Nerolac renews focus on premium segment

Goodlass Nerolac Paints is targeting higher-end and premium paints segment by broadening its product portfolio.

With the country in the thick of a housing boom caused by growing consumer incomes, people are willing to upgrade to higher end products, which is why the company is looking at the segment for growth said Anup Jain, vice-president, marketing and sales, Goodlass Nerolac.

He added that the premium segment, as of now, accounts for about 10 per cent of total decorative paints industry.

For Nerolac, decorative paint segment accounts for 50 per cent of their total turnover of Rs 1,200 crore (2004-05) and the company has about 14 per cent market share in the segment.

H M Bharuka, managing director, Goodlass Nerolac said that they would be introducing newer products over the next few months, and these would involve certain innovations like for example an anti-bacterial finish. The company plans to launch at least two new products in this category over the next 12 months.

Another step in the direction was the launch of a new range of paints "� Nerolac Disney "� aimed at children in this category, the walls can be painted with various Disney characters on it.

The range will initially be launched with popular cartoon characters like Mickey Mouse and those from the Princess series, across eight cities which include Ahmedabad and Pune apart from the metros.

"The aim is to reach out to the urban Indian, which is why we are targetting these particular cities," said Jain.

While the paints market has been growing at 12-14 per cent over the last few years, the market shares of the companies have remained more or less constant.

In a bid to win greater market share, Jain says that there is now an increased focus on retail as well as on wood finishes "� for which Goodlass Nerolac has set up a special team.

On the rural marketing side, the company has introduced special products aimed at the segment and has tied up with ITC to retail paints through Chaupal Sagar.