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1.

INTRODUCTION

1.1 Company’s Profile

Asian Paints (Nepal) Pvt. Limited

Asian Paints (Nepal) Pvt. Limited is the leading paint company in Nepal. It is a subsidiary of
Asian Paints Ltd, India with 51 % share. In Nepal, it started its operation in 1985.

The manufacturing facility is located at Hetauda industrial estate and has a capacity to
manufacture over 8000 Kilo Liter (KL) of paints annually. It is the first paint company in Nepal
with ISO-9002 certification. All products have certification of approval from Nepal Bureau of
Standards. It has annual turnover of Rs. 1.33 billion, with overall market share of around 38 %.

Asian Paints has been able to establish clear leadership in Nepal. It leverages its worldwide
experience to deliver products of International quality & range to the consumers. Asian Paints
manufactures complete range of decorative, wood finishes and industrial coatings. The company
has also set up over 1100 Colour Worlds to offer wide range of shades to the consumers.

Nepal Shalimar Paints

Nepal Shalimar Paints, one of the leading names in paints industry in Nepal was established in
1997. It has annual turnover of 400 million with overall market share of around 11.5 %. Its
manufacturing facility is located at Birgunj and has production capacity of 24000 Metric Ton
(MT). Its head office is located at Adarshnagar, Birgunj and the corporate office of Kathmandu
is located at Durbarmarg. Their Kathmandu depot is located at Kuleshwor.

1.2 Objectives of the Study

The objective of this project work is to study and analyze the marketing mix strategies of two
leading paints company of Nepal. The study also aims to make a comparative analysis of their
marketing mix.

1.3 Limitations of the Study

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Within the available period of time and resource constraints, detailed investigation of the product
was not possible. Information furnished here is based on the analysis of information obtained
from marketing executives of the two companies and also from the various secondary sources
such as internet and other literature.

2. MARKETING MIX ANALYSIS

2.1 Product Mix

Asian paints product mix:


Asian paint produces a wide range of products which have more than 1100 shades.
Their products were targeted to the different segment of the society. Company follows the
principle providing the customer different kind of products at different price. Its product range
includes Wall paints, Metal paints, Wood Finishes, Primers and others. Apart from offering the
customers a wide range of decorative and industrial paints, it even custom-creates products to
meet specific needs. Asian paint investing a huge amount of fund in Research and
Development sector for Quality and the technological development of product so that it
competes globally.
The different categories of Asian paints Ltd. are 1

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1) DECORATIVE PAINTS:
Decorative paints account covers almost 75% of the overall share of paint market. In this
segment, Asian paint has been a leader for almost two decades. Decorative paints include wall
finishes for interior & exterior uses, wood finishes & ancillary products such as primers, putties,
etc.
In decorative segment, company has a wide range of product from low price to high price. Low
price product like Utsav, is basically targeted to the rural customer and high price product like
Asian Paints Royal and Asian Paints Emulsion are targeted to urban and sub-urban customers.
The products are

Asian Paints Royale: This product of Asian paint is targeted to higher income group and
customer of urban area. The product contains different shades and price of each shade very. E.g.
Regal white.
Asian Paints Emulsion: It is another product which is targeted to urban area. It is high price
premium product. The shades are white, palm group and base.
1. http://www.scribd.com/doc/47967942/ASIAN-PAINTS

Asian Paints Gattu Synthetic: It is a product which is targeted to customer of sub urban area. It
has different shades like white, Aquamarine and Azure Blue.

Asian Paints Utsav Paint: It is product which is targeted to lower income people as well as sub
urban customer. The various shades were Adyrey, back, white, super white, etc.

Asian Paints Apex: This product is one of the major products of the Asian paints as this product
is targeted to middle class people and average income level. These paints have wider range of
shades such as classic white, blue ice, Alliance, Antique white and sweet time.

2) INDUSTRIAL COATINGS:
Industrial Coatings is the second category of the product that Asian paint produces. Industrial
coatings have a moderate growth rate than decorative coating, powder coatings & protective
coatings. In this segment Asian Paints targets to industry where the paint are used for protective
coatings of the machinery. In these segments the product are normally sold at the premium price.

