PROJECT REPORT ON Reengineering Building Material (Tiles/Paint/Marble) Industry Table of Contents 1. Paint Industry 1 1.1 Organization System 3 1.2 Business Process Re-Engineering 3 1.3 Asian Paints: Postponement for Managing Product Variety in the Chain 6 1.4 Eco Friendly Paint a Healthy Choice 7 1.5 Future of Paints Industry 8 2. Stone 8 2.1 Natural Stones in construction 8 2.2 Significance of Stone Sector 8 2.3 New Drilling Technology 8
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PROJECT REPORT
ON
Reengineering Building Material (Tiles/Paint/Marble) Industry
Table of Contents
1. Paint Industry 1
1.1 Organization System 3
1.2 Business Process Re-Engineering 3
1.3 Asian Paints: Postponement for Managing Product Variety in the Chain 6
1.4 Eco Friendly Paint a Healthy Choice 7
1.5 Future of Paints Industry 8
2. Stone 8
2.1 Natural Stones in construction 8
2.2 Significance of Stone Sector 8
2.3 New Drilling Technology 8
2.4 Technology for fracture detection 9
2.5 Technology for repairing fractured blocks 9
3. Tiles9
3.1 History 10
3.2 Different Types of Tiles 10
3.3 Key Players 18
4. Marble Industry 19
4.1Types of Marbles 20
4.2 Production areas 20
4.3 Production Technology 21
4.4 Factors affecting the demand and supply of marbles in India 21
4.5 Impact of Government Policies on the Industry 22
1. Paint Industry:
The Indian paint industry is over 100 years old. Its beginning can be traced back to the setting up
of a factory by Shalimar Paints in Calcutta (now Kolkata) in 1902. Until World War II, the
industry consisted of small producers and two foreign companies. After the war, the imports
stopped, which led to the setting up of manufacturing facilities by local entrepreneurs. Still, the
foreign companies continued to dominate the market. Initially British paint companies such as
Nicholson and Blundell & Eomite dominated the market.
The size of the paints market in India is estimated at Rs 110 billion, with the contribution of the
organized and unorganized segments in the ratio of 65:35. Reduction of excise duties over the
last few years, from 40% to the present level of 14%, has helped create a level playing field
between the unorganized and the organized segments, as the former is not subject to excise duty.
As the unorganized sector loses its competitive edge, it is also losing market share to the
organized sector players. There are now twelve players in the organized sector of India's paint
and coatings market and over 2,000 in the unorganized sector
The major players are Asian Paints, Goodlass Nerolac, Berger, ICI and Shalimar. Recently,
world leaders like Akzo Nobel, PPG, DuPont and BASF have set up base in India with product
ranges such as auto refinishes, powder coatings and industrial coatings. Kansai Paints of Japan,
which entered into collaboration with Goodlass Nerolac in 1984, is now the holding company for
Goodlass Nerolac with 64.52% equity holding. PPG has a joint venture with Asian Paints to
manufacture industrial coatings. Jenson & Nicholson and Snowcem India are no longer active
players because of dwindling sales in recent years.
The Indian paint industry has two main market segments--industrial and decorative paints. While
industrial paints are used for protection against corrosion and rust on steel structures, vehicles,
white goods and appliances, decorative paints are used in protecting valuable assets like
buildings.
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The Indian decorative business has a share of approximately 77% in total sales. In foreign
countries 50-70% of the business is from the industrial segment.
The trends are likely to shift in India too, but at a slower pace, in favor of industrial paints. The
per capita consumption of paint in India is 700 grams versus 19 kg in the U.S. and 2.7 kg and 5.8
kg in other developing countries like China and Brazil. Because consumption relates to
affordability, the low Indian figure is not a surprise.
Within the decorative segment, the share of exterior paints is 21%, interior emulsions 11%,
distempers 30%, solvent-based enamel paint 36% and wood finishes two percent.
The exterior category, particularly exterior emulsions, is the fastest growing segment at 20% for
the last three years.
The industrial coatings segment includes high performance coatings with 30% market share,
powder coatings with ten percent, coil coatings with five percent, marine coatings five percent
and automotive coatings 50%.
