COMPETITIVE DYNAMICS AND FIRM PERFORMANCE IN THE INDIAN PAINT INDUSTRY: AN EMPIRICAL STUDY
DOI:
https://doi.org/10.69980/0nbf3118Keywords:
Paint industry, Competitiveness, Branding, Supply chain, Cost managementAbstract
Changing dynamics in the Indian paint industry have made competitiveness a major strategic concern for firms operating in both decorative and industrial segments. The paper examines the structure of the industry, identifies the market leader and its key success factors, evaluates company performance in terms of cost management and competitiveness, and assesses the impact of foreign entry. A survey-based descriptive and analytical approach was adopted. Primary data were collected through structured questionnaires from dealers and other industry stakeholders, and the responses were analysed using Likert scale analysis and correlation analysis. The results show that the organised sector accounts for 63 per cent of the market and that Asian Paints Limited emerged as the market leader with the highest score on key success factors, scoring 29, followed by Kansai Nerolac with 22 and Berger Paints with 20. Kansai Nerolac performed better in cost management, scoring 114 against 105 for Asian Paints, but Asian Paints retained stronger overall competitiveness. The findings further reveal that crude oil price fluctuations did not have a significant independent effect on competitiveness, while the entry of foreign firms increased product variety and competition without adversely affecting domestic companies. Overall, competitiveness in the Indian paint industry depends on quality management, stock keeping unit management, branding, supply chain efficiency, and strategic adaptability.
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