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The products are
(i) Apcomin Synthetic Enamel
(ii) Apcomin Synthetic Powder
(iii) Stainer
(iv) Premium surface & fillers

These products are based on high technological products and are used for asset
(Machinery, tools, equipments) coloring and upcoming synthetic powder is used as
Lubricating agent in the machinery.

Product Variety
Asian paints has different variety of product range from interior and exterior wall paints to wood
finishes as shown in table below.
Table 1: Product Variety of Asian Paints
Interior Wall Paints Exterior Wall Paints Wood and Metal Wood Finishes
Paints
Royale Luxury Ace Exterior Ustav Enamel PU Wood Finish
Emulsion Emulsion Exterior
Premium Emulsion Apex Weather Proof Gattu Synthetic PU Wood Finish
Exterior Emulsion Enamel Interior
Tractor Emulsion Apex Textures Apcolite Premium Melamyne
Exterior Emulsion Satin Enamel
Tractor Acrylic Elsatometric Hi- Apcolite Premium Touch Wood
Distemper Performance Ext. Gloss Enamel
Paint
Tractor Synthetic
Distemper

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Utsav Distemper

Raw materials
Raw materials are divided into three major groups, namely pigments (titanium dioxide, zinc
oxide etc.), solvents (mineral turpentine) and resins and additives. Pigments are finely ground
solids of different shades to give color, durability, consistency and other properties to paint. It is
also one of the major raw materials, accounting for one-third of the total raw materials cost.2
The company buys raw material from India and South East countries.

Quality
Asian paints have a quality product to offer. In fact, the tag line of the company is ‘Quality’.
They market themselves as ‘The most preferred paint company in Nepal’. They present
themselves as trust worthy and believe in relation building. They provide a quality product at
reasonable price.
Brand Name
A brand is a name, term, sign, symbol, design or a combination of all which is build intended to
identify products or services of a company to differentiate it from its competitor. Asian paints,
2. http://www.equitymaster.com/research-it/sector-info/paint/paint-inputs.html

the largest paint company in Nepal, have established its positions as great brand. Asian paints
promise to deliver consistently a specific set of features, benefits & services to buyers.

Packing
All the paints of the company come in the package of 500 ml, 1 Ltr, 4 Ltr, 10 Ltr and 20 Ltr.

Warranties
Generally, all the paints of Asian Paints have life time warranty. However, customers claiming
warranties have to meet some conditions. It takes warranty only for not fading of the color,
which belongs to Asian paints. One of its products, Apex Ultima comes with a warranty of seven
years.

New product

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Asian paints recently launched a new product. About one and half years back it launched Ace
exterior emulsion. The product was a result of continuous upgrading of product. It has an
exterior emulsion paint named Apex-Ultima, Wh...ich offers a 7 year performance warranty (on
anti-flaking, anti-fading & anti-fungal properties; conditions apply).

Nepal Shalimar Paints Product Mix:


It has production capacity of 24000 M ton. It has well equipped Research Department which
consists of all quality testing materials and has latest software worth of Rs. 10 million.

Product variety
Nepal Shalimar paints offer a wide range of products. On the basis of surface to which the paint
is to be applied, paints are of three types i.e. Metal, Cement and Wooden. Further cement paints
are divided into exterior and interior paints. On the basis of affordability, it is again divided into
top quality and general quality. There are near about 1050 shades. Different paints provided by
the company under different variety are shown in table below.

