Extensive SWOT Analysis of Kansai Nerolac Paints with company Overview

Updated on: Nov 11, 2021

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Previously we saw the Marketing Strategies of Kansai Nerolac Paints, today let’s explore the SWOT Analysis of Kansai Nerolac Paints.

Kansai Nerolac is a company in the chemical and paint industry offering different types of paints. The company produces and supplies paint systems applied on cycle, finishing lines of electrical components, material handling equipment, containers, bus bodies, and furniture industries.

The company is one of the leading players in the industry, it can further improve its brand visibility by using digital marketing practices and tactics. Post pandemic digital marketing has become an essential part, if you also want to know more about digital marketing do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.

In this blog, we will look at the SWOT analysis of Kansai Nerolac Paints but before that let’s know more about the company and its services.

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About Kansai Nerolac Paints

Kansai Nerolac Paints Limited is a famous chemical industry that was incorporated in the year 1920 and is headquartered in Mumbai, India. It is a comprehensive industrial and decorative paint company. It is an absolute manufacturer of coatings and paints. The products of Kansai Nerolac Paints are Industrial Coatings, Automotive Coatings, Protective Coatings, Marine Coatings, and Decorative Coatings.

The company has about five paint manufacturing plants and about six to seven contract manufacturers. The company’s manufacturing plants exist in Jaunpur in Uttar Pradesh, Bawal in Haryana, Lote in Maharashtra, Hosur in Tamil Nadu, and Sayaka in Gujarat. The company has good relations with many other industry leaders in terms of technology.

Quick Stats about Kansai Nerolac Paints
Founder Katsujiro Iwai
Year Founded 1920
Origin Mumbai, Maharashtra
No. of Employees 2992 (2020)
Company Type Public
Market Cap 32.31 Crore (2021)
Annual Revenue 5305 Crore (2020)
Net Income/ Profit 515 Crore (2020)


Products Provided by Kansai Nerolac Paints:

Following are the different products offered by Kansai Nerolac Paints

  • Chemicals
  • Decorative Paint
  • Industrial Finishing Products
  • Coatings


Competitors of Kansai Nerolac Paints:

Being in the Paint industry, Kansai Paints faces tough competition. Some of its major competitors are:

  • Nippon Paint Holdings
  • Asain Paints
  • General Paints
  • Berger Paints
  • Shalimar Paints


SWOT Analysis of Kansai Nerolac Paints

Infographic- SWOT Analysis of Kansai Nerolac Paints | IIDE

SWOT Analysis of any Company describes their Strengths and Weaknesses, the inherent conditions of the company and Opportunities & Threats, the external conditions of the company. SWOT Analysis helps the decision-makers of the corporation to plan a strategic plan following the interior and external factors of the corporation.


1. Strengths of Kansai Nerolac Paints

Strengths are known as capabilities or available resources that a company uses efficiently and effectively for its development and overall growth.

  • Variety – The company provides a wide range of products and these are uniquely eco-friendly. The unique selling proposition of the company is its technologically innovative products. The products include Industrial coating, Automotive coating, Protective coating, Marine coating, Decorative coating.
  • Huge Company –  Kansai Nerolac paints is the largest and the leading company in respect of coating paints and it is also a leader in powder coating.
  • Tech-Savvy – The company provides technology-based innovative products which are beneficial on both ends.

SWOT Analysis of Kansai Nerolac Paints | IIDE

  • Research and Development – To be a leading company in its respective area Nerolac has an excellent command over its research and development field, that’s why they can provide technology innovative products.


2. Weakness of Kansai Nerolac Paints

This is the pain area of the organization where it doesn’t have the resources or skills. The business has got to work upon these areas so that they’re not left behind from the competition.

  • Dynamicity –  It’s one of the weaknesses because every day there are some new trends which keep on coming and customers want to be in sync with trends so as a result product become outdated soon. It also creates problems in product planning and inventory.
  • The Business Model– Kansai Nerolac Paints business model can be replicated easily by its competitors. Hence the company will have to build a more advanced platform model where they can integrate vendors, suppliers, and end-users.
  • Modernized Supply Chain and Logistics – The business model of every industry finds its way to flourish using the Internet and Artificial Intelligence. Hence owing to this, the Kansai Nerolac Paints supply chain has to be in a robust way that is extremely expensive so that its model is unique in every aspect.


3. Opportunities of Kansai Nerolac Paints :

This helps in understanding what other things a business can do with the present skills and resources. It helps the business to understand the areas where it can expand and take a lead to diversify the business and expand the customer base.

  • New Product Range – The company has a very good scope to develop new products with proof of delivery which makes the company stand out from the competition.
  • Technology Innovation -In today’s world technology innovation has become a new means to increase industrial productivity, thus allowing manufacturers to produce and supply varied types of products and services.
  • Digital Opportunities – Online services are intensifying and customers tend to avail themselves quite often. The modern world is all about being online so it would be a great deal to both the company and its users to provide and avail the services.
  • Low Inflation Rate – Reduction in inflation rate brings out more steadiness in the market. It provides credit at a low-interest rate to the company’s customers. This boosts the consumption of the company’s products thereby providing them with huge opportunities.


4. Threats of Kansai Nerolac paints:

This analysis helps in understanding what are the areas which may impact the business in the future or directly. So business has got to brace itself to handle the threats within the market landscape.

  • Stringent Government Rules – Strict government rules and regulations turn out to be barriers in respect of product quality and manufacturing facilities. 
  • Scarcity of Raw Material – Scarce raw material and instability in the price also is a huge threat to the company. The production is dependent on the raw material and its scarcity might hamper the production cycle which will result in a huge loss to the company and its inventory cycle.
  • Tough Competition– Even though Kansai Nerolac Paints is superior in the paint manufacturing segment, it faces stiff competition from the local and international markets.
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Kansai Nerolac Paint is the leader in its segment mainly because of its eco-friendly nature of service and also being a techy freak in regards to innovation. Also, its marketing strategies are on point keeping in mind its target audience and their preference. The only drawback about the company is its model in respect of its product range which seems to be a theatre concerning replication by its competitors like Asian paints and many more.

The company is doing well with its marketing strategies. Learning digital marketing and getting certified in it can open up a lot of opportunities for you. IIDE provides many certified courses of both long and short duration on topics like social media marketing, media planning, SEO and many others.

If you find the case study interesting, find more such interesting case studies at the IIDE knowledge portal.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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