Nippon Final Report

Nippon Paint (Pvt) Ltd.
Contents
PREFACE........................................................................................................................................5
ACKNOWLEDGEMENT...............................................................................................................6
NIPPON PAINT (PVT.) LIMITED PAKISTAN.............................................................................7
INTRODUCTION...........................................................................................................................8
History.........................................................................................................................................9
Nippon Paint Pakistan (Pvt) Limited.............................................................................................10
Legal Status And Nature Of Business........................................................................................11
Capabilities................................................................................................................................11
Quality Policy............................................................................................................................11
Vision & Mission.......................................................................................................................12
Corporate Governance...............................................................................................................12
Competitors................................................................................................................................12
COMPANY MANAGEMENT SYSTEM.....................................................................................13
Directors of Nippon Paints........................................................................................................13
Employees/personnel in Various Sections:................................................................................14
Lunch Subsidy & Mess System:................................................................................................17
Finance Department...................................................................................................................18
Laboratories, R&D and Quality Control...................................................................................19
I.T. Department..........................................................................................................................19
Sales & Marketing.....................................................................................................................19
Production Facilities......................................................................................................................20
Quality Consideration................................................................................................................20
Documentation Procedures........................................................................................................20
Paint Manufacturing Process.....................................................................................................21
Major Raw Material for Paint Manufacturing...........................................................................22
Dispatch.....................................................................................................................................22
COMPANY MARKETING SYSTEM..........................................................................................24
Nippon Paint Products...............................................................................................................24
BASE COAT..............................................................................................................................24
NIPPON AQUA PRIMER SEALER UNDERCOAT............................................................24
NIPPON 5101 ODOUR-LESS SEALER..............................................................................28
NIPPON EXPRESSKOTE SEALER....................................................................................31
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WOOD AND METAL PAINT....................................................................................................33
NIPPON TIMBERCOAT.......................................................................................................33
NIPPON AQUA BODELAC.................................................................................................34
NIPPON BODELAC 9000 ALKYD RESIN ENAMEL.......................................................38
NIPPON TIMBERLAC.........................................................................................................41
EXTERIOR PAINT...................................................................................................................43
NIPPON WEATHERBOND..................................................................................................43
NIPPON WEATHERBOND ALGAEGUARD.....................................................................45
INTERIOR PAINTS..................................................................................................................47
NIPPON PAINT ODOUR-LESS (PREMIUM ALL-IN-1).......................................................47
NIPPON EASY WASH...........................................................................................................49
NIPPON 3-IN 1 MEDI FRESH..............................................................................................51
NIPPON VINYL SILK...........................................................................................................54
NIPPON VINILEX 5000 LOW ODOUR.............................................................................57
NIPPON ODOUR-LESS EASYWASH..................................................................................60
NIPPON ODOUR~LESS ANTI-MOULD CEILING WHITE.............................................62
MOMENTO SPECIAL EFFECT PAINTS................................................................................65
MOMENTO SPARKLE PEARL...........................................................................................65
MOMENTO SPARKLE SILVER..........................................................................................66
MOMENTO SPARKLE GOLD............................................................................................67
Clients & Projects......................................................................................................................69
Marketing Strategies of Nippon Paint.......................................................................................70
Out-of-Home Advertising..........................................................................................................70
Lahore and Multan.................................................................................................................71
Faisalabad and Pindi..............................................................................................................71
Karachi and Quetta................................................................................................................71
TVC...........................................................................................................................................72
DURATION AND CHANNEL MIX.....................................................................................72
MOMENTO SPOT POSITIONING......................................................................................72
PIANT MEDIA EXPOSURE WAR......................................................................................73
Advertising On Facebook..........................................................................................................74
Promotion of Momento TVC on Facebook...........................................................................74
Momento Selfie Contest........................................................................................................75
Promotion of Nippon Paint........................................................................................................76
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Distribution System of Nippon Paints.......................................................................................77
Environmental Friendly.........................................................................................................77
Pricing Strategy.....................................................................................................................78
ACCOUTING/FINANCE SYSTEM.............................................................................................79
NIPPON PAINTS (PVT) LIMITED..........................................................................................79
BALANCE SHEET AS AT 30 JUNE, 2013..............................................................................79
Salient features of Balance Sheet:.........................................................................................81
PROFIT AND LOSS ACCOUNT.............................................................................................83
FOR THE YEAR ENDED 30 JUNE, 2013...............................................................................83
Key Features of Profit and Loss Account:.............................................................................85
CASH FLOW STATEMENT....................................................................................................86
FOR THE YEAR ENDED 30 JUNE, 2013...............................................................................86
Horizontal Analysis...................................................................................................................88
NIPPON PAINTS (PVT) LIMITED......................................................................................88
BALANCE SHEET AS AT 30 JUNE, 2013..........................................................................88
PROFIT AND LOSS ACCOUNT.........................................................................................90
FOR THE YEAR ENDED 30 JUNE, 2013...........................................................................90
Vertical Analysis........................................................................................................................92
BALANCE SHEET AS AT 30 JUNE, 2013..........................................................................92
PROFIT AND LOSS ACCOUNT.........................................................................................94
FOR THE YEAR ENDED 30 JUNE, 2012...........................................................................94
Ratio Analysis............................................................................................................................96
Gross Margin/Gross Profit Ratio:..........................................................................................96
Operating Margin/Operating Profit Ratio:.............................................................................97
Profit Margin Ratio:...............................................................................................................99
Return on Assets Ratio:.......................................................................................................100
Return on Capital Employed Ratio:.....................................................................................101
Return on Equity Ratio:.......................................................................................................103
Current Ratio:......................................................................................................................104
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Acid-Test Ratio/Quick Ratio:..............................................................................................105
Cash Ratio:...........................................................................................................................107
Accounts Receivables Turnover Ratio:...............................................................................109
Average Collection Period:..................................................................................................110
Inventory Turnover Ratio:....................................................................................................111
Average Inventory Conversion Period:................................................................................113
Asset Turnover Ratio:..........................................................................................................114
Debt Ratio:...........................................................................................................................115
Debt/Equity Ratio:...............................................................................................................116
Net Working Capital Ratio:..................................................................................................118
Earnings per Share:..............................................................................................................119
SWOT Analysis...........................................................................................................................122
Strengths..................................................................................................................................122
Weaknesses..............................................................................................................................123
Opportunities...........................................................................................................................123
Threats.....................................................................................................................................124
TRAINING PROGRAMME.......................................................................................................125
Learning as Internee................................................................................................................125
Digital Advertising Plan..........................................................................................................128
Objective..............................................................................................................................128
Methods for Digital Advertising..........................................................................................128
Characteristics of Digital Advertising Plan.........................................................................129
Operational Aspect o f the Plan...........................................................................................129
Marketing Aspect of the Plan..............................................................................................130
Financial Aspect of the Plan................................................................................................141
General Consumer Questionnaire............................................................................................143
Survey Report..........................................................................................................................146
Conclusion...................................................................................................................................156
Recommendations........................................................................................................................157
Page 4 of 159
PREFACE
This report is about Nippon Paints (Pvt.) Ltd. I have tried my best to cover all the
departments, products and facilities of Nippon Paints (Pvt.) Ltd. My 0bjective was
to get the practical exposure of corporate sector by applying the knowledge that I
have gained from my prestigious institute. The valued instructions given by Mr.
Rizwan Rao helped me in writing the various aspects of my internship report on
Nippon Paints (Pvt.) Ltd. I completed my internship in Nippon Paints (Pvt.) Ltd. at
its factory. The staff of the office provided me with all the relevant and required
valuable information about Nippon Paints (Pvt.) Ltd.
For the completion of this internship report I gathered all the recent data about
Departments, Products & Services and day to day activities of Nippon Paints (Pvt.)
Ltd.
I feel no hesitation in saying that this comprehensive report will be a good source
of information and the reader will have sufficient material about all aspects of
Nippon Paints (Pvt.) Ltd.
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ACKNOWLEDGEMENT
With the name of ALLAH the Most Beneficial and Merciful. I completed my
internship in Nippon Paints Pvt. Limited. I am really pleased to have a professional
learning experience in one of leading paint manufacturers of Pakistan. In these six
weeks I worked very different people and I am truly thankful to all officers and
staff who provided assistance to me.
I am also grateful to my honorable teachers Prof. Dr. Ehsan Malik and Prof. Sajida
Nisar and all other teachers who motivated me to work hard and provided me with
an opportunity to do an internship in Nippon Paints.
The account of acknowledgement will remain incomplete if I do not express my
sincere appreciation, indebtedness and gratitude to my parents. They have always
been a source of encouragement for me.
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NIPPON PAINT (PVT.)

LIMITED PAKISTAN
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INTRODUCTION
Company was first founded in the country of Japan as Komyosha in 1881 by two brothers Haruta
and Jujiro Moteki. T ogether with their own chief engineer Heikichi Nakagawa, they began
production with projects for the Japanese national navy and soon progressed to the creation of
viscous paints.
Nippon paint (Pvt.) limited is certified by ISO 9001 which proves its quality beyond doubts.
Over 35 years. Nippon Paints (Pvt.) limited, has grown significantly in Pakistan and today its
stands known as The Paint of 21st Century.
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History
Nipon Paint was first founded in Japan as Komyosha in 1881 by the two brothers Haruta and
Jujiro Moteki. Together with their own chief engineer Heikichi Nakagawa, they began their
business with projects for the Japanese national navy and soon progressed to the production of
viscous paints. In 1896, it moved all its production activities to a newly build factory in the T
okyo. T wo years later, Nippon Paint was Japan's first true diversity paints developed company.
Nippon Paint's presence quickly spread crossways Japan. In 1914, having protected the family
bazaar , the company extended into China, India and the South Pacific asia. After creation
inroads into T aiwan and North China, Nippon Paint established the Pan into Malaysian Paint
Industries in the year 1963 today it is known as Nippon Paint Singapore. In 1967, four years
later on, Nippon Paint Thailand and Malaysia were recognized. Ground-breaking product
breakthroughs have been a brand of Nippon Paint's growth through the decades. In 1986, the
superior "Photo ED" system for printed course boards was introduced.
Nippon Paint (Pakistan) Limited noticeable the winning entry into Pakistan with the first sales
going out on the 5th of November 2007. Head quarter in Japan, Nippon Paint is the principal
paint producer in Asia. The company is investing $25 million in Pakistan over the next three to
five years of time; it will include a manufacturing facility in the District of Kasur, near Lahore.
Currently, Nippon Paint is doing dealing with 200 outlets countrywide of which 113 are prepared
with the Nippon Paints different Color Creations and Tinting Systems. We aim to have more than
200 Color Creations Outlets in the country by the end of the year 2008. The allocation
arrangement is being at present spread from the far South, Karachi and Gwadarss to the hilly
areas of Mingora and continues to spread.
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Nippon Paint Pakistan (Pvt)

Limited
Nippon Paint (Pakistan Pvt) Limited distinct the winning entry into Pakistan with their first sales
being going out on the 5th of November 2007. Head Quartered in Japan, Nippon Paint is the
major paint producer in Asia. The company is going to invest $25 million in Pakistan in next
three to five years, which will include a manufacturing facility in the District of Kasur, near
Lahore. Currently, Nippon Paint Pakistan is doing business with more than 200 outlets on a
national scale of which 1 15are equipped with the Nippon Paints latest Color Creations Tinting
Systems. We aim to have more than 250 Color Creations Outlets by the end of the year 2012.
The allocation network is at present spread from the far South, Karachi and Gwadarss to the hilly
areas of Mingora and continues to spread. All certified dealers are prepared with Nippon Paint
Color Creations which is an innovative computerized paint system which allows the consumer
to choose from thousands of colors and the selected color is made available within minutes. With
Nippon Paint Color Creations, patrons no longer are incomplete by the choices of colors as
they can decide from our range of thousands of colors, and the paint will be assorted exact before
their eyes. Nippon Paint Color Creations is set to change the Pakistan paint marketplace.
Nippon Paint has particularly formulated products for the Pakistan market. The special
formulation is the consequence of Nippon Paint's R &D for products to suit the substrate surfaces
uncharacteristic to Pakistan. At the same time, at the bottom of products such as wall sealers,
primers and wall putty are also obtainable. Nippon Paint Pakistan's plant will be equipped
throughout the last section of 2009, and will originally make use of about 300 people. Production
from the stand will be for local utilization and perhaps for export to adjoining countries. In the
temporary epoch, Nippon Paint Pakistan is importing from its Malaysian plant to meet the
present local marketplace order for its products.
Nippon Paint is the main paint maker in Asia and a most important name in paint international. It
is add up to one in Japan, China, and Indonesia, Singapore and Malaysia and is a key player in
Thailand, Vietnam, Taiwan, Korea, Hong Kong, Philippines and India. All through these
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countries, Nippon Paint is known for its devotion to high class, pioneering products and first-rate
client service.
Legal Status And Nature Of Business

Nippon Paint (Pvt.) Limited was incorporated under the Companies Ordinance 1984 vide
Certificate No. L-10297 of 2000-2001 dated 13 July, 2000 issued by Joint Registrar of
Companies Lahore Region Lahore. The registered office of the company is located at Plot No.
692, Street No. 448 near Mumtaz Bakhtawar Hospital 8-KM Raiwind road, Lahore. Its principal
activities include manufacturing and sale of paint of all kinds.
Capabilities
The company has highly qualified technical staff comprising of Engineers, M.sc, and B.Sc.
professionals. Nippon Paint (Pvt.) Limited is certified by ISO 9001 which proves its quality
beyond doubts. Over 35 years, Nippon Paint (Pvt.) Limited, has grown significantly in Pakistan
and today it stands known as The Paint of 21st Century".
Quality Policy
We are committed to provide the highest level of decorative paint production supply and service
on consistent basis to meet exceed our customers requirements. Our quality system is the
supporting mechanism for implementation of this commitment and forms the basis for costeffective operation and continuous improvement for the benefit of our customers.
Our quality policy encompasses our customers, suppliers, employees, and other sectors of
community on all issues of quality, safety, health and the environment. We believe that by
implementing constantly improving our quality system, Nippon will enhance its leadership
position in its served markets. Our motto is the best quality and services at an affordable price at
the doorsteps of our valuable customers.
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Vision & Mission

Nippon Paint aims to achieve long term relationships with its internal and external customers.
Our vision is to become a global brand spreading over continents all over the globe. We thrive to
satisfy our customers to their most specific needs and requirements. We deliver products with
both quality and technicality advantage over other products in the market. It is through efforts
like such that we continuously build upon our relationships with both customers and dealers.
Client and dealer confidence is also one of our primary objectives, ensuring confidence and
satisfaction. We pride ourselves on continuous direct customer communications to understand
their changing need for new product development.
Our goal is total customer satisfaction through understanding our customers current and future
requirements and emphasizing quality and services.
Corporate Governance
The company maintained very good relationships with the employees. All the efforts are being
made to keep the employees loyal to the company through taking the various fiscal and
administrative measures. Taxation matters are being handled satisfactorily. No adverse
assessments impairing the financial position of the company are likely to be made. Company has
no legal dispute with any outside person of agency.
Competitors
Nippon Paints is facing severe kind of competition with the multinational giants like ICI and
Berger, Master paints, Sparco paints and the everyday emerging mushrooms in the industry. The
multinational with their unlimited resources and diversified strategies are giving Nippon paints a
tough time. On the other hand the substantial increase of small manufacturers of paints is also
affecting the prosperity of the company because the mushrooms are doing business under the
fixed tax structure but their level of operating activities is very high as a result they have to bear
low cost of production and consequently their prices are very low.
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Page 13 of 159
COMPANY MANAGEMENT
SYSTEM
Directors of Nippon Paints
1. Kh. Ijaz Ahmad Sikka
2. Kh. Khurram Shahzad Sikka
3. Kh. Atif Riaz Sikka
(Chief Executive)
(Director Production)
(Director Marketing)
Organizational Chart of the Governing Body
M M M a aD DC n an i hGiarnar ei eg age c cengf t t reo o r r a l

ae E O egMAPr x S rped QRa o MerImc r&lTd eruk a uDiaCsetn cti v ia t o nei g o n g e n r
F in a n c e
Page 14 of 159
Employees/personnel in Various Sections:

S. No
Name
Designation
Kh. Ejaz Ahmed Sikka

Kh. Khurram Shehzad Sikka
Kh. Atif Riaz Sikka
Chief Executive
Director Production
Director Marketing
Ch. Mohammad Sarfraz

Mansoor Bashir
H.Tariq Mahmood
Abdul Waheed Khan
Ijaz Ahmed Qadri
Syed Izhar ul Haq
Mohammad Zakee
Azhar Ibrahim
Mohammad Salman Siddique
Mohammad Shoaib Awan
Mohammad Kashif Yaseen
Mohammad Irfan Bashir
Kh. Abdul Wadood
Mohammad Idrees
Mohammad Rashid
Mohammad Khalil
Mohammad Ali
Mohammad Yousuf Khan
Manager
Manager I.T
General Manager Finance
Secretary Finance
Assistant G.M. Finance
Asst. Manager Admin
Asst. Manager I.T
Accountant
Accountant
Account Officer
Accountant
Asst. Accountant
Legal Representative
Telephone Operator
Peon
Peon
Chokidar
Chokidar
Facrory Staff
Sheraz Ahmed Qureshi
Hafiz Ghulam Murtaza Hasan
Gufran Masood
Mohammed Tahir Baber
Mohammed Ali Sajid
Mian Fasieh Ahmed
Abdul Hafeez Khan Abbasi
Saif Ullah Sabri
Javad Iqbal
Abdul Razzaq
Mohammed Zubair Butt
Manager R&D And Q&C

Asst. Manager R&D
PA To Director Production
Production Manager
Chemist
Chemist
Supervisor
Manager Operation
Manager RM
Supervisor
Admin Officer
Directors
Office Staff
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Farooq
Noor Zahid
Mohammed Saleem Bhatti
Mohammed Anwar
Abdul Wahab
Akbar Ali
Mohammed Tariq
Finish Goods Godown
Rizwan Tajamul
Mohammed Salman
Nasir Maqsood
Mohammed Rizwan
Tansir Anjum Siddiqui
Mirza Saleem Baig
Mohammed Nazir
Noor Nawaz Khan
Lahore Office
Sajid Hussain
Agha Mohammed
Asst. Supervisor
Asst. Supervisor
Godown Keeper
Quality Controller
Quality Controller
Supervisor
Supervisor
Asst. Dispatch Manager

Supervisor
Asst. Manager Dispatch
Accountant
Asst. Manager Operation
Store Keeper
Store Keeper
Chokidar
Manager Sales
Hamma
Khan
Mohammed Naeem
Shahid Butt
Asmat Ullah Khan
Salman Asif
Mohammed Kaleem Ameen
Mohammed Khalid Waseem
Syed Mohammed Kashif
Syed Majid Ali
Kausar Ali Khan
Faisalabad Office
Mohammed Ahmed
Mohammad Tahir Shah
Bilal Shaukat
Bilal Mughal
Waqar Ahmed Khan
Regional Manager Sales

PA To Director Marketing
Graphic Designer
Sales Representative
Sales Officer Trade
Area Manager
Sales Officer Trade
Area Sales Manager
Sales Officer Trade
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Multan Office
Jamshaid Ahmed
Khawar Nazir
Shakeel Mirza Baig
Area Sales Manager
Sialkot Office
Javad Iqbal
Islah Uddin Ahmed
Bilal Tariq
Abdul Rehman
Tayab Shabir
Sales Manager
Territory Manager
Territory Manager
Islamabad Office
Jamshaid Alam
Sohail Baig
Office Boy
Sargodha Office
Sohail Sarwar
Rashid Aziz
Sales Manager
Lunch Subsidy & Mess System:

There is one canteen in Nippon Paints Limited, at Head Office. This canteen is basically
providing the lunch and tea facility to staff members. At 1pm the whole staff is provided with the
lunch. Everyday a different dish is prepared and tea is served twice a day at 10am and 3pm.
Finance Department
The most dominant and big department in Nippon Paints Limited is accounts and finance
department. The main function of accounts and finance department is to have a check and
balance over the financial records and business activities. Other staff members include in the
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accounting and finance department Mr. Abdul Waheed (Secretary), Kh. Abdul Wadood
(Representative), Mr. Mohammad Shoaib Awan (Asst. Accountant), Mr. Irfan (Asst. Accountant)
and Mr. Kashif (Asst. Accountant).
Mr. Abdul Waheed is a specialist in dealing with the clients and handling the legal matters of the
organization and to hear them talking at telephone was worth enjoying. Mr. Abdul Wadood
mostly deals with banks and stay off of office for this. Mr. Shoaib Awan apart from performing
all the accounting processes also deals with the sales tax and income tax files and returns. Mr.
Kashif and Mr. Irfan also record the transactions but due to lack of experience often make
mistakes in recording the vouchers and get the treatments from their seniors.
The department processes all the formal accounting practices in order to give information to the
management, to the share holders and to the government in the form of different financial
statements etc. One thing, which I noted in this department, is that work design in this
department as is in the whole organization is clear and based on cooperation with other. All staff
members help each other whole heartedly.
The persons in this department are very much cooperative, innovative and sincere to the job and
are guided by the personality of their ultimate boss.
The entire accounts department is computerized and all the processes of general voucher entry to
the formation of reports are done with help of computers and MIS department. The different
persons having their designation of senior accounts officer and junior officers are working on
their terminal and directly report to higher management and the chief accountant. All the staff
performs the entire job collectively and their job is not centralized and repetitive. If one person
can do a task, it means all can do that. The friendly environment in this department really urges
the employees to work mutually, seriously and sincerely.
Laboratories, R&D and Quality Control

As Nippon Paint Limited believes on providing quality products to their customers, much more
stress is on quality assurance. For this purpose laboratories are set in the current production
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plant. All the procedures of physical lab are more or less the same as of actual production.
Sample testing is done here. Usually the following tests are done.
Weight per litter
Viscosity
Hefman reading
Testing Of Raw Material
Scratch test
Gloss test
Thickness test.
New innovations
Improvements
I.T. Department
The information technology department is the most important and the best working department
of the Nippon Paint Limited, which is the more organized and systematic department.
The department is basically adjacent with the accounts department and helps the higher
management
in
generating
different
reports
and
documents.
Sales & Marketing

The key department for any organization is its sales & marketing department and it serves as the
ears and eyes of the organization. They perform the key role to the growth of company market
share.
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Production Facilities
Quality Consideration
The products of Nippon Paint Limited are of high quality and it is the first consideration of the
organization. Quality is the key to success for Nippon Paint Limited; this thing is kept in mind
during all the production processes. I have observed that it is tried that the product, which is
under manufacturing process, should be complete in all aspects when it will reach in customers
hands. For this reason checking and testing is done at all levels.
First raw material is tested. If it is good enough then it is put into the process and during process
all the things like viscosity, weight per litter, thickness, glossiness, and other specifications are
checked to match with old retained samples. If any discrepancies are found, technically chemists
and research laboratories resolve these.
Documentation Procedures
The production process in Nippon Paint Limited is initiated whenever the production department
receives an order from Sales Department or Commercial Department. If the required raw
material for the production of specific paint is available in the factory store then the production is
started and the production manager in which the name & specifications of products
manufactured, type & quantity of raw material used prepares job card sheet. Dates of starting &
completion, packing standards, weight per liter of paint and loss percentage is described.
If the raw material is not available in the store then the production manager make an indent note
and send to Accounts department for the procurement of raw material. Here the problem occurs
because of the fact that the procurement of raw material takes time and during that time all the
labor sits idle and it results in wastage of time and resources. As no formal forecasting of sales is
done and the procurement of raw material is based on personal judgment so these types of
problems are the matter of routine. If raw material is present in bonded warehouse or bank go
down, the production manager fills in raw material requisition form and sends it to accounts
department, which arranges for the clearance of material and then is issued to the production. In
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order to keep the record of incoming raw material, a material movement Challan is prepared in
which the entry of raw material is made in terms of name of raw material, packing, and quantity.
After the completion of paint production and its packaging a daily packaging report is always
prepared by the production managers. Production department is semi-computerized and get the
information and reports by computer and also the store people prepare reports by their own.
These reports are:
Monthly Raw material report
Monthly finished Goods Report
Semi Annually, Annually, Quarterly and monthly shade wise sales report
Daily stock registers maintenance.
Paint Manufacturing Process

According to Nippon people, in Pakistan there are only five companies in Pakistan which are
paint manufacturers and the others are just blenders. They blend the ingredients together and
make paint but do not know what is happening inside it. Here it is not the aim to discuss the
technicalities of paint but to have a look on steps in the process of paint manufacturing. The
general manufacturing & operation process of paint can be divided into following categories of
functions.
Mixing
Stirring
Gumping
Thinning
Quality Assurance
Packing
Dispatch & Delivery
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Major Raw Material for Paint

Manufacturing
For manufacturing quality paints, hundreds of raw material or chemicals are available and can be
substitute of other but there are certain types of raw material, which are an essential part of paint.
In case of Nippon Paint, certain varieties of paints, raw material are purchased from the local
market and others are imported. Broadly the raw materials can be divided in five main
categories.
12345-
Pigment
Additives
Thinner
Extender
Color Solutions
The raw material of paint factory has a wide range of above mentioned products. There are about
190 items of raw material. Some important raw material used in Nippon Paint Limited is as
follows
Titanium Dioxide
Yellow oxide
Chrome Pigment
Chalk
Soap Stone
Mica
Dispatch
Because the main aim and objective of any production concern is to handover the product to the
ultimate consumers and in this era of normalization, this is done through proper distribution
channels. For this purpose, first and foremost thing is to dispatch the product to outside the
factory gate. In this regard some formal rules and regulations are to be followed regarding the
payment of sales tax and excise duty.
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COMPANY MARKETING
SYSTEM
Nippon Paint Products
BASE COAT
NIPPON AQUA PRIMER SEALER UNDERCOAT
Nippon Aqua Primer Sealer Undercoat is a water based one step pre-coat formulated with special
acrylic polymer for the following excellent properties:
Alkali and efflorescence resistance
For interior and exterior application on masonry substrates, timber and metal
surfaces.
Quick drying
TYPE
Acrylic Emulsion
COLOR
White
FEATURES
Excellent penetration on porous substrates
Physical barrier to water transport
Chemical barrier to salt migration
Excellent alkaline and efflorescense resistance
Quick drying time
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Good hiding against tannin stain on timber
Non-Toxic
Excellent coverage and hiding power
Excellent adhesion on most surfaces
COVERAGE
Up
to
13m2/litre
(based
on
30
Dry
Film
Thickness/coat)
depending on surface texture, substrate porosity and method of application.

SURFACE PREPARATION
New or Unpainted Interior Timber
Remove all imperfections and sand for a smooth surface.
Dust off
Interior Previously Painted Surfaces

Wash down with cleaning agent such as detergent soap and
rinse with clean water to remove any dirt, oil or grease.
Scrape any cracks and fill holes with suitable filler.
Remove any loose, peeling or flaking paint and sand to a
smooth even surface.
If surface has a gloss or semi-gloss finish, sand to remove
the high gloss to enable new paint to adhere.
Remove any dust
Exterior Previously Painted Surfaces
Ensure that the previous painted surface is sound.
Check and remove any flaking or peeling areas.
Fill cracks or nail heads with exterior filler.
Remove any dust, dirt, oil or grease.
If surface has a high gloss or semi-gloss finish, sand to remove the high gloss
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to enable the new paint to adhere
Remove dust.
New or Unpainted Dressed or Raw Exterior Timber
a) Remove all imperfections and sand for a smooth surface.
b) Fill nail holes with a flexible, exterior grade wood filler.
c) Remove dust and any grit
Cement, Fibrocement sheet or Brick
a) Repair any imperfections and fill holes with grouting cement.
b) Wash down with water and using a stiff brush, remove all loose material.
c) If moss or mould is visible, add a bleach solution to the water and then hose
down.
Metal surfaces
a) Thoroughly degrease and clean new metal surfaces (e.g. galvanized iron)
to remove oil or other contaminants using suitable cleaning solvent. Allow to
dry.
b) For other metal surfaces which has rusted (e.g. mild steel), clean with
abrasive cloth to remove rust. Do not use steel wool. Use suitable cleaning
solvent to remove traces of impurities and contaminants before applying a coat of
Crystalux A/C Primer. Under non-aggressive indoor conditions, the product can
be used directly on clean metal surfaces. Otherwise, apply a coat of Crystalux
A/C Primer on the well-prepared surfaces.
RECOMMENDED PAINTING SYSTEM
1 coat Nippon Aqua Primer Sealer Undercoat
2 coats Nippon Aqua Bodelac finish coat or suitable waterbased topcoat
APPLICATION METHOD
Roller or brush
Page 26 of 159

DILUTION
Paint is formulated as ready-to-use and is not recommended to have water added for best
performance
DRYING TIME
Touch Dry - 30 minutes at 25C. Under cooler or humid conditions, allow longer drying times
OVERCOATING TIME
2 hours at 25
INSTRUCTIONS FOR USE
Stir contents thoroughly using a broad flat paddle using a scooping action
until paint is consistent
Ensure brushes and rollers are slightly damp with water
before use
Clean all equipment thoroughly with water
Keep lid on cans
ADDITIONAL INFORMATION
Solid Content: Above 50% by weight
Specific Gravity: 1.3 0.03 kg/litre (based on white)
Packing: 1 litre
Storage: Store in a tightly sealed container in a cool dry place.
Page 27 of 159
NIPPON 5101 ODOUR-LESS SEALER

Nippon 5101 Odour~less Sealer is a water-based, environmentally favorable GREEN product with
low VOCs (Volatile Organic Compound) and low odour during application and drying.
It is formulated for use on most interior masonry surface to resist alkali attack and provides
good hiding coat for emulsion finishing.
TYPE
Modified Acrylic Emulsion for interior use
COLOR
White
USES
As a sealer for interior masonry surfaces such as:
Concrete / Cement
Fibre-Cement panels
Partition panels / Plasterboard
FEATURES
Low odour
Good adhesion and alkaline resistance
Anti-fungus property
Fast drying time
Easy application
Non-toxic. Does not contain heavy metals
Environmentally friendly paint certified under the Singapore Green
METHOD
Roller or brush
THEORETICAL COVERAGE
Approx 10-12 m2 / litre (30 microns DFT)
DILUTION
No dilution is necessary for best performance
Page 28 of 159
SURFACE PREPARATION
Moisture
There must not be any water residue on the surface of the substrate. Moisture must be <6%
before application.
Unstable Matter
Remove loose bonding film, dirt, peeling paint, etc by high-pressure water jet wash or
mechanical means such as power brush or scraper whichever is suitable.
Contaminants
Remove dust and foreign matter by cleaning with damp cloth. Remove oil or
grease by solvent cleaning or mild detergent. Allow surface to dry again. Mild
detergent may be used
Fungus and Algae
Wash the affected area to remove unstable matters and micro-organisms. Then apply Nippon AntiFungus Solution and leave for at least 2 hours.
Hairline Cracks
Fill cracks with suitable exterior grade water-resistant putty or filler.
DRYING TIME
Surface Dry - 30 minutes at 30 oC
Hard Dry - 1 hour at 30 oC
OVERCOATING TIME
2 hours based on normal conditions.
Solid Content: 57 2% by weight
Specific Gravity: 1.31 2% kg/litre
Page 29 of 159

Packing: 5 litres
Shelf Life: Up to 18 months in a tightly sealed container.
Precaution: Ensure good ventilation during application and drying of paint. Avoid direct contact
with sensitive skin. Use appropriate personal protective equipment.
Page 30 of 159
NIPPON EXPRESSKOTE SEALER

Nippon Expresskote Sealer is formulated with a special styrene
acrylic polymer for excellent alkali and efflorescence resistance properties. It can be
applied directly onto freshly plastered concrete and cement surfaces in just 3 days of
plastering.
TYPE
Modified Styrene Acrylic Polymer
COLOR
White
USES
Specially designed as a sealer for new and old cement rendered surfaces in both internal and
external conditions such as:
Cement Plaster
Precast concrete
Cast in-situ concrete
Brickwork
Hard/Soft boards
Gypsum boards
FEATURES
Excellent Fresh Plaster Efflorescence Resistance Good adhesion
Good alkaline & efflorescence resistance
Anti-fungus and algae resistance property
Fast drying time
Easy application
Environmentally friendly paint certified
METHOD
Brush or Roller
Page 31 of 159

Approx 11 m2 / litre (30 microns DFT)
DILUTION
SURFACE PREPARATION
Moisture
There must not be any water residue on the surface of the substrate. Moisture must be <6%
before application.
Unstable Matter
Remove loose bonding film, dirt, peeling paint, etc by high-pressure water jet wash or
mechanical means such as power brush or scraper whichever is suitable.
Contaminants
Remove dust and foreign matter by cleaning with damp cloth. Remove oil or
grease by solvent cleaning or mild detergent. Allow surface to dry again. Mild
detergent may be used
Fungus and Algae
Wash the affected area to remove unstable matters and micro-organisms. Then apply Nippon AntiFungus Solution and leave for at least 2 hours.
Hairline Cracks
Fill cracks with suitable exterior grade water-resistant putty or filler.
DRYING TIME
Packing: 20 litres
Page 32 of 159

WOOD AND METAL PAINT

NIPPON TIMBERCOAT
Nippon Timbercoat is a low-sheen, high quality water-based acrylic paint for application on exterior
wood surfaces. It is durable and protects the wood against mould attack.
TYPE
Acrylic wood finish formulated with light-fast pigments for exterior use.
COLOR
Refer to Nippon Color My World
FINISHES
Low Sheen
USES
Suitable for application on wood substrates such as outdoor furniture, fences,
fascias, exposed balconies and etc. Not suitable for walk-on surfaces.
FEATURES
Excellent outdoor durability
Excellent mould resistance to prevent unsightly fungus and algae growth. Keeps your wood
looking fresh and clean.
Good adhesion to wood surfaces.
Easy to apply
METHOD
Brush, roller or conventional spray
Approx. 10-12 m/litre dependent on surface porosity
Page 33 of 159

DILUTION
Ready for use, if necessary, dilution of not more than 5% with clean water.
SURFACE PREPARATION
Surface must be clean, dry and free from grease, paint, wax and polishes. Sand to smooth
surface with suitable abrasive paper, working in the direction of the grain, before dusting
off.
Clean off mould, algae, lichen and moss with a wire brush, before treating any fungus
growth with Nippon Anti-Fungus Solution.
Wood must be relatively dry, moisture content not to exceed 10%.
For previously painted wood, smoothen the surface with sandpaper, clean off and dry
prior to application.
Do not apply over wood varnish, shellac and lacquers.
DRYING TIME
Touch dry: 1 hour at 30C
OVERCOATING TIME
2 hours under normal conditions
CLEANING
Wash all equipment with clean water
Solid Content: 55 2% by weight (average, vary colour to colour)
Specific Gravity: 1.31 2% kg/litre (average, vary colour to colour)
Packaging: 1, 5 litres
Storage: Store in covered original container below 30C
Shelf Life: Up to 18 months in a tightly sealed original container.
Precaution:
Avoid painting when the temperature is below 10C or 35C or when the humidity is over
85%.
Page 34 of 159

Ensure adequate protection and avoid direct contact on sensitive skin, eye, etc.
NIPPON AQUA BODELAC

Aqua Bodelac is a water-based Acrylic gloss enamel with low VOC (Volatile Organic Content)
and extremely low odour during application and drying. As a tough and durable gloss finish, it is
formulated for door and window trims in a wide variety of substrates including masonry, primed
timber or metal, for interior use.
It is formulated to be an environmentally favorable GREEN product to replace
conventional solvent-based alkyd paint with all the benefits of an acrylic paint.
Aqua Bodelac is specially formulated for use together with our Nippon Aqua Primer
Sealer Undercoat for various types of substrates.
TYPE
Water-Based Acrylic Paint
COLOUR
White and various colours
USES
Recommended as a solvent-based enamel replacement for doors, architraves,
windows and timber trims
For bare timer and metal substrate, it is recommended to apply with a coat of
Nippon Aqua Primer Sealer Undercoat for maximize paint durability
FEATURES
Environmental friendly green emulsion
Low VOCs
Extremely low odour during application and drying
Non-toxic, does not contain lead, mercury and heavy metals
Good alkaline resistance
Easy application
Page 35 of 159

Good coverage and hiding power
Good blocking resistance
Good stain resistance
Good washability
Non yellowing
Fast drying
Easy wash up in water
METHOD
Roller or brush
15 - 17 m2/L (based on 25 microns dry film thickness), depending on the surface
texture, porosity and method of application
DILUTION
No dilution necessary for best performance.
If necessary, dilute with not more than 5% water to improve workability.
SURFACE PREPARATION
Surface must be clean, dry, stable and free from dust, dirt, oil, grease and other
contaminants prior to painting
Remove all loose, peeling and flaking material prior to painting
Treat fungus-growth areas with household bleach. Rinse again with clean water and dry
before painting
DRYING TIME
Touch Dry - 30 minutes at 25 - 30 C
OVERCOATING TIME
2 hours at 25 - 30 c (allow 4 hours in cold or humid areas)
CLEANING
Wash all equipment immediately with clean water
Page 36 of 159

New surfaces such as bare timber or metal substrates:
1 coat Nippon Aqua Primer Sealer Undercoat
2 coats Nippon Aqua Bodelac
Previously painted surfaces:
Ensure the old alkyd surface is lightly sanded and free from dust before
applying 2 coats of Aqua Bodelac
ADDITIONAL INFROMATION
Solid Content: Above 50% by weight (based on white)
Specific Gravity: 1.25 0.03 kg/L (based on white)
Packing: 1 litre
Shelf Life: Up to 18 months in a tightly sealed container
Precaution: Do not apply when temperature is below 10C or above 35C. The temperature must
not fall below 10C during the drying process. Provide adequate ventilation during use. Avoid
direct contact with sensitive skin. Use appropriate protective equipment.
Page 37 of 159
NIPPON BODELAC 9000 ALKYD RESIN ENAMEL

TYPE
It is an Oil-Modified Alkyd paint with good durability and good anti-fungus properties.
COLOR
Full range of decorative colors as per color card
FINISH
Full Gloss
USES
As a finishing coat over primed wood and metal surfaces both internal and external. E.g.
Doors
Railings
Grilles
Machinery
Furniture
Pipes
Metal Beams
Frames
Fabricated Metal
FEATURES
Economical and easy to use
Corrosion protection especially with a primer
Tough and durable firm
Excellent adhesion on general substrates
Good flow and smooth finish
Shorter drying time as compared to normal enamel
Page 38 of 159

Fungus-resistant
METHOD
Roller, brush and air spray
17 m2 / litre (based on 30 microns DFT per coat)
DILUTION
Solvent - NIPPON BODELAC 9000 GP THINNER
Roller & Brush - Maximum 10%
Dilute only if necessary
SURFACE PREPARATION
Metal
The surface must be:
Clean/Dry
Free from grease/oil
Free from rust/foreign matter
Stable
Exposed non-metal must be primed with:

Non-ferrous: NIPPON VINILEX 120 ACTIVE PRIMER
Ferrous:NIPPON CRYSTALUX A/C PRIMER
Wood
Prepare by sanding to establish a smooth clean surface which is then applied with a
suitable primer such as the NIPPON CRYSTALUX ALUMINIUM WOOD PRIMER
Wood primer
The primer must be allowed to dry sufficiently before sanding is done to level out any irregularities
of the applied substrate. Before painting, the surface must be clean, free from dust and any foreign
matter.
Page 39 of 159

DRYING TIME
Torch Dry - 2 hrs at 30o C
OVERCOATING TIME
18 hours in normal conditions
CLEANING
All equipment should be cleaned with Nippon Bodelac 9000 GP Reducer immediately after use.
ADDITIONAL INFROMATION
Solid Content: 64.0 2% by weight
Specific Gravity: 1.14 0.03 kg/litre
Flashpoint: 30o C
Packing: 5 litres and 1 litre
Storage: Store in a tightly sealed container in a cool and dry place.
Precaution: It is flammable in the wet state and must not be used near naked flame, welding
operations, etc.
Ensure adequate ventilation and avoid direct contact with skin and inhalation of
spray mist. Use gloves, face masks and barrier cream.
Page 40 of 159
NIPPON TIMBERLAC
TYPE
A one-pack modified Polyurethane based varnish that enhances the natural beauty of wood.
COLOUR
Clear or pigmented as per standard range in color cards.
FINISH
Gloss / Matt
USES
As a decorative coat which provides excellent durability for old and new timber surfaces e.g.
Wooden Doors
Timber cladding/Panels
Wood furniture
Wooden sheds
Cane
FEATURES
Excellent for use both interior and exterior applications (for gloss finish only)
Anti-fungus property to protect wood due to mildew growth
Excellent flow and leveling for smooth appearance and easy application
Highly penetrative for excellent adhesion to substrate
Excellent film hardness
Resistance to water and mild detergent for easy maintenance
METHOD
Roller, brush or air spray
THEORATICAL COVERAGE
13 m2/ litre (35 microns DFT)
Page 41 of 159

DILUTION
For roller or brush - use GP REDUCER
1st and 2nd coat - 20% max
Finishing coat - 10% max
SURFACE PREPARATION
New substrate must be:
Free from grease/wax/loose surface matter
Lightly scuff (sandpaper #180) to remove unwanted matter by mechanical sanding.
Upon drying of first coat, scuff lightly with sandpaper #600 to remove wood fibers.
For repainting, sand down old paintwork lightly before applying first coat.
DRYING TIME
Hard dry in 3 hours at 30 oC
OVERCOATING TIME
3 hours at 30oC
CLEANING
All equipment must be cleaned immediately after use with BODELAC 9000 GP
REDUCER
Solid Content : 55 + 2% by weight
Flashpoint: 25o C
Packing: 5 litres and 1 litre
Storage: Store in a tightly sealed container in a cool and dry place.
Precaution: It contains volatile and flammable solvents. Avoid naked flame, welding operations,
etc. Ensure adequate ventilation and avoid direct contact with skin and inhalation of spray mist.
Use gloves, facemasks and barrier cream.
Page 42 of 159
EXTERIOR PAINT
NIPPON WEATHERBOND
A high-performance water-based paint that possesses superior exterior durability.
TYPE
Modified Acrylic Emulsion
COLOR
A wide range of sophisticated colors
FINISH
Satin
USES
High grade emulsion with high grade decorative and protective functions for all internal and
external masonry surfaces such brickwork, cement, plaster and textured surfaces.
FEATURES
Excellent weathering under local climatic conditions
Resistant to fungus and algae growth
Good adhesion on stable surfaces
Easy application with good levelling property
Excellent anti carbonation property
High water vapour permeability
METHOD
Roller or brush
Theoretical Coverage
9 m2 / litre (based on 40 microns DFT)
DILUTION
Ready for use, if necessary, dilution should not be more than 5 % water.
Page 43 of 159
SURFACE PREPARATION
Ensure surface is clean, dry and stable.
Remove loose surface matter and
contaminants by appropriate means. Treat fungus growth areas with NIPPON ANTIFUNGUS SOLUTION.
DRYING TIME
Touch Dry
- 30 minutes at 30 oC
Hard Dry
- 1 hour at 30 oC
OVERCOATING TIME
2 hours based in normal conditions
CLEANING
All equipment should be cleaned with water immediately after use.
Solid Content: 57.0 2% by weight (based on white colour)
Specific Gravity: 1.33 0.03 kg/litre (based on white colour)
Packing: 5 litres & 20 litres
Storage: Store in a tightly sealed container in cool dry place.
Precaution: Ensure adequate protection and avoid direct contact on sensitive skin, eye, etc.
Page 44 of 159
NIPPON WEATHERBOND ALGAEGUARD

Nippon Weatherbond AlgaeGuard is a long lasting high performance water-based acrylic exterior
paint specially formulated with enhanced anti-algae and anti-streak marks performance.
TYPE
100% acrylic emulsion for exterior use
COLOR
Wide range of colors
FINISH
Low Sheen
USES
Suitable for new and previously painted surfaces such as masonry, bricks and exterior timber.
FEATURES
Enhanced resistance to fungal and algal growth
Enhanced anti-streak marks property keeping the faade clean
Excellent weather durability under local climatic conditions
Good adhesion on stable surfaces
Easy application with good levelling property
Excellent anti-carbonation property
High water vapour permeability
Environmentally friendly paint certified under the Singapore.
METHOD
Roller or brush
Approx. 9 m2 / litre (based on 40 microns DFT)
Page 45 of 159

DILUTION
Ready for use, if necessary, dilution should not be more than 5% water.
SURFACE PREPARATION
Ensure surface is clean, dry and stable. Remove loose surface matter and contaminants by
appropriate means. Treat fungus growth areas with NIPPON ANTI-FUNGUS SOLUTION.
DRYING TIME
Surface Dry Hard Dry
30 minutes at 30 oC
- 1 hour at 30 oC
OVERCOATING TIME
2 hours based on normal conditions
CLEANING
All equipment should be cleaned with water immediately after use.
Solid Content: 55.0 2% by weight (based on white colour)
Specific Gravity: 1.35 2% (based on white colour)
Packing: 5-litre and 20-litr
Shelf Life: to 18 months in a tightly sealed container.
Page 46 of 159
INTERIOR PAINTS
NIPPON PAINT ODOUR-LESS (PREMIUM ALL-IN-1)
Nippon Paint Odour-Less Premium All-In-1 is an environmentally favorable green product
formulated without VOCs (Volatile Organic Content) for interior use. Specially formulated with a
solvent-free resin, it limits air pollutants and has an extremely low odour during application and
drying.
Being a GREEN product, it is especially ideal for use in eco-sensitive commercial and residential
areas
with
high
frequency
human
traffic
such
as
hospitals,
schools, residential buildings and hotels.

TYPE
Modified Acrylic Polymer Emulsion for interior use
COLOR
As per color card
FINISH
Classic matt finish
USES
Premium green coating for protection of internal masonry surfaces, such as cement,
plastered walls, brickwork and fiber boards.
Ideal for use on interior walls of hospitals, schools, offices and residential buildings
FEATURES
Environmentally friendly green interior emulsion
Ultra-low VOCs (containing < 50g/L VOC, meeting the VOC requirements of the ecostandards specified by the Green Labeling Scheme)
Ammonia-free
Page 47 of 159

Anti-bacterial property
Long lasting colors
Resists fading and chalking by cement alkali
Washable
Covers fine hairline cracks (< 0.1mm when applied with sufficient thickness)
Easy application
Less splattering
Easy touch-up
Excellent
flow
which
helps
to
minimize
minor
surface
imperfections
Excellent adhesion
Excellent color durability
METHOD
Roller or brush
10 - 12 m2 / litre (35 microns DFT)
DILUTION
SURFACE PREPARATION
Surface must be clean, dry, stable and free from dust, dirt, oil, grease and other
contaminants prior to painting
Treat fungus-growth areas with NIPPON ANTI- FUNGUS SOLUTION. Rinse
again with clean water and dry
DRYING TIME
Touch Dry - 30 minutes at 30 oC
Page 48 of 159

OVERCOATING TIME
2 hours minimum based on normal conditions
CLEANING
Clean all equipment immediately with clean water
Coat Nippon ECO Wall Sealer OR Vinilex 5101 Wall Sealer
Coats Nippon Paint Odour-Less Premium All-in-1
Solid Content: Above 50% by weight (based on white)
Packing: 1 litre and 5 litres
Precaution: Avoid direct contact with sensitive skin. Use appropriate protective equipment.
NIPPON EASY WASH

Nippon Easy Wash premium washable paint is a premium acrylic paint specially enhanced with
TeflonTM surface protector technology for ultimate washability and resistance to common household
stains.
It is suitable on all interior masonry surfaces and ideal for use in areas with high human traffic such
as hallways and living areas.
TYPE
Acrylic polymer emulsion paint for interior use
COLOR
As per color card
Page 49 of 159

FINISH
Soft sheen finish
FEATURES
TeflonTM enhanced formulation
Outstanding washability
Excellent stain resistance to common household stains
Covers hairline cracks
Water-resistant
Elegant soft sheen finish
Long lasting colours
Excellent durability
Low odour
Fast drying
Fungus resistant
Alkali resistant
Easy application
Resistant to blistering and peeling
Excellent flow and leveling
Resistant to fading and chalking
Environmentally friendly - Non-toxic, no lead, mercury and heavy
METHOD
Roller or brush
13 m2 / litre (30 microns DFT)
DILUTION
Page 50 of 159

DRYING TIME
OVERCOATING TIME
SURFACE PREPARATION
Surface must be clean, dry, and stable and free from dust, dirt, oil, grease
and other contaminants prior to painting
Treat fungus-growth areas with NIPPON ANTI-FUNGUS SOLUTION.
Rinse again with clean water and dry.
CLEANING
1 coat Vinilex 5101 Water-based Wall Sealer or Vinilex 5170 Oil-based Wall Sealer
2 coats Nippon Easy Wash.
Solid Content: Above 50% by weight (Based on white colour)
Specific Gravity: 1.43 0.03 (Based on white colour)
NIPPON 3-IN 1 MEDI FRESH

TYPE
Acrylic elastomeric coating for interior use which is not only water proof and washable but also
covers hairline cracks and provides protection against bacteria - a long lasting coating which
promotes better hygiene and health.
Ideal for use in homes, schools, hospitals and food preparation areas, Nippon 3-In 1 Medi-Fresh
Page 51 of 159

anti-bacterial paint has a special formula (tested by the Japan Food Research Laboratory) which
protects the environment from many types of bacteria like MRSA, E-COLI and Staphylococcus
Aureus- for inhibition of asthma, flu and diarrhoea etc.
COLOR
As per color card
FINISH
Low Sheen
USES
A Premium coating for protection of internal masonry surfaces. (On
walls, ceilings, skirting boards and doors)
Used on interiors of hospitals, clinics and other medical facilities.
Used on interior walls of food processing plants, restaurants and dining halls.
Used on interiors of schools, kindergartens, day-care centers and community
centers.
FEATURES
Excellent washability
Covers hairline cracks
Excellent water-proofing for vertical walls
Resists degradation by cement components
Non Toxic, does not contain lead and mercury Prevention growth of many varieties of
bacteria including MRSA (methicilline resistant Staphylococcus Aureus,SA)
METHOD
Roller or brush
Page 52 of 159

6 m2/litre
DILUTION
DRYING TIME
Touch Dry - 1 hour
OVERCOATING TIME
6 hours based on normal conditions
SURFACE PREPARATION
Substrate should be clean, dry and stable before painting. Treat fungus-growth area
with Nippon Anti-Fungus Solution.
CLEANING
POST - TREATEMENT
As the paint film is elastic, masking tapes used to protect surfaces not to be painted, e.g. door and
window frames, should be removed with a knife or cutter.
1 coat Vinilex 5101 Water-based Wall Sealer or Vinilex 5170 Oil-based Wall Sealer
2 coats Nippon 3-in-1 Medi-Fresh.
Solid Content: 54.0 2.% by weight (based on white)
Page 53 of 159
Page 54 of 159
NIPPON VINYL SILK

It is a luxurious emulsion finish that gives a smooth, silky appearance to various types of surfaces to
blend with modern & sophisticated interior designs.
TYPE
A modified Veova Emulsion
COLOR
Standard colours as per colour card including Pastel Shades of Gentle Whites. Special colours on
request
FINISH
Satin Sheen
USES
Decorative coating for internal cement-rendered surfaces, timber and some primed metals.
Examples include:
Cement Plaster
Partitions
Fibre Boards
Brickwork
Gypsum
Soft Boards
Wooden Doors
Metal Frames
FEATURES
Luxurious finish
Up-to-date range of pleasing and attractive colours
Excellent flow and leveling for a smooth classy finish
High
resistance to cement chemicals to prevent
Page 55 of 159

discoloration
Algae and fungus-resistant
Completely washable
Easy to apply because of low splattering
Hygienic fragrance
METHOD
Roller, brush, air and air spray
9 m2 / litre (based on 40 microns DFT and based on white)
DILUTION
Use clean water
Brush - 10% max
Roller - 10% max
Air Spray - 10 ~ 20%
Dilute to only improve workability
DRYING TIME
OVERCOATING TIME
SURFACE PREPARATION
Dirt/Powder
Clean with damp cloth
Mild detergent may be used.
For powdery surface, a coat of NIPPON
VINILEX 5170 WALL SEALER should be applied.

Paint Film
Remove unstable old film by scraper.
Plaster
Page 56 of 159

Remove by chisel, scraper, power grinder etc. Replaster to a stable surface with an
approved mortar mixture.
Oil/Grease
Clean off with mild detergent and a little solvent if necessary. Wash thoroughly
to remove all trace.
CLEANING
Solid Content: 53 2% by weight (based on white)
Page 57 of 159
NIPPON VINILEX 5000 LOW ODOUR

Smooth and gentle emulsion finish to enhance the sophisticated image of all modern homes. It has
a full range of fresh, vibrant, washable and long lasting colors.
TYPE
A modified Acrylic Polymer Emulsion. Premium Grade
COLOR
Standard colors as per color card including Pastel Shades of Gentle Whites.
Special colors on
request
FINISH
Matt
USES
Decorative coating for surfaces e.g.
Plastered walls
Primed metal
Soft Boards
Brickwork
Gypsum
Fibre boards
Primed timber
FEATURES
Low Odour
Resists fading and chalking by cement alkali
Good coverage because of high opacity for easy application
Good adhesion. A special combination of different particle size emulsion
that results in better penetration and adhesion.
Anti-fungus property. Effective control against mildew growth
Page 58 of 159
METHOD
Roller, brush, air and air spray
13m2 / litre (based on 30 microns DFT)
DILUTION
Use clean water
Brush - 10% max
Roller - 10% max
Air Spray - 10 ~ 20%
Dilute to only improve workability
DRYING TIME
OVERCOATING TIME
SURFACE PREPARATION
Dirt/Powder
Clean with damp cloth
Mild detergent may be used.
For powdery surface, a coat of NIPPON
VINILEX 5170 WALL SEALER should be applied.

Paint Film
Remove unstable old film by scraper.
Plaster
Remove by chisel, scraper, power grinder etc. Re-plaster to a stable surface with an
approved mortar mixture.
Oil/Grease
Clean off with mild detergent and a little solvent if necessary. Wash thoroughly
Page 59 of 159

to remove all trace.
Moisture
High moisture causes paint defect. Observe the following level prior to painting:
Masonry - below 6 %
Wood - below 10 %
All water seepage must be rectified before painting.
Fungus
Remove by scrubbing and treat with NIPPON ANTI-FUNGUS SOLUTION. Rinse
again with clean water and dry.
CLEANING
Solid Content: 53 2% by weight (based on white)
Page 60 of 159
NIPPON ODOUR-LESS EASYWASH

Nippon Odour-less EasyWash is a super premium acrylic paint with Teflon TM protector to provide
superior stain resistance and easy stain removal. It is specially formulated with Green ingredients to
limit air pollutants and other environmental impact. It has extremely low odour during application
and drying and is ideal for the painting of commercial and residential areas with high frequency
human traffic.
TYPE
Acrylic polymer emulsion paint for interior use
COLOR
As per color card
FINISH
Soft sheen finish
USES
Recommended for all interior masonry surfaces
FEATURES
New Anti-Spattering Formulation with Teflon TM protector
Environmentally friendly green interior emulsion
Low VOCs
Ammonia-free
Alkyl Phenol Ethoxylate (APE) surfactant free, formaldehyde free
Excellent stain resistance to common household stains
Good washability
Elegant soft sheen finish
Page 61 of 159

Long lasting colors
Fungus resistant
Alkali resistant
Easy application
Excellent flow and leveling
Green Label certified product
METHOD
Roller or brush
13 m2 / litre (based on 30 microns dft)
DILUTION
SURFACE PREPARATION
Surface must be clean, dry, stable and free from dust, dirt, oil, grease and other contaminants
prior to painting
Treat fungus-growth areas with NIPPON ANTI-FUNGUS SOLUTION. Rinse again with
clean water and dry.
DRYING TIME
Touch Dry
- 30 minutes at 30 oC
OVERCOATING TIME
CLEANING
Clean all equipment immediately with clean water after use.
1 coat Vinilex 5101 Wall Sealer or Vinilex 2000 Wall Sealer
Page 62 of 159

2 coats Nippon Odour-less EasyWash
Solid Content: Above 50% by weight (based on white colour)
Specific Gravity: 1.31 0.03 kg/litre (based on white colour)
Packing: 1 and 5 litres
Precaution: Avoid direct contact with sensitive skin. Use appropriate
protective equipment.
NIPPON ODOUR~LESS ANTI-MOULD CEILING WHITE

Nippon Odour~less Anti-Mould Ceiling White is an environmentally favorable green product
formulated with anti-mould properties with a broad spectrum protection against most species of
mould.
It is formulated for ceilings especially damp areas such as kitchen and bathroom and area around
air-conditioners
TYPE
Modified Acrylic Emulsion for interior use
COLOR
White
FINISH
Matt
USES
Ideally suited for masonry surfaces, such as cement, plastered walls and fibre
Page 63 of 159

boards
Ideal for use on ceiling of hospitals, schools, offices and residential buildings
Good for damp areas such as kitchen and bathroom and area around airconditioners
FEATURES
Environmentally
friendly
green
emulsion
product

Anti-mould properties with a broad spectrum protection against most species of
mould
Easy application and touch-up
Minimum roller splatter
Excellent flow and leveling which helps to minimize minor surface imperfections
Environmentally friendly paint
METHOD
Roller or brush
Approx 9-10 m2 / litre (30 microns DFT)
DILUTION
SURFACE PREPARATION
Surface must be clean, dry, stable and free from dust, dirt, oil, grease and other contaminants
prior to painting
Treat fungus-growth areas with NIPPON ANTI-FUNGUS SOLUTION. Rinse again with
clean water and dry.
DRYING TIME
Page 64 of 159

OVERCOATING TIME
CLEANING
Clean all equipment immediately with clean water after use.
1 coat of Nippon Odour-less Sealer
2 coats of Nippon Odour~less Anti-Mould Ceiling White.
Packing: 5 litres
Page 65 of 159
MOMENTO SPECIAL EFFECT PAINTS

MOMENTO SPARKLE PEARL
Breathe luminosity into every room. Nippon Momento Special Effect Paint lets you recreate
intricate works of Italian craftsmanship in your home. The paint offers a distinctive texture-like
effect that transforms your ordinary walls into extraordinary masterpieces.
Formulated with low VOC, it contains no lead, mercury, chrome or heavy metal making it
environment-friendly and most importantly safe!
The Momento Sparkle Pearl Special Effect is designed to stimulate a glowing effect. Upon
application it envelops any surface with lustrous texture creating a result that radiates
mesmerizing style.
PACK SIZE: 1 Litre
Note: For best results of paint texture and effect, use it with Nippon Momento Primer and
Toolkit
SURFACE PREPARATION
Remove all loose defective paint or powdery residues.
Repair cracks, uneven surfaces with suitable putty or fillers.
Smoothen the areas with sandpaper.
Clean the area thoroughly and let dry
Allow all surfaces to dry completely prior to painting.
FEATURES
Low odor and low VOC.
Non toxic solvent.
INGREDIENTS
Nippon Momento is formulated with low VOC; it is also free from formaldehyde and contains
no lead or mercury, creating a healthier environment. It is recommended for interior walls,
ceilings, cement based plaster, gypsum based plaster, brickwork, hard and soft boards and
asbestos.
Page 66 of 159
CREATE YOUR MASTERPIECE

1) Apply two coats of Momento Primer onto the surface.
2) Paint 1 coat of Momento Top Coat.
3) Use criss crossed strokes for desired effect.
4) After 10 15 minutes, use spatula to smooth over the semi dried coat.
MOMENTO SPARKLE SILVER

Reflect rays of light with silky incandescence. Nippon Momento Special Effect Paint lets you
recreate intricate works of Italian craftsmanship in your home. The paint offers a distinctive
texture-like effect that transforms your ordinary walls into extraordinary masterpieces.
The Momento Sparkle Silver Special Effect is created with glistening radiance in mind. It
embodies unique metallic resins and glossy-opaque textures. Applying any iridescent shade of
Sparkle Silver provides your room with the perfect texture of your dreams.
PACK SIZE: 1 Litre
Toolkit
SURFACE PREPARATION

FEATURES
Non toxic solvent.
Page 67 of 159

INGREDIENTS
asbestos.
MOMENTO SPARKLE GOLD

Bathe any surface in opulent splendor. Nippon Momento Special Effect Paint lets you recreate
intricate works of Italian craftsmanship in your home. The paint offers a distinctive texture-like
effect that transforms your ordinary walls into extraordinary masterpieces.
The Momento Sparkle Gold Special Effect shimmers with majestic reflection. It has a unique
mixture of glossy-opaque texture with metallic resins that create a spectacular sparkling effect.
Apply Sparkle Gold if you are looking to ignite your wall with lavish brilliance.
PACK SIZE: 1 Litre
Toolkit
SURFACE PREPARATION
Page 68 of 159

FEATURES
Non toxic solvent.
INGREDIENTS
asbestos.

Page 69 of 159
Clients & Projects

A few of valuable clients of NipponPaints are:
Military engineering services (MES)
Izhar Construction Group
Valencia Homes
Holiday Inn Hotel
Avari Hotel
National Fertilizer Corporation (NFC)
Pakistan Wapda
Pakistan Army
Pakistan Ordinance Factories (POF)
Pakistan Navy
Smart Hotel
Shalimar Construction Company
Nimir Chemicals Pakistan Limited
Sozo Water Park
Imperial Engineering Company
Lahore Regency Private Limited
Page 70 of 159

Nescamp Services Company
Marketing Strategies of Nippon Paint

As far as the marketing strategies of Nippon Paint Pakistan are concerned, the company has been
very much active in the both Above the Line (ATL) and Below the Line (BTL) advertising but
especially in the Above the Line advertising.
The whole purpose of the marketing campaign was to raise the brand awareness and promote
companys latest product called Momento among its target market with the help of variety of
marketing tools. The marketing and advertising strategies of Nippon Paint Pakistan are described
as below:
Out-of-Home Advertising
TVC
Facebook
Website
Out-of-Home Advertising
Nippon has carried out extensive out of home advertising for its latest product Momento. The
marketing campaign was carried all across the country, from Karachi to to Quett, from Lahore to
Multan and up to Nathia Gali in Murree.
The whole purpose was to position Momento into the minds of its target market as a superior
product to its competitors. The out of home marketing campaign that started few months ago is
still in place and Momento billboards and Tsigns can still be seen in various parts of Lahore.
Out-of-Home Advertising was carried out in following cities across the country:
Lahore
Pindi
Faisalabad
Murree
Page 71 of 159
Karachi
Quetta
Lahore and Multan
Faisalabad and Pindi
Karachi and Quetta
Page 72 of 159
TVC
TVC is one of the traditional and most effective ways to advertise the product to the larger
audience. TVC are more suited when the company is in need for mass marketing and it is
because of this mass marketing that TVCs can be really cheap when you divide the total cost to
the estimated population it reaches.
Keeping in view the benefits, Nippon Paint Pakistan launched its TVC in June, following are the
characteristics of the Momento TVC:
DURATION AND CHANNEL MIX

The Momento TVC was aired for a month with the following channel mix.
Genre Category
News Channels
News Channels
News Channels
Entertainment
Entertainment
Entertainment
Channels
Dunya News
ARY News
Express News
HUM TV
ARY Digital
Geo Kahani
Page 73 of 159
MOMENTO SPOT POSITIONING

First three and last three spot positions are considered as Prime Spots, Nippon Paint Momento
managed to secure 63% Prime Spots out of all aired.
Page 74 of 159
1St
2nd
3rd
3rd
2nd
Last
Last
Ordin All
Last
ary
Prime
Chan Posit Posit Posit Posit Posit Posit Positi Positi

nel
ion
ion
ion
ion
ion
ion
on
ons
D
20
DUNIY
31
21
28
15
49
117
A TV
EXPR
25
33
39
11
122
120
18
17
13
18
66
133
ARY
ONE
WORL
ESS
NEWS 63
GEO
KAHA
NI
HUM
10
20
TV
15
24
30
64
100
91
78
76
57
52
271
454
PIANT MEDIA EXPOSURE WAR

In current channel war (with GEO News off air), Momento TVC managed to secure the highest
presence on TV (39%) out of all paint brands followed by Diamond 24%.
Page 75 of 159
Advertising On Facebook
With Momento campaign running everywhere from TVC to Billboards, Social Media was no
exception. All the marketing efforts were put to increase an awareness regarding the new
product. The Facebook advertising was divided into two parts:
Promotion of Momento TVC on Facebook

Selfie Contest on Facebook.
Promotion of Momento
TVC on Facebook
Facebook credits were used to boost the Momento TVC on Nippon Paint Pakistan Facebook
page and the results of boosting the TVC were quite amazing.
Page 76 of 159
Total Likes
496
Total
80
Comments
Total Shares
Total
134
Video 12,905
Plays
In order to increase the reach of the TVC we seeded the TVC on following marketing platforms
on Facebook:
Advertistan
Newsmedia 247
Advertising Pakistan
Advertising Today
Brandsynario
Marketing Strategies
Media Poondi
Momento Selfie Contest
S t e p 1 : S t e p 2 : S t e p 3 : St ep 4: St ep 5:
The core objective of the contest is to drive sales from Facebook.
Page 77 of 159
Page 78 of 159
Promotion of Nippon Paint

Nippon Paints is using following promotional tools:
Customer satisfaction is itself a promotion tool for Nippon Paints and it help to develop
C2C relationship.
Nippon Paints arranges painter parties at different places and at this event gift are given
to those painters which have used a reasonable quantity of Nippon Paints for the period.
Nippon Paints has given a target to every dealer according to its capacity and market
analysis. If that dealer meets that target, Nippon Paints offers special allowances and
bonuses.
Nippon paints also held a stall at the occasion of the Job Fair at Superior University
Lahore in 2012. The company offered attractive jobs in the field of finance and marketing
to the fresh graduates.
Nippon Paints also arranges cricket and hockey tournaments for the entertainment and
promotional tool for the company.
The following is the picture of distributing trophies among winners at 38th all Pakistan Nippon
Hockey Tournament Khoshab.
Page 79 of 159
Distribution System of Nippon Paints

Nippon Paints has its distribution offices in different cities to cover all the area of Punjab. Its
distribution offices are at:
Islamabad
Sialkot
Faisalabad
Multan
Sargodha
The regions send their report and have their own targets in a specific time periods and they also
monitor the activities of sales force and demand of the customers for the paints. The paint market
of Nippon Paints Limited is very wide but due to lack and deficiencies it is lagging behind to the
other companies.
Market of paints has been a challenging job in one country because people consider that paint is
a decorative item. Even today it is considered as a luxury and not valued as a protective element.
The greater portion of our population lives in villages, where people are illiterate and
consequently lacking the knowledge of paints. Even in cities people rely upon painters and
painters have their own technology and preferences. In spite of all these drawbacks in the market
many companies in the field of paints striving, with the help of their marketing activities, to gain
high business. They have realized that the market is growing with substantial potential as a
consequence of increasing literacy rate, standard of living, infrastructure development, industrial
growth and more and more emphasis on defense strength.
Environmental Friendly
Nippon policy states that it will strive to develop new products and containers that have minimal
impact on the environment whilst maintaining its quality performance standards.
One of the largest environmental effects of painting is the solvents which are given off during the
painting process. These solvents can cause adverse health effects (if used in poorly ventilated
areas) and can contribute to pollution in the lower atmosphere.
Page 80 of 159

