By-Study Group 1

CONTENTS
Company Profile Company History Board of Directors Vision Product Assortment Group Subsidiaries Overseas HR Strategies Promotion Strategies Marketing Strategies Auditing Figures SWOT Analysis Awards Future Plans

COMPANY PROFILE
Company Name: Asian Paints.

Type:
Industry:

Public Ltd.
Paints & Chemical

Founded:
Head Quarter:

1942
Mumbai, India.

Key people: MD.

Workforce:

Mr. K.B.S. Anand CEO &

4700 as per 2011

Company History

1st February, 1942

Champaklal H. Choksi, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil got together to manufacture paint in a garage on Foras Road, Bombay. They name their company 'The Asian Oil & Paint Company.

1945
Asian Paