundreds. For the retailers also, it eliminated the sales loss for want of range/desired shade. The machines have brought a total change in the way business is transacted and revolutionized business processes as well. The colour-tinting machines installed at the dealers’ end include multiple machines on some counters. Also popular are the gear mixers for 2K finishes in auto refinishes, which are installed at the dealers’ end and at leading garages. AN OPERATIONS PERSPECTIVE Companies not working on operational efficiency business models tend to loose in to the competitors. Asian Paints and Nerolac have been aggressively working on cutting costs and operating expenses. Berger has been managing well with economical yet acceptable formulations and low operating costs. The industry is not capital intensive and depreciation charges are not significant. Working capital requirements are moderate. However, most companies in the small segmenmt are unaware about the realization of debtors. The highest efficiency required is in physical distribution. The poor forecasts of demand result in poor distribution. As a result, companies are investing in sophisticated supply chain management tools. Margins have remained under pressure due to dropping prices, which have been more strategic and forced by the market leader. Companies have been......

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Research Project "Market Strategy of Nerolack Paints"

...“Market Research On Current Standing Of Kansai Nerolac Paints Limited Vis-À-Vis Its Competitors In Ghaziabad and Noida” (GHAZIABAD DEPOT) By: Varun Singh Kalsi PGDBM BATCH: 2007-2009 Company Guide: Faculty Guide: Mr. Manojeet Rautrey Prof. Alpana Grover Das Asst. Manager Assistant Professor Kansai Nerolac, Ghaziabad Depot GHS-IMR, Kanpur DR.GAUR HARI SINGHANIA INSTITUTE OF MANAGENMENT & RESEARCH, KANPUR PRAFACE This project in the out comes of conscious attempt to understand the gap between theories and real life aspects of business. In actual theories are too good to be followed. Industrial interface through summer training has been made compulsory for the fulfillment of P.G.B.D.M. course so that student get geared up to take a deep plunge on the corporate world. This project is the culmination of my odyssey of my two month of exclusive study and development at KANSAI NEROLAC PAINTS LIMITED. This gave me a lot of practical exposure and also gave me a wide scope to acknowledge the new elements in today’s market place. Marketing is no longer a mere part of company, but drives the company’s vision, mission and strategic planning. Marketing deals with the whole process of entering market, establishing profitable position and building customer relationship. Customer is the king and now they are dictators. Even MNCs move to any extent......

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...touch is the glow and finishes that product gives to walls. Another major product in this sector is Nerolac impression. Impressions are differentiating itself with its product offerings. Its product offering include Nerolac Impressions eco, Impressions Disney, impressions Disney. Consumer Trends: With rise in purchasing power capacity of Indian consumer. Consumers are moving towards more premium products. Market for high end premium product accounts for 1/5th of total market which has been growing at rate of 25-30% per year.(Media sources) Consumer are reliable on dealers and contractors for decision of choosing the paints. This trend is slightly changing with more speciality stores coming up and providing painting services to consumers. Current market share for this product is 42%. Asian paints has interactive customer paint guides that has helped to reshape customer paint purchase decisions. Reasons for this has been more consumer participation in paint selection decision through interactive tools like Paint calculators, online colour visuals which company has facilitated. Climate : Political factors: 1) General elections are going to be held shortly so political logjam in anticipation of elections     cannot be ruled out. 2) Recent correction in price of commodities and crude oil provide optimism. Technological Factors : 1) Eco friendly product range launched by Nerolac 2) ‘Smartcare’ range (Waterproof, Crack bridging) products are in more demand......

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Markrting Case Study

...HISTORY Asian Paints: Asian Paints Limited is an Indian chemicals company headquartered in Mumbai, India. It manufactures paints for decorative and industrial use. Asian Paints is India's largest paint company and Asia's third largest paint company. Asian paint concentrates on decorative paints market that’s why it has 40 percent of share in decorative. Utsav is a leading brand of this company. Goodlass Nerolac Paints: It is the largest industrial paint and second largest decorative paint company of India based in Mumbai. It is a subsidiary of Kansai Paint of Japan. It is engaged in the industrial, automotive and powder coating business. Goody is a brand introduced by this company made a huge success in the market. I. SEGMENTATION Market segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them. The whole paint industry has been divided into two segments:- * Decorative segment * Industrial Segment Asian paint market segmentation – AP produces a wide range of products which have more than 12,000 shades. * Utsav - rural (chunna and distemper) * Distemper - middle income group * Royal - higher income group Decorative paints market has been segmented into:- * Interior wall paints:- * Royal- Smooth & high performance......

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Kansai Nerolac Reports

...INTRODUCTION TO KANSAI NEROLAC PAINTS LTD. Kansai Paints Co. Ltd., our parent company is the number one paint company in Japan. • • It is one of the top paint companies in the world. It has 39 Joint Ventures, subsidiaries and licensees around the world and has recorded a turnover of over 2 billion USD. • The biggest strength of Kansai of course is its unmistakable belief in innovation through R&D. Origin & Evolution of Nerolac It is the second largest coating company in India and market leader in Industrial Coatings. Kansai Nerolac Paints Ltd is a subsidiary of Japan based Kansai Paint Company Limited, which is one of the top ten coating companies in the world. Year 1920, they began as Gahagan Paints and Varnish Co. Ltd. in Mumbai. The journey is marked by moving from strength to strength in every sphere of business – be it product introductions through innovation, value engineering and superior technology. 1976: Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak. 1999: Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus GNP became wholly owned subsidiary of Kansai Paint Company Ltd. 2006: On the 11th of July, Goodlass Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd. Corporate Values Vision Values and Culture KNPL have been at the forefront of paint manufacturing over eight decades pioneering a wide spectrum of quality products that......

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Cf Project

...CF GROUP PROJECT | Program & Batch: | PGDM – 2015-17 | Term: | III | Course Name: | Corporate Finance | Name of the faculty: | Dr Varun Dawar | Topic/ Title : | Financial Analysis of Kansai Nerolac | Originalor Revised Write-up: | Original | Group Number: | 4 | Contact No. and email of Group Coordinator: | Arnab Kumar | Group Members: | Sl. | Roll No. | Name | | 1 | 150101028 | Arnab Jana | | 2 | 150101070 | Megha Punetha | | 3 | 150101125 | Tanmay Mairal | | 4 | 150103038 | Arcot Ravi Praveen | | 5 | 150103088 | Manali Guha | | 6 | 150103117 | Prateek Agrawal | | 7 | 150103209 | Rahul Dahra | Table of contents * About The Company 3 * Capital structure Policy 4 * Dividend Policy 6 * Capital Structure Policy 8 * Cost of equity 9 * Valuation 10 * References 11 Highlights About The Company * Largest industrial paint and 2nd largest decorative paint company * Engaged......

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