Much of Nippons Research & Development work is targeted at reducing the solvent content of
Nippon Paint products and offering water-based alternative products. Our objective is to limit the
amount of solvent in the products Nippon sells and reduces these limits over the coming years.
Nippon is also taking initiatives to reduce the environmental impact of its containers.
Pricing Strategy
Nippon Paints provide customers with the quality products and better customer service; they
outrank all its competitors due to quality because they use the good quality raw material and
maintain a total quality during the manufacturing of the paints. Therefore, they charge the price a
little higher than the prices of its competitors. Since Nippon is at the top spot for its quality
products, this high price is worth it.
Nippon Paints also offer cash and trade discounts to its customers i.e. retailers and wholesalers in
case of bulk purchase. The pricing of the products of Nippon Paints also varies region by region
to keep the competitive advantage and market share.
Page 81 of 159
ACCOUTING/FINANCE
SYSTEM
NIPPON PAINTS (PVT)
LIMITED
BALANCE SHEET AS AT 30
JUNE, 2013
2012
2013 (Rs.)
EQUITY
(Rs.)
AND
LIABILITIES
SHARE
CAPITAL
&
RESERVES
Authorized
Capital
2500,000 ordinary shares
of Rs. 100/- each
Issued, Subscribed
50,000
250,000,000
and
Paid-up Capital
946,137 ordinary shares of
Rs. 100/- each
Reserv
,000
49,613,
94,613,700
es
Accumulated
700
40,388,
Profit
TOTAL
52,479,842
810
90,002
EQUITY
NON-CURRENT
147093542
,510
LIABILITIES
Page 82 of 159

Loans
and
3,000,0
Advances
CURRENT
21,700,000
LIABILITIES
Trade
and
other
00
136,73
Payables
158,002,375
8,657
6,601,9
Provision for Taxation
6,740,247
79
143,34
164,742,622
0,636
CONTINGENCIES
AND
COMMITMENTS
TOTAL
LIABILITIES
TOTAL
EQUITY
186,442,622
0,636
236,34
333,536,164
3,146
AND
LIABILITIES
146,34
ASS
ETS
NON-CURRENT
ASSETS
Property,
Equipment
Long term
Plant
and
deposits
and
repayments
23,125,
28,686,998
336
1,032,4
1,266,203
70
24,158
29,953,201
,133
CURRENT
ASSETS
74,623,
Stock in trade
Trade debts
Advances
Receivables
Cash
and
and
bank
61,255,364
753
55,686,
75,655,772
709
69,814,
137,952,351
28,719,476
098
12,060,
other
Page 83 of 159

453
212,18
balances
303,582,963
5,013
236,34
333,536,164
3,146
TOTAL
ASSETS
Salient features of Balance Sheet:

The authorized capital increased from 50 M TO RS. 250 M
The issued, subscribed and paid up capital increased by RS. 45 M this year.
Accumulated profit increased from Rs. 40,388,810 to Rs. 52,479,842 from the financial year
2012 to 2013.
In the non-current liabilities segment, the loans and advances had a huge increase from Rs.
3,000,000 to Rs. 21,700,000. It shows that the company increased its debt and ultimately the
liabilities.
In current liabilities, trade and other payables increased from Rs. 136,738,657 to Rs.
158,002,375 which means that the companys current liabilities are increased and they will
affect its current ratio and the ability to pay the short term obligations.
Overall, total liabilities increased by Rs. 40,101,986 from year 2012 to 2013.
Property, plant and equipment increased by Rs. 5,561,335.
The long term deposits and prepayments increased by RS. 233,733.
In current assets, stock in trade decreased by Rs. 13,368,389.
Trade debts increased heavily; in 2012 these were Rs. 55,686,709 but in 2013 they raised to
Rs. 75,655,772.
Advances and other receivables increased by Rs. 68,138,253.
Cash and bank balances increased from Rs. 12,060,453 to Rs. 28,719,476.
And the overall total assets increased with a large amount Rs. 16,659,023.
In summary, Nippon Paints attained a more stable position, maintained stability and increased its
assets and other useful elements of balance sheet. If the company manages to go on this way, it
will grow very well indeed and surpass its competitors in the near future.
Page 84 of 159
NIPPON PAINTS (PVT)

LIMITED
PROFIT AND LOSS
ACCOUNT
FOR THE YEAR ENDED 30
JUNE, 2013.
2013
2012
Rs.
SAL
ES
COST
Rs.
544,32
626,263,417
3,279
(435,32
SALES
GROSS
(500,718,126)
4,447)
108,99
PROFIT
OTHER
125,545,291
8,832
INCOME
352,100
83,755
109,08
125,897,391
2,587
33,003,
42,908,371
599
53,180,
62,736,481
431
OF
ADMINISTRATIVE
EXPENSES
SELLING
AND
GENERAL
AND
DISTRIBUTION EXPENSES
OTHER
EXPENSE
1,535,9
1,366,814
Page 85 of 159
75

87,720
107,011,666
,005
21,362
GPROFIT
18,885,725
,582
517,20
FINANCE COST
PROFIT
336,097
7
20,845
BEFORETAX
TAXATION
Current
18,549,628
,375
Year-
Normal
Final
on
OPERATIN
4,599,4
4,754,652
35
2,002,5
1,703,069
282,526
44
6,601,
6,740,247
979
14,243
PROFIIT AFTER TAX

EARNINGS
PER
SHARE-
11,809,381
,396
Basic and Diluted
12.48
28.71
Exports
Surcharge
Key Features of Profit and Loss Account:

The sales of Nippon Paints increased from Rs. 544,323,279 to Rs. 626,263,417 in the
financial year of 2012 to 2013.
The cost of goods sold also increased from Rs. 435,324,447 to Rs. 500,718,126 in this year.
Page 86 of 159

Gross profit increased by Rs. 16,546,459 from 2012 -2013.
Operating profit decreased by Rs. 24,768,57
Profit before tax also decreased by a small amount; in 2012 it is Rs. 20,845,375 and in 2013
it is Rs. 18,549,628.
Total taxation cost also increased from Rs. 6,601,979 to Rs. 6,740,247 in 2013.
Net profit was decreased, in 2012 the net profit was Rs. 14,243,396 and in 2013 it is
11,809,381.
The shareholders were the most affected people this year because they got very less amount
of dividends as compared to previous year. The earnings per share were Rs. 12.48 this year
while these were Rs. 28.71 in the last year.
Page 87 of 159
NIPPON PAINTS (PVT)

LIMITED
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30
JUNE, 2013.
2013
2012
R
Rs.
Rs.
CASH FLOW FROM OPERATING ACTIVITIES

14,243,3
Profit for the year - after tax
Adjustments for:
Depreciation for the
11,809,381
96
3,871,51
year
Prior year adjustments
4,094,312
281,651
3
75,293
(77,7
Gain on sale of assets
16,185,34
83)
18,112,
419
(Increase)/decrease in current assets

(26,544,0
(Increase)/decrease in stock in trade
13,368,389
(Increase)/decrease in advances and other (68,138,253
57)
8,279,00
receivables
)
(19,969,063
1
(48,213,0
(Increase)/decrease in trade debts
)
(74,738,92
27)
(66,478,
7)
083)
(Decrease)/increase in current liabilities

1,177,21
Increase in provision for taxation
Page 88 of 159
138,268

59,725,8
Increase in trade and other payables
21,263,718
Net cash generated from operating (37,151,59
activities
CASH FLOW FROM INVESTING ACTIVITIES
(Increase) in property, plant and equipment
26
12,537,
7)
377
(10,163,547
(4,596,95
9)
140,0
Decrease in property, plant and equipment

Net cash used in investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Increase
in
paid-upcapital
Decrease
in
long
term
deposits
507,900
(9,655,647
00
(4,456,9
59)
30,00
45,000,000
0,000
(233,733)
92,000
(34,450,0
and
repayments
Increase/ (Decrease) in loans and advances

18,700,000
Net cash (used) generated from operating 63,466,26
00)
(4,358,0
activities
00)
8,338,03
CASH AND BANK BALANCES 01 JULY, 2009
12,060,453
28,719,47
5
12,060,
CASH AND BANK BALANCES 30 JUNE, 2012
453
Horizontal Analysis
NIPPON PAINTS (PVT) LIMITED
BALANCE SHEET AS AT 30 JUNE, 2013
2013
2012
Amount
R
Rs.
EQUITY AND LIABILITIES
SHARE CAPITAL & RESERVES
Page 89 of 159
s.
Rs.
Percentage

Authorized Capital
Issued, Subscribed
and
250,000,000 50,000,000
200,000,000
400%
94,613,700 49,613,700
52,479,842 40,388,810
147,093,542 90,002,510
45,000,000
12,091,032
57,091,032
90.7%
29.9%
63.4%
21,700,000
3,000,000
18,700,000
623.3%
158,002,375
6,740,247
186,442,622
333,536,164
136,738,657
6,601,979
146,340,636
236,343,146
21,263,718
138,268
40,101,986
97,193,018
15.5%
2.09%
27.4%
41.1%
28,686,998
1,266,203
29,953,201
23,125,663
1,032,470
24,158,133
5,561,335
233,733
5,795,068
24.04%
22.6%
23.9%
61,255,364
75,655,772
137,952,351
28,719,476
333,536,164
74,623,753
55,686,709
69,814,098
12,060,453
236,343,146
(13,368,389)
19,969,063
68,138,253
16,659,023
97,193,018
-17.9%
35.8%
97.5%
138.1%
41.1%
Paid-up
Capital
Accumulated Profit
TOTAL EQUITY
NON-CURRENT LIABILITIES
Loans and Advances
CURRENT LIABILITIES
Trade and other Payables
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment
Long term deposits and repayments
CURRENT ASSETS
Stock in trade
Trade debts
Advances and other Receivables
Cash and bank balances
TOTAL ASSETS
Horizontal analysis of the balance sheet of Nippon Paints presents the clear view of the financial
situation of the company and it helps in analyzing the statements with a birds eye view for
estimating the growth or the downfall of the operating activities of the company.
Following are some important points we can infer from the horizontal analysis of the financial
statements of Nippon Paints Limited Pakistan.
1. Nippon Paints accumulated profit increased with the amount of Rs. 12,091,032 which
is 29.9% increase from the year 2012.
Page 90 of 159

2. Loans and advances increased by 623.3% from the previous year which means the
company increased its non-current liabilities with a large amount.
3. Trade and other payables increased by 15.5% and provision for taxation increased by
2.09% and overall current liabilities increased by 14.9%.
4. As compared to the previous year, the total liabilities increased and the increase is 27.4%
5. The value of property, plant and equipment increased with an amount of 24.04% and the
long term deposits and repayments increased by 22.6%.
6. Total non-current assets increased by 23.9%from year 2012 to 2013.
7. Stock in trade decreased by -17.9%and trade debts increased by a amount of 35.8%
which means that the company increased its credit sales and there is a large number of
debts to be recovered from different parties.
8. Advances and receivables increased by 97.5% and cash and bank balances increased by
138.1%.
9. Overall total assets increased by 41.1% which are greater than the increase in the total
liabilities and it is good for the company for the purpose of its liquidity and prosperity.

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE, 2013.
Percentag
2013
2012
Rs.
Amount
Rs.
Rs.
SALES
626,263,417
(500,718,126
544,323,279
(435,324,447
81,940,138
15.1 %
COST OF SALES
65,393,679
15.0 %
GROSS PROFIT
125,545,291
108,998,832
16,546,459
15.2 %
OTHER INCOME
352,100
83,755
268,345
320.4 %
109,082,587
33,003,599
16,814,804
9,904,772
15.41 %
30.0 %
ADMINISTRATIVE
AND
125,897,391
GENERAL 42,908,371
Page 91 of 159
EXPENSES
SELLING
AND
DISTRIBUTION
EXPENSES
62,736,481
53,180,431
9,556,050
18.0 %
OTHER EXPENSES
1,366,814
1,535,975
(169,161)
-11.0 %
107,011,666
87,720,005
19,291,661
22.0 %
OPERATING PROFIT
18,885,725
21,362,582
(2,476,857) -11.59 %
FINANCE COST
336,097
517,207
(181,110)
PROFIT BEFORE TAX
18,549,628
20,845,375
(2,295,747) -11.0 %
Current Year-Normal
4,754,652
4,599,435
155,217
3.38 %
Final on Exports
1,703,069
2,002,544
(299,475)
-14.95 %
Surcharge
282,526
282,526
6,740,247
6,601,979
138,268
2.09 %
11,809,381
14,243,396
(2,434,015) -17.09 %
12.48
28.71
(16.23)
-35.0 %
TAXATION
PROFIIT AFTER TAX

EARNINGS PER SHARE-Basic
Diluted
and
-56.5 %
From the horizontal analysis of the profit and loss account of Nippon Paints we can clearly judge
the results of its operating activities and the amount of profits, costs and revenues earned and
their difference, increase or decrease from the previous years values. Some key facts are
described as under:
a) Nippon Paints sales increased by the amount of Rs. 81,940,138 this year, which is 15.1%
more than the sales in 2012.
b) The cost of goods sold also increased with almost same amount, it increased by 15.0%
from the previous year.
c) The gross profit increased by 15.2 % from 2012 to 2013 because of the increased sales of
the company.
d) Administrative and general expenses increased by 30.0%.
e) Selling and distribution expenses increased by 18.0 %
Page 92 of 159

f) Finance cost decreased by 35.0 %.
g) Operating profit decreased by 11.59% and other operating expenses also decreased by
11.0 % from the last year.
h) Profit before tax decreased with the amount of 11.0%.
i) Overall net profit decreased by 17.09%.
Page 93 of 159
Vertical Analysis
BALANCE SHEET AS AT 30 JUNE, 2013
Common
Size
Percentages
2013
RS
2012
RS
2013
RS
2012
0
94,613,700
52,479,842
147,093,54
50,000,000
49,613,700
40,388,810
74.95 %
14.88 %
15.73 %
21.16 %
20.99%
17.09%
90,002,510
44.10 %
38.08%
21,700,000
3,000,000
6.50 %
1.27%
158,002,37
136,738,65
5
6,740,247
164,742,62
7
6,601,979
143,340,63
47.37 %
2.02 %
57.86%
2.79%
Total Current Liabilities
2
186,442,62
6
146,340,63
49.39 %
60.65%
TOTAL LIABILITIES
2
333,536,16
6
236,343,14
55.90 %
61.92%
100.00 %
100.00%
28,686,998
1,266,203
24,953,201
23,125,336
1,032,470
24,158,133
8.60 %
0.38 %
7.48 %
9.78%
0.44%
10.22%
EQUITY AND LIABILITIES

SHARE CAPITAL & RESERVES
250,000,00
Authorized Capital
Issued, Subscribed and Paid-up Capital
Accumulated Profit
TOTAL EQUITY
NON-CURRENT LIABILITIES
Loans and Advances
CURRENT LIABILITIES
Trade and other Payables
TOTAL EQUITY AND LIABILITIES

ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment
Long term deposits and repayments
Total Non-Current Assets
CURRENT ASSETS
Page 94 of 159

Stock in trade
Trade debts
61,255,364
75,655,772
137,952,35
74,623,753
55,686,709
18.37 %
22.68 %
31.57%
Advances and other Receivables

Cash and bank balances
1
28,719,476
303,582,96
69,814,098
12,060,453
212,185,01
41.36 %
8.61 %
29.54%
5.10%
3
333,536,16
3
236,343,14
91.02 %
89.78%
100.00 %
100.00%
Total Current Assets

TOTAL ASSETS
23.56%
Vertical analysis of Nippon Paints financial statements provides a better look of its operations
and activities. It can be clearly seen that the value of certain segment is of what percent of its
total amount. This is very helpful indeed for the estimate of each asset and liabilitys portion of
the total value of its head. With the help of it we can better understand the financial statements
which cannot be clearly understood by merely looking at a simple balance sheet.
1. Total equity of 44.1% of the total equity and liabilities of Nippon Paints in 2013
while it was 38.1% in the year of 2012.
2. Loans and advances are 6.5% of total liabilities which were only 1.28% in 2012;
therefore we can clearly see that there is a large increase in this part of balance
sheet.
3. Trade and other payables are 47.3% of the total liabilities and these were 57.9% in
the previous year.
4. Provisions for taxation also decreased from 2.8% to 2.1% this year.
5. Total current liabilities are 49.4% and total liabilities are 55.9% of the total equity
and liabilities of Nippon Paints.
6. The value of property, plant and equipment is 8.6% of the total assets and it was
9.8% in the previous year.
7. Total non-current assets are 7.48% of the total assets and the total current assets
are 91.02% of the total assets of 2013.
8. Trade debts were 23.6% in 2012 but they are 22.68% in 2012.
9. Advances and other receivables are 41.4% of the total assets while these were
29.5% in the previous year.
10. Cash and bank balances increased from 5.10 % to 8.61 % this year.
Page 95 of 159

