Asian Paints mba

DECLARATION

I “HYDER ALI” hereby declare that the work presented herein is genuine work done

originally by me and has not been published or submitted elsewhere for the requirement

of a degree programme. Any literature, data or works done by others and cited within this

dissertation has been given due acknowledgement and listed in the reference section.

place: HYDER ALI

Date: 11RWCMA036.

T.JOHN COLLEGE, BANGALORE

Acknowledgement

It gives me immense pleasure to present this project report on “Organizational Study on

Asian Paints Ltd” in partial fulfillment of the Degree of Masters of Business

Administration.

No work can be carried out without the help and guidance of various persons. I

am happy to take this opportunity to express my gratitude to those who have

been helpful to me in completing this project report.

At the outset I would like to thank PADMA.C for her immense support and guidance.

Lastly I would like to thank my parents, friends and well wishers who encouraged me to

do this research work and all those who contributed directly or indirectly in completing

this project successfully.

PLACE: HYDER ALI

DATE: 11RWCMA036


Table Of Content Page No.

CHAPTER-1: 1.1

1.2

1.3

Introduction

Objectives of study

Industrial ProfileCHAPTER-2: 2.1

2.2

2.3 2.4

Company Profile

VISSION

MISSION

Product Profile

CHAPTER-3: 3.1 3.2

3.3

3.4

Functional Area

Production & operation department

Marketing department

Finance department

Human Resource department

CHAPTER-4:

4.1 SWOT Analysis

CHAPTER-5:

5.1

5.2

5.3

5.4

Findings

Recommendation & suggestion

Conclusion

Bibliography


INTRODUCTION

Asian Paints Ltd. is India’s largest and Asia’s third largest paint company. This company,

established in 1942 has been a market leader in the paints industry in India since 1968. It

is ,now, almost triple the size of its nearest rival in India. Asian Paints manufactures a

wide range of paints for decorative and industrial (including automotive) use. The fully

integrated company is ranked among the top ten decorative coatings companies in the

world. Apart from these the company also manufactures various accessories like wall

primer, wood primer, putty etc. Asian Paints had acquired Berger International in order to

expand its reach in the overseas market.

The current report highlights the key functional activities performed by the organization

such as production and operations department, marketing, financial performance and so

on. The report aims at performing a general study of the organization and appreciate the

way in which Asian Paints has maintained its position for a long time. Although the

economic condition of the country as well as the global financial health are adversely

affecting the business, yet the Chairman Mr. Ashwini Choksi reported in the Annual

report of 2011-12 that the consolidated sales of the company grew by 24.7% and profits

registered a growth of 17.3%. One of the strength that has helped to achieve such

performance, for Asian Paints, remains sustained direction and working as a team at all

levels. This itself is a hallmark of a great organization with sound and strong

fundamentals.co


OBJECTIVES OF STUDY

1:- The objective for the industry analysis is to determine the opportunity and

threats that exists for firms within a competitive environment.

2:- The objective for the firm analysis is to determine the strengths and

weaknesses of a firm and to determine the core competence that can be built on to

establish a competitive advantage.

3:- The final step is to develop a sound business plan to ensure the survival of their chosen firm

within its competitive environment.


Chapter 1: Industry Profile


Industry Profile: Indian Paint Industry

Paint has been in use for time immemorial. The evidence can be found in the cave

paintings. The Chinese are considered to be the pioneers of manufacturing paints

thousands of years ago. In modern times paint is made artificially and is used in many

different ways. It is a mixture of four elements, namely-solvents, binders, pigments and

additives. Solvents give the paint a liquid flow while the binder binds it to the surface.

Pigments impart colour and opacity to the paint and the additives give it special

resistance properties.

The Indian paint industry is over a century old. Its beginning can be traced back to the

setting up of a factory by Shalimar Paints in Calcutta in 1902. Until World War II, the

industry consisted of small producers and two foreign companies. After the war, the

imports stopped, which led to the setting up of manufacturing facilities by local

entrepreneurs, however, the foreign companies continued to dominate the market.

Initially British Paint companies such as Goodlass Walls (now Goodlass Nerolac), ICI,

British Paints (now Berger Paints), Jenson & Nicholson and Blundell & Eomite

dominated the market.

The Indian paint market consists of both organized and unorganized sectors, where the

former is majorly observed. The industry consists of two segments, namely

Decorative segment – caters to the housing sector ,and

Industrial segment - consists of powder coatings, floor coatings and other

protective coatings catering to the automobile, marine and other industries.

In the domestic market, Decorative segment accounts for 60% of the total demand for

paints whereas the industrial segment accounts for the remaining 40%. Decorative paints

can further be classified into premium, medium and distemper segments. Premium decorative

paints are acrylic emulsions used mostly in the metros. The

medium range consists of enamels, popular in smaller cities and towns. Distempers are

economy products demanded in the suburban and rural market. Nearly 20 per cent of all


decorative paints sold in India are distempers and it is here that the unorganized sector has

dominance.

Globally, the demand for paints is almost equally distributed, where both the segments

account for close to 50% of demand. Following is its diagrammatic representation:

The raw materials used in manufacturing paints ,roughly, constitute approximately 56%

of the total expenditure in paint companies. Titanium dioxide is one of the major raw

materials and price fluctuations in its cost have direct and substantial impact on the cost

of production. Crude oil derivatives are the other major raw materials and have similar

impact. Apart from these a large number of other raw materials are used for adding or

providing specific properties to the wide product range offered by the industry players.

