Welcome

Marketing Plansubmitted by

Francis Pinto 17

Shilpa Kulkarni 31

Pradnya Morje 36

Amol Rane 43

Tushar Wadivkar 57

Aditya Divadkar 58

Asian Paints (I) Ltd.

India’s largest manufacturer of paints

Leader in the paint industry for over three decades, controlling 45% of the Indian paint market.

It out performed industry growth during the year 2002

New product launches and excellent growth in exterior finishes have been the key driver of growth.

Global Reach

Asian paint is present in 24 countries across the globe as :

Asian Paints India Bangladesh OmanSri Lanka Nepal Mauritius

Apco coatings Australia Fiji Soloman IslandVanuatu Tonga

Berger Baharin Barbados ChinaHongkong Jamica MalaysiaMalta UAE Trinidad &

TobagoThailand Singapore

SCIB Chemicals Egypt

Asian Paints Industrial Coating Limited ( APICL )

• A wholly owned subsidiary of the company was incorporated on 1st October, 2001 and acquired the powder coatings business of Hawcoplast Chemicals Ltd.

• The acquisition has been funded from acquits of Rs. 80 million and a loan of Rs. 60 million financed by Asian Paints (I) Ltd.

• The subsidiary commenced operations with effect from 1st November 2001. It sells its products under the Hawcoplast & Apcoshield brand names.

Industrial Paint Market (2002-2003)(Value in crores)

771 730

Non-Automotive Automotive

Total Market 1501Cr

Auto Industrial Coatings (02-03) MS among Top 6 Competitors

APIL21%

Goodlass Nerolack49%

ICI16%

BASF7%

J&N0%

Berger7%

Goodlass Nerolack19%

Berger31%

J&N8%

Akzo17%

Shalimar9%APIL

16%

Non Auto Industrial Coatings (02-03) MS among Top 6 Competitors

Paint Market

• Low market penetration

• Worldwide technology not available

• Huge scope of market development

• Absence of product hierarchy based on benefits – largely based on price

• Network driven market, not consumer driven

Powder CoatingsPowder Coatings

Industrial Coatings (02-03) % Business Share

PC26%

ILP9%FC

6%COIL

2%

Powder28%

RMC9%

Others20%

Global reach of APICL

International Market for powder coating :

The portfolio of products offered by Apco coatings covers a large spectrum of Architectural, wood, auto, marine and industrial coatings.

It has brands that are truly global and sell under the following brands :

Apcolite Decotrade Decora Touch wood Timber care Auto care Royal

Asian Paints has 27 manufacturing units all over the world, which includes

Australia, Fiji, Soloman Island,

Tonga, Vanuatu, South Asia,Middle East Africa, Oman, Mauritius, Sri Lanka Bangladesh Nepal

Powder Coating - Market Size (MT)

10500 10982 11760 12682

0

5000

10000

15000

20000

25000

2000-01 2001-02 2002-03 (Est.) 2003-04(Proj.)

Volume in MT

4.5 % 7.08 % 8.5 %

Powder Coating% Market Share 2002-03

Polycoat18.7%

APIL13.6%

Berger12.4%Marpol

11.2%

Akzo7.9%

Maharani4.8%

Others27.6%

J&N3.8%

Powder Coating - APICL Performance (Volume in MT)

10500

1268

10982

1486

11760

1600

12682

1800

0

5000

10000

15000

2000-01 2001-02 2002-03 (Est.) 2003-04(Proj.)

Market APICL

M.S.12.07 %

M.S.13.53 %

M.S.13.60 %

M.S.14 %

Powder Coatings Distribution Channel (Top 6)

Company Dealers Total

DLPaint

Contr.Eng.