Source: http://www.managementparadise.com
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1.1 Organization System
Most of the organized companies in India's paint and coatings market have a nationwide
presence with multi location manufacturing facilities. The companies in the unorganized sector
are mostly regional, spread in and around their manufacturing facilities and deal in low value
products.
Asian Paints has created a nationwide marketing campaign focusing on all small interior
markets. Not only was the company able to establish itself in interior markets, the demand
percolated to main towns allowing the company to enlist support of large customers.
Being restrained by FERA (Foreign Exchange Regulations Act) and MRTP (Monopolies &
Restrictive Trade Practices Act), most players were not allowed to increase production capacities
until the Nineties. With liberalization, these shackles were removed and other companies have
expanded, though the gap between Asian Paints, which could expand continually and others has
widened.
Another winning point for Asian Paints was its strategy to focus on smaller packs while others
were focusing on larger packs. Asian Paints has also been introducing new product categories,
which helped in expanding the market.
This made distribution still more complex as precise forecasts for more than 3,000 SKUs became
a challenge for every organization. With the advent of color dispensing machines supported by
all paint companies and sophisticated IT enabled distribution tools, the situation have eased
considerably.
1.2 Business Process Re-Engineering:
With the industry business becoming complex, most companies have restructured and have used
information technology as the key driver for reengineering. They have aligned their organized
structures on the basis of expanding business and its complexities. This was essential in order to
tighten controls.
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Today, companies have divided their sales organizations into decorative, industrial and high
performance coatings business units. The national level organization structure is split into zones,
regions and branches.
Color dispensing machines, both computerized and manual, have transformed the business,
particularly on the manufacturing and distribution sides. Earlier, paint companies were required
to manufacture all the shades (30-50 depending on a product line) in all the packs (five to eight
packs).
The demand pattern was difficult to predict even with the support of historical data/trends as
consumer preferences were changing fast. The machines altered the production pattern from
shades to producing bases thus providing economies of scale, reduced inventory levels and
eliminated redundancy of stocks. It has cut down the new products introduction cycle
considerably. This has helped expand the range of shades for each product category, offering a
choice of shades to consumers in the hundreds. For the retailers also, it eliminated the sales loss
for want of range/desired shade. The machines have brought a total change in the way business is
transacted and revolutionized business processes as well.
There are approximately 11,000 color-tinting machines installed at the dealers' end including
multiple machines on some counters. Also popular are the gear mixers for 2K finishes in auto
refinishes, which are installed at the dealers' end and at leading garages.
The dependence on information technology has increased remarkably from a corner room EDP
operation to playing a pivotal role in the way business in transacted. While Asian Paints has
invested in i2 technology, Goodlass Nerolac has backed up IBM enabled APO and has upgraded
to the latest 3.1 version to improve its distribution and optimize production scheduling. Both
companies are operating on an ERP (SAP R3) operating system through full connectivity across
the factories and branches via V-SATS, thus virtually working on live data for sales, accounting
and purchasing.
Goodlass Nerolac has moved one step further by launching its intranet-employee portal to
capture knowledge sitting in the minds/desktops of individuals to a common platform, which can
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be accessed by all employees. It has also invested in advanced business plan performance
measurement tools like balanced score cards to track, review and align performance.
Most companies in the Indian paint industry are functioning on multi-division models with
individual functions controlled by business heads. Some manage their business through sub-
committees. As in the case of Goodlass Nerolac there are two levels of teams managing/guiding
business.
While all the policy and major decisions are looked at by the management committee (MC),
which reviews operations on a monthly basis, there is a parallel team--business analyst team
(BAT)--which analyzes the businesses and discusses new initiatives, working as the think-tank
for the company. Recently CAT (Creative Analysis Team) has been created to work on new
long-term initiatives.
Most companies have an identical range of products for the decorative-paint market. In the
industrial segment, the range of products is more customized and guided by the technology
support provided by the collaborators. In the case of decorative products the technology has been
mostly indigenously perfected over the years and the products can be divided on the basis of
interior and exterior application or in categories like water-based and solvent-based. Moreover,
most companies have been advertising their products in the exterior emulsions category, which
has expanded the market and triggered a shift from cement paint.
