Product certification scenario in BRICS nations; a comparative analysis of paints and coatings industry with respect to emissions
Student name: Mr Ashwin M. Pai
Guide: Prof Manipadma Datta
Year of completion: 2017
Host Organisation: UL India Private Limited
Supervisor (Host Organisation): Ms Dimpy Daroch
Abstract: When one purchases a product he or she expects that it will work in the way the manufacturer
has described it and will perform as intended ( FM Global, 2017). This expectation is
guaranteed to be honoured if the product is certified by a third party. Product Certification
means that the product has been subject to various quality tests and has passed all the tests
successfully and meets certain standards prescribed by regulatory authorities and the
government. The following study aims to understand the product certification scenario in
BRICS nations with respect to emissions. Both indoor and outdoor air pollution is a major
problem throughout the world (www.everythingconnects.org, 2017). Many paints and
coatings companies claim to sell products with reduced VOC and formaldehyde content. This
study aims to compare the certifications that paints and coatings companies have in BRICS
nations.
Why is product certification necessary? What strategic role does it play in
the competitive business environment?
In this competitive business environment, every company wants to be the best in their
respective fields of work, and want their products to be of the best quality. Consumers trust
and confidence towards such products is more and they will have better edge over their
competitors. Engagement of third party certification agencies for quality management allows
companies to leverage this trust and confidence of consumers. A certified product enjoys
benefits such as higher brand loyalty (as a result of consistent quality), reduced risk of health
hazards, and better regulation from government (as a result of adherence to strict quality
standards). Certified products can also compete in international markets as a result of
adherence to harmonised quality standards.( Ferret.com.au, 2017)
Why is product certification necessary in a Business to Business model?
Business to Business customers are constantly demanding better quality of products and
services. These relations are more complex and often involve development of bespoke
products or solutions for the clients. In such a scenario a product which is certified creates
higher value than one which is not certified. A certified product ensures convenience and
peace of mind for the B2B customer as he would have to check the authenticity of the claims
had the product not been certified.
Company Overview
UL or Underwriters Laboratories is an organisation which operates third party testing labs for
all kinds of consumer and industrial products. The company also has a wing specifically
meant for auditing and certification of services and production processes. The company has
different testing facilities spread across the world with UL Furniture testing centre being
situated at Cabiate, Italy.
This project aims at analysing and comparing the product certification scenario among 5
nations of the world which form a part of BRICS. The first stage of the project will aim at
selection of one industry which holds equal importance in all 5 economies being analyzed.
The second stage will be selection of 25 companies which fall under the selected industry in
all 5 economies and compare the same on the basis of certified and non-certified products.
During the final stage a consumer survey will be conducted among 25 selected subjects and
the result will be compiled.
Importance of certification in paints and coatings industry
The industry selected for comparison is paints and coatings industry since this industry holds
equal importance in all the 5 economies selected by us namely, Brazil, Russia, India, China
and South Africa. Residents of all the selected economies have very different lifestyles but
paints and coatings is one category which has equal importance in markets of all these
economies. Paints and coatings can be used for two purposes, first one being decoration of
walls and surfaces and the second and most important one being protection of the surface
from rusting or wear and tear.
A list of paints and coatings manufacturers of all the selected countries has been generated
and the same will be used for comparison.
ISO Certification: A globally accepted certification
ISO or International Organisation for Standards is an international non government
organisation with 163 national standard members. The company is headquartered in Geneva,
Switzerland. The organisation produces standards for testing and certification, of products,
services and systems to ensure safety, quality and efficiency. Independent testing and
certification agencies, which are members of ISO, conduct the testing and certification on
behalf of the organisation.
A company can adopt a different processes during the ISO certification p. An ISO certificate
is given after audit by a certification body. The company then has to undergo annual
surveillance audits to maintain the certificate. Once the period of the certificate expires, the
company has to undergo a recertification audit.
Third party certification agencies as against ISO conduct surprise audits and unannounced
visits to the premises of their clients (certified) to ensure that the same production process is
being followed or not. In case the client is found to be not following the certified process , or
the quality of the product is not the same as the certified, the agency takes corrective
measures.
The industry selected for comparison is paints and coatings industry since this industry holds
equal importance in all the 5 economies selected by us namely, Brazil, Russia, India, China
and South Africa. A major source of indoor air pollution is application of paints and coatings.
This leads to emission of volatile organic compounds (VOC) and formaldehyde. Residents of
all the selected economies have very different lifestyles but paints and coatings is one
category which has equal importance in markets of all these economies. Paints and coatings
can be used for two purposes, first one being decoration of walls and surfaces and the second
and most important one being protection of the surface from rusting or wear and tear.
A list of countries with different economic and financial conditions was generated. (BRICS
countries).An industry which holds equal importance in all 5 economies selected was
selected. (Paints and Coatings).About 45% of paints and coatings produced worldwide are
used for decoration and protection of new or existing residential houses, public buildings, or
plants and factories. Another 40% of the paints and coatings produced worldwide are used to
decorate o protect industrial products. (Ihs.com,2017) Selection of 25 companies which fall
under the selected industry in all 5 economies and compare the same on the basis of certified
and non-certified products.
