Sattva Paints & Blends – Feasibility Study

Submitted to:
Dr. Minu Mehta

Submitted By:
Batch 3, Group 30

Pranitha Deverachetty C034

Elvia Vargheese A016
Shrushti Mehta H038
Vinpreet Narula C061
Shivam Murarka I033
Vidit Khemani 1043
 INDEX

Sr No. Topic Page No.

1 Problem Statement & Description 3

2 Solution Statement & Characteristics 3

3 Elevator Pitch & Ideation 5

4 Analysis of Pilot Study 6

5 Industry Analysis 11

6 Porter’s 5 forces Model 11

7 Stakeholder Analysis 14

8 Mendelow’s Matrix 15

9 Competitor’s Analysis 17

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Problem Statement:
The conventional use of chemical paints emits malodorous and toxic fumes that degrade breathable
air quality and pose health risks to occupants.

Problem Description:
The widespread use of chemical paints in indoor environments introduces harmful volatile organic
compounds (VOCs) and noxious odors, contributing to poor indoor air quality and potential health
hazards. These chemicals can exacerbate respiratory issues, trigger allergic reactions, and have
long-term adverse effects on human health and the environment.

Furthermore, the manufacturing and disposal of conventional paints contribute to pollution and
environmental degradation. The extraction of raw materials, production processes, and disposal of
paint residues result in significant carbon emissions and chemical waste.

Addressing these challenges requires innovative formulations, rigorous testing, and consideration
of factors such as material sourcing, production scalability, and end-of-life disposal. We need to
provide a viable solution that enhances indoor air quality, promotes environmental sustainability,
and supports healthier living environments for all.

Solution Statement:
A paint solution that effectively neutralizes odors, maintains indoor air quality, and provides a
durable, aesthetically pleasing coating, while also ensuring sustainable sourcing processes.

Characteristics of the solution:

Eco-friendly paints made from cow manure offer a unique and sustainable alternative to traditional
paints, boasting several remarkable characteristics.

Odorless: These paints are crafted to be completely odorless, providing a pleasant painting
experience without the harsh chemical smells often associated with conventional paints.

Cooling Effect in Homes: One of the standout features is their ability to have a cooling effect on
homes. The composition of cow manure-based paints helps regulate temperature, contributing to
a more comfortable and energy-efficient living space.

Eco-friendly: True to their name, these paints are environmentally friendly. Utilizing cow manure
as a base material reduces the reliance on harmful synthetic ingredients, making them a greener
choice for eco-conscious consumers.

Non-toxic: Safety is paramount, and these paints prioritize it by being non-toxic. Families and
individuals can enjoy a healthier indoor environment without exposure to harmful chemicals often
found in traditional paint formulations.

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Affordable: Offering an economical option, cow manure-based paints are accessible to more
consumers. This affordability enhances their appeal and promotes a more widespread adoption of
sustainable practices in home improvement.

Anti-fungal Properties: Another advantage is their inherent anti-fungal properties. These paints
help inhibit the growth of mold and fungi on surfaces, contributing to a cleaner and healthier living
space.

Additional Source of Income for Local Farmers: In a unique economic twist, these eco-friendly
paints also serve as an additional source of income for local farmers. By sourcing cow dung
directly from farmers, the production of these paints establishes a sustainable and mutually
beneficial relationship, fostering economic growth in local communities while promoting
environmentally conscious practices.

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Elevator Pitch:
Introducing our revolutionary eco-friendly paints derived from cow manure, a game-changer in
the world of sustainable home improvement. Imagine a paint that's not only odorless but also
brings a natural cooling effect to your home, creating a comfortable and eco-conscious living
space. Our non-toxic formula ensures a safe environment for your family while being affordable
for all. But that's not all – these paints boast anti-fungal properties, keeping your walls clean and
healthy. What sets us apart even further is our commitment to local farmers, as we source cow
dung directly from them, providing an additional source of income. Embrace a greener, cooler,
and economically empowering choice for your home with our innovative cow manure paints.

Ideation:
The idea of natural paints stemmed from hearing concerns of a group member who were worried
about the impact of conventional paints on their family’s health, especially children and
grandparents. Existing alternatives were either limited or expensive, prompting the exploration of
more sustainable options. Through our research we came across the possibility of manufacturing
paint using cow manure. This innovation not only provides an eco-friendly solution but also taps
into a growing market segment with the highest compound annual growth rate (CAGR) within the
paint industry.