While solvent-based enamels are still popular in India, outside India there is a clear shift visible
from solvent- to water-based glossy enamels. India will take some time before this change is
accepted on account of three hurdles currently faced including cost (water-based is expensive),
low level of gloss in water-based enamels and the psychological barrier that water-based
coatings cannot be superior to solvent-based coatings for protecting wood or metal surfaces.
Companies not working on operational efficiency business models have been losing. Asian
Paints and Goodlass Nerolac have been aggressively working on cutting costs/operating
expenses. Berger has been managing well with economical yet acceptable formulations and low
operating costs.
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1.3 Asian Paints: Postponement for Managing Product Variety in the Chain
Asian Paints is an Indian paint manufacturing firm that has employed the postponement strategy
successfully in us emulsions product category. Asian Paints offers four emulsion brands. In turn,
each brand offers 150—250 shades. Offering a wide variety of color shades is essential in the
emulsions market, an emulsion comprises of a “base” and a combination of “stainers”. The base
provides the functional aspects while the stainers provide the required shade. The base accounts
for 99 per cent of the final emulsion volume. A wide range of shades is developed using just 10
stainers. At Asian Paints, the mixing of the base and the stainers. Also known as “tinting”, is
carried out at the various sates points (SPs) distributed across the country. On an average, there is
one SP for every 400 retailers. Ar the retailer point, the customer chooses from a range of 150—
250 shades. The retailer immediately forwards this order to his SF The effective time for tinting
is about 10 minutes. The customer collects the shade of his choice within 1—2 days of placing
his order. Except for certain fast-moving shades, the inventory at the SP is mainly bases and
stainers, The SPs order these periodically from their designated regional distribution centers
(RDCs). The factory warehouses replenish the RDC inventories periodically. The periodicity of
ordering depends on the demand volumes. The RDC lead times (factory to RDC) arc in the range
of 2 weeks to I month while the SF lead times (RDC o SI’) are in the range of l--2 days. Thus,
the delivery period will have been close to a month had the tinting operation taken place at the
factory itself. Tinting is a low-technology operation, due to low capital expenditure and
simplicity. The delayed differentiation due to postponement of the tinting operation has reduced
the inventory levels drastically. The customer service is high due to the reduced delivery period.
Forecasting errors are also reduced considerably. There is no loss of scale economics owing to
the postponement of the tinting operation. Being a simple operation, product quality is not
diluted due to the transfer of the operation from the factory to the SPs. Asian Paints
revolutionized the postponement concept in the Indian paint industry. Asian Paints has been
offering substantially higher number of shades and is maintaining its finished goods inventories
at about 60 per cent of the industry average. This has helped them to maintain profitability that is
consistently higher than the industry average, and has probably contributed to increasing its
market share over a period of time. Other firms are also following suit, Jenson & Nicholson
(India), through its “Instacolour” scheme, is taking postponement strategy to a higher level by
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carrying out tinting operation at the retailer points. Of course, you cannot install a mixing
machine in every retailer but for large retailers it is economical to shift the tinting operation at
the retail level so that fluxing can be done after getting an order. We can say that for those retail
points where mixing is done after getting an order the retailers have managed to move ro the
CTO model from the MTS model.
1.4 Eco Friendly Paint a Healthy Choice:
Green paints are the future of the industry. Environmentally friendly products are the green
living choice. Natural paints help to keep the air pure and healthy for people with multiple
chemical sensitivities. The carbon footprint of paint is very high as the chemicals evaporate
quickly. Hence, the recent focus was on water-based paints where only the water gets
evaporated. Berger has switched its entire formulation in synthetic enamel to non-lead
formulations.
Eco-friendly paints are paints with fewer toxic chemicals than the commonly used latex and oil
based paints. The majority of people are not bothered by the smell of fresh paint, but there is a
segment of the population that becomes severely sick when exposed to the fumes that come off
of that paint smell. Eco-friendly paints are natural, Low-VOC (Volatile Organic Compounds) or
Zero-VOC.
The advent of eco friendly paints has been slow but they are starting to become more popular
and people become more environmentally aware. Eco-friendly paints are less likely to cause
allergic reactions in sensitive people although there is no guarantee that there will be no reaction.
Latex paint contains Formalyn, a commonly used chemical that can cause allergic reaction to
sensitive people. The chemical can cause severe allergic reactions with serious health
consequences for people who have multiple chemical sensitivities.