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE, 2012.
Common
Size
Percentage
2013
2012
RS
RS
2013
2012
RS
Rs
100.00
SALES
626,263,417
(500,178,126
544,323,279
100.00 %
COST OF SALES
(435,324,447)
79.87 %
79.98%
GROSS PROFIT
125,545,291
108,998,832
20.05%
20.02%
OTHER INCOME
352,100
83,755
0.06%
0.02%
125,897,391
109,082,587
20.10%
20.04%
EXPENSES
42,908,371
33,003,599
6.85%
6.06%
SELLING AND DISTRIBUTION EXPENSES
62,736,481
53,180,431
10.02%
9.77%
OTHER EXPENSES
1,366,814
1,535,975
0.22%
0.28 %
OPERATING PROFIT
18,885,725
21,362,582
3.02%
3.92%
FINANCE COST
336,097
517,207
0.05%
0.10%
PROFIT BEFORE TAX
18,549,628
20,845,375
2.96%
3.83%
TAXATION
6,740,247
6,601,979
1.08%
1.21%
11,809,381
14,243,396
1.89%
2.62%
ADMINISTRATIVE
PROFIIT
AFTER
AND
TAX
EQUITY STATEMENT
GENERAL
CARRIED
TO
Page 96 of 159
With the help of vertical analysis of the profit and loss statement of Nippon paints, we can see
that the different costs and revenues are of how much percent of the total sales and thus we can
be able to tell straightforward that which portion of costs are damaging the overall profits and
need to be minimized.
a. Cost of goods sold is same with respect to last year which is 80 %.
b. Similarly, gross profit same 20% last year.
c. Administrative and general expenses were 6% in the previous year but these are
6.9% in the year of 2013.
d. Selling and administrative expenses are 10.1% as compared to the 9.8% of the
previous year; and finance cost is 0.05% this year as compared to the 0.10% last
year.
e. Operating profit is 3.02% this year while 3.92% previous year.
f. Profit before tax is 2.96% of the total sales this year and 3.83% in the previous
year. In the coming pages we will see that this figure will also be demonstrated by
the operating margin ratio.
g. Net profit is 1.89% of the total sales this year and 2.62% last year; this figure will
also be the same in the net profit margin ration in the coming ratio analysis.
Page 97 of 159
Ratio Analysis
Gross Margin/Gross Profit Ratio:
(2012)
(2013)
Gross Profit
108,998,832
Net Sales
544,323,279
Gross Profit
125,545,291
Net Sales
626,263,417
20%
20.04%
Gross Margin Ratio

0.25
0.2
0.15
0.2
0.1
0.2
0.05
0
2012
2013
The gross margin is not an exact estimate of the company's pricing strategy but it does give a
good indication of financial health. Without an adequate gross margin, a company will be unable
to pay its operating and other expenses and build for the future. It is a financial metric used to
assess a firm's financial health by revealing the proportion of money left over from revenues
after accounting for the cost of goods sold.
Page 98 of 159

Gross profit margin serves as the source for paying additional expenses and future savings. This
metric can be used to compare a company with its competitors. More efficient companies will
usually see higher profit margins.
Nippon Paints Limited has a gross margin of 20.04% in 2013 while it was 20% in 2012. In
general, a company's gross profit margin should be stable. It should not fluctuate much from one
period to another, unless the industry it is in has been undergoing drastic changes which will
affect the costs of goods sold or pricing policies. In this sense, Nippon Paints has managed well
to keep a stable balance in its cost of goods sold.
The gross margin ratio indicates that the firm almost maintained its position as it had the
previous year. The ratio did not change a lot. Overall the net sales increased but the cost of goods
sold also increased with the same rate resulting in the proportional gross profit, therefore the
ratio remained literally same.
Operating Margin/Operating Profit Ratio:
Operating
(2012)
Income
20,845,375
Net Sales
544,323,279
3.8%
Operating
(2013)
Income
18,549,628
Net Sales
626,263,417
Page 99 of 159
2.9%
Operating Margin Ratio
0.05
0.05
0.04
0.04
0.03
0.03
0.02
0.02
0.01
0.01
0
0.04
0.03
2012
2013
Operating margin is a measurement of what proportion of a company's revenue is left over after
paying for variable costs of production such as wages, raw materials, etc. A healthy operating
margin is required for a company to be able to pay for its fixed costs, such as interest on debt. A
ratio used to measure a company's pricing strategy and operating efficiency.
Operating margin gives analysts an idea of how much a company makes (before interest and
taxes) on each dollar of sales. When looking at operating margin to determine the quality of a
company, it is best to look at the change in operating margin over time and to compare the
company's yearly or quarterly figures to those of its competitors. If a company's margin is
increasing, it is earning more per dollar of sales. The higher the margin, the better it is Often,
nonrecurring cash flows, such as cash paid out in a lawsuit settlement, are excluded from the
operating margin calculation because they don't represent a company's true operating
performance.
Nippon Paints has an operating margin of 2.9% in 2013; this means that it makes Rs. 0.029
(before interest and taxes) for every Rupee of sales. The operating profit ratio shows a decline as
compared to the previous year. The reason is that the company could not manage to increase its
operating profit in accordance to the sales and operating expenses. The operating profit of the
firm remained almost same as the previous year. If the company had been able to decrease the
Page 100 of 159

operating expenses and thus increasing the operating profit, it would have been able to increase
the operating profit ratio.
Profit Margin Ratio:

(2012)
(2013)
Net Profit
14,243,396
2.6%
Net Sales
544,323,279
Net Profit
11,809,381
Net Sales
626,263,417
1.8%
Net Margin Ratio

0.04
0.03
0.03
0.03
0.02
0.02
0.02
0.01
0.01
0
2012
2013
The net margin ratio reveals that how much of each dollar earned by the company is translated
into profits. Net margins will vary from company to company, and certain ranges can be
expected from industry to industry, as similar business constraints exist in each distinct industry.
Page 101 of 159

Companies that are able to expand their net margins over time will generally be rewarded with
share price growth, as it leads directly to higher levels of profitability.
Nippon Paints lack in this regard because its net profit ratio shows a decline as compared to the
previous year i.e. 1.8% in 2013 and 2.6% in 2012. This is because the operating expenses, and
the tax amount was not minimized and it resulted in less net profit. The net profit of the firm
remained almost same as the previous year. If the company had been able to decrease the
operating expenses, taxes and all other expenses then the net profit would be increased and so the
net profit margin ratio.
Return on Assets Ratio:

2012
Net Profit
Total Assets
14,243,396
236,343,146
6.0%
2013
Net Profit
Total Assets
11,809,381
333,536,164
3.5%
Return on Asset Ratio

0.07
0.06
0.06
0.05
0.04
0.04
0.03
0.02
0.01
2012
0
1
Page 102 of 159

Return on Assets ratio is an indicator of how profitable a company is relative to its total assets.
Return on Assets gives an idea as to how efficient management is at using its assets to generate
earnings. Calculated by dividing a company's annual earnings by its total assets, Return on
Assets is displayed as a percentage. Sometimes this is referred to as "return on investment".
Return on Assets tells you what earnings were generated from invested capital (assets). Return
on Assets for public companies can vary substantially and will be highly dependent on the
industry.
The Return on Assets figure gives investors an idea of how effectively the company is converting
the money it has to invest into net income. The higher the Return on Assets number, the better,
because the company is earning more money on less investment. For example, if one company
has a net income of $1 million and total assets of $5 million, its Return on Assets is 20%;
however, if another company earns the same amount but has total assets of $10 million, it has an
Return on Assets of 10%. Based on this example, the first company is better at converting its
investment into profit. When you really think about it, management's most important job is to
make wise choices in allocating its resources. Anybody can make a profit by throwing a ton of
money at a problem, but very few managers excel at making large profits with little investment.
In case of Nippon Paints, the Return on Assets in the year 2012 was 6% which decreases 3.5%
this year. The company faced a decline in its Return on Assets Ratio; the reason is that the total
assets of the company increased with a huge amount but the net profit remained almost the same
as previous year. This caused the decrease in the Return on Assets ratio from the previous year.
Return on Capital Employed Ratio:

2012
EBIT
Total Assets
20,845,375
236,343,146 -
Current
143,340,636
Page 103 of 159
22.4%

Liabilities
2013
EBIT
Total Assets
18,549,628
10.98%
Current
333,536,164 -
Liabilities
164,742,622
Return on capital employed

0.25
0.22
0.2
0.15
0.11
0.1
0.05
0
2012
2013
Return on capital employed is a ratio that indicates the efficiency and profitability of a
company's capital investments.
Return on capital employed should always be higher than the rate at which the company
borrows; otherwise any increase in borrowing will reduce shareholders' earnings. A variation of
this ratio is return on average capital employed (ROACE), which takes the average of opening
and closing capital employed for the time period.
The return on capital employed of Nippon Paints decreases from 22.4 % to 11% this year.
Page 104 of 159
Return on Equity Ratio:
2012
Net Income
Total Equity
14,243,396
49,613,700
28.7%
2013
Net Income
Total Equity
11,809,381
94,613,700
12.48%
Return on Equity
0.3
0.29
0.25
0.2
0.15
0.13
0.1
0.05
0
1
2012
2013
Return on equity is the amount of net income returned as a percentage of shareholders equity.
Return on equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested. ROE is expressed as a percentage.
The Return on equity is useful for comparing the profitability of a company to that of other firms
in the same industry.
Page 105 of 159
Current Ratio:
2012
2013
Current Assets
Current
212,185,013
Liabilities
143,340,636
Current Assets
Current
303,582,963
Liabilities
164,742,622
1.48
1.84
Current Ratio
2
1.84
1.8
1.6
1.48
1.4
1.2
1
0.8
0.6
0.4
0.2
2012
2013
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations. The ratio is mainly used to give an idea of the company's ability to pay back its
short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables).
The higher the current ratio, the more capable the company is of paying its obligations. A ratio
under 1 suggests that the company would be unable to pay off its obligations if they came due at
that point. While this shows the company is not in good financial health, it does not necessarily
Page 106 of 159

mean that it will go bankrupt - as there are many ways to access financing - but it is definitely
not a good sign.
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to
turn its product into cash. Companies that have trouble getting paid on their receivables or have
long inventory turnover can run into liquidity problems because they are unable to alleviate their
obligations. Because business operations differ in each industry, it is always more useful to
compare companies within the same industry. This ratio is similar to the acid-test ratio except
that the acid-test ratio does not include inventory and pre-payments as assets that can be
liquidated.
The current ratio of Nippon Paints is 1.84 in 2013 which shows a good sign that the company
has Rs. 1.84 for every Rs. 1 obligation and it increased from the previous year which was 1.48 in
2012. This means that the firm has now more capability to pay off its debts as compared to the
last year it is at a satisfactory level because a current ratio of 1.5 is considered feasible.
Acid-Test Ratio/Quick Ratio:

Current Assets
(Inventories
2012
212,185,013 -
Prepayments)
Current
74,623,753
Liabilities
143,340,636
0.96
Current Assets
(Inventories
2013
303,582,963
Prepayments)
Current
61,255,364
Liabilities
164,742,622
Page 107 of 159
1.47
Quick Ratio
1.2
1
1.47
0.96
0.8
0.6
0.4
0.2
0
2012
2013
It is an inflexible indicator that determines whether a firm has enough short-term assets to cover
its immediate liabilities without selling inventory. The acid-test ratio is far more strenuous than
the working capital ratio, primarily because the working capital ratio allows for the inclusion of
inventory assets.
Companies with ratios of less than 1 cannot pay their current liabilities and should be looked at
with extreme caution. Furthermore, if the acid-test ratio is much lower than the working capital
ratio, it means current assets are highly dependent on inventory.
The term comes from the way gold miners would test whether their findings were real gold
nuggets. Unlike other metals, gold does not corrode in acid; if the nugget didn't dissolve when
submerged in acid, it was said to have passed the acid test. If a company's financial statements
pass the figurative acid test, this indicates its financial integrity.
The acid test ratio of Nippon Paints also increased from the previous year as the acid test ratio
was 0.96 in 2012 which is now increased to 1.47 in 2013.
Page 108 of 159
Cash Ratio:
Cash
Marketable
2012
Securities
Current
81874551
Liabilities
143,340,636
Cash
0.57
Marketable
2013
Securities
Current
166,671,827
Liabilities
164,742,622
1.01
Cash Ratio
1.2
1.01
1
0.8
0.6
0.57
0.4
0.2
2012
2013
Cash ratio is the ratio of a company's total cash and cash equivalents to its current liabilities. The
cash ratio is most commonly used as a measure of company liquidity. It can therefore determine
if, and how quickly, the company can repay its short-term debt. A strong cash ratio is useful to
Page 109 of 159

creditors when deciding how much debt, if any, they would be willing to extend to the asking
party.
The cash ratio is generally a more conservative look at a company's ability to cover its liabilities
than many other liquidity ratios. This is due to the fact that inventory and accounts receivable are
left out of the equation. Since these two accounts are a large part of many companies, this ratio
should not be used in determining company value, but simply as one factor in determining
liquidity.
The cash ratio of Nippon Paints has also increased this year because of the increase in the cash
and marketable securities amount.
Accounts Receivables Turnover Ratio:

Net
2012
Sales
Average
Credit
544,323,279
Net
Receivables
Net
2013
Sales
Average
7.80
69,814,098
Credit
626,263,417
Net
Receivables
137,952,351
Page 110 of 159
4.54
Account Receivables Turnover Ratio

8
7.8
7
6
5
4.54
4
3
2
1
0
2012
2013
Accounts receivables turnover ratio is an accounting measure used to quantify a firm's

effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an
activity ratio, measuring how efficiently a firm uses its assets. Some companies' reports will only
show sales - this can affect the ratio depending on the size of cash sales as in the case of Nippon
Paints here.
By maintaining accounts receivable, firms are indirectly extending interest-free loans to their
clients. A high ratio implies either that a company operates on a cash basis or that its extension of
credit and collection of accounts receivable is efficient. A low ratio implies the company should
re-assess its credit policies in order to ensure the timely collection of imparted credit that is not
earning interest for the firm.
Nippon Paints have a bad receivables turnover ratio this year which has been decreased from the
previous year from 7.80 to 4.54 this year. The low receivables turnover ratio indicates that the
firm is not doing well in the collection of accounts receivables against its credit sales.
Page 111 of 159
Average Collection Period:
Accounts
2012
Receivables x
69,814,098
365
Annual Credit
365
Sales
544,323,279
x
47 Days
Accounts
2013
Receivables x
137,952,351 x
365
Annual Credit
365
Sales
626,263,417
Page 112 of 159
80 Days
Average Collection Period

90
80
80
70
60
50
47
40
30
20
10
0
2012
2013
Average collection period is the approximate amount of time that it takes for a business to
receive payments owed, in terms of receivables, from its customers and clients.
Due to the size of transactions, most businesses allow customers to purchase goods or services
via credit, but one of the problems with extending credit is not knowing when the customer will
make cash payments. Therefore, possessing a lower average collection period is seen as optimal,
because this means that it does not take a company very long to turn its receivables into cash.
Ultimately, every business needs cash to pay off its own expenses (such as operating and
administrative expenses).
Nippon Paints average collection period also has a bad position this year which is 80 days. This
indicates that the company is now less efficient in collecting its receivables from the debtors.
Inventory Turnover Ratio:

Cost of Goods
2012
Sold
Average
435,324,447
Inventory
74,623,753
Page 113 of 159
5.84
Cost of Goods
2013
Sold
Average
500,718,126
Inventory
61,255,364
8.18
Inventory turnover Ratio
8
7
6
5
4
3
2
1
0
8.18
5.84
2012
2013
1
2
Inventory Turnover is a ratio showing how many times a company's inventory is sold and
replaced over a period of time.
This ratio should be compared against industry averages. A low turnover implies poor sales and,
therefore, excess inventory. A high ratio implies either strong sales or ineffective buying. High
inventory levels are unhealthy because they represent an investment with a rate of return of zero.
It also opens the company up to trouble should prices begin to fall.
Nippon Paints stock turnover ratio has a better position this year as the previous year. The
company has a very reasonable stock turnover ratio of 8.18 this year which means that the firm is
having good sales, the inventory does not stay much at the go downs, ineffective purchases are
rare and the inventory is turned over more than 8 times in a year.
Page 114 of 159
Average Inventory Conversion Period:

Inventory
2012
74,623,753x
365
Cost of Goods
365
Sold
435,324,447
Inventory
2013
63 Days
61,255,364
365
Cost of Goods
365
Sold
500,718,126
x
45 Days
Average Inventory Conversion Period

70
63
60
50
45
40
30
20
10
2013
2013
Inventory conversion period is the time period in which the inventory is sold and new ready-tosale inventory takes place. This ratio shows that how quickly the inventory is sold out and the
companys sales are how frequent. If the inventory conversion period is long, it means the stock
Page 115 of 159

takes much time to be sold and fresh stock takes place after a long time. And if the inventory
conversion period is short, it is in the favor of company and it means the stock gets sold out fast.
Nippon Paints has a reasonable inventory conversion period of 45 days and it is better than the
previous year. It shows that the sales of the company are constant and the inventory turnover is
completed in 45 days and several times in a year.
Asset Turnover Ratio:
2012
Net Sales
Total Assets
544,323,279
236,343,146
2.30
2013
Net Sales
Total Assets
626,263,417
333,536,164
1.88
Asset Turn Over Ratio

