BUSINESS ENVIRONMENT

MBA 4506

Submitted by:
Arul Prasath.K,

10 MBA 47,

Dept. of Management Studies,

The American College,

Madurai-02.

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 CONTENTS

 CORPORATE INFORMATION

 Vision

 History

 Board of Directors

 Manufacturing Facilities

 Supply chain

 Human Resource

 Retail Initiative

 Research and Development

 CORPORATE CITIZENSHIP

 Enironment and Safety

 Quality Policy

 International Corporate Citizenship

 Group Subidaries

 AWARDS AND RECOGNITIONS

 OVERVIEW OF WORLD OF COLOURS

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  CORPORATE INFORMATION
Vision:
Asian Paints aims to become one of the top five Decorative coatings companies world-wide 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.

History:
1st February, 1942

• Armed with little knowledge and great determination, Champaklal H. Choksey,

Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to
manufacture paint in a garage on Foras Road, Bombay. They name their company 'The
Asian Oil & Paint Company', a name that they picked randomly from a telephone
directory.

1945

• Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing strategy
"to reach consumers in the remotest corners of the country with small packs."

1954

• Asian Paints mascot, Gattu, the mischievous kid, is born.

1957 - 66

• The family-owned company makes the transition to a professionally managed

organisation.
• British company Balmer Lawrie rejects the products of a giant British paint company in
favour of Asian Paints.
• Asian Paints embarks on an ambitious grassroots marketing campaign, partnering with
thousands of dealers in small towns all over India.

1967

• Asian Paints emerges as India's leading paint company ahead of any international
competition.

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Today

• Asian Paints becomes the 10th largest decorative paint company in the world
• Asian Paints is more than twice the size of its nearest competitor
• It is one of the most admired companies in India
• Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated
SAP - ERP & i2 - SCM solution
• Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu
Business Line; Most admired company to work for by ET-BT survey, 2000
• On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself
into Growth, Decorative and International business units and adopted SCM and ERP
technology
• Asian Paints aims to become the 5th largest decorative paint company in the world

Board of Directors:

Mr. Ashwin Choksi Mr. Ashwin Dani Mr. Abhay Vakil Mr. P M Murty
Non-Executive Non-Executive Vice Director Managing Director &
Chairman Chairman CEO

Mr. Mahendra Mr. Amar Vakil Mrs. Ina Dani Ms. Tarjani Vakil
Choksi Director Director Chairperson of Audit
Director Committe

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Mr. Dipankar Basu Mr. Mahendra Shah Mr. Deepak Mr. Rajendra Shah
Director Director Satwalekar Director
Director

Dr. S Sivaram Mr. S Ramadorai

Director Director

Manufacturing Facilities:
Asian Paints along with its subsidiaries has operations in 17 countries across the world and 23
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 Countries Manufacturing Company Location

No. Plants
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
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South Pacific
6 Tonga Asian Paints
7 Fiji 1 Asian Paints & Taubmans
8 Samoa Islands 1 Taubmans
9 Vanuatu 1 Asian Paints
10 Solomon Asian Paints
Islands
Middle East
11 Oman 1 Berger International
12 Bahrain 1 Berger International
13 Dubai 1 Berger International
14 Egypt 1 SCIB Paints
Caribbean
15 Jamaica 1 Berger International
16 Barbados 1 Berger International
17 Trinidad & 1 Berger International
Tobago
Total 23

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.

Human Resources:
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, our
human resources systems are designed to create a focused, performance oriented and agile

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company. A talent pool of over 4700 employees employed across 23 countries bring in a unique
blend of mindsets and skills.

An open and interactive work culture brings out the best in our 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 organisation. Besides encouraging achievers from within the organisation, we
absorb the best talent from some of the best management and technology institutes in the
country.

We hire people who are best suited to the job and whose personal goals are in alignment with our
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 our people and their sense of discipline and ownership continues to drive
growth for our company.

Retail Initiatives:
Customers - the very core of all our business activities. From the beginning, Asian Paints has
fostered a customer-centric approach to business. A simple but unbeatable concept of "going
where the customer is" drives all our retail strategies.

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.

With the introduction of Colour World, almost all wall-finishes from Asian Paints offer a wide
range and choice in colours be it for interior or exterior application. 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

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ColourNEXT 2006, which is a collection of 15 shades predicted to be the trendiest and most
happening colours in decor space in 2006.

This study has helped consumers get an insight into the latest trends in colour. This exercise has
also gone a long way in helping various industries decide 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.

Asian Paints efforts are continuously on to engage the consumer in the painting process and
fulfill all the requirements related to the world of painting.