ContrOthers

Polycoat 615 1324 171 88 2198APICL 974 320 252 54 1600Berger 886 274 238 60 1458Marpol 1047 75 91 104 1317Akzo 158 740 20 11 929Maharani 354 122 43 46 565Total 4034 2855 815 363 8067

Direct Users (DU)

(Volume in MT )

Powder Coatings Industry Consumption 2001-02 (Volume in MT)

Industry Consumption PercentageRefrigerator 1095 31.80Furniture 394 11.43Air conditioner 345 10.01Washing machine 207 6.00Luggage 92 2.66Fan 71 2.06Household Usage 63.96

Electrical goods 215 6.23Switch gear 213 6.20Auto Ancillary 179 5.18Auto Ancillary 144 4.18Architechtural 143 4.15Textile Machine 139 4.03Light fitting 125 3.63Other appliance 84 2.44Industrial usage 36.04

Powder Coatings Acquisition of Hawco Plast

Acquired Hawcoplast business in 2001-02

Impact

APICL become no.2 player in the industry (APIL-344 MT + HAWCO-1142 MT)

Acquired a large and loyal dealer base. Acquired a manufacturing plant at Sarigam with installed

capacity of 1500 MT / year. Acquired a proven sales & marketing team which can

handle both brand.

STRENGTHS WEAKENESS

Market Share of 13.6 % with established brand namePlant in North , West India which are the major marketWider distribution channelCapacity increase due to acquisitionGlobal reach : 24 countries across the globeTechnology tip-up with Oxyplast / Belgum

OPPORTUNITIES THREATS

27.6 % market is captured by nichers, which can be acquired

APICL Vs. the competitors

Immediate competitor Berger has MS of 12.4 % which is just 1.2 % less than Asian Paint

Poor reach to direct user

Quarter

Sale

Aprl-June ’03

July-Sept. ’03

Oct.-Dec. ’03

Jan.-March ’04

Total yearly

2003-04

Due to Household industry usage

15% 40% 20% 25% 64%

1218 3246 1623 2029 8116

Industry usage 15% 20% 30% 35% 36%

685 913 1370 1598 4566

Total Target

( Apportioned )1903 4159 2993 3627 12682

Projected Sale of Powder Coating 2003-04 (Volume in MT )

Marketing Strategies

Product

• New version of product » offer more choices

» expand market

• New generation products and eco-friendly alternatives like water based enamels and elastomeric paints.

Marketing Strategies contd….

Price

• Streamlining costs through operational and technological efficiencies.

• Reduction in import duty form 30% to 25%

• Application of Supply Chain Management & reduction in the working capital .

Marketing Strategies contd….

Place Markets across the globe are

Oman Mauritus Nepal AustraliaSoloman Island Vanatu Fiji Tonga

& EgyptScope for new markets

Bahrain China Jamaica MaltaTrinidad Singapore Barbados HongkongMalaysia Myanmar UAE ThailandSri Lanka& China

• Last year no new market were developed from India • New markets have been penetrated by APICL from its overseas units.

New markets can be developed in :

Sri Lanka Bangladesh

Marketing Strategies contd….Place ….contd…

Sri Lanka

• Acquired controlling stake in 2nd largest paint company in Sri Lanka, Delmege Forsyth & Co. (Paints) Ltd.

• The company has 12% market share and excellent brand name in Sri Lanka.

• Well developed distribution channel

Bangladesh

• Entered into joint venture agreement with Confidence Cement Ltd.• Will manufacture and market a vide variety of products• Manufacturing facility is coming up at Gazipur

Also efforts can be made for market penetration for full capacity utilization in middle east, Oman, Baharain, Kuwait, Qutar, UAE & Libya.

Marketing Strategies contd….

Promotion

What is taking Asian Paints closer to customers :

Helpline through telephone Access to website Home solutions

• These initiatives were taken by Asian Paints to attract customer to paint.

• Focus is to become a strong player in Industrial coating business

Marketing Strategies contd….

Promotion ….contd…

Promotion will include

• Public Relations• Target large number of direct users • Special awards / bonus to marketing team. • Direct communication to manage image• Some sort of a help line, delegated exclusively for

industrial selling can be generated • 30% reduction in advertising cost and use it for promotion

Monitoring & Controlling

• The responsibility to achieve the target will be of the Marketing Manager

• Marketing team along with sales team will review the strategies

• GM – Marketing will be responsible for deciding and implementing strategies for promotion mix

• If in a particular quarter, target is not reached, VP – Marketing should be consulted

Industrial Selling Business Module

1 To 1 Zero

Marketing Defects

Develop customer Least Cost /

Base / loyalty other benefits

Focus

Thank youThank you