1.5 Future of Paints Industry:
The focus is also on ways to reduce a building’s energy cost with paints. Soon, paint that
insulates the building from the heat of the sun, thereby reducing energy cost of air-conditioning
is under research.
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2. STONE (marble, tile, limestone):
Re-engineering of natural stone production chain through knowledge based processes, eco-innovation and new organizational paradigms
2.1 Natural Stones in construction
Natural stones (marbles, granite, limestone etc) with their unique physical and aesthetic properties, comprise an ideal raw material for the construction industry
2.2 Significance of Stone Sector
Natural stones find numerous uses in the construction industry in indoor and outdoor applications and they significantly contribute to the improvement of the quality and the overall aesthetics and performance of buildings and open spaces
2.3 New Drilling Technology:
2.3.1 Main issues to be addressed:
Low drilling speed (up to 2 m/min) Low drilling speed (up to 2 m/min) High noise and vibration levels High noise and vibration levels Hydraulic system Hydraulic system
2.3.2 New Technology
High drilling speed (up to 3m/min) High drilling speed (up to 3m/min) No vibration, low noise No vibration, low noise Electrical motor
2.4 Technology for fracture detection:
No currently available technology for detection and reinforcement of for detection and
reinforcement of fractured blocks
2.4.1 Fault detection system:8 | P a g e
Non- -destructive techniques based destructive techniques based on sonic and ultra sonic waves:
on sonic and ultra sonic waves:
Detection depth up to 2.5 m Detection depth up to 2.5 m
Detection accuracy Detection accuracy ± 1 cm
2.5 Technology for repairing fractured blocks:
2.5.1 Block impregnation system
Vacuum bag and metal chamber technology Vacuum bag and metal chamber technology
Infiltration of resins into stone block fractures Infiltration of resins into stone block
fractures
Consolidation of fractures up to 1m depth
3. TILES
A tile is a manufactured piece of hard-wearing material such as ceramic, stone, metal, or even
glass. Tiles are generally used for covering roofs, floors, walls, showers, or other objects such as
tabletops. Alternatively, tile can sometimes refer to similar units made from lightweight
materials such as perlite, wood, and mineral wool, typically used for wall and ceiling
applications. The word is derived from the French word tuile, which is, in turn, from the Latin
word tegula, meaning a roof tile composed of baked clay.
Tiles are often used to form wall and floor coverings, and can range from simple square tiles to
complex mosaics. Tiles are most often made from ceramic, with a hard glaze finish, but other
materials are also commonly used, such as glass, marble, granite, slate, and reformed ceramic
slurry, which is cast in a mould and fired.
3.1 History
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Fired roof tiles are found as early as the 3rd millennium BC in the Early Helladic House of the
tiles in Lerna, Greece. Debris found at the site contained thousands of terracotta tiles having
fallen from the roof. In the Mycenaean period, roofs tiles are documented for Gla and Midea
The earliest finds of roof tiles in archaic Greece are documented from a very restricted area
around Corinth (Greece), where fired tiles began to replace thatched roofs at two temples of
Apollo and Poseidon between 700-650 BC. The spread of the roof tile technique has to be
viewed in connection with the simultaneous rise of monumental architecture in ancient Greece.
Only the appearing stone walls, which were replacing the earlier mudbrick and wood walls, were
strong enough to support the weight of a tiled roof. As a side-effect, it has been assumed that the
new stone and tile construction also ushered in the end of 'Chinese roof' (Knickdach)
construction in Greek architecture, as they made the need for an extended roof as rain protection
for the mud brick walls obsolete.
3.2 Different Types of Tiles
3.2.1ROOF TILES:
Roof tiles are designed mainly to keep out rain, and are traditionally made from locally available
materials such as clay or slate. Modern materials such as concrete and plastic are also used and
some clay tiles have a waterproof glaze. A large number of shapes (or "profiles") of roof tiles
have evolved. These include:
Flat tiles - the simplest type, which are laid in regular overlapping rows. Flat roof tiles are
usually made of clay but also may be made of stone, wood, plastic, concrete, orsolar
cells.
Imbrex and tegula, an ancient Roman pattern of curved and flat tiles that make rain
channels on a roof.
Roman tiles - flat in the middle, with a concave curve at one end at a convex curve at the
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