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Analysis of the Pilot Study:

We ran a pilot study to collect data regarding awareness of cow manure paints and to gauge the
consumer demand for an environment-friendly alternative to traditional paints.

Figure 1

For the age group of our pilot study, we tried to get an equal split of our current potential customers,
who are the current decision-makers while getting their houses repainted i.e. people of ages from
30 to 60 and our future potential customers i.e. people currently of ages from 18 to 25.

Figure 2

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 Figure 3

From the next two questions, we understood that the majority of our respondents were aware of
the detrimental health effects the chemicals found in the paints had on them during the painting
process and were consequently willing to try an environmental-friendly alternative.

Figure 4

However, the concern here was that a lesser majority had not even heard of paints made from
organic materials. Thus, the conclusion here is that heavy marketing will have to be done to first
spread awareness of this new product and create a market for it.

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 Figure 5

Next, we tried to understand the various problems people faced that we will try to solve with our
solution product. The conclusion here is that people do indeed face problems during the painting
process as only one respondent answered with ‘none’. Most of these problems will be solved with
the cow manure paint we will produce. Additionally, we found out that for the option ‘time taken
to dry’ was a concern not because of the lengthy drying process but due to the fact that for the
length of the drying process, they would have to lock up the room or house and temporarily live
elsewhere.

Figure 6

The insights here are that potential consumers are majorly concerned about the price, odor, quality,
availability of colors, and lasting ability of the paint. This will be solved using informative
marketing, where potential buyers will be educated that paint made from cow manure will maintain

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all industry standards and quality levels of traditional paints, will be provided in a variety of shades,
and will not give off any odor.

Figure 7

From the above diagram we can gauge the potential demand and willingness of customers to try a
new brand of paint, that is if they know which brand of paint is actually being used. Understanding
the motivations behind consumers' willingness to adopt a new brand of paint allows companies to
tailor their marketing strategies to align with these preferences.

Figure 8

The insight that we gain from the above is the price point that consumers are comfortable with and
are willing to pay for chemical paints. Since we want to position ourselves as a premium brand in
the minds of the people, we will be able to provide our organically sourced paint at a competitive
price in the range of 400-600 rupees at a small scale.

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 Figure 9

As we can see, consumers have high preference regarding organic paints and our company will
provide solutions that are 100% organic as well as 90%+ organic with a surety of being organically
sourced. The preference for using organic paint over chemical paint reflects a growing awareness
and concern among individuals for both environmental sustainability and personal health. This
shift in consumer behavior is driven by several factors, each contributing to a collective desire for
more eco-friendly and health-conscious choices.

One change that we made to our original plan due to the pilot study was that we decided to focus
more on the aggregators that are involved in the middle rather than the end consumers because
more often than not they are not the decision makers in the house paints scenario.

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Industry Analysis

The nascent organic paint industry in India offers a promising yet challenging landscape.
Established conventional paint brands cast a shadow, but the organic market presents an
opportunity for differentiation. Low consumer awareness necessitates efforts to create new
demand or capture existing market share.

The supplier base is divided. Cow-manure suppliers have low bargaining power due to their
fragmented nature, while chemical-based suppliers face competition from a diverse domestic
market. Distribution stakeholders hold significant influence, while individual consumers have
limited power. Entering the market requires overcoming technological hurdles and established
giants. However, government initiatives promoting sustainability and rising consumer awareness
create a potential pull for new entrants. The biggest threat comes from substitutes, both
conventional paints and emerging organic alternatives. This highlights the need for continuous
innovation and clear differentiation for organic paint companies to succeed.

Understanding the market landscape and consumer preferences is crucial for companies to develop
effective strategies, navigate challenges, and capitalize on the growing demand for sustainable
solutions.

Porter’s 5 Force Analysis

Porter's Five Forces dissect an industry's competitive landscape. It analyses bargaining power of
buyers and suppliers, threat of new entrants and substitutes, and competitive rivalry, revealing
industry profitability and strategic pathways.

Given below is a detailed industry Analysis, from the lenses of Porter’s 5 forces, of the Organic
Paint Industry in India.

Rivalry among existing players: Moderate to High

Rivalry in Porter's Five Forces assesses how existing players compete, impacting industry
profitability. Intense rivalry, marked by price wars, advertising battles, and innovation, can
squeeze profits. Factors like market structure, market demand, and diversity amongst the
competitors influence its degree of intensity.

· Market Structure: The current market structure of the Organic paints market in India is
Oligopoly structure. There are limited players, offering their products with differentiated
philosophies. This contributes to making the industry rivalry-competitive

· Market Demand: The overall market is at a nascent stage, with a low consumer
awareness and use of product, compared to the artificial paint industry. The problem is
not of a lack of demand, but rather a lack of awareness of the demand overall.

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 Hence there is a low-rising demand overall. This presents two options to the players.
Either to create new demand for the product, or to capture the competitors market share
aggressively. There overall remains little unfulfilled demand

· Diversity: For the organic paints market, specifically in the cow-manure paints market,
since the market is relatively quite nascent currently, the core selling point of almost all
players in the cow-manure element. Hence, a low diversity.

Bargaining power of Suppliers: Low to Moderate

In Porter's Five Forces, supplier power refers to their ability to influence the industry's profitability.
Strong suppliers can command higher prices, limit product availability, or reduce quality. Factors
like few suppliers, unique offerings, and high switching costs raise their power, impacting a buyer's
ability to negotiate favourable terms. Suppliers in the Organic paints market can be divided into
two halves.

· Cow-manure suppliers: This line of suppliers have a low bargaining power, owing to the
diverse fragmentation, and lack of corporation structure.

· Chemical-based suppliers: Thes supplying players, although managed and run in an

organised fashion, provide quite a diverse market to the paint manufacturers, reducing
their bargaining power significantly. Leading players like BASF, Dow, DuPont, and
Clariant hold a significant share in key segments like pigments and resins, but there are a
significant number of domestic and regional players, providing supply lines to the
industry.

Bargaining power of Buyers: Moderate

In Porter's Five Forces, buyer bargaining power reflects the ability of customers to influence
sellers. Strong buyers can demand lower prices, better quality, and more services, squeezing
profitability. Factors like concentrated buyers, high purchase volumes, and readily available
substitutes elevate buyer power, making the industry less attractive for sellers. Buyers in the
Organic paints market can again be divided into two halves.

· Distribution stakeholders:(Distributers, wholesalers, and retailers) In the paints

industry, this segment plays a significant role, since it is this leg of the business which
influences the decision making of the consumer. And, although fragmented in number
and structure, this segment of buyers has a significant bargaining power, majorly because
of the degree of control that each individual involved exercises.

· The Ultimate consumer: This second, but the actual buyer, is the ultimate consumer. The
ultimate consumer here, like also in the case of majority mass brands, have an
insignificant bargaining power.

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Threat of new entrants: Moderate

The threat of new entrants in Porter's Five Forces assesses the ease with which new competitors
can enter an industry and challenge existing firms. High barriers like brand loyalty, high capital
requirements, or complex regulations deter new entrants, protecting profitability. Conversely, low
barriers invite competition, potentially squeezing profits and market share for established players.
Understanding this threat helps businesses develop strategies to maintain a competitive edge.

The business of organic paints sticks on the logic of technology. If a company has the tech, they
have the power, they have a business. The development of tech, in its essence, is the limiting factor
for any new entrant in this market. This combined with the shadows of giants like Asian Paints
and Nerolac creates a significant hesitation in the entrant’s mind, about the entry.

But, at the same time, the push of government and its infrastructure into the organic, and cow-
manure market, combined with the growing realizations of sustainability, ayurveda, etc, creates a
significantly attractive market for new entrants to capture the space

Threat of Substitutes: High

The threat of substitutes in Porter's five forces analyses how alternative products or services, from
different industries, can impact an industry's profitability. It considers factors like price,
performance, and switching costs to assess how readily buyers can shift, potentially limiting the
industry's pricing power and profit potential.

As mentioned earlier, the organic Paints market is at a significantly nascent stage, inviting
consequential hesitation from the buyers. This hesitation is the slippery slope, which makes the
treat of substitutes significant.

Sitting atop, afar, in the industry, are the players of artificial paints, posing the most influential
substitute for a cow-manure based paint. But, along with it, are also a continuous stream of
innovations into the industry of organic paints, creating organic paints, sourced from other forms
of natural substances, such as fruit peels. They pose the most significant threat, as far as the core
idea of our business is concerned.