The working of the paint industry can be better understood as under:


Industry Participants

The market share of the organized sector is continuously improving as consumer

preference is shifting towards better products offered by the leading brands. Established

Foreign companies have entered the Indian market by acquiring existing Indian

companies. Kansai Paints, Japan entered the Indian Market by acquiring Nerolac, Akzo

Nobel, the world’s largest Paint company, entered the Indian market by acquiring ICI

Paints (now Akzo Nobel India). Off late, the competition in the paint industry has also

heated more intensely with the entry of foreign players like Jotun, Nippon & Sherwin

Williams.

The following top 5 companies make up more than 80% sales of the organized market:

Asian Paints is the market leader in the Indian Paint Industry and gets the major portion

of its revenue from the Decorative segment. Over the years, it has outperformed its peers

in every aspect by wide margins. This is mainly due to its strong competitive advantage

which lies in its strong Brand Equity and an extensive Distribution Network.

Promotional and Regulatory Bodies

CAPEXIL (Formerly Chemicals and Allied Products Exports Promotion Council) a non-

profit making organization, was set up in March 1958 by the Ministry of Commerce and

Industry, Government of India over the years has been playing an important role to

promote exports of paints from the country.

The Indian Paint Association is the apex body of the Indian paint industry, which

represents both the organized sector and the small scale sector in the paint industry. It is a

voluntary non-political and non-profit organization which promotes the interest of the

paint industry and the society. The IPA is a unique forum ,established in 1960, in which

even the very small scale manufacturers are members beside the major producers in


India. The representative character of the association is amply demonstrated by the fact

that more than 80 per cent of the total paint production in the

country is accounted for by members of IPA.

Industry future trends

The Indian paint industry has progressed well and moving ahead is likely to be influenced

by several factors including new technologies, new innovative products, new

associations, consolidation of industry and poor performers getting out of the market.

Ultimately, in the years ahead there will be only four or five key players operating in the

Indian paint market.

The Indian paint industry historically grew by 1.5 to 2 times of India’s real GDP growth

on a year-on-year basis. The Decorative segment shows a seasonal trend with sales

peaking during the festive seasons in the months of September to November, whereas the

demand is low in the monsoons. Unfortunately, the industry might witness a slowdown

both in volume and value growth in the current year (2012) due to decline in demand and

rising cost of production. The industry was worth an estimated amount of Rs 29,000 crore

in 2011-12. However, with the Finance Minister announcing his vision of achieving 10

per cent economic growth it only augurs well for paint sector.


Chapter 2: Company Profile

Asian Paints is India's largest paint company and ranks among the top ten decorative

coatings companies in the world today, with a turnover of Rs 20.67 billion (USD 435

million) and an enviable reputation in the Indian corporate world for Professionalism,

Fast Track Growth, and Building Shareholder Equity.

The October' 2002 issue of Forbes Global magazine USA ranked Asian Paints

among the 200 Best Small Companies in the World for 2002 and presented the 'Best

under a Billion' award, to the company. One of the country's leading business magazines

"Business Today" in Feb 2001 ranked Asian Paints as the Ninth Best Employer in India.

A survey carried out by 'Economic Times' in January 2000, ranked Asian Paints as the

Fourth most admired company across industries in India. Among its various other

achievements, Asian Paints is the only company in India to have won the prestigious

Economic Times - Harvard Business School Association of India award on two separate

occasions, once in the category of "Mini-Giants" and the other in "Private sector Giants"

The company has come a long way since its small beginnings in 1942. Four friends

who were willing to take on one of the world's biggest, most famous paint companies

operating in India at that time set it up as a partnership firm.

Over the course of 25 years Asian Paints became a corporate force and India's

leading paints company. Driven by its strong consumer-focus and innovative spirit, the


company has been the market leader in paints since 1968. Today it is double the size of

any other paint company in India.

Asian Paints manufactures a wide range of paints for Decorative and

Industrial use. Vertical integration has seen it diversify into Specialty products such as

Phthalic Anhydride and Pentaerythritol. Not only does Asian Paints offer customers a

wide range of Decorative and Industrial paints, it even Custom-creates products to meet

specific requirements.

To keep abreast of world technology and to protect its competitive edge, Asian

Paints has from time to time entered into technology alliances with world leaders in the

paint industry. It has a 50:50 joint venture with Pittsburgh Paints & Glass Industries

(PPG) of USA, the world leader in Automotive coatings, to meet the increasing demand

of the Indian automotive industry.

It has also drawn on the world's latest technology for its manufacturing capabilities

in areas like powder coatings and high-tech resins - thus ensuring that its product quality

lives up to exacting international standards, even in the most sophisticated product

categories. The company places strong emphasis on its own in-house R&D, creating new

opportunities by effectively harnessing indigenous creativity. The Asian Paints Research

& Development Center in Mumbai has acquired the reputation of being one of the finest

in South Asia. With its team of over 125 qualified scientists, it has been responsible for

pioneering a number of new products and creating new categories of paints. The R&D

team has developed the entire decorative range of the company.

