The Gattu

Spirit of Colours

Har Ghar Kuch Kehta Hai !!!

CONTENTS Paint industry

History

Vision & Mission

Product Profile

Brands

Competition

International Operation & Presence

Growth Cycle of the company

Mergers & Acquisitions

Marketing, Sales & Distribution

Advertisements

Services

CORPORATE SOCIAL RESPONSIBILITY

Future of the Company

SWOT Analysis

World wide Paint company Review

Achievements & Award

Paint industry estimated at Rs. 135bn.

Unorganized sector accounts to 35% of paint market.

Volume growth estimated at 15%.

India’s share in the world paint market is 0.6%.

Per capita consumption of paint in India is 1.2kg/annum.

Paint industry

History In 1942, a partnership was started by four

entrepreneurs.Mr. Champaklal choksey,

Mr. Chimanlal choksey, Mr. Suryakant Dani and

Mr. Arvind Vakil as “ASIAN OIL & PAINTS COMPANY.”

In 1945, the firm was turned into a company.

In 1957, a plant was set up at Bhandup, Mumbai.

In 1967, Asian paints became the 10th largest paint company in the world.

In 1973, AP became a public ltd company.

In 2002. AP was a market leader of Indian Decorative Paints with market share of 44%.

Vision & Mission

Vision:

“Asian Paints aims to become one of the top 5 Decorative Coatings companies worldwide by leveraging its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value in the Industrial coatings business through alliances with established global partners.”

Mission:TO BE THE LARGEST DECORATIVE PAINT CO.

WORLDWIDE AND TO BE THE 5TH LARGEST PAINT MANUFACTURING CO. WORLDWIDE.

From the eye of ASIAN PAINTS

AP wanted to be one of the top five companiesIn the global paint industry

HOW??

1.New products2.Changing its logo3.Changing its packaging.

Product Profile

•INTERIOR PAINTS.

•EXTERIOR PAINTS.

•WOOD FURNISHES.

•WOOD & METAL FURNISHES.

Brands

• Apex

• Tractor

• Apcolite

• Royale

• TouchWood

Competitors

Asian paints

37%

Good

lass

Nerolac 1

5.9

%

Shalimar

4%

Berge

r Pa

ints

13.8

%Market Share in India

International OperationCaribbean Islands

Barbados, Jamaica,

Trinidad & Tobago.

South Pacific

Fiji, Tonga, Vanuatu,

Solomon & Samoa Islands.

South Asia

Bangladesh, Nepal & Sri

Lanka.

South East Asia

China, Malaysia, Singapore &

Thailand.

Middle East

Bahrain, Egypt,Oman &

United Arab Emirates.

International Presence

Growth Cycle of the company

a)1942-1967 Evolution Phase

b)1967-1982 Extension and Consolidation Phase

c)1982-1986 The years of Excellence

d)1987-1997 Moving Closer to the Consumer

e)1997-1999 Changing rules of the game

f)1999- The new Asian Paints

Mergers & Acquisitions

• Buys Taubmans Paints (Fiji) In September 2003.

• Acquires ICI India’s Unit (February 2007).

• Sells stake in Australian Unit (June 2007).

Marketing, Sales & Distribution

• Rural Marketing Initiatives since 1960.• Distribution is one of the main strategy of Asian

Paints.• Advertising & Promotional Expenditure started in

1980s.• Advertising Methods- Radio, TVCs, Print, Internet, OOH, POP, Retail Outlets, Seminars, Workshops.

Advertisements

•Promotional Expenditure grew from 15% in 2003 to 21% in 2008.

1.Focused on distribution.

2.Field officers dealt directly with dealers in small towns.

3.In 2002,14,500 dealers.

Services

1.1998 AP launched colourworld,1.1998 AP launched colourworld,2.Rs.600 million investment.2.Rs.600 million investment.

3.Offered consumers more option to choose acurate shades3.Offered consumers more option to choose acurate shades economically.economically.

4.Installed 350 colourworlds in2002,no.increased to 2600.4.Installed 350 colourworlds in2002,no.increased to 2600.

1-600-11-5678 (Toll Free)

1.In the year 2000,AP added

‘Paint calculator’

2.Help to estimate the

quality & quantity of

the paint needed

for specific area.

CORPORATE SOCIAL RESPONSIBILITY

• Water Conservation-Total Water

Management Center.

• Age Care.

• Education.

• Other Initiatives.

Future of the Company Asian Paints is planning to increase the capacity by setting up a plant at

Rohtak, Haryana.

No other company is planning to increase its capacity in the near future, this will give Asian Paints a competitive advantage in terms of pricing.

GDP growth slowdown in the growth rate of two important activities i.e. repaint activity and construction activity will have direct impact on the volume of APL, thus effecting its profitability and margins.

Rural markets have considerable potential. Companies that can establish a dealer network in these markets are likely to get the edge in positing above par growth rates over the next few years.

As setting up distribution infrastructure is expensive, it would mean that the competition is limited to the top players.

Due to substantial hike in raw material prices, Asian Paints has raised the prices of solvent based paints, thus demand would be affected to some extent.

STRENGTH: Market leaders with 44% market shares.

Strong in inventory control.

The pricing strategy is oriented to middle and lower end consumers.

Widest product range in terms of products, shades, pack sizes.

Comprehensive nation wide coverage of the market.

WEAKNESS: Seasonal demand and hence in off seasons it can lead to cash flow problems.

Innovation in developing new product is inadequate.

Weakness on the technology front in industrial paints.

SWOT ANALYSIS

OPPORTUNITIES: The automobile industry accounted for 50%

of the industrial markets.

THREATS: Competitors have gone in for hi-tech instacolour spot mixing.

Domination of few foreign companies.

Competition is catching up fast, hi-tech facilities gives abundant choices.

SWOT ANALYSIS

Company

Country

Costing

Sales

Rank

Nippon Japan 475 1

Kansai Japan 340 2

Daihan S.Korea 174 3

DNT Japan 171 4

Korea chem S.Korea 130 5

Asian Paints India 105 6

Rock Japan 95 7

World wide Paint company Review

ACHIEVEMENTS Awarded the “Sword of Honor” - the

British Safety Council.

Ranked 24th - the top paint companies in the world - Coatings World, Report 2006.

Ranked by Forbes among 200 Best Small Company and awarded it as “Best Under A Billion”

Received the Ernst & Young “Entrepreneur of the Year – Manufacturing” award in 2003.

Economic Times rated it as the 4th “Most Admired Company” in India.

In February 2001, it was rated as the 9th

“Best Employer” by Business Today.