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Stakeholders Identification

1. Internal Stakeholders:

○ Employees: The company's workforce, including those involved in production,

research and development, marketing, and sales.
○ Management: The team responsible for decision-making, strategy formulation,
and company leadership.

2. External Stakeholders:

○ Customers: Individuals, businesses, and organizations seeking eco-friendly and

non-toxic paint options. These can be divided into further sub-groups based on
demographics, needs, and usage patterns.
○ Competitors: Established paint companies like Asian Paints, Nerolac Paints, Nilaya
Paints, Prakritik Paints, and others. Existing and potential competitors in the eco-
friendly paint space should be considered.
○ Suppliers: Providers of essential resources like cow manure, natural pigments,
manufacturing equipment, and other raw materials. Understanding their capabilities
and potential risks is crucial.
○ Investors: Individuals or organizations providing financial resources for the
company's growth and development. Different types of investors may have varying
expectations and risk tolerance.
○ Government: Regulatory bodies responsible for environmental standards, product
safety, and business regulations. Their regulations and policies can significantly
impact the company's operations.
○ Environmental groups: Organizations advocating for sustainable practices,
environmental protection, and responsible waste management. Building
relationships with them can enhance company image and credibility.
○ Media: Journalists, bloggers, and other media representatives who can influence
public perception of the company and its products.

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Mendelow’s Matrix

Mendelow's Matrix is a strategic tool used to analyze stakeholders based on their level of power
and interest in a particular organization or initiative.

1. High Power, High Interest (Key Players):

● Competitors (e.g., Asian Paints, Nerolac Paints): Established paint companies

have significant power and interest in the market. They may view cow manure paint
as a potential disruptor and may take actions to protect their market share, such as
launching their eco-friendly paint lines or aggressive marketing campaigns.
● Investors and Shareholders: Investors and shareholders have high power and
interest as they provide financial resources and expect returns on their investments.
They may closely monitor the company's performance, growth strategies, and
adherence to sustainability goals.
● Customers: Homeowners, contractors, and interior designers have a high interest
in eco-friendly paint options like cow manure paint. While individually they may
not have significant power, collectively their demand can drive market trends and
influence the success of the cow manure paint company. Keeping them informed
about the benefits and applications of cow manure paint can help build brand
loyalty and stimulate demand.

2. High Power, Low Interest (Keep Satisfied):

● Communities and Environmental Organizations: Local communities and

environmental groups may have a high interest in the environmental sustainability
aspects of cow dung paint production. Although they may not wield direct power
over the company, their advocacy and support can influence public perception and
regulatory decisions. Keeping them informed about the company's sustainable
practices and community initiatives can foster goodwill and positive relationships.

3. Low Power, High Interest (Keep Informed):

● Government and Regulatory Bodies: Environmental agencies and health

departments have high power and interest due to the environmental and health
implications of paint production and usage. They may influence regulations,
standards, and certifications related to eco-friendly paints, including cow dung
paint.

4. Low Power, Low Interest (Monitor):

● Supplier: Here, "suppliers" mostly refers to the cattle farmer who will supply the
raw material, cow dung. They are not involved in the business operations; their sole
interest is in the reliable side income they will receive from selling the cow
excrement. They won't have much influence either because the business can pursue
other suppliers in the event that a cattle farmer declines.

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.
Table 1

Competition Analysis

A new entrant that is aiming for disruption and delivery of value to end consumers requires the
organization to adopt a focused approach and to garner actionable insights about what exactly are
they planning on delivering that is valued by a viable market and how can they do this better or
different than existing alternatives that aid the value addition. A competition analysis thus builds
a holistic awareness of the market and who we are up against. Here we will present a simple to
understand framework that acts as a strong starting point. This will involve understanding at two
levels: (1) A landscape overview with a marketing mix display and (2) A strategic group
framework of the wall paint market.

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Competitive Landscape - An overview

The market is mostly organized (upwards of 70%) with major players like Asian Paints, Berger,
Kansai Nerolac. Each has a slightly different focus like decorative segments, industrial paint,
distribution reach, price points and more. Existing players are making an effort to increase
domination while a lot of new entrants are hoping for a single digit slice of the entire market.
According to an Industry report, India’s per capita paint consumption is only 3.8 liters, compared
to a global average of 15 liters. That’s a whopping 75% less. Plus, the price per liter in India is
61% lower than the global average. Akzo Nobel India predicts that the paint and coating industry
will reach a staggering Rs 1 lakh crore by 2028 (CAGR 10%+).