The company boasts of state-of-the-art manufacturing plants at Banda in the

state of Maharashtra; at Ankleshwar in the state of Gujarat; at Patancheru in the state of

Andhra Pradesh; and at Kasna in the state of Uttar Pradesh. All the company's plants

have been certified for ISO 9001 - the quality accreditation. All the company's plants

have also received the ISO 14001 certificate for Environment


Management Standard. The Phthalic Anhydride plant has been certified for ISO

9002 and ISO 14001 whereas the Penta plant has been certified for ISO 14001. The Penta

plant will shortly receive its ISO 9002 certification.

In June 2002, Asian Paints plant in Patancheru was conferred "The Golden

Peacock" award by the World Environment Foundation and the award for 'Excellence in

Environment Management' by the Government of Andhra Pradesh.

Asian Paints was one of the first companies in India to extensively computerize its

operations. In addition to computerized manufacturing, computers are used widely in the

areas of distribution, inventory control and sophisticated MIS to derive benefits of faster

market analysis for better decision-making. It is a continuously evolving company

deriving its cutting edge from the use of innovative IT solutions.

BOARD OF DIRECTORS

1.Mr.Ashwin Choksi Non Executive Chairman

2.Mr.Ashwin Dani Non Executive Vice Chairman

3.Mr.Abhay Vakil Director

4.Mr.P M Murty Managing Director & CEO

5.Mr.Mahindra Choksi Director

6.Mr.Amar Vakil Director

7.Mr.Hasit Dani Director

8.Ms.Tarjani Vakil Chairperson of Audit Committee


9.Mr.Dipankar Basu Director

10.Mr.Mahendra Shah Director

11.Mr.Deepak Satwalekar Director

12.Mr.Rajendra Shah Director

13.Dr.S Sivaram Director

14.Mr.S Ramadorai Additional Director

MAJOR COMPETITTORS

1. KANSAI NEROLAC

2. ICI INDIA

3. SHALIMAR PAINTS

4. BERGER PAINTS


Asian paints plant in Jammu

PRODUCT PROFILE

Product range of Asian paints:

Interior wall paints

Exterior wall paints

Doors and window paints

Furniture paints

Ancillary paints

Metal paints.

Interior wall paints :

Royale:

Royale is a premium acrylic emulsion made with the best acrylic copolymers, for walls

that stay new for years to come. Royale has a large range of super pastel shades that

provide the perfect backdrop for a luxurious room. It is easy to clean and to maintain. The

highlight of Royale is it's luxurious smooth finish with a silky sheen.

Premium Emulsion:


Premium Emulsion is the best choice for great looking walls. It gives a smooth finish to

the walls and is completely washable. The paint looks freshly painted for years. It resists

dust pick-up and provides long lasting protection.

Tractor Emulsion Smooth Wall Finish:

Tractor Emulsion Smooth Wall Finish is a good choice for people who are looking for a

value for money. It is washable and gives a smooth finish. Tractor Emulsion Smooth

Wall Finish is available in a range of 1000 shades. It will give your walls the legendary

quality of Tractor and the premiumness of an emulsion.

Super Decoplast Plastic Emulsion:

Super Decoplast is a good choice for people who are looking for a value for money. It is

washable and gives a smooth finish. Super decoplast comes in a wide range of over 1000

shades.

Interior Wall Finish Lustre:

Interior Wall Finish Lustre gives a gloss like finish. It is best suited for kitchens and

toilets where there is a lot of moisture and dirt. It is easy to clean and comes in a vast

range of shades to suit every colour scheme. It can also be used on regular walls to get a

shine on the walls.

Interior Wall Finish Matt:

Interior Wall Finish Matt gives a dead matt look to your walls. It has practically no sheen

and can be used to create the right contrast to your room. It is an oil-based paint and

comes in a vast range of shades.

Tractor Acrylic Distemper Washable:

Tractor Acrylic Distemper Washable is the best distemper in the market today. It gives a

smooth finish very close to more expensive emulsions and also comes in a range of over

400 shades. The ideal choice if one wants good-looking walls but does not have the


budget to go in for emulsions.

Tractor Synthetic Distemper Washable:

Tractor Synthetic Distemper Washable is India's largest selling distemper. Trusted by

millions of satisfied customers, Tractor Synthetic Distemper Washable is the generic

name for distemper. One will get a good wall finish that comes in beautiful shades and is

washable.

Utsav Acrylic Distemper :

Utsav Acrylic Distemper is a very economical wall finish. If you want to get a good

performance from your paint at a nominal cost, this is the paint for you.

Utsav Synthetic Distemper:

In case you wish to use choona, lime wash or local thaili distempers, consider Utsav

Synthetic Distemper. It comes in 1 Kg pouch packs and will provide a far better finish to

your walls than cheap alternatives at a slightly higher cost. The finish gives a bright look

to the room and does not come off on clothes like choona.

Exterior wall paints:

Elastomeric:

Asian Paints Elastomeric is a high performance, long lasting exterior paint designed to

withstand fluctuations in tropical climatic conditions. Its dry paint film has an in-built

elasticity coupled with excellent anti-algal and anti-fungal properties. Moreover, it offers

twin benefits of "Crack Bridging" and "Rain Guard". But it is available in selected cities.

Life: 8-10 years

Premiumness: * * * * *

Specialty: Excellent Crack bridging, Very long life Apex Weather Proof Exterior

Emulsion:

Apex Weather Proof Exterior Emulsion premium emulsion helps create beautiful

exteriors that last for years. It can withstand extreme tropical conditions of high rainfall,


humidity and heat. Apex Weather Proof Exterior Emulsion protects against UV

degradation, fungus and algae. It forms a tough bond with the exterior surface and

prevents peeling or cracking of the paint for years.

