Sharad Malhotra, President (India) and Group Senior Vice President (Automotive Refinishes Business), Nippon Paint (India)
Looking Back at 2020
The pandemic and weak economic activity turned out to be a double whammy and a disruption like none other. We were not only forced to relook at our operations and become more lean and flexible but also adapt to new rules of the game in employee and customer management. We have also been relooking at the evolving customer requirement and develop solutions accordingly. The unprecedented obstacles that we faced as a result of the pandemic have nevertheless opened up possibilities. The shutdown phase gave us ample room and space to plan for and re-tool the new routine that we were moving through. We are optimistic about recovery in 2021. We are also excited about a line-up of new service offerings and products that will expand our portfolio in new business domains. We hope to see good growth in the next couple of years, both organic and new.
Takeaways and Positives
Without a doubt, the corona virus pandemic impacted everybody and Nippon Paint India was no different. We had begun the year with a positive outlook but the economy came to a grinding halt owing to the pandemic just before it gathered full traction. Reflecting on those turbulent times, one of the most significant benefits for Nippon Paint India was the swift adaptation of the team to the new normal and how across all levels the team showed tremendous resilience and agility. For instance, we have been able to create a new digital solution for garage painters in less than one month, which typically for an organisation to develop would take months, if not years. It was during the lockdown phase that we launched a new range of industrial paints under the ‘Protec’ brand which is the result of the efforts made by our research and development team. A completely home-grown effort, Protec is also our salute to the spirit of self-reliance.
PLI Scheme, Scrappage Policy
The new vehicle scrappage policy is a major step in the automobile industry which will give a much needed respite and push to the industry to bounce back to its pre-2019 glory after the BS-VI and pandemic-triggered disruptions. It is something to cheer about by the automobile industry. The scrapping policy had been under discussion for a long time and a decision was overdue. This new policy, when implemented, will actually have multiple major benefits and various business and environmental impacts, as outlined below:
• Automobile Industry: The scrappage policy will be a big boost for the manufacturing units, not only OEMs but thousands of ancillary units which are attached to them. The whole ecosystem from manufacturing to sales to service will be at gain once this is implemented.
• Raw Material: Giving a boost to the ‘Make in India’ initiative, major components of the raw material would get a price advantage as they would be recycled from scrapped vehicles. This can potentially become a new industry in itself.
• Environmental Sustenance: It will bring about pollution control owing to the fact that better fuel-efficient vehicles will replace the old ones and the scrap would be recycled. Another advantage would be the drastic improvement in road safety.
• Employment Opportunities: New scrap centres will create job opportunities and this will be a boon to those who lost their jobs during the two-year downturn of the automobile industry.
However, all these benefits would only be realisable if a proper implementation plan is executed. Nippon Paint India with its revolutionary high productive technologies like wet-on-wet technology and the newly launched primerless direct-to-metal technology are looking forward to catering to the pent-up demand which is expected to follow once this policy is implemented.
Current Year Plans
We are optimistic about recovery in 2021. We are excited about a line-up of new service offerings and products that will expand our portfolio. We have adapted to the new business requirements and launched multiple products that are relevant for today’s times. Our world-class research and development team at the Global Automotive Refinish Centre is working on multiple next-generation technologies.
FY 2022 Outlook We are continuously investing in future technologies, owing to which our world-class research and development team at the Global Automotive Refinish Centre is focusing on multiple technologies like wet-on-wet, direct-to-metal, rapid cure systems, hydrophobic solutions, VOC-compliant solutions, VOC-compliant products, water-borne systems for wood markets and many more. We would also push out the idea of Nippon Paint X’press, our exclusive automotive painting and automotive care centre project in India. Nippon Paint X’press flagship centres offer world-class body and paint repair and car maintenance facilities while reducing cycle times drastically.