Table 2: Product Variety of Nepal Shalimar Paints


Exterior Emulsion(for cemented surface) Interior Emulsion(for cemented surface)

Weather Guard Exterior Emulsion Unique touch Super Acrylic Plastic Emulsion

EXE Exterior Emulsion Diamond Acrylic Emulsion

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Interior Distemper(for cemented surface) Synthetic Enamel(for wood, iron or
cemented surface)

Diamond Acrylic Washable Distemper Diamond Hi-Gloss Super Synthetic Enamel

Diamond Acrylic Washable Distemper Goldlac GP Synthetic Enamel

Primer Others

Shalimar Cement Primer Shalimar Aluminum Paint

Shalimar Red Oxide Primer Shalimar’s Wall Care Putty

Shalimar Wood Primer Diamondcem/Goldcem Cement Paint

Raw materials
Raw materials are divided into three major groups, namely, pigments (titanium dioxide, zinc
oxide etc.), solvents (mineral turpentine) and resins and additives. Pigments are finely ground
solids of different shades to give color, durability, consistency and other properties to paint. It is
also one of the major raw materials, accounting for one-third of the total raw materials cost.
The company buys raw materials mainly from India.

Brand name
Nepal Shalimar Paint is a well known name in Nepalese paint market. It has fourteen years of
experience in paint industry.

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Packaging
Exterior Emulsion and Interior Emulsion comes in the package of 20 Ltr, 10 Ltr, 5 Ltr and 1 Ltr.
Distempers come in the package of 20 Kg, 10 Kg, 5 Kg and 1 Kg. Synthetic Enamels and
Primers come in the package of 20 Ltr, 4 Ltr, 1 Ltr and 500 ml. Wall care putty comes in the
packing of 40 Kg and 20 Kg. Cement Paints are available in the package of 25 Kg and 20 Kg.

Warranties
All the paints by the company have a warranty of five years. The company is now launching new
paints with seven years warranty especially targeting markets of Kathmandu and Pokhara.

New Products
In an effort to offer a wider choice to customers, Shalimar paint has begun a color tinting service
called ‘Color Space’ which gives customers a wider choice of color shades. The service is
actually a new generation machine that uses computerized support to mix and match imported
colorants with high quality bases.

1.2 Promotion Mix


Promotion means the way to introducing, selling and regular making of necessary attractive tools
for the customers to influence their purchasing behavior. Generally there are two different
concepts in the terms for promotion or promotional tools. They are Advertisement and Sales
Promotion.
Advertisement: The aim of Advertisement is to inform, persuade, or remind the products of the
company. This offers a reason to buy.
Sales Promotion: A key ingredient in marketing campaigns consists of a collection of incentives
tools, mostly short terms, designed to stimulate quicker or greater purchase of particular products
or services by consumers or the trade. This offers an incentive to buy.
Coming across to the promotion strategies of Nepal Shalimar Paints and Asian Paints (Nepal)
Private Ltd; they use different kind of promotion tools. They are described below:

Asian Paints Promotion Mix


Asian paints use various promotional tools to promote its product. Some of the tools used are
discussed below:

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Promotional Price: The Company has provided a discount of 3 to 4 % for a purchase of product
of value more than Rs. 20,000. It also provides free quantity on purchase of same product in
bulk. The details of promotional price can be referred from Annex.

Advertisement: Regular newspaper ads in National Newspaper like Himalyan Times and
Kantipur Daily, TV ads and FM ads are given. Advertisement is also done through hoarding
boards placed at different parts of country. At the same time, ads in magazines like The BOSS
and New Business Age is done for the purpose of targeting affluent, educated and high profile
business class customers. The Company uses different advertisement policy to promote its
products.

Point of purchase displays: Wall display is shown at all the major depots and dealer shops around
the country.

Corporate Social Responsibility (CSR): As a part of CSR and promotion, the company regularly
undertakes small projects like freely making and painting the public toilet and bus stops, which
can be seen at several places of different cities. They have also been active in road safety
initiatives including putting up traffic road signs and messages, thereby adding their name in
every work to promote brand name.

Direct Marketing: For the direct marketing channel, the company has its own website available
at www.asianpaints.com.np.

Shalimar Paints Promotion Mix


The company use variety of promotional strategies to promote its product. It provides a lot of
discounts to its dealers to promote its product. It has placed a flash boards at all of its dealers
shop. The company uses push strategy to increase its market share.

