Our Initiatives Bring Significant Impact to Painters' Lives: Mahesh Anand, Nippon Paint India
As the festive season approaches, the paint industry in India is gearing up for heightened demand and exciting opportunities. In light of this, BW Businessworld interviewed Mahesh Anand, President of Nippon Paint India's Decorative Division, a leading player in the paint and coatings sector. With a keen focus on sustainability and innovation, Nippon Paint India has established itself as a prominent force in the industry.
In this exclusive interview, Mahesh Anand shares valuable insights into the growth and market dynamics of the decorative paint industry in India. Additionally, he delves into the company's initiatives to empower painters, its foray into the construction chemical market, and its commitment to promoting eco-friendly and environmentally conscious products. Join us as we uncover Nippon Paint India's aspirations and goals for the future, as it continues to thrive in a dynamic and evolving market landscape.
Can you share some insights into the growth and market dynamics of the decorative paint industry in India?
Indian paint industry today is estimated to be approximately about 50,000 to 55,000 crores, out of which, close to about 70 to 75 per cent will be decorative paints. When it comes to industrial, you can split that further into industrial then automotive refinish, auto parts, along with powder coatings and marine. Taking COVID into consideration, in the last five years we have been growing and the industry has been growing at around 11 to 12 per cent CAGR. Traditionally, the paint industry grew at almost like 1.5 to 1.8 times the GDP. That's how we estimate the range depending upon the external and internal conditions of the market.
When we talk specifically about decoration, it’s purely consumption-driven market and as the population grows, the consumption also grows. In specific to decorative paints, probably about 60 per cent would account for the repainting business. The balance 40 per cent will be the new painting business. Repainting includes people revamping the walls for festivals, occasions, and functions, which constitute a big business. So that's how the dynamics of the decorative business work. With a younger generation, younger team, and younger decision-makers coming into the picture, the repainting intervals are getting reduced. About 15 years back, the intervals for repainting used to be about once in ten years, and it is now at around five to six years, approximately.
Could you please elaborate on some of the key initiatives that reflect the company's commitment to sustainability and environmental consciousness?
Nippon Paint's vision is to become a world leader in the coatings industry by offering sustainable and environmentally friendly products that prioritise the well-being of both people and the planet. This vision drives all our actions and decisions, ensuring that we prioritise safety and environmental responsibility above all else.
When we launched Nippon Paint in India in 2006, we noticed a gap in the market regarding sustainable paints. To address this, we focused on providing products without heavy metals and with low Volatile Organic Compounds (VOCs), which we refer to as "Green Paints". The term green does not signify the colour but rather our commitment to eco-friendly products across our entire product range. Approximately, 90 per cent of our products carry the Green Pro certification, signifying their adherence to sustainable and environmentally friendly standards set by the Indian Green Building Council (IGBC). The Green Pro label can be found on the packaging of all our certified products.
Furthermore, our manufacturing process itself has been certified as "Green" by the Confederation of Indian Industry (CII) under their GreenCo Gold Standard. This distinction sets us apart from other paint companies and reinforces our dedication to sustainability. Despite being environmentally friendly, our Green Pro-certified products perform just as well as regular paints, offering protection and decoration while also being competitively priced.
To ensure our products' sustainability, we conduct a lifecycle assessment of each product, adhering to a cradle-to-grave approach. By choosing Nippon Paint, customers actively contribute to the global goal of achieving net-zero emissions. We want to be recognised as a brand that aligns with the vision of a sustainable future, not just within the paint industry, but across all manufacturers working towards India's target of becoming a net-zero country.
Customer preferences and trends in the paint industry are constantly evolving. So, how does Nippon Paint India stay attuned to customer needs and adapt to the constantly changing market?
Our research team at Nippon Paint is not a separate entity; it comprises our own sales team, which is extensively engaged with various stakeholders in the industry - this includes dealers, painters, consumers, and specifiers. By gathering valuable insights from our sales team's interactions in the market, we conduct thorough research to drive innovation and product development.