Life: 5-8 years

Premiumness: * * * * * Specialty: Anti-algal, Anti-fungal And Anti-fading

Ace Exterior Emulsion:

Ace Exterior Emulsion provides protection from the elements of nature. It is suitable for

non-coastal areas and places with a dry to moderate climates. It has excellent resistance

to chalking, cracking and weathering. It has superior surface adhesion and is anti-fungal

and anti-algal.

Life: 3-5 years


Specialty: Low dirt pick-up, Resistant to fungus

Gattucem Cement Paint:

It is an economical exterior wall finish. It is a decorative coating that should only be used

in dry and arid areas. It is also available in selected cities.

Life: 1-3 years


Ancillary

Product Name: Asian Paints Metal Prime

Asian Paints Metal Primer is the most economical primer available in the ranges of

primers. This primer has good adhesion & gives fair corrosion resistance to metal .Where

the cost factor is of prime consideration, this is the ideal primer. It can be easily brushed


sprayed to form a hard & tough adherent coating. It finds use of priming as low cost shop

primer in the steel furniture industry etc.

Product Name: Asian Paints Knifing Paste Filler

Asian Paints Knifing Paste Filler is used on metallic or wooden surfaces for filling of

dents & other surface imperfections. It has butter like consistency & is easy in

application. It is supplied at ready to use consistency but can be thinned easily to any

desired consistency by using recommended thinner. On air drying or stoving, it dries

hard. Cutting is easy & involves no strain.

Product Name: Asian Paints Red oxide Oil Primer (Rust Protector)

Asian Paints Red oxide Oil Primer is based on synthetic resins & contains corrosion

resistance hence serves as a good quality metal primer. It can be easily applied by brush

or spray & dries hard to form a good adherent coating & is economical in use.

Product Name: Asian Paints Wood Stains

Asian Paints Wood Stains have been formulated specifically to impart color to wood.

They offer4 uniform penetration along with a depth & clarity of tones that emphasizes the

natural pattern & character of wood grain. They can be used on all kinds of veneers &

MDF surfaces.

Product Name: Asian Paints N.C. Sanding Sealer

Asian Paints N.C. Sanding Sealer is high quality product. Nitrocellulose based, quick

drying clear lacquer. It is recommended for interior wooden furniture.

Product Name: Asian Paints Royale Play Tools


Asian Paints Royale Play is a water-based special effects paint designed to create a

variety of special effects on interior walls. This product has been specially formulated

such that it is easy to apply. It has a soft sheen that lends elegance & style to a surface.

Product Name: Asian Paints N.C. Wood Filler

Asian Paints N.C. Wood Filler is a quick drying wood filler which renders very fine

sanding properties shortly after application of top coats such as N.C sanding sealer / N.C.

lacquers. It is a grain filler for natural wood.

Product Name: Asian Paints Apcolite Synthetic Primer Surfaced & Brushing Filler

Product Name: Asian Paints Exterior Sealer

Asian Paints Exterior Sealer is an acrylic copolymer-based surface conditioner for

exterior surfaces. It is designed to penetrate into the exterior substrate & also improves

adhesion of the Exterior Emulsion Paint topcoats.

Product Name: Asian Paints Utsav Floor Colour

Asian Paints Utsav Floor Colour is a high quality oxide powder, which keeps your

concentrate flooring looking attractive for years. It has high colouring strength & mixes

easily with cement. It is manufactured using genuine Oxide imported from Persian Gulf.

Its brilliance & gloss keeps increasing with time. Also, it is UV light resistant & does not

fade when exposed to sunlight.

Product Name: Asian Paints Decoprime Wall Primer WT

Asian Paints Deco-Prime Wall Primer (WT) can be used as primer for painting of water-

based wall finishes such as distempers & plastic emulsion paints. Its special features are

easy brushing, excellent covering, alkali resistance, quick drying & good sealing

properties. It is specially fortified with fungicides.

Product Name: Asian Paints Decoprime Wall Primer ST

Asian Paints Deco-Prime Wall Primer (ST) is suitable for use as primer for masonry

topcoats like distempers, emulsions, luster & matt wall finishes. It helps in providing a


suitable surface for application of subsequent coats of putty & finish paint. It sets fast,

has good sealing properties, good resistance to wall alkalinity, moisture & fungus.

Product Name: Asian Paints Acrylic Wall Putty

Asian Paints Acrylic Wall Putty is water-based putty. It is one of the best product of its

kind available in the market. It provides a very strong durable foundation & brings out

the best performance from the finish paints. both in looks & durability.

Product Name: Asian Paints Exterior Wall Putty

Asian Paints Exterior Wall putty is a specially designed product based on white cement,

redispersible polymer & functional additives for application on exterior rough plasters to

give a smooth finish.

Product Name: Asian Paints Wood Primer

Asian Paints Wood Primer is specially formulated to protect wood. It has an excellent

sealing & filling properties which protects wood from swelling due to absorption

moisture. Wood Primer penetrates wood fiber & gives excellent adhesion to substrates &

also serves as a sound base for application of undercoats & finishing coats. It also

protects the finish coat from exudation of resinous matter oozing out from wood.

