Anuj Jain is the Director (Decoratives) of Kansai Nerolac Paints Ltd. In an interview with Britant Khanal of the New Business Age, he spoke about the launch of the Mumbai-based Kansai Nerolac Paints (subsidiary of Kansai Nerolac Paints, Japan) in Nepal. Excerpts:

 

What are the basic strategies used in launching your products?

Our main focus is on healthy, environment-friendly home paints. Home paint, traditionally, is a 100 year old industry. People talk about colour and some talk about coverage; to think of it, we spend most of our time surrounded by paints – whether it is at home, office, restaurants or cars - we are always within painted walls. Therefore, paints shape our surrounding and we have to make sure that our surroundings are safe, clean and healthy. This is our basic notion and strategy, because paints have some serious hazardous chemicals and we are now trying using lead-free and ammonia-free paint. When it comes to water-based products, we are using 0 VOC (Zero Volatile Organic Compounds). The basic thing is that the painter who is using it should find it healthy.  Also the consumers for sometimes people get allergies and diseases from paints. Therefore, healthy home paints are really safe – even for people having asthma as it has low smell and no hazardous effects.

 

Kansai Nerolac paints has acquired 68 per cent stake in Nepal Shalimar Paints. What are the reasons behind this move?

The reason is that we are trying to penetrate the Nepali market as it is a growing economy. As per my knowledge, Nepal in last few years had a growth rate of 15 -20 per cent in the paints industry and is also a premium market as per our research. We found our right partner - Nepal Shalimar Paints - and we also got the right amount of stake for expansion.

 

After the acquisition, Nerolac has envisaged to capture almost 15 per cent of the market share. How do you plan to achieve that?

Every company starts with a motive to earn profit and keep a certain level of hold on the market. We are planning to reach 15 per cent of the market share but since we are new in Nepal, we are still waiting to see consumers’ response. 

 

Is there any specific product launch for Nepali market?

Nerolac impression is a very eco-friendly product which has the property of very low smell and 0VOC. These three characteristics make the product very suitable for the Nepali environment. There is also a product called the ‘Lotus touch’ which has some special features. During our research we discerned a lot of problems relating to dampness, so our product is beneficial for these kinds of situations as well. It is smoother, much whiter and gives better coverage. There is also another product that we are focusing on for the Nepali market called the ‘Exterior total’ which has better life, better protection and better shield. Basically, we are launching products depending on what the consumer incites. 

 

What is the status of Kansai Nerolac on a global level? 

Kansai is the number one paint company in Japan. In India, our market share is 20 per cent and on the global level we are at the 7th position, although earlier we were at the 11. 

 

The brand Nerolac is endorsed by popular celebrities like Shahrukh Khan. Do we expect to see some Nepali faces for the brand?

We have just entered into the market so we are still working on the distribution network and logistics. Once we are through with that stage, we will try and see if any local endorsements will help business. Being a product based on ‘Healthy homes’, the brand will not need any other focus as of now. Plus, the company is young in Nepal and has a long run to make. We are only done with procedures for basic establishment.

 

Are you planning to use the production capacity of Nepal Shalimar Paints?

Yes, in fact we are using the Nepal Shalimar factory which is now converted into Kansai Nepal. We have brought some new machinery and are using a larger area. We have been able to start with a new factory and machinery, which is located in Pawanipur.

 

Could you comment on the journey taken so far in terms of competition?

It is similar to the Indian context because the players here are the same. The only thing we feel is that competition is healthy but that we have a competitive advantage on quality, being a Japanese company. 

 

Will the country gain any advantage from this merger of Kansai and Shalimar paints?

Besides more revenue coming into the country, a better and healthier product for the overall benefit of the people will be enjoyed. As a company, we believe in corporate social responsibility and feel responsible to contribute towards society. We have already started working on it and are painting the Pashupatinath area and some schools in the villages. Basically, we are fulfilling our corporate social responsibilities in the needy areas of society.