What is your assessment of Nepal’s market, and what is its growth potential?

Nepal is a growing market. It is worth Rs 6-7 billion and has grown at the rate of 15-20 percent over the last three years. We see the growth to continue in the future. What is good about Nepal is basically the market for premium products, and emulsion category products are sold better here.

Why do you term Nepal a premium market where the per capita income low?

While talking about the premium market, there are people who want to use the best paints and are ready to pay. There are other people who use common paints like distemper and relatively lower quality paints. Compared to other markets of South Asia, the contribution of the premium segment in Nepal market is very good. Nepal’s overall paint market is not big, but the rich class people have al lot of attention to premium range of paints and they are ready to pay.

Where does Kansai stand in terms of market share in Nepal?

We entered this market in 2012, and we already have 14 percent market share here. It is a very good figure in just three years of operation.

Are you focusing on the premium segment in Nepal?

We are focusing on all segments. We have a product called “Little Master” which is the lowest-priced emulsion. There is probably no company in Nepal which offers the product at the price. It is targeted at the masses. We also have another product called “Impressions”, the most expensive. Our focus is on the entire segment.

What are the factors that you think would contribute to the growth of the Nepali paints market?

Firstly, economic growth is the main factor as it increases the people’s purchasing power and the people can afford to buy good paints. Another is the housing sector growth. Paint is important for people because they like their home and home cannot be beatified without paint.

What is your target for next four-five years in the Nepal market?

We don’t put target as such, but we take different approaches. We are focusing on healthy home paint. Our products are lead-free and low-VOC (volatile organic compound), so our products are safe. That’s the proposition we are offering to the Nepal market. The prevalence of VoC in paint means it emits fuel that becomes pollution. So once you use Kansai Nerolac paints, you will reduce carbon emission. Thus, you save environment from being polluted. It also gives the people health-related benefits. In some of our premium products, we have zero VOC and in some there is low VOC. The market has responded well to our products.

How is your market share in the Kathmandu valley and outside?

Kathmandu covers almost 50 percent of our market, while we are also seeing good growth from smaller towns outside Kathmandu.

Are there any significant differences between Nepal and Indian paints markets?

Not much. The product range is similar. Here, the general understanding of environmentally friendly products is better than that of India.

How important is the Nepal market for you compared to other South Asian markets?

We don’t compare the markets. When we enter a country, we focus on that market. Nepal has its own potential and dynamics.

What are your strategies to compete with other paints which already have deep penetration here?

Our first strategy is to promote the product with the message that we are focusing on healthy home paint. Extension of the distribution network to small towns is another strategy so that we can reach closer to the users. Third is the use of our brand ambassador Shah Rukh Khan who helps us in marketing. In short, product differentiation, communication differentiation and extension of network are three strategies we are adopting to penetrate in this market.