Product Name: Asian Paints Exterior Wall Primer

Asian Paints Exterior Primer is water-based wall coating suitable for application on

exteriors as an undercoat to exterior emulsions. It has a good opacity & whiteness, which

helps improve the appearance of the emulsion top coat. Exterior Wall Primers does not

chalk & can be applied on freshly plastered surfaces that are adequately cured. It does not

require any water curing.


Company vision and mission

A TOUCH OF QUALITY IN RELATIONS

Vision

To be a leader in ceramic industry.

To uphold quality at every stage and maintain consistency to win the Trust of our

Valued Customers Worldwide.

To Remain as Innovative Global Leader.

Our mission

Quality in everything we do.

Exceed customer’s expectations.

Trust, respect and integrity are the essence in all of our relationships.

Continuous improvements, innovations and embrace change

Team work and open communication.

To foster an environment; enabling the staff to exhibit excellence in work.

To create a safe, productive and rewarding work environment.

To build a high – performing, diverse work force.

To promote the responsible consumption of our NATURAL RESOURCES

To Preserve and protect the environment and Support communities where we do

business.


Chapter 3: ORGANIZATIONAL STRUCTURE


Chapter 4: FUNCTIONAL AREA


1. Productions and Operations department

Manufacturing Facility

Asian Paints along with its subsidiaries has operations in 17 countries across the world

and 24 paint manufacturing facilities, servicing consumers in 65 countries through Berger

International, SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans. Asian

Paints operates in 5 regions across the world viz. South Asia, South East Asia, South

Pacific, Middle East and Caribbean region through the five corporate brands viz. Asian

Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. In 7 markets, it

operates through its subsidiary, Berger International Limited; in Egypt through SCIB

Paints; in 5 markets in the South Pacific it operates through Apco Coatings and in Fiji

and Samoa it also operates through Taubmans.

Country No. CountriesManufacturing

PlantsCompany Location

South Asia

1 India 9 Bhandup, Ankleshwar, Patancheru,

Kasna, Sriperumbudur, Rohtak,

Sarigam, Baddi, Taloja


2 SriLanka 1 Asian Paints

3 Nepal 1 Asian Paints

4 Bangladesh 1 Asian Paints

South East Asia

5 Singapore 1 Berger International

South Pacific

6 Tonga Asian Paints

7 Fiji 1 Asian Paints & Taubmans

8 Samoa Islands 1 Taubmans

9 Vanuatu 1 Asian Paints

10 Solomon

Islands

Asian Paints

Middle East

11 Oman 1 Berger International

12 Bahrain 1 Berger International

13 Dubai 1 Berger International

14 Egypt 2 SCIB Paints

Caribbean

15 Jamaica 1 Berger International

16 Barbados 1 Berger International

17 Trinidad &

Tobago

1 Berger International

Total 24


Supply Chain

Asian Paints has harnessed the powers of state-of-the-art supply chain system using

cutting edge technology to integrate all its plants, regional distribution centres, outside

processing centres and branches in India. All the company's paints plants in India, two

chemical plants, 18 processing centres, 350 raw material and intermediate goods

suppliers, 140 packing material vendors, 6 regional distribution centres, 72 depots are

integrated.

The supply chain runs through a wide spectrum of functions right from materials

planning to procurement to primary distribution. It has played a pivotal role in improving

operational efficiencies and creating agile procurement, production and delivery systems.

It has also enhanced the flexibility of operations, lowered output time and reduced

delivery costs, while improving customer-servicing levels and profitability.

The Supply Chain Management is backed by IT efforts that help the company in demand

forecasting, deriving optimal plant, depot and SKU combinations, streamlining vendor

relationships, reducing procurement costs and scheduling production processes for

individual factories.


Decor Ideas

Set the mood, live healthy and feel good. Colours give the essential character to any

space. Be it the living room or kitchen, bedroom or lounge.

In this section, we'll help you achieve striking effects using the right colour combinations.

We'll help you understand colours and how you can use them to create a home that

resonates with your personality.

Glam Decor

Timeless, eternal shades that infuse glamour. Traditionally, they have been a part of our

culture in fabrics, jewelry, furnishings and accessories. Make a statement of elegance and

sophistication in a bold, luxurious ambience.

Cool Décor

Tranquil, open and full of optimism, cool is nurturing and soothing. Curtains and

bedspreads create an ambience of wide spaces that comforts the senses. In this life of

constant stress, such a décor offers a much-needed retreat.

Vibrant Décor

Refined or lively, hot and trendy, vibrant décor adds a dash of spice to everyday life. It

can be a radical statement or a classical symphony. Either way a vibrant outlook adds a

spirit of youth, revelry and fun!

Neutral Décor

Neutral is elegance. It's the modernity of steel and the calmness of winter. Sombre and

placid and yet a dignified presence in your home, neutral colours offer a balance to every

excess.


Colour Shoppe

Colour Next 2009 – the latest colour trends for 2009. Colour Next 09 is a celebration of

colours born out of imagination and research. It's the outcome of a comprehensive

trend mapping exercise conducted by Asian Paints across India, taking into account a

variety of factors like international trends, consumer insights and expert opinions.

Information from all these sources are then analysed to forecast design themes &

colour palettes for the year ahead.

The Colour Next 2009 Trend Book gives you all the information you need about

Colour Next 2009 with actual colour swatches. Start your day with a dash of colour

with the Colour Next 2009 Planner.