This collaborative approach is not unique to India; it is a global practice across all 44 countries where Nippon Paint operates. The sharing of knowledge and best practices takes place regularly among all departments to ensure that we remain at the forefront of the paint and coating industry.
As an example, during the initial outbreak of COVID-19 in China, we, being the number one paint company there, were well-prepared to respond appropriately. We launched a campaign called "Sanitize Your Walls" and introduced antiviral and antibacterial products to meet the evolving needs of consumers. These products are designed to be safe to touch, purify the indoor air, and offer high washability properties, providing people with a paint solution that promotes a healthy living environment. This customer-centric approach of gathering insights from the market and converting them into innovative paint products is central to our success as a market leader in the paint and coatings industry.
Tell me more about Nippon Paints' initiatives for painters, including the nShakti programme and XR painting workshops.
The most important stakeholders in this industry are painters, who are generally unorganised and more vulnerable. They often don't have a regular income and rely on the work they do. Since our launch in India, we recognised this and decided to support them from day one. We took the initiative to establish training centres for painters in Tamil Nadu and Karnataka. These centres not only cater to new painters but also certify existing ones who have learned the trade through experience, starting as helpers and gradually becoming painters.
Many of these experienced painters may not fully understand the different paints and approaches required when dealing with customers. Hence, we provide training in soft skills and certify them as assistant decorative painters or decorative painters through the Recognition of Prior Learning (RPL) programme. This programme is promoted by the National Skill Development Corporation (NSDC), and we plan to expand it to other states through our training academy for painters, called the Proceed Centre.
To further engage with the painter community, we introduced the nShakti program back in 2017. We undertook a temple project inSirudamur, near Tindivanam in Tamil Nadu. During this project, local women expressed their keen interest in participating and assisting with the painting work. They also expressed a desire to receive training in this skill. This enthusiastic response led to the birth of "nShakti," an initiative aimed at training women in painting and providing employment opportunities for them in the same region.
Recently, we also introduced the XR Painter Workshop, which moves ahead of the regular training of painters to include extended reality simulator training. This VR-based training focuses on spray painting skills, ensuring proper hand-eye coordination before painters are given spray machines for their work. We have trained close to 20,000 to 25,000 painters under the RPL programme, certified with the government of India registered logos. With over 20,000 hours of training, approximately 800 women under the nShakti programme have been trained, out of which 25 to 30 have transitioned into entrepreneurs. They have shifted from job seekers to job providers. That's the ultimate objective, what we feel about this nShakti programme.
Furthermore, we have trained over 1700 XR painters and continue to expand this programme. Our initiatives have made a significant impact on the lives of painters by providing them with training, certifications, and support, empowering them to become skilled professionals in the industry.
What are Nippon Paint India's aspirations and goals for the future?
The global trend is moving towards sustainability, and we, as a paint manufacturer, are committed to adopting sustainable practices and promoting green products. It's crucial to communicate these practices and values to the painters, as they are the ones directly involved in using the products and implementing our services. We recognise the importance of educating painters about the environmental impacts of their work and providing them with proper training on sustainable practices. We aim to make them more aware of the responsible disposal of paint waste, avoiding harmful practices like disposing of paint water in landfills.
In terms of products, we are actively working to introduce more eco-friendly options to the paint and coating segments. Our vision is to become a global leader in the paint and coatings industry, ensuring that our operations in every country align with sustainable principles.
Apart from the painter community, we also have a close relationship with the architect community through our Asia Young Designer Award (AYDA). This programme spans 17-18 countries and offers young interior designers and architects the opportunity to gain international exposure and compete on a global platform. We are committed to providing educational opportunities, and the winners receive a two-week paid scholarship programme at the Harvard Design School.
Our efforts are focused on education and empowerment within the various communities we work with, and sustainability is one of the key pillars guiding our initiatives.