3
2.5
2.3
1.88
2
1.5
1
0.5
0
2012
2013
Page 116 of 159

Asset turnover ratio is the amount of sales generated for every dollar's worth of assets. It
measures a firm's efficiency at using its assets in generating sales or revenue, the higher the
number the better. It also indicates pricing strategy: companies with low profit margins tend to
have high asset turnover, while those with high profit margins have low asset turnover.
Nippon Paints asset turnover ratio is 1.88 in 2013 which is less than 2.30 in 2012. This decrease
is mainly due to the major change/increase in the total assets and not so much increase in the
total sales in result of the increase in the assets. The sales did not grow in accordance with the
increase in assets which ultimately caused the decrease in the asset turnover ratio.
Debt Ratio:
Total
2012
Liabilities
Total Assets
146,340,636
236,343,146
0.62
186,442,622
333,536,164
0.59
Total
2013
Liabilities
Total Assets
Debt ratio is a ratio that indicates what proportion of debt a company has relative to its assets.
The measure gives an idea to the leverage of the company along with the potential risks the
company faces in terms of its debt-load.
A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a
debt ratio of less than 1 indicates that a company has more assets than debt. Used in conjunction
with other measures of financial health, the debt ratio can help investors determine a company's
level of risk.
The debt ratio of Nippon Paints is 0.59 in the financial year 2013 and it was 0.62 in the financial
year 2012. The debt ratio has become favorable than the previous year.
Page 117 of 159
Debt/Equity Ratio:
Total
2012
Liabilities
Shareholders
146,340,636
Equity
49,613,700
2.95
Total
2013
Liabilities
Shareholders
186,442,622
Equity
94,613,700
1.97
Debt/Equity Ratio
3.5
3
2.95
2.5
1.97
2
1.5
1
0.5
0
1
2012
2013
Page 118 of 159

Debt/Equity ratio is a measure of a company's financial leverage calculated by dividing its total
liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is
using to finance its assets.
A high debt/equity ratio generally means that a company has been aggressive in financing its
growth with debt. This can result in volatile earnings as a result of the additional interest
expense. If a lot of debt is used to finance increased operations (high debt to equity), the
company could potentially generate more earnings than it would have without this outside
financing. If this were to increase earnings by a greater amount than the debt cost (interest), then
the shareholders benefit as more earnings are being spread among the same amount of
shareholders. However, the cost of this debt financing may outweigh the return that the company
generates on the debt through investment and business activities and become too much for the
company to handle. This can lead to bankruptcy, which would leave shareholders with nothing.
The debt/equity ratio also depends on the industry in which the company operates. For example,
capital-intensive industries such as auto manufacturing tend to have a debt/equity ratio above 2,
while personal computer companies have a debt/equity of under 0.5.
Debt/Equity ratio of Nippon Paints has been decreased from 2.95 to 1.97 in the financial year of
2013.
Net Working Capital Ratio:
Net
2012
Capital
Total Assets
Net
2013
Working
68,844,377
236,343,146
0.29
138,840,341
333,536,164
0.42
Working
Capital
Total Assets
Page 119 of 159
Net Working Capital Ratio
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
0.29
0.36
2012
2013
1
2
Net working capital ratio is a measure of both a company's efficiency and its short-term financial
health. Positive working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable to meet its shortterm liabilities with its current assets (cash, accounts receivable and inventory).
If a company's current assets do not exceed its current liabilities, then it may run into trouble
paying back creditors in the short term. The worst-case scenario is bankruptcy. A declining
working capital ratio over a longer time period could also be a red flag that warrants further
analysis. For example, it could be that the company's sales volumes are decreasing and, as a
result, its accounts receivables number continues to get smaller and smaller.
Working capital also gives investors an idea of the company's underlying operational efficiency.
Money that is tied up in inventory or money that customers still owe to the company cannot be
used to pay off any of the company's obligations. This can be seen by comparing the working
capital from one period to another; slow collection may signal an underlying problem in the
company's operations.
Nippon Paints has a good net working capital ratio as compared with that of 2012.
Page 120 of 159
Earnings per Share:
2012
2013
Net Earnings
Number
of
14,243,396
Shares
496,137
Net Earnings
Number
of
11,809,381
Shares
946,137
28.71
12.48
EPS
40
35
30
28.71
25
20
15
12.48
10
5
2012
2013
Earnings per share are the portion of a company's profit allocated to each outstanding share of
common stock. Earnings per share serve as an indicator of a company's profitability. When
calculating, it is more accurate to use a weighted average number of shares outstanding over the
reporting term, because the number of shares outstanding can change over time. However, data
Page 121 of 159

sources sometimes simplify the calculation by using the number of shares outstanding at the end
of the period.
Earnings per share are generally considered to be the single most important variable in
determining a share's price. It is also a major component used to calculate the price-to-earnings
valuation ratio.
An important aspect of EPS that's often ignored is the capital that is required to generate the
earnings (net income) in the calculation. Two companies could generate the same EPS number,
but one could do so with less equity (investment) - that company would be more efficient at
using its capital to generate income and, all other things being equal would be a "better"
company. Investors also need to be aware of earnings manipulation that will affect the quality of
the earnings number. It is important not to rely on any one financial measure, but to use it in
conjunction with statement analysis and other measures.
The earnings per share of Nippon Paints declined heavily in 1 year, it came to Rs. 12.48 from
Rs. 28.71 last year. This gigantic fall in the earnings per share of the company is due to the
issuance of new shares while the net profit remained same as previous year. But still its enough
amount as a dividend paid to the shareholders.
Page 122 of 159
SWOT Analysis
In this analysis, the whole organization is being squeezed into few words which can help it to
survive in this competent world.
Strengths
Strengths are those specialties that by availing them we can capitalize and have a result in the
form of profitability. Strengths are internal capabilities. The strengths of Nippon Paints are:
The old age name of the organization
The quality products
The bigger Govt. contractors
Satisfied old generation as the first manufacturers in the subcontinent
The environment policy and safety of health policies are extra-ordinary, it is a standard to
follow and no one can compete in this department with Nippon Paints.
Nippons first priority is the customer satisfaction and it is practicing well. The customer
satisfaction can be measure from the following practices:
Free color scheme advice to customers
Prompt feedback, if there is any complain from the customer.
Customer focus web site
talk about the quality of the products, Nippon is leading quality conscious
o
o
o
When
company in the field of paints.

High quality products manufactured by trained and professional employees.
Healthy and islamized work environment.
Good experience in field of paints manufacturing and export of products.
Page 123 of 159
Better future prospects of growth.
Weaknesses
No promotional activities
Low market share
High competition in the presence of foreign companies
Low and waiting production processes
The procedure of delivery is very complex for a customer to understand, theres need to
be simplified or modify.
No brand recognition.
No good marketing.
Opportunities
Nippon Paints has the vast range of opportunities to restructure itself as a competitive firm
given as:
To use their technology of paint research and develop new high-class paints used in local
industries
To have the good management in the organization having good benefits and rewards
They have a greater opportunity to expand its products all over the country because the
organized sector is producing only 20% of paint and remaining is being prepared by
mushroom sector.
Page 124 of 159
Nippon Paints have the past experience of exporting paints to Afghanistan, so by

improving the quality and standard they can again capture the market of these countries
again.
Nippon Paints can come into auto paints market due to their past experience and R&D
skills.
Nippon Paints can increase its sales by accelerating its marketing efforts.
Threats
The new emerging companies are prevailing the opportunities from those areas where
Nippon has lose control.
The competitors are using the better promotion skills, which help them to defend
against Nippon.
Huge job burden on the employees is de-motivating them and they just maintain their
existence in the factory.
Pakistan is a big country when we talk about population, and people here belong to
different status. From that point of view there is a lot of opportunity for ICI in
Pakistan.
The biggest threat to Nippon Paints is the political and economic instability of
Pakistan.
Page 125 of 159
TRAINING PROGRAMME
Learning as Internee
Nippon Paint Pakistan is a symbol of quality paints. ISO is something that is minimum quality
level for the business to maintain. There are some quality personnel working in Nippon Paint
Pakistan and I learned a lot for them. I am really thankful to Nippon Paint Pakistans Staff for
their kind support and guidance. That experience that I got from here will help me throughout
career.
During my internship at Nippon Paint Pakistan, I was assigned a job to learn and handle the
digital advertising dimension of their marketing campaign. The purpose of my work is to gauge
the performance of marketing efforts of Nippon Paint Pakistan. Everyone assisted me in my task
whenever I encountered any problem. Date wise detail of work done at Nippon Paint Pakistan
during my internship is as follows:
Date
30-Jun14
1-Jul-14
2-Jul-14
Day
Activity
Monday
Information gathering for internship report
Tuesday
Wednesda
Discussion with the brand manager

Discussion with the advertising agency
3-Jul-14
y
Thursday
4-Jul-14
Friday
Briefing the Brand manager the report
5-Jul-14
Saturday
Reviewing Nippon Paint Pakistan Facebook Page
6-Jul-14
Sunday
7-Jul-14
Monday
Updating the weekly Mometo sales report
8-Jul-14
Tuesday
Developing E-Commerce Plan for Nippon Paint
Developing digital traffic generation report
Page 126 of 159
9-Jul-14
10-Jul14
11-Jul14
12-Jul14
13-Jul14
14-Jul14
15-Jul14
16-Jul14
17-Jul14
18-Jul14
19-Jul14
20-Jul14
21-Jul14
22-Jul14
23-Jul14
24-Jul14
25-Jul14
26-Jul14
Wednesda
y
Thursday
Friday
Developing Ecommerce Feasibility and Execution Report

Briefing the Brand manager the reports
Reviewing Nippon Paint Pakistan Facebook Page and auditing out-ofHome advertising near defence chowk
Saturday
Updating the weekly Mometo sales report of all zones
Sunday
Monday
Updating CC Sales Report
Tuesday
Wednesda
Discussion with Brand Manager regarding Momento Advertising in
DHA
Reviewing and auditing Momento advertisements in DHA Y block, H
Thursday
Friday
Block, Phase 5 and Sui Gas Society

Saturday
Sunday
Monday
Tuesday
Wednesda
y
Thursday
Friday
Saturday

Monitoring, auditing and helping in putting up streamers in DHA Y
block, H block, Phase 5 and Sui Gas Society
Page 127 of 159

27-Jul14
28-Jul14
29-Jul14
30-Jul14
31-Jul14
1-Aug14
2-Aug14
3-Aug14
4-Aug14
5-Aug14
6-Aug14
7-Aug14
8-Aug14
9-Aug14
10-Aug14
11-Aug14
Sunday
Monday
Updating the weekly Mometo sales report of all zones
Tuesday
Eid Holiday
Wednesda
y
Eid Holiday
Thursday
Eid Holiday
Friday
Eid Holiday
Saturday
Sunday
Monday
Discussion with Brand Manager regarding Digital Advertising Plan
Tuesday
Wednesda
y
Thursday
Developing analysis of different Media Groups' monthly traffic,

audience behavior and CPM rates
Friday
Developing on full fledge Digital Advertising Plan
Saturday
Sunday
Monday
Briefing Brand Manager the Digital Advertising Plan
In short, the training program at NIPPON Paints was a wonderful and lifetime experience.
Everyone dealt with us politely, solved all the ambiguities and guided very clearly and
Page 128 of 159

efficiently. I learnt a lot from this about the corporate sector and how the business activities are
done at the large scale.
Following pages will contain the questionnaires and digital advertising plan developed by me
with the assistance of my manager. Survey report of questionnaire will highlight the findings of
my work. Questionnaire was targeted to general public.
Page 129 of 159
Digital Advertising Plan

As in the age of digital era, where every other individual possesses Laptop, PC or hand held
devices; one cannot deny the impact and influence these digital devices have in todays life. As
the world is moving towards fast paced digital age, so are the marketing practices. Where
conventional marketing practices still hold its position as the primary way to advertise the
products and brands, the emerging digital marketing and advertising is turning out to be quite
promising.
Objective
The sole objective of this advertising plan to create brand awareness and position brand in the
minds of the customer, the brand that we are going to be working on in this advertising plan
would be Nippon Paint Pakistan. While the Nippon Paint Pakistan is doing stupendous job in
Out-of-Home Advertising, it can reap more benefits by indulging in digital advertising.
The priority of this digital advertising campaign is to reach larger group of target audience as
much as possible while keeping in mind the budget at hand. The strategies suggested in this
advertising plan will help to create awareness about the brand among the masses, which will
eventually have positive impact on the sales.
Methods for Digital Advertising

Digital marketing can be done in plethora of ways but strategies that most of the advertising
agencies revolve around are stated as below:
1)
2)
3)
4)
5)
6)
Ad Placement on big media groups.

Google Adwords.
Sponsored Posts.
Social Media.
Apps.
Online Contests/ luck draws.
Almost all the advertising agencies rely on some of the above mentioned tools. It must be
remembered that it not the tools that really counts, what makes things more innovative, creative
and interactive is how you use and integrate these tools with your environment and opportunities.
Page 130 of 159
Characteristics of Digital Advertising Plan

TARGET AUDIENCE
The target audience of Nippon digital advertising Plan is educated adults, either salaried or
businessmen, who spend who regularly spent their time interacting with the social media and
online media groups more than a typical person.
SEGMENTATION
- Demographics: As this plan is for Nippon Paint Pakistan, so our focus will only be on
-
the domestic masses.

Age: The age group for this plan would be 28 years and above because by the age of 28
most of the people have decision making and purchasing power.

Occupation: People belonging to Government, Semi-Government institutes, working in
multi-nationals and corporate sector.

Income: Income ranging from 40,000-1, 00,000.
Gender: Both Male and Female.
The time duration for this plan will be of 7 days with the budget of Rs. 25,000.
Operational Aspect o f the Plan

Now there are tons of ways for digital advertising but given the budget and target audience we
have decided to apply the following tools.
Ad Placement: Ad Placement provides us with the best match for our target audience as people
visiting the sites of big media groups share the same characteristics as our target audience. For
ad placement we have decided following 2 media groups.
-
Dawn.com
Tribune.com.pk
Social Media: In case of social media we have selected Facebook and we will be spending the
given budget to get as many likes to Nippon Facebook page as possible.
Online Contest: Some of the money will be allocated to the online contest.
Google Adwords: And lastly we will be taking advantage of Google Search Engine by
allocating some of the budget to the Google Adword.
All of the above 4 methods will be discussed in detail with justification in the Marketing Aspect
of the Digital Plan.
Page 131 of 159
Marketing Aspect of the Plan

Given below are the reasons, justifications and benefits Nippon will be able to achieve in the
span of 7 days by applying above mentioned digital advertising methods.
AD PLACEMENT
First up Ad Placement, for Ad Placement we have decided to put up Nippon Ads on the Big
Media groups because they provide with the best possible match between the our target audience
and the people visiting big media groups sites.
Media Groups
The media groups available at our disposal are as follows:
1)
2)
3)
4)
Dawn
Express tribune
The news
Business Recorder
Media Group Selected

For the given budget we have selected Dawn.com (for regular ads) and Express Tribune (For
Rich Media ads)
Reasons
When we were selecting the media group, we took into consideration following factors.
-
Pageviews per month

Types of Ads available
Cost of Ads
Dawn Pageviews per month = 25 million
Ad Units
Leader board (Top)
Medium Rectangle
Box)
Leader board (Bottom)
Big Box II
Size (in pixels)

728x90 pixels
(Big 300x250 pixels
Local
ROS
$2.30
$2.30
Homepage
$4.60
$4.60
728x90 pixels
300x250 pixels
$0.86
$1.43
$1.72
$2.87
Page 132 of 159
Express Tribune Pageviews per month = 6.5 million
-----------------------------------------------------------------------------------------------------------------------------Business Recorder Pageview per month = 1.2 million

Ad Units
Leader Board
Medium Rectangle
Sky Scrapper
Ear Panel
Standard Banner
Half Banner Fixed
Size in pixels
728 x 90
300 x 250
160 x 600
250 x 90
468 x 60
300 x 60
CPM Rates ($)

4
4
3
1500/month
850/month
1000/month
-----------------------------------------------------------------------------------------------------------------------------The News (Jang group) Pageview per month = 3.7 million
Page 133 of 159
All the rates are charged on CPM (cost per thousand impressions) basis and not on CPC.
Audience
Readers are mostly educated, affluent and influential.
They from across the country and around the globe are students, travelers,
business decision makers, opinion leaders and influential consumers more
so than the typical online user. They need to know up-to-the-minute world
news and information to make key decisions about business and life.
Readers are active and engaged web users, people who come to Media
Groups sites for more than just the latest headlines. They update and followup with the series of our experts opinion by our columnists, with our editorial
experts and with each other.
-
Mostly male
In the 22-30 age group
Have at least a Bachelors degree
Spend between 1 to 3 hours on the internet in an average day