Home Book Colour Next 09

Colour Next 2009 – the latest colour trends for 2009. Colour Next 09 is a celebration of

colours born out of imagination and research. It's the outcome of a comprehensive

trend mapping exercise conducted by Asian Paints across India, taking into account a

variety of factors like international trends, consumer insights and expert opinions.

Information from all these sources are then analysed to forecast design themes &

colour palettes for the year ahead.

The Colour Next 2009 Homebook depicts actual roomshots, suggested colour

combinations and theme walls for each trend.


Imagine Wall Fashion

Imagine Wall Fashion – dramatic, stylish wall themes that transform your home, even

if you alter nothing else in it. A string of bells turn a room Indian, abstract patterns

make it modern, a spray of flowers make it dreamy, and ornate designs give it a

sophisticated feel. Along with the themes, our designers have picked accessories and

chosen the kind of lighting that would create the perfect ambience.

Interior Colour Guide & Exterior Colour Guide Combo

Colours give the essential character to any space.

Choosing colours for your home and making the right combination without the right

guides can be a long confusing process.

Here is a great combination of guides from Asian Paints, for interiors and exteriors of

your house.

The Interior Colour Guide helps you zero in on the right colours through an easy-to-

navigate structure based on basic colour families. Here's where you'll find 7 unique

combinations for each colour family to choose from. You can compare and see how the

same room setting looks distinctly different with deeper, medium or lighter tones of the

same colour family. A total of 77 colour combinations are waiting to be discovered, in

this book.

The Exterior Colour Guide: Imagine Exteriors book showcases a number of new and

exciting colour combinations that you can use for your home. Just pick your favourite

colour combination and flip to that section to see the different possible combinations.

These have been carefully selected by architects and designers to ensure that they suit

different architectural styles of homes across the country.


2. Marketing department

While Asian Paints has grown from a relatively small, decorative paint company to a

large business that has a vast consumer customer base, the company's methods of

distribution and marketing have only changed slightly over the years. The basic

distribution and marketing strategies are still similar to the initial strategies used when the

company first opened its doors. Some of these are as follows:

Wide Range of Products

Asian Paints used the strategy of offering a wide range of products to push competitors to

the side and become the leading Indian company in decorative paint. Companies that

have a larger selection available for clients or customers are more likely to retain those

clients and customers than companies which are limited and do not have the color

choices. By offering a wide range of products, Asian Paints has been able to broaden its

customer base.

Automated Machines at Distributors

Technology is a large part of Asian Paints' distribution success. According to a

distribution strategy case study of Asian Paints, the company provided automated

machines that mixed paint colors at the distributors to allow customers and consumers

more range in color and more options. These machines use technology to produce colors

that otherwise are unavailable, resulting in a wider range of selection

Distribute to Rural Areas

A big problem with paint companies in India was a competitive market in the large cities,

where distribution was relatively easy and the risks were low. Asian Paints started by

working from the rural areas, where distribution was a challenge and where the other

companies had overlooked. Instead of focusing in cities and urban areas, Asian Paints

focused on a national level and worked in until reaching the cities.

Focus on Emerging Markets


Expanding from India, Asian Paints started working on distributing decorative paints to

emerging economies. It is a similar strategy to the initial strategy used in India, but it is

now expanding to countries and locations outside of India. Rather than distribute to

economies like the U.S., Asian Paints has turned its focus to customers in places like

Singapore and Egypt.

Retail Initiatives

In the early 90s, for the first time in the paint industry Asian Paints offered the consumer

over 150 shades. The concept was extended to the dealer shops through Colour World in

the mid-90s, where Asian Paints began offering over 1000 shades. The introduction of

Colour World provided a new direction for the paint industry into the age of retailing by

providing the consumer - a service interface. With only a limited set of bases and

colourants, manufactured and transported throughout the supply chain, Asian Paints

provided a choice of innumerable shades to the customer through a technology of tinting

at the last retail store.

It has been our endeavour to reach out to our customers not only with our products but

also with value-added services and initiatives. The Asian Paints Helpline introduced few

years ago is a toll free service where consumers call and ask queries related to painting.

The company has now extended this service to ASIAN PAINTS HOME SOLUTIONS,

which offers painting services in addition to the paint. This service is available in 10

cities viz - Hyderabad, Bangalore, Kolkata, Delhi, Chennai, Ahmedabad, Mumbai, Pune,

Coimbatore & Cochin.

The company entered into a new foray of prediction of colour trends in India. Intensive

research is carried out with interior designers, architects and the fashion community to

arrive at trend movements in colour each year. The study being done for the second year

is termed ColourNEXT 2006, which is a collection of 15 shades predicted to be the

trendiest and most happening colours which helped consumers get an insight into the


latest trends along with deciding their colour combinations for a range of products

ranging from furnishings, floorings to home accessories.

Another important area was the offer of painting solutions for children with the launch of

Kids World. A foray into Kids' World marks yet another milestone wherein the company

offers painting designs for Kids Rooms as well as Kids Corners. For the first time, an

attempt has been made to invite the customer to get into a Do-It-Yourself mode with

these designs. Royale Play is another innovative concept introduced by the company. It is

a collection of innovative and ready-to-use special effect finishes for interior walls,

comprising a range of special effects. And each of these effects are available in a shade

palette that is fitting for that effect in interesting colour combinations. The revolutionary

product gives wall paint a whole new usage. Now, along with colour, you can give your

walls dimension, texture and life.