Coupons: For the purchase of different types of Shalimar Paints, provides different bonus points
at a consumers’ and painters’ level. Some of them are listed in following table.

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Table 3 : Bonus Offers
Items Quantity Bonus Bonus Point Prizes
Points

Diamond lac Per Litre 5 5000 points = Mobile Set Rs 6000/-


Weather Guard Per Litre 7 10000 points = 21” colour TV Rs 12200/
Diamond Distemper Per Kg 3 50000 points= Cash prize Rs 67500/-
Wall Putty Per Kg 2 80000 points= 1 Hero Honda Motorcycle

Prizes (based on target sales to retailers): At dealer level, sales targets are given for particular
month and when fulfilled, they are awarded with certain foreign trips. Recent prizes given were-
China Tour for a couple, 7 people Bangkok Tour and constellation prizes, which include silver
coins.

Sales Target (Dealer Scheme): Upon completion of the sales target, the company offers various
foreign trips to dealer as listed below:
Sale up to Amount Trip to
a) Rs 6000000/- Switzerland
b) Rs 3000000/- Egypt
c) Rs 1500000/- Europe

Product Warranties: The Product warranty range from product to product. For example,
Interior Paints: 7 Years Warranty
Exterior Paints: 5 Years Warranty
(Subject to terms and conditions mentioned)

Advertisement: The Company uses different advertisement policy to promote its products. They
are regular newspaper ads in National Newspaper, TV ads, FM ads. Hoarding boards are placed
at different places around the major cities.

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In this way, Shalimar paints is using attractive promotional strategies for promotion. These
strategies mentioned above changes time to time according to demand, supply and competitors’
strategies.

1.2 Price Mix

Price is the one element of the marketing mix that produces revenue, whereas the other elements
like promotional, product and place produce cost. Prices are the easiest marketing mix element to
adjust product feature. Price also communicates the value positioning of the product or brand of
the company. The customer’s perception of value is an important determinant of the price
charged. Customers draw their own mental picture of what a product is worth. A product is more
than a physical item; it also has psychological connotations for the customer. The danger of
using low price as a marketing tool is that the customer may feel that quality is being
compromised. It is important to be fully aware of the brand and its integrity while deciding the
price.

Asian paints Price Mix

Asian Paints is selling its products all over Nepal where there are concrete building or at least
houses with tin roofs. They are selling their products according to genre, i.e. classification of
paints such as metal paint, cement paint and wooden paint; interior paint, exterior paint; premium
quality paint and economic quality paint. Their price differs from paint to paint. They don’t
decide their price according to the demand of that product. Prices are same almost for the year
but only fluctuate slightly when there is fluctuation of price in raw material. According to Asian
paints, they are deciding their price on the context of quality.

Asian paints classify its products into 2 categories- economic and premium. In both economic
and premium they have metal paints, wooden paints and cement paints (interior and exterior).
Premium quality cost between Rs. 15000 to Rs. 17000 and economic quality cost about Rs. 9000
to Rs. 10000 for 20 Liter pack of same type of paints. This has been done to satisfy consumers
with different economic class. The list price of some of famous products is listed below.

Table 4: List Price

Product Packing Max Retail Price (Rs.)


Apex 20 Ltr. 15572
Ultima (Exterior) 20 Ltr. 18903

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Ace Supreme 20 Ltr. 9819
Discounts

Company usually provides 25 to 30 percent discount on maximum retail price for customers. The
company has also policy of providing discount to its dealer but this discount differs from season
to season. For example, the discount provided by the company for the period, Mangsir 2067 is
given in the table below.

Table 5: Discounts on a Mangsir 2067

Period In Bill
Minimum Bill Value (More than NRs)
Discount
1st to 10th Mangsir 4% 20’000
th th
11 to 18 Mangsir 3.5 % 20’000
19th to 29th Mangsir 3% 20’000
For bill value more than NRs 20,000, Asian paints provide 3 to 4 percent discounts within the
period of given month. Other discounts provided by the company are shown in Annex.