Strategic Groups Framework: First we categorize the competition into actionable groups where
they are put in a cohort which is mostly similar in characteristics. Next, we decide on a primary
dimensions basis on which we can place these cohorts so they are understood better.

Traditional Chemical Paint Brands: These are the leading paint manufacturers and brands that
offer paint products at multiple price points, made of toxic chemicals as their primary raw material.
They are present in various segments which cater to most needs.

(1) Asian Paints: India’s largest paint brand with about 50% share of the market. They cater
to all paint and related products and have a division for painting solutions and services as
well. It has the largest dealer network in the country with presence online, company owned
experience centers, hardware speciality partnerships and more. Dynamic and flexible
pricing used across its product range and segment based paint brands catering to different
markets and needs. Its ability to predict the demand in various parts and create thousands
of shades out of just a few base colors is a commendable moat.

(2) Berger Paints: Second to the leader with about 20% share, it offers a diverse range of
products which is similar to Asian Paints. It has a dealer network which ranks in the top
numbers and focuses on large scale directly catered to orders. It has a more competitive
and affordable pricing when compared to its rivals. For example, for a 100-125 sq. ft. area,
Primer by Berger Paints costs Rs. 1880. But for the same area, it will cost Rs.1980 in Asian
Paints and Nerolac. It positions its paint brands differently based on how they want
consumers to perceive them.

(3) Kansai Nerolac Paints: It is a market leader in powder coating and third in terms of market
share. It takes an edge over other rivals over technology and innovations in all of its
products. It has the most impressive research and development amongst competitors. It
follows a more premium pricing policy than others and most of its segments are priced
higher than Asian Paints and Berger, owing to better technology. The distribution network
is similar to the industry standards but lesser in numbers than the market leaders. Like most
paint brands it also boasts a chunky marketing budget.

Eco-Friendly Paint Brands: This is the segment that is seeing the most interest globally and with
the fastest rising industry numbers. Most leaders are foraying into this category and also seeing

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new entrants. They use strategic raw materials that do not send across volatile organic compounds
(VOC) and other toxic chemicals. While claiming similar quality and performance.

(1) Nilaya Naturals by Asian Paints: This is the first organic paint line in India offering a
range made of 95% natural ingredients such as soybean, whey protein, plant resins and
more, an impressive shade range and benefit claims. Although its distribution online
seemed absent with limited reference pricing. It is placed somewhere on the premium side
upwards of Rs. 500 per liter.

(2) BreatheEasy by Berger: These are low VOC paints and not organic. Priced upwards of Rs.
380 per liter is what the numbers available suggest. Catering to indoor air pollution and
individuals with breathing concerns, children and pets.

(3) Nerolac EcoClean: A range of organic paints by Nerolac priced at upwards of Rs. 500 a
liter. It is a low VOC paint and not completely natural. It claims to be almost odorless and
relatively eco-friendly.

Organic Cow Manure Paint Brands: This is a relatively new and lesser explored segment where
the paint range is made out of cow manure, lime, sand and natural pigments. It claims to have
better intrinsic functional qualities than general eco-friendly paints made by major companies.
Awareness and promotion remain the areas of concern for these brands.

(1) Khadi Prakritik Paints: They take an innovative approach by adopting cow manure as the
raw material which is antifungal and antibacterial. They are odorless and easy to breathe
in their presence. Priced upwards of Rs. 250 per liter. They do not have a significant
product range which is not up-to the national competition standards. Distribution,
promotion and awareness remains one of the prominent problems.
(2) Gaumaya Paints: Another brand which claims to be the first paint range made of cow dung
functions with a limited product range. Priced upwards of Rs. 250 per liter. It has no clear
selling proposition which is unique to the brand.

(3) Other locally fragmented players exist. They do not streamlined production or distribution.
They are most probably targeted at a very budget conscious consumer and not promoted
on the lines of sustainability.

Moving on, keeping price as the most prominent dimension that consumers care about when
making a purchase decision for paint (as per secondary research), we shall work along on three
other dimensions in combination with price: (A) Sustainability, (B) Product Range & (C)
Awareness & Distribution. The size of the circle shows the share of the category.

For convenience, we represent: Traditional chemical paints as TCP, Eco-Friendly Paints as EFP
and Cow Manure paints as CMP in all the given charts.

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Figure 10 Figure 12

Figure 11

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