Research and Development:

At Asian Paints, Research & Development has played a significant role in the growth of the
organization. The company has continuously invested in R&D. The entire decorative coatings
portfolio for the Indian market and for overseas ventures has been developed in-house. Our
technologists not only develop new products and improve upon existing formulations; but also
act as a pillar of support to other functions, viz

• Supports Manufacturing in process cycle time reduction & improves productivity by alternate /
break through processes
• Provides solutions to environmental issues by minimizing waste at the time of generation and
also in recycling
• Aids Marketing in providing technical tools/USPs to demonstrate and push new products
• Support Materials by providing new Raw Materials as alternate to current one to give them
negotiating power and also alternate vendors for supply chain flexibility.

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New Research & Technology Centre

Asian Paints has set up a new Research & Technology centre at Turbhe on the outskirts of
Mumbai (India).

CORPORATE CITIZENSHIP

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Environment and Safety:

Mr. P M Murty
MD & CEO

Asian Paints approaches the environment issue from the perspective of waste minimisation and
conservation of resources. Thus, the continued attempt is to reuse, recycle and eliminate waste,
which results in less and less waste being generated. Accordingly, our material losses in
manufacturing have been reduced substantially over the last few years.

Further, the company's four paint plants and the two chemical plants have the ISO 14001
certification for environment management standards. The company's latest manufacturing facility
which is situated at Sriperumbudur near Chennai will be certified for ISO 14001 in this financial
year 2006-07.

All our paint plants have achieved 'zero industrial discharge' capability. This has been achieved
by the installation of upgraded effluent treatment facilities and installation of reverse osmosis
plants in conjunction with appropriate recycling and reuse schemes. Our emulsion manufacturing
facility has also achieved 'zero waste' status. We have adopted the principles of "green
productivity".

Some of our innovative schemes which enhance green productivity are dealer tinting systems
which has resulted in large batch sizes ; bulk storage facility for monomers which reduces
wastage; Use of natural gas which is a cleaner fuel ; solvent recovery plants have been set up

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which has resulted in zero reduction of solvent disposal ; Improved incinerating systems and
reverse osmosis.

Safety at its best

The company has made significant investments in the area of safety over the past several years.
It's steadfast commitment to safety is reinforced by the fact that four of Asian Paints plants were
conferred with the 'Sword of Honour' by the British Safety Council for the second time in quick
succession. The British Safety Council is the world's leading occupational health, safety and
environmental organizations, working closely with the world's leading companies in developing
safe systems for work. The "Sword of Honour", instituted by the BSC, is recognized the world
over as the pinnacle of achievement in safety management systems.

CII national conservation awards

Another recognition received in FY 2006 was the CII (Confederation of Indian Industries)
Award for National Energy Conservation received by the Ankleshwar and Patancheru plants.
The award function was held at Vigyan Bhavan, New Delhi, where the Ankleshwar facility in
the state of Gujarat was honored with the second prize, while the Patancheru plant in Andhra
Pradesh received a certificate of merit. The awards were presented by His Excellency, the
President of India, Dr. A P J Abdul Kalam. The CII Award for National Energy Conservation is
yet another testimony of Asian Paints commitment towards the continual improvement in our
work process to help the environment through the manufacturing excellence programme.

Quality Policy:
• We shall provide products and services that meet stated standards on time, every time.
• We shall continually improve our processes to understand changing customer needs and
preferences and use the same as input for periodically reviewing and revising
performance standards of our products and services.
• We accept Zero Defect as a quality absolute, and shall design and operate our quality
system accordingly.
• We shall organise our work practices to do a job right the first time, every time.
• We are committed to continual improvement in quality in all business processes and shall
track such improvement through measurable indicators.

International Coporate Citizenship:

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South Asia: Nepal

Preserving culture and heritage

Asian Paints Nepal has been fulfilling its responsibilities towards the community in three ways
viz. heritage protection, promotion of the culture of Nepal and helping Government agencies and
reputed NGOs. The unit is providing help in the form of paints or assistance in the restoration
process for a number of heritage sights like ex-Dharahara, one of Kathmandu's landmarks,
Ranipokhari Temple, Baieesdhara Park in Balaju, Shaheed Smarak Park in Hetauda,
Vindyabashini temple in Pokhara etc.

The unit has also been active in road safety initatives including putting up traffic road signs and
messages in Britanagar, Kathmandu in collaboration with the local ward committee. The unit has
given assistance in restoring buildings in Maiti Nepal, a leading NGO and painting assistance
was given to the 'Family Volunteer Services', another NGO working in the area of child
education and development.

South Asia: Thailand

Berger reaches out

In Thailand, Berger International (Subsidiary of Asian Paints) has been supporting numerous
institutions that serve the local community. In 2005-06, the team literally coloured the working
lives of the law keepers - the Police force. The unit donated various paints to the local police
station at Samrong Tai. Attapon Dedduang, the Station Chief of Samrong Tai, on behalf of his
team expressed gratitude and happiness over the cheerful work environment provided by Berger.

