When it comes to paints and coatings, AkzoNobel with its leading brands is a force to reckon with. In this interview with N. Balasubramanian, Prasanth Chandrasekharan, Sales Manager (Automotive and Specialty Coatings), AkzoNobel India, shares details about the company’s new products, performance in 2019, and plans for creating a deeper footprint in the region
AkzoNobel, a leading global paints and coatings company, has been present in India for over 60 years. It supplies essential protection and colour to industries and consumers. Backed by a pioneering heritage, its innovative products and sustainable technologies are designed to meet the growing demands of a fast-changing planet, while making life easier. Ranked as a leader in sustainability, the company is dedicated to energising cities and communities while creating a protected, colourful world where life is improved by what it does.
Excerpts from the interview:
How has business been at AkzoNobel India in 2019? Could you please share the key highlights of your operations this year?
The year 2019 turned out to be an exciting and challenging period for us. The company is committed to seamlessly channelise its energy into the core business and the efforts have begun to bear fruit. We have been making changes to the way we operate and have worked hard to deliver improved profitability by selling more value-added products, reducing costs and standardising, while getting closer to our customers. The external macro and micro environments were indeed very challenging, primarily driven by the slowdown in economy in general and the automotive industry in particular. This was more in the segment of automotive plastics and the premium body shop repair segments. At AkzoNobel India, our focus has always been to continuously look at delivering value to our customers through constant innovation both in products and services.
In 2019, we launched our global value brand, Wanda, in India. Apart from the launch, we ensured that we had a mass contact program with the painters in both the B and C class garages who are generally marginalised. The objective of the program was to upgrade their skills so that they get better employability options with best practices around safety and sustainability. We engaged with more than 2,000 painters during this year on a one-on-one basis. We are pleased to say that AkzoNobel India has also deepened its engagement with Indian Railways. We are the proud paint partner for the prestigious Train 18 or Vande Bharat Express (India’s fastest train) project. We have piloted Car Beat, India’s first body shop management software for large body shop groups.
On the product side, what are the latest offerings from AkzoNobel India in the domestic context? How are they better than what the competition offers? Do you have any case studies or success stories to share?
AkzoNobel India has always been a pioneer in the field of vehicle refinishing. Our premium brand, Sikkens, has a lineage of more than 200 years and over the years we have constantly improved and brought innovations to this brand. We have launched UV fillers for the first time, considering that many repairs are now moving towards fast repairs in the Indian market. Our Wanda SB for the value segment is a toner-based system and more importantly we offer digital colour solution to the dealers to ensure accuracy and speed.
Within the automotive domain, what is the contribution of the different vehicle segments – passenger cars, commercial vehicles, two- and three-wheelers, off-highway – to your business? In the commercial vehicle segment, who are your major OEM customers and what position do you hold in the space?
In commercial vehicles, the bus segment is becoming much more organised based on the improved aesthetic and durability expectation. We have tailor-made solutions for the commercial vehicle OEMs with our Sikkens BT range. The focus is on ensuring superior colour and finish at optimum cost while maximising productivity. Therefore, we are strong in the passenger and commercial vehicle segment.
How strong is your aftermarket presence and what kind of a retail reach have you established across the country?
We are fairly strong in the aftermarket and enjoy a presence across the length and breadth of the country. We cater to the refinishing needs of customers even in far flung areas like Leh, Arunachal Pradesh or the Andaman and Nicobar Islands.
Given the kind of competition in the paints and coatings space in India, what are AkzoNobel’s strong points that set you apart from the others in the business? What market share do you hold in the automotive space at present?
AkzoNobel holds a strong position in the premium end of the category. It is preferred by customers due to its international quality, global aesthetics, and a rich heritage of over 200 years. We take great pride in the fact that innovation in our company results in effective and sustainable product solutions that create value for our customers and society. We promote the use of safer and more sustainable products at all stages of the value chain. We translate societal developments into product offers. We offer superior customer benefits supported by one of the best sales and technical teams in the automotive space as well.
What, according to you, are the emerging trends in automotive paints and coatings, both globally and in India?
We have observed that OEMs are increasingly driving waterborne technology to drive down VOC by emphasising on high solid and low viscosity. UV is also an emerging trend as it reduces emission drastically.
What is the current turnover at AkzoNobel India? What are your future plans and targets over the medium to long-term?
The revenue of AkzoNobel India is Rs. 29,184 million. As we continue to improve our mix, we have seen a positive impact on our gross margins and profitability. We have been working with various teams to strategise our footprint for the next five years in order to drive profitable growth, work on customer-centric innovation, and build India as a talent hub for AkzoNobel.