CoreMessage

Marketing

Strategy

IdealCustomer

Customer Service

LeadConversion

Lead Generation

CoreMessage

IdealCustomer

MarketingMaterials

Public Relation

Advertising

Referrals

Nurturing

Sales

Transaction

Community

Loyalty

Referrals

PRODUCT PORTFOLIO:


MarketingMaterials

Pricing Strategy

Owing to the fact that the Indian paints industry is an oligopolistic market, Asian Paints

adopted a policy of cost-plus pricing strategy. Cost-plus pricing strategy determines the

price of a product or a service by adding up all direct and indirect costs which are related


with the production and sale of that product (or service). In this strategy, all the costs are

first taken up as unit costs per product and then a pre-determined proportion of these

costs are marked as MRP.

Positioning Strategy

Promotional Activities

Asian paints is the market leader of the decorative segment in the paint market of the

India. As it is not for behind in the other tow section ,that is, industrial coating and


DECORATIVE PAINTS

TRACTOR EMULSION

INDUSTRIAL PAINTS

PREMIUM PRICE

UTSAV

LOW PRICELOW PRICE

ROYALE APCOMINSYNTHETICENAMEL

APCO POWDER

APEX

APCOLITE

automotive coating. In order to achieve the current position, a lot things are being done

by the Asian paints. The promotion strategy of Asian paints is bringing a lot of positive

output to the company. The organization is using different techniques such advertising

campaign, sales promotion, personal selling, direct marketing and public relation, trade

shows, specialty advertising and many others. The taglines of various products have ruled

the minds of the consumers and the current brand ambassador, Bollywood Actor Saif Ali

Khan, has further enhanced the organization’s appeal.


3. Finance department

Asian Paints have always performed better in contrast with its competitors. The

organization’s net revenue from operations (standalone) increased by 25.7% in the

financial year 2011-12 and net revenue from operations (group) increased by 24.7%. The

EPS of the company is Rs 102.44.

Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 95.92 95.92 95.92 95.92

Equity Share Capital 95.92 95.92 95.92 95.92

Share Application Money 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00

Reserves 2,391.86 1,879.40 1,461.30 998.55

Revaluation Reserves 0.00 0.00 0.00 0.00

Networth 2,487.78 1,975.32 1,557.22 1,094.47

Secured Loans 17.01 23.43 25.59 24.59

Unsecured Loans 151.21 40.70 40.70 40.70

Total Debt 168.22 64.13 66.29 65.29

Total Liabilities 2,656.00 2,039.45 1,623.51 1,159.76

Mar '12 Mar '11 Mar '10 Mar '09


12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 1,659.51 1,611.22 1,194.39 1,116.93

Less: Accum. Depreciation 650.47 554.03 486.93 494.02

Net Block 1,009.04 1,057.19 707.46 622.91

Capital Work in Progress 827.30 67.32 380.72 164.64

Investments 542.22 1,034.76 703.69 234.77

Inventories 1,264.42 1,071.76 763.14 546.71

Sundry Debtors 500.24 366.68 331.43 311.02

Cash and Bank Balance 450.94 20.28 28.58 128.05

Total Current Assets 2,215.60 1,458.72 1,123.15 985.78

Loans and Advances 361.22 270.88 241.68 186.37

Fixed Deposits 50.03 0.19 0.02 0.21

Total CA, Loans & Advances 2,626.85 1,729.79 1,364.85 1,172.36

Deffered Credit 0.00 0.00 0.00 0.00

Current Liabilities 1,929.18 1,511.37 1,229.04 849.08

Provisions 420.23 338.24 304.17 185.84

Total CL & Provisions 2,349.41 1,849.61 1,533.21 1,034.92

Net Current Assets 277.44 -119.82 -168.36 137.44 17.94

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 2,656.00 2,039.45 1,623.51 1,159.76

Contingent Liabilities 414.71 505.87 223.80 356.87

Book Value (Rs) 259.36 205.93 162.35 114.10


4. Human Resource department

Asian Paints believes that people are its strongest assets, for a company can go only as

high as its people aim. It is people who innovate and invent, and who engineer the

efficiencies that make a business succeed. It is they who drive growth and lead to greater

heights. At Asian Paints, the human resources systems are designed to create a focused,

performance oriented and agile company. A talent pool of over 4700 employees

employed across 23 countries bring in a unique blend of mindsets and skills.

Several initiatives, which began in the year 2010, started taking shape in the following

years. Learnscape, People Review process and Employee Engagement are few such

initiatives where noticeable consolidation over last year’s work were seen. In the

organization, several initiatives under ‘Voice of Employee’ agenda were taken up for

implementation making a good beginning to responding to employee needs.


A repertoire of courses available through ‘e-learning’ is gaining momentum within the

company which includes partnerships with reputed global organizations like Harvard

Business Publishing and Skill soft. These have received encouraging feedback from

employees as well.

An open and interactive work culture brings out the best in the people. A sense of

ownership and freedom to experiment at their workplace brings out creativity and

innovation in every individual. Excellent training is provided to develop leaders and re-

strengthen competencies from within the organization. Besides encouraging achievers

from within the organization, Asian Paints absorb the best talent from some of the best

management and technology institutes in the country.

