asian Paints

Paint Industry
Paint industry estimated at INR 135bn.

Unorganized sector accounts to 35% of paint market.

Volume growth estimated at 15%. Indias share in the world paint market is 1.6%. Per capita consumption of paint in India is 1.2kg/annum.

Introduction to Asian Paints

Started in 1942 by four entrepreneurs:

Choksey Bros, ASIAN OIL & PAINTS COMPANY.

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

Introduction to Asian Paints

Turnover of INR 7750 crore ($1.73 Bn) Asian Paints along with its subsidiaries have operations in 17

countries across the world

Consist of 23 paint manufacturing facilities

Asian Paints has two alliances, one with PPG Industries USA &

other with Protech Chemicals, Canada.

Competitors

Market Share in India

Segments

segments

Paint

Decorative Paints
Industrial Paints

Chemicals

Phthatic Anhydried
Penraerythritol

Interior Paints

Exterior Paints

Wood Furnishes

Wood & Metal Furnishes

Product Profile

Group subsidiaries
Company in South pacific island. AP operates in Australia, Fiji, Tonga,Soloman Island under brand name APCO.

England based Company. In 2002, became part of AP

Continued
Egypt company which became part of AP in August 2002
US Company with 50:50 equity sharing with AP in 1997. Pittsburgh Paints and Glass Industries (PPG), USA

Fiji company became a part of AP in September 2003.

Indian Manufacturing Plants

Asian Plants Bhandup (Maharashtra) in India

Asian Plants Kasna (Uttar Pradesh) in India

Asian Plants Sriperumbudur in India

Asian Plants (Rohtak, Haryana)

Overseas

Berger International Plants Barbados

Berger International Plants Bahrain

Berger International Plants Jamaica

Berger International Plants Singapore

Berger International Plants Trinidad

RETAIL INITIATIVES
Asian Paints has fostered a customer-centric approach to business Asian Paints Home Solutions Offers a painted surface vs. just paint Aimed at controlling the quality of end product

Brand Mascot

Growth Strategies
Growth Strategy: To increase sales growth rate of the group beyond past levels using a two-pronged approach:

Organic Growth

Inorganic Growth

Market Share Gain

International M & As

Market Expansion

Domestic M & As

 Buys Taubmans Paints (Fiji) In September 2003.

Acquires ICI Indias Unit (February 2007).

Sells stake in Australian Unit (June 2007).

Marketing Strategies
Rural Marketing Initiatives since 1970. Distribution is one of the main focus strategy of Asian Paints. Advertising & Promotional Expenditure started in 1980s. Advertising Methods- Radio, TVCs, Print, Internet,

OOH, POP, Retail Outlets, Seminars, Workshops.

Marketing Strategies
Company is using different techniques such as advertising Campaign, sales promotion, personal selling, direct marketing and public relation to increase sales
A total amount of 85 crore is spent on the ad campaign by asian paint. Their particular ad campaign Mera Walla Blue har ghar kuch kehta hai Online marketing for urban customer as well as Asian paints has started cutomer helpline service(24x7)

Promotional Expenditure grew from 15% in 2003 to 22% in 2010.

Diagrammatic Representation of Management

 Majority of employees are hired from premium

management institutes.

Recreational facilities are provided to the employees.

 Water Conservation-Total

Water Management Center

Age Care Education

Other Initiatives

SWOT ANALYSIS
STRENGTH
Market leaders with 35%+ 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.

SWOT ANALYSIS
WEAKNESSES
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.
Can increase investment in IT
Rural Market

SWOT ANALYSIS
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.

 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.

Prepared by: Yuvraj Zala Shivani Singh