Credit Term

Asian paints provide a credit term of one month to its dealer.

Shalimar Paints Price Mix


Major exterior paints from Shalimar are weather guard, Exem exterior and Exe exeterior. Price
list of these products in package of 20 Ltr is given below in the table.
Table 6: List Price

Product Packing Max Retail Price (Rs.)


Weather Guard 20 Ltr. 13462
Exem Exterior 20 Ltr. 10228
Exe Exterior 20 Ltr. 9979

Discounts
Nepal Shalimar Paints provide a discount up to 35 percent on maximum retail price to its
consumers. It provides a bulk purchase discount of 1 to 2 percent and cash purchase discount of
2 to 3 percent to its dealers.

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Credit Term
Nepal Shalimar paints provide a credit term of 45 to 60 days to its dealer.

1.3 Place Mix

Place, as an element of the marketing mix, is not just about the physical location or distribution
points for products but also encompasses the management of a range of processes involved in
bringing products to the end consumer.

Asian Paints Place Mix

Asian Paints has a huge distribution channel for its product all over the country, as its sales reach
more than Rs.1.33 million a year.

Channels: The Asian paints use a number of intermediaries’ levels to serve the end users. The
channel system used by Asian paints is two levels. The product after manufacturing goes to huge
depots, from where it is send to dealers and finally to the consumers. The channel system is
shown as below:

Manufactur

Company
Depots

Dealer

Consumer
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Coverage
Asian paints outlets (color bank) are very evenly spread throughout the major cities, making
them very accessible and convenient to the consumers.

Location
The factory of Asian Paints is located in Hetauda Industrial Estate, Makawanpur. Its corporate
office is located at Gwarko, Kathmandu. This is its head office as well as Kathmandu depot. It
has five huge depots where the product goes after manufacturing. Depots are located at
Biratnagar, Kathmandu, Birgunj, Pokhara and Butwal. The company has more than 350 dealers
all over Nepal.
Inventory
The company prefers to maintain low inventory levels. It has large number of suppliers all over
the country. The availability of automated color making machines in every dealer shops makes
possible to reduce the large amount of readymade paints.
Transport
The company uses its own fleet of transport for distributing its product. Even though Asian
paints targets the urban and sub-urban middle and upper middle class people, they are
distributing their products all over Nepal because of a recent increase in demand of its product to
all segments of the population

Nepal Shalimar Paints Place Mix

Channel The Shalimar paints use a number of intermediaries’ levels to serve the end users. The
channel system used by Asian paints is three levels. The product after manufacturing goes to
huge depots, from where it is send to dealers, retailers and finally to consumers. The channel
system is shown as below:

Manufactur

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Company
Depots

Dealer

Retailer

Consumer

Coverage
Shalimar Paints have covered a large market in terms of area. It has targeted sub urban areas and
small cities.

Location
Factory of Nepal Shalimar Paints is located in Birgunj. Its head office is in Adarshnaga,
Birgunj. It has six depots all over Nepal from where it supplies product to all over Nepal. Its
depots are located at Biratnagar, Birgunj, Kathmandu, Pokhra, Nepalgunj and Butwal. The
company has more than 600 dealers all over Nepal.

Inventory
Nepal Shalimar Paints maintain an inventory of nearly Rs. 10 million annually.

Transport

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The company does not use its own fleet of transport for distributing its product. However, it has
outsourced its distribution process to various third party distributors. These distributors then
supply the product to a large number of dealers.

2. CONCLUSION AND RECOMMENDATION

Conclusion

Looking over the marketing mix of both the companies, we get that the potential market for both
the products are the same in Nepalese context but eventually both target different section of
market. Asian Paints has targeted premium market and premium customers even though it is
producing paints for every section of market and Shalimar Paints has presence in all level of
markets with access to most of the rural areas where we do not find anyone using Asian Paints.

When we look over the pricing we can see that there is difference of Rs 5000 to Rs. 7000
between Asian Paints and Shalimar exterior paints. Even though they have the same kind of
product variability, the targeted section as per the market analyst is different from the perspective
of consumer’s perception.

As for the promotional strategy, both the companies are using the same promotional strategies in
some area but some different strategies are also there. They both are using the trade discounts
and the same advertisement media but in different way, which is already discussed in above

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sections. Additionally, Asian Paints is contributing towards CSR and has Point of purchase
display and some direct marketing approach which Shalimar doesn’t use. Shalimar paints are
giving foreign tours and painters’ scheme to their dealers, retailers, which Asian Paints is not
providing.

Looking over the place strategy, Shalimar paints has influentially targeted middle level, higher
level and rural markets, whereas, Asian paints has not influenced rural market a lot and is
specifically focused in urban areas.

Recommendations

The products of Asians paints are perceived as expensive products, even though in recent years
the company has focused on low level income groups and has produced the products according
to their needs. However, Asian paints is not able to convinced the consumer that it has all levels
of products ranging from cheap , medium to expensive and premium products. Thus, the
company can use a different kind of promotional strategies to promote such kind of economical
products. Since, the company is not able to reach to the minds and homes of the people in rural
areas, the extensive distribution program with promotional attributes can be used to penetrate
such kind of product in that market.

As for Shalimar paints , the company has very low market share comparing to Asian paints, so it
needs to rigorously extend its market share with increasing need for product features , quality
and promotional tools.

Both the companies can also use the jars as shown in the figure below to pack their products. The
jar is not only attractive but also convenient in pouring paint.

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(Source: www.dutchboy.com)

References

Kotler, Philip et.al, Marketing Management - A South Asian Perspective, 13th edition. Pearson
Education Inc. (ISBN: 978-0-13-600998-6)
Kotler, Philip and Armstrong, Gary: Principal of Marketing, 8th edition. Pearson Education Inc.
(ISBN: 0-13-95-7002-0)
http://www.asianpaints.com/international_presence/ip_nepal.aspx
http://www.iponepal.gov.np/resultdetail.php?id=8024
http://www.financialexpress.com/news/shalimar-paints-its-future-with-a-new-strategy/91105/0

http://www.scribd.com/doc/47967942/ASIAN-PAINTS
http://www.equitymaster.com/research-it/sector-info/paint/paint-inputs.html

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Annex
Discounts provided by Asian Paints to its dealers are listed in the following tables:
Table: Discount list to dealers
Product Minimum qty. billed in single bill Free volume in same bill
TAD 200 Kg 40 kg.
ASE Color /Base 38 Ltr 4 Ltr
Cement Primer 500 Kg 120 Kg
Exterior Primer 70 Ltr 10 Ltr
AP Wall Putty 200 Kg 40 Kg

Table : Bill Discount on Products


Product Minimum Qty. In Bill Discount(Per Kg)
Utsav Acr. Distemper 40 Kg Plus 15
ASE Blazing White 40 Ltr Plus 40
Gattu Enamel 40 Ltr Plus 24

The Purchase 100 Ltrs of any of the following emulsion give 8(4x2) Ltrs of the same emulsion
free:
1. Tractor Emulsion

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2. Ace Exterior Emulsion
3. Apex Exterior Emulsion
4. Apex Ultima Exterior Emulsion
5. Royale Luxury Emulsion

Address

Asian Paints (Nepal) Pvt. Ltd. Nepal Shalimar Paints


Bhartiya Gorkha Sainik Niwas, GPO: 12244, Ktm, Kuleshwor
Thamel, Kathmandu, Tel: 4281569
Nepal. Email :pnco@wlink.com.np
Tel:- 977-1-4423777/4414082
Fax:- +977-1-4417606

Pictures:

Fig: Group photo with Mr. Shankar Banzade, Marketing Executive, Asian Paints Nepal

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Fig: Group photo with Mr. Madhav P. Gautam, General Manager, Sales and Marketing, Nepal
Shalimar Paints

Products:

Fig: Asian paints product variety

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Fig: Nepal Shalimar paints product variety

Promotion:

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