14th July 2016, Chennai : The Chennai based Sheenlac Paints ranked as the 6th largest paint company in India has entered into a JV with Jenson & Nicholson, which will enable both companies to leverage each other’s strength for growth and offer complete range of paint solutions and products pan India. The new entity would be called Jenson & Nicholson Paints Pvt. Ltd.
Addressing the Media Mr. Sudhir Peter, MD, Sheenlac Paints said, “Throughout its 5 decades of existence, Sheenlac has expanded mainly through organic growth; now the company sees ‘partnerships & alliances’ as the way forward. It is in this context that Sheenlac’s JV with Jenson & Nicholson is significant. This is a strategic move to gain traction in markets which are highly competitive. We are pioneers in the sense that Sheenlac is credited with 2 innovations in the market – first to launch a non-alcoholic wood polish and first to introduce Thinners in PET bottles.”
Mr. Peter added, “The brand power of JNIL combined with the reach of Sheenlac is expected to result in greater momentum for both the principal companies. Sheenlac has a robust Channel presence of 15,000 touch points. The company has a strong R&D department and manufactures a wide range of products from 4 state of the art, quality certified plants. The product range includes decorative paints, industrial coatings, wood polishes & auto finishes. The JV between JNIL and Sheenlac is in the Ratio of 51:49 and an amount of Rs. 50 cr will be invested in the next 5 years.”
Mr. Sridhar Krishnamoorthy, CEO, Sheenlac said, “J&N is a reputed brand and we are delighted to market its decorative products. Their tagline, “Whenever you see colour, think of us”, is still vividly recalled by customers.
“This move would significantly strengthen Sheenlac’s presence in the North and Northeast markets. Leading products of J&N include Robbialac, Decor, Rainbow, Safeguard and Special Effects. With this JV in place Sheenlac group now has the complete range of products.”
Giving a background of the Indian Paint Industry, Mr. Krishnamoorthy added, “The current size of the paint industry is Rs. 35,000 cr. and is growing between 12 -13% annually. The per capita paint consumption in India is a little over 4 kg and very low compared to developed nations. Therefore, as the country develops and modernizes, the per capita paint consumption is bound to increase, giving us a clear advantage.”
According to Mr. Santosh Sridharan, COO, Sheenlac Paints, “Demand for paints comes from two broad categories. The unorganised sector controls around 35% of the paint market, with the organised sector accounting for the balance 65%. In the unorganised segment, there are about 2,000 units having small and medium sized paint manufacturing plants. Top organised players include Asian, Berger, Nerolac, Akzo Nobel, Shalimar, Jenson & Nicholson and Sheenlac.”
Decoratives: Major segments in decoratives include exterior wall paints, interior wall paints, wood finishes and enamel and ancillary products such as primers, putties etc. Decorative paints account for over 70% of the overall paint market in India. Asian Paints is the market leader in this segment. Demand for decorative paints arises from household painting, architectural and other display purposes. Demand in the festive season (September-December) is significant, as compared to other periods. This segment is price sensitive and is a higher margin business as compared to industrial segment.
Industrial: Three main segments of the industrial sector include automotive coatings, powder coatings and protective coatings. User industries for industrial paints include automobiles engineering and consumer durables. The industrial paints segment is far more technology intensive than the decorative segment.
The paints sector is raw material intensive, with over 300 raw materials (50% petro-based derivatives) involved in the manufacturing process. Since most of the raw materials are petroleum based, the industry benefits from softening crude prices.
About Sheenlac
The company was incorporated in the year 1962. It has 4 state of the art Manufacturing Facilities at Poonamallee, Vadakkanallur, Thirumazhisai & added Sikkandarabad by the partnership JV . The combined Plant capacity is 1 lakh KL per annum. Robust dealer network of 15,000+ touch points. Sheenlac is South India's largest paint company and is ranked no. 6 in the top 10 paint companies of India (the list from 1 to 5 are Asian, Berger, Nerolac, Akzo Nobel, Shalimar). Sheenlac’s product range includes decorative paints, industrial coatings, wood polishes, auto finishes, Primers, Fillers, Sealers and paint removers. Apart from a pan India presence Sheenlac is available in Sri Lanka, Mauritius and Vietnam.
About J&N
Incorporated in 1922, Jenson & Nicholson (I) Ltd., is India’s second oldest paint company. J&N pioneered many new products and trade practices which today are commonplace in the market. In 1955, it launched India’s first plastic emulsion paint under the brand Robbialac. It ventured into the powder coatings market in 1986, becoming the first company in the organized sector to offer this durable and environment friendly coating technology.
In 1996, unfazed by industry scepticism, J&N introduced InstaColor in-shop tinting system. For the first time the Indian customer had the possibility to select among 5000+ shades instantaneously and create his/her own shade. The concept has revolutionized the industry.
Recognizing the importance of the partnership with the distribution channel, J&N was the first paint company to start international dealer trip schemes. It’s oft repeated and mimicked advertising slogan – “Whenever you see colour, think of us” created a paradigm shift in paint advertising.
From L to R: Mr. Sridhar Krishnamoorthy, CEO, Sheenlac Paints, Mr. Sudhir Peter, MD, Sheenlac Paints, Mr. Anant Sinha, President, Jenson & Nicholson India Ltd. and Mr. Santosh Sridharan, COO, Sheenlac Paints.