Page 134 of 159

-
Most of them earn more than Rs.100k/month
Active Hours
Time
Level of Engagement
10am 3pm
3pm 6pm
6pm onwards
High
level
engagement
Medium
level
engagement
Low
Level
engagement
How to Execute
Given the stats above, we came to realize that Dawn had the most pageviews per month followed
by Express Tribune, Business Recorder and The News.
Now given the pageviews and rates there was no problem in selecting Dawn the problem lied
when selecting between Express Tribune, Business Recorder and The News.
Given the bad publicity Jang Group had gone through in the last few months, selecting it was out
of the equation. That leads to the remaining 2 Media Groups, Express and Business Recorder.
Comparison Between Express Tribune and Business Recorder
Media Group
Pageviews
Rates for Regular Availability of Rich Media
Express Tribune
Business
6.5 million
1.2 million
Ads
$5
$4
Ads
Yes
No
Recorder
In terms of Rates and Pageview there was a significant difference between the two of the Media
Groups and the difference also lied in the types of Ads available, for Business Recorder there
were the no Rich Media Ads available.
The table above clearly shows that selecting Express Tribune can be more fruitful as it
provides interactive Rich Media Ads plus possesses higher pageviews.
Page 135 of 159
Dawn Ad Placement Plan
Express Tribune Ad Placement Plan
Benefits
The above Ad Placements will provide with over 21,000 reach in 7 days and the Ads that will
show up in these Ad Placements will be regarding the Nippon products, specifically regarding
Momento and if the user clicks on the Ad they will be redirected to Nippon Paint Pakistan
Products Page, making the aware of Nippons products and positioning it in their minds.
SOCIAL MEDIA
Social Media provides more innovative and interacting opportunities to attract rather younger
audience. While the Ad Placements on Media Groups will reach out to the Adults in the 40s,
advertising on Social Media will reach out to the Young Adults.
Social Media Available

Page 136 of 159

1)
2)
3)
4)
5)
Facebook
Twitter
Google+
Pinterest
Tumbler
Social Media Selected

For our Advertising Plan we have selected Facebook as the primary source to reach out to the
younger audience.
Reasons
The reason for selecting Facebook over Twitter and Google+ is that over 10 million Pakistanis
are the active users of the Facebook as of Sept, 2013 and as we speak millions of other
Pakistanis are signing up on Facebook.
And out of these 10 million almost 27% of them lie between the age of 25- 34 years followed by
6% in the age group of 35 44 years, which matches perfectly with our target age of 28 years
and above, providing us with total of 33% of the entire Pakistani population on Facebook which
is a huge number.
Active Hours
Time
Age Group
25 34 years
35 44 years
Level of Engagement
Low Level Engagement
Medium Level Engagement
3pm 6pm
25 34 years
35 44 years

Low Level Engagement
6pm onwards
25 34 years
35 44 years
High Level Engagement

10am 3pm
How to Execute
Page 137 of 159
Facebook advertising will be executed in a manner that will render maximum likes to the Nippon
facebook page. The allocated budget will not be used to boost posts or TVCs, it will only be used
to promote the brand page for 5 days with the help of Facebook Ads.
Benefits
The Facebook advertising campaign will go on for 5 days will provide with estimated 1250 likes.
Now this may seem little expensive to spend this much money only for 1250 likes given the
small budget, but the benefits these 1250 likes will provide are as under:
-
All of these likes will be targeted.
Page 138 of 159

-
People who will like the Nippon page, their friends will also be able to
see that their friend has liked Nippon Page, leading to more targeted
likes.
People who will like the page will be able to see latest posts, TVCs and
other stuff in their news feedback which will increase interaction and
brand positioning.
Through facebook advertising Nippon will be able to create long term
relationship with its fans.
ONLINE CONTEST
Another way to attract more audience and create brand awareness is through contests and lucky
draws. Contests and lucky draws are exciting yet an effective way to gain peoples attraction. It
provides equal opportunity to all the people who participate in it while at the same time creating
buzz in the market.
Audience
All those people carrying medium to high end smartphones and tablets will be able to participate
in the contest.
How to Execute
This contest will take advantage of Nippon recently developed app called Nippon Paint Color
Creations to leverage its brand name. Following are the steps on how the contest will work:
-
First people will have to download the Nippon Paint Color Creations
app.
Then they will take a picture of their house or room and color it with
the help of that app.

Take a screenshot of their newly colored house or room and post the
image on Nippon Paint Pakistans facebook Page.

The picture with the most likes will win the contest and as a reward
they will get iPod Shuffle 2Gb.
Benefits
The benefits that this contest will be able to reap are as follows:
Page 139 of 159

-
With the help of this contest more and more people will download the
Nippon Paint app.

Using the Nippon Paint products in the app will provide users with
product awareness.
People who will upload photos on Nippon Paint Pakistan will definitely
spread their photo among their friends and family members to get
maximum likes. As a result more and more will get to know the brand.
This might also trigger bandwagon effect, leading to more and more
people liking Nippon Paint Pakistans page and getting engaged in the
contest.
Online contest will allow for the integration of Nippon Facebook page
and app.
Contest will allow for high level of engagement between the brand and
its users.
ADWORDS
Adwords provides advertiser to the display their ads on both Google Search Engine and on the
websites that use Google Adsense. The Adwords allows the advertisers to bid on the keywords
and then when some searches for that keyword, the advertisers ads show on both Google and on
other websites.
Audience
In case of Adwords, the audience that we will be focusing on is the people who actively search
and look for interior designs to renovate their houses. By showing Nippon Paint Pakistan Ads to
the people who are already interested in renovating their houses will help leverage the brand.
How to Execute
Adwords allows place bids along with setting up daily budget, keywords and other filtering
options. For the Nippon digital advertising plan we will be focusing on only one keyword due to
limited budget. The keyword we will be bidding for is:
-
Interior Designing
But because people in Pakistan barely use Google search engine when it comes to house paints
and wall paints, we wont be spending too much on Google Adwords.
Page 140 of 159

Given below is the screen of Google Adword showing the estimated impressions along with
amounts for bid and daily budget.
Benefits
With just a small amount of budget allocated to the Google Adwords, we will be anle to generate
2000 impressions and estimated 27 clicks and all the ads showing up on Google will lead to
Nippon Paint Pakistans product page so that those who are already interested in interior
designing call take benefit of Nippons products such as Momento, Weatherbond etc
Financial Aspect of the Plan

The financial aspect of the digital advertising plan deals with the overall budgeting of the plan. It
deals with how much money was spent of Ad Placements, online contest, Google Adwords and
Facebook advertising.
Page 141 of 159
PER DAY COST AND IMPRESSIONS

Site
Regio
Ad Units
Cost
Placement
(PKR)
Est.
Impressio
n
an
728 x 90
728 x 90
300 x 250
Express
Pakist
728 x 90 Rich
Tribune
an
Media Ad
Home Page Top
800
1000
Facebook ads
714
250
714
Dawn.com
Pakist
Home Page Top

ROS Top
ROS
460
230
230
3000
Pakist
Facebook
an
Online
Pakist
Contest
an
Adwords
Pakist
Display
On
Page
and On Google and 214
an
Search Ads
TOTAL COST AND IMPRESSIONS
total
Site
Regio
n
Dawn.co
Pakist
an
Placement
Date
728 x 90
728 x 90
300 x 250
Est. 5250
2648
Impress Cost
ion
7 Home Page Top

ROS Top
days
ROS
for
21,000
644
0
90
Express
Pakist
Rich
Tribune
an
Ad
days
Pakist
Facebook
for
Facebook
an
ads
days
Online
Pakist
Contest
an
Pakist
Display
an
Search Ads Page

days
other sites
142 of 159
Adwords
286
other sites
Run
Ad Units
728
Facebook
Media for
for
days
and for
560
Home Page Top
7000
0
500
7 On
1250
Facebook
Page
0
600
5000
7 On Google and
0
149
2000
8
245
total
36,250
38

*Remaining Rs. 462 will be used for the miscellaneous purposes such as taxes in purchasing
Google Adwords and Facebook Credits.
The Share of Voice (SOV) on Ad Placements in Dawn and Express Tribune, Facebook Page likes
and Adword Impressions can be increased with the increase in budget.
Page 143 of 159
General Consumer Questionnaire

This survey is conducted to gauge the effectiveness of marketing efforts of Nippon Paints. Your
participation will be highly appreciated.
Age: _____
Gender: _________
Area: ________
Q1: Do you recognize this logo?
Yes
No
Q2: How you came to know about us?
Broadcast
Media
Print Media
Nawa-i-Waqt
Jang
Akhbar-e-Jahan
Tv
Family mag
Outdoor Media
Billboards
Hoardings
Transit Adv.
Posters
Word Of Mouth
Relative
Friend
Other
Ary
Geo
Q3: Have you ever seen Nippon Paints advertisement?
Yes
No
Q4: What kind of impact our advertisements have on you?
Positive : _________________________________
Negative :_________________________________
No impact
Q5: Which of the following magazines do you read?
Akhbar-e-Jahan
Mag, the weekly
Aurora
Family magazine
Others Specify_____
Q6: Which newspaper do you read?

Page 144 of 159
Hum
Dunya
Nawa-i-waqt
Jang
Daily Express
Dawn
Other _____
Q7: Your purchase decision is based on
Product (Brand conscious, features, quality)

Price (Are you price conscious?)
Place (Availability)
Promotion ( Discounts, campaigns)
Q8: Household decisions such as deciding wall paints are made by

Male
Female
Children
Joint
Q9: Do you know about the International Quality Crown Award?
Yes
No
What do you say about it?
Q10: Please rate the current progress of advertising efforts of Nippon Paints.
Very effective
Good
Average
Ineffective
Q11: How often do you visit airport?
Very rarely
Rarely
Often
Very often
Page 145 of 159

Q12: Have you noticed anything related to Nippon Paints at the arrival lounge?
Yes (Specify________________________________________)
No
Q13: Have you ever tried to match your wall paints with your sofa, curtains etc?
Yes
No
Q14: If yes, did you search for the shades you are looking for?
Yes
No
Q15: Did you find that color?
Yes
No
Q16: Have you ever heard about or experienced the ALL COLORS scheme launched by
Nippon Paints providing more than 3000 shades?
Yes, know it very well.

Have a vague idea.
No, never heard about it.
Q17: How do you perceive Tokens?
Q18: Do you think Tokens ensure originality through secure code?

Strongly disagree Disagree
Neutral
Agree
Strongly Agree
Q19: Please give your valuable remarks about Nippon Paints.
(Thank you for your cooperation)
Page 146 of 159
Survey Report
Total respondents were 263.
Q1: Do you recognize this logo?
Yes; 31%
No; 69%
Q2: How you came to know about Nippon Paints?
Page 147 of 159
Others; 10%
Broadcast Media; 34%
Word of mouth; 30%
Print media; 14%

Outdoor media; 12%
Broadcast Media Vehciles
Dunya tv; 44%
Geo; 44%
Hum tv; 2% Ary; 10%
Page 148 of 159
Print Media Vehicles
Nawa-i-waqt; 9%
Family Mag; 19%
Akhbar e Jahan; 29%
Jang; 42%
Q3: Have you ever seen Nippon Paints advertisement?
No; 41%
Yes; 59%
Page 149 of 159
Q4: What kind of impact its advertisement has on you?
Positive; 32%
No Impact; 64%
Negative; 4%
Q5: Which of the following magazines do you read?
Page 150 of 159
Others; 13%
Akhbar e Jahan; 28%
Family Magazine; 26%
Mag,the weekly; 20%

Aurora; 13%
Q6: Which newspaper do you read?
Others; 9%
Nawa-i-waqt; 21%
Dawn; 15%
Daily Express; 15%

Jang; 40%
Page 151 of 159

Q7: Your purchase decision is based on:
Promotion; 13%
Place; 11%
Product; 40%
Price; 36%
Q8: Household decisions such as deciding wall paints are made by
Page 152 of 159
Joint; 36%
Children; 11%
Male; 36%
Female; 17%
Q9: Do you know about International Quality Crown Award?
Yes; 17%
No; 83%
Q10: Please rate the current advertising efforts of Nippon Paints.
Page 153 of 159
Very effective; 5%
Ineffective; 22%
Good; 27%
Average; 46%
Q11: How often do you visit airport?
Very often; 14%

Very rarely; 24%
Often; 25%
Rarely; 37%
Q12: Have you noticed anything related to Nippon Paints at the arrival lounge?
Page 154 of 159
Yes; 8%
No; 92%
Q13: Have you ever tried to match your wall paints with your furniture?
No; 22%
Yes; 78%
Q14: If yes, did you search for the shades you are looking for?
Page 155 of 159
No; 15%
Yes; 85%
Q15: Did you find that color?
No; 19%
Yes; 81%
Page 156 of 159

Q16: Have you ever heard about ALL COLOR schemes of Nippon Paints?
Yes, know it very well.; 12%
Have a vague idea; 27%

No, never heard about it.; 61%
Q17: Do you think tokens ensure originality through secure code?
Strongly Agree; 4%
Strongly disagree; 15%
Agree; 31%
Disagree; 31%
Neutral; 19%
Page 157 of 159
Conclusion
Nippon Paints Limited is the largest manufacturer of a wide variety of decorative and industries
paint in Pakistan. Nippon paints aims to delight and inspire customers to transform their
surroundings at home and work with performance products and colors. With some of the
Pakistans top paint and decorative product brands, serving both the professional and DIY
markets, Nippon Paints has products to prepare and care for all building materials.
At Nippon they believe that their job does not stop at merely supplying the paints. This is
important to them as it is to the user that good results should be obtained from their products. We
set great value to their technical Service Department, which is staffed by individuals of wide
practical experience in the use of paint under all conditions. This experience is readily available
to paint users requiring advice and assistance in the choice of paint to the preparation of painting
specifications.
Their products are based on continuous research and product development carried out by their
R&D Department. ICI is employing and putting into use best available technology in the world
for their users.
Nippon paints has a very bright future in spite of the fact that it has a large number of local and
foreign competitors. It can improve its operations and increase its sales in the coming time as
people are becoming more conscious about the brand and quality of the products and better
performance of the paint.
Nippon Paints has a very friendly and Islamized environment that enriches the mind and soul at
the job and urges the employees to work honestly. The owners of the company are not greedy of
profit and money.
Nippon paints is a proud product manufactured in Pakistan which is total quality based and it has
very good options to expand and progress in the future.
Page 158 of 159
Recommendations
In the end, I would like to recommend some suggestions for the betterment, growth and
improved business activities of Nippon paints.
Nippon paints, without any doubt, is a high quality brand in the paints industry of
Pakistan, it must have some long term growth plans and strategies to achieve them.
The employees should be given to time for the entertainment activities for they could be
relaxed and perform their job with open heart as there is very conservative environment.
The job timing is lengthy and tiresome. It should be minimized to get the maximum
output from the employees.

Nippon should focus on its marketing department and the distribution system should be
improved.
It must start an attractive promotion and advertisement campaign in order to better
familiarize the product among mass.

It must also improve its website and online sales & services system must be established.
It should improve its production procedure and reduce the wastage of resources and raw
material.
Keeping in hand the competitive advantage, it should improve those qualities for which it
is best among other paints companies.

Nippon paints is currently exporting its products to Afghanistan, it should increase its
export by exporting the quality products to other countries as well.

It must keep an eye on its competitors and devise the plans to tackle them effectively and
efficiently.
It should increase its market from Punjab to all over Pakistan and increase its distribution
offices and establish new ones in the far areas.

It must establish its distributors in almost every city of Pakistan, this will help promote
and distribute the products at national level.
Page 159 of 159

Nippon Final Report

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Nippon Paint (Pvt) Ltd.

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Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

NIPPON PAINT (PVT.)

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint Pakistan (Pvt)

Nippon Paint (Pvt) Ltd.

Legal Status And Nature Of Business

Nippon Paint (Pvt) Ltd.

Vision & Mission

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Organizational Chart of the Governing Body

M M M a aD DC n an i hGiarnar ei eg age c cengf t t reo o r r a l

Nippon Paint (Pvt) Ltd.

Employees/personnel in Various Sections:

Kh. Ejaz Ahmed Sikka

Ch. Mohammad Sarfraz

Manager R&D And Q&C

Nippon Paint (Pvt) Ltd.

Asst. Dispatch Manager

Regional Manager Sales

Nippon Paint (Pvt) Ltd.

Lunch Subsidy & Mess System:

Nippon Paint (Pvt) Ltd.

Laboratories, R&D and Quality Control

Nippon Paint (Pvt) Ltd.

Sales & Marketing

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Paint Manufacturing Process

Dispatch & Delivery

Nippon Paint (Pvt) Ltd.

Major Raw Material for Paint

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

depending on surface texture, substrate porosity and method of application.

Interior Previously Painted Surfaces

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

NIPPON 5101 ODOUR-LESS SEALER

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

NIPPON EXPRESSKOTE SEALER

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

WOOD AND METAL PAINT

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

NIPPON AQUA BODELAC

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

Nippon Paint (Pvt) Ltd.

NIPPON BODELAC 9000 ALKYD RESIN ENAMEL

Nippon Paint (Pvt) Ltd.