South Asia: Singapore

Anti drug campaign

Drug abuse is a nightmare for any modern society. Understanding this, Berger Paints Singapore
co-sponsored the 'Anti-Drug Message Campaign' conducted by People's Association Youth
Movement (PAYM) and the National Council Against Drug Abuse (NCADA). During the
campaign over 150 secondary schools were provided with canvas banners and paint (Vinyl Silk
from Berger Paints Singapore) and students expressed their commitment against drug abuse by
creating their palm prints on the banner. The exercise was also carried out at the community
centres / clubs across the island and helped in generating a fair amount of awareness on the evils
of drug abuse.

Group Subsidaries:

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Apco Coatings is a subsidiary of Asian Paints in the South Pacific islands. Asian Paints operates
in Australia, Fiji, Tonga, Solomon Islands and Vanuatu under the brand name of Apco Coatings.

Asian Paints Industrial Coatings Limited has been set up to cater to the powder coatings market
which is one of the fastest growing segments in the industrial coatings market.

Top

Website: www.bergeronline.com

Few companies can claim of a history of consistent growth for over two and a half centuries , a
presence in over 35 countries and an impact on the lives of over a billion people. Berger does
that with elan. Ever since it was founded in England in 1760 by Lewis Berger, who perfected a
new process for making Prussian Blue the colour of most military uniforms then, Berger has
never looked back.

Over the years Berger expanded its operations across oceans, to cover numerous geographies. In
1994, Berger units were brought under the single umbrella of the holding company 'Berger
International Limited (BIL)' with headquarters in Singapore, which was also listed on the
Singapore stock exchange. In November 2002, BIL became a part of the Asian Paints Group.
Today, the name of Berger is synonymous with quality and innovation. BIL has presence across
three regions viz. Middle East, Caribbean and South East Asia. In the Caribbean region, Berger
is a household name. And considering that the company celebrated 50 successful years in the
region recently, this is not surprising.

Incidentally, Berger Paints Jamaica Limited, which is listed on the Jamaican stock exchange, is
amongst the top ten companies in the country in terms of market capitalisation. In the Middle
East too Berger is a well-respected brand. It is the largest paint company in Bahrain. Using its
state-of-the-art manufacturing facilities there, and in United Arab Emirates, it exports to
countries in the Commonwealth of Independent States, Gulf Cooperation Council and Africa. In
South East Asia Berger enjoys a fine reputation and has operations in Singapore and Thailand.

Top

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Website: www.scibpaints.com

Founded in 1979, SCIB Paints today is a reputed name and ranks amongst the top five paint
companies in Egypt. SCIB Paints became a part of the Asian Paints group in August 2002

Top

Website: www.asianppg.com

Asian PPG Industries Limited, a joint venture between Asian Paints (India) Limited and PPG
Industries, Inc. USA with 50:50 equity sharing was established in March 1997 with the objective
of providing solutions to the paint requirements of Indian Automobile manufacturers. The joint
venture brought together two leading companies with strengths in technology, manufacturing and
customer insight.

Top

Website: www.Taubmans.com.au

Taubmans Paints Fiji, the fourth largest paint company in Fiji, became a part of the Asian Paints
family in September 2003. Taubmans Paints is the dominant player in the project sales segment
in the country and is a leader in the neighbouring Samoa Islands. It has two manufacturing
facilities, one in Suva (Fiji) and the other in Samoa.

Awards & Recognition

• Awarded the "Sword of Honour" by the British Safety Council for all the paint plants in
India. This award is considered as the pinnacle of achievement in safety across the world.
• Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small
Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion
Firms' of Asia in 2005.

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 • Ranked 24th amongst the top paint companies in the world by Coatings World - Top
Companies Report 2006.
• The Asset - one of Asia's leading financial magazine ranked Asian Paints amongst the
leading Indian companies in Corporate Governance in 2002 and 2005.
• Received the Ernst & Young "Entrepreneur of the Year - Manufacturing" award in 2003.

Overview of World of Colors:

Signature Walls

Transform the look of your rooms and make them trendy and contemporary.

Colour Spectra

Select from over 1800 shades available in Asian Paints

Colour Guides

Learn the essentials of colour families and how to match.

The Imagine Exteriors book showcases a number of new and exciting colour combinations that you can use for your
home. These have been carefully selected by architects and designers to ensure that they suit different architectural
styles of homes across the country.

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In this first-of-its-kind guide from Asian Paints, we have illustrated how you can achieve striking effects in every
room by using the right colour combinations.

ColourNext 2010

Born out of months of research and trend mapping by Asian Paints,Colour Next presents 5 colour philosophies
woven out of the drama and truth of today.

Colour Fundamentals

Some useful fundamentals of colour theory, vitality of colour basics,colour families, and their ability to alter and
enhance the perception of space.

Colour Shoppe

Colour Tools,Booklets,Shade Cards and Colour Palettes - Buy them Online!

Colour Dezigner

Click, Colour, Create.

Samplers

Samplers in 200 ml containers to help you test a colour and its suitability for your room decor.

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