The people are selected on the basis of being best suited to the job and whose personal

goals are in alignment with the organization’s corporate purpose. Thus, the task is cut out

for every individual within the framework of result-orientation, market insight, customer

perspective, trust, respect and problem solving.

The commitment of the employees and their sense of discipline and ownership continues

to drive growth for the company.


Human Resource functions


Hiring

Promotions

Reassignments

Position classification and grading

Salary determination

Performance appraisal review and processing

Awards review and processing

Personnel data entry and records maintenance

Consultation and advisory services to management and employees

o Conduct problems

o Performance problems

Policy development

Technical policy interpretation

Work Permitting Immigration Visa Program

Benefits

o Health care insurance

o Life insurance

o Disability insurance

o Retirement

o Voluntary accidental death and dismemberment insurance

o Leave Transfer Program

o Tuition Assistance Plan

o Training opportunities

o Combined Federal Campaign

Employee assistance referral


Human Resources is exactly it says: resources for humans – within the workplace! Its main

objective is to meet the organizational needs of the company it represents and the needs of

the people hired by that company. In short, it is the hub of the organization serving as a

liaison between all concerned. Depending on the size of the company, the HR Department

might be called Personnel with a manageable workforce that can be handled by a personnel

manager and a small staff. For larger, more complex organizations with hundreds of

departments and divisions, the task is much more demanding, taking on a life of its own.

Some companies have more than one HR Department - Corporate and Union . For example,

a food service industry might have a Corporate HR Department that oversees “white

collared" employees and an HR Department that oversees the “blue collar" workforce with

an emphasis on labor relations. The organization will, thus, institute these two HR

Departments to manage the unique needs of both union and non-union employees.

Organizational Development:

To ensure its success, a company must establish a hierarchal reporting system. The funnel of

responsibility is critical to the efficiency of a smoothly operating business entity in which

there is a clearly defined understanding of who is responsible for what. They provide

consultation to a company's management team to identify what the company's core business

and culture is about, and proceeds to plan and map the company's organizational

infrastructure to support those needs.

Employee Recruitment and Selection Process:

There are many steps to recruiting and selecting qualified employees. First, a department

head must inform the HR manager of an opening in their department. Then the HR manager

must obtain the job description to formulate a Job Description Sheet for publication either

internally, publicly, or both. Then HR must field the (many) responses to that job

announcement to weed out the qualified from the unqualified applicants. Once that is

completed, the interview process must be coordinated. They prepare the job description,

contact the newspaper, run the ad, field the calls, compile a list of potential candidates,

submit that list to the department's hiring manager for approval and selection, contact the

chosen candidates to set up preliminary interviews, and interview the candidates! Although

most interviews are with the hiring manager or their associates, not all applicants get to meet

with the department's hiring manager right away. It is not uncommon for a company to filter

out those who fail to impress the HR manager first. For those select few who make it

through, the HR manager schedules interviews between the department's hiring manager and

potential candidates, and follows up with the hiring process to establish the new hire with the

SWOT ANALYSIS

Strengths

Importance of brand image as barriers to new entrants

Good technology backup

Wide distribution channel

Effective retail initiatives

Weakness

Raw materials prices being very volatile

Requirement of high working capital

Real estate becoming expensive day-by-day

Opportunities

Fiscal incentives provided by Government.

Investment moving from Commodity to FMCG

Rise in disposable income

Threats

Foreign companies entering as sole players

High technology instant spot fixing colour

Margin across industry is under pressure due to surging inflation

Uncertain macroeconomic challenges


Findings/Recommendations & Conclusion


FINDINGS

1. The focus on the Human Resource Department is not adequately emphasized.

2. Majority of the respondents opinion about Asian paints price is high.

3. Marketing Department is not well organized. They are weak in distribution network.

4. The quality of Asian paint is excellent.

5. Waste management has not been given adequate emphasis.

6. Machines are not placed systematic and properly in the organization.


Recommendation

Asian Paints started its journey in 1942 with four young men and the company’s name

was randomly picked from a telephone directory. The brand has travelled from that

garage to become over a crore brand and has an iconic status in the minds of its

stakeholders.

For such a promising organization it is very important that the top management lays out

appropriate strategic moves and implements it. There are some big competitors who can

gain advantage in case Asian Paints does not perform well.

Following are some of the recommendations that the organization may look into:

The organization should try to capture the markets where its products are not

widely distributed whereas its competitors have a good presence.

More and more R &D activities should be encouraged so as to develop new

products that may outperform the currently available ones such as no-odor

releasing paints.

Although the market conditions in today’s scenario is volatile, yet the

organization manages to successfully handle its operational issues. One such

related issue is the margin that should be protected in difficult times.


+

Conclusion

The present report takes a tour of some of the critical functions that Asian Paints

performs. At the end of the study it can be said the organization has effectively fine tuned

its strategies with changing times and volatile environment. There are some strong

contenders in the Indian Paints Industry. But despite that the brand “Asian Paints” has

successfully created a separate identity for itself through its consistent efforts to produce

top quality paints and market them well. The share price and the organization’s

performance on the stock exchange speaks about how much the stakeholders believe in it.

There are many up-coming strategies that are in Asian Paint’s pipeline. With the

implementation of these strategies and the revival of market conditions, the organization

is sure to have a profound presence and give its competitors a tough challenge.


BIBLIOGRAPHY

Company website:

o WWW. ASIAN PAINTS.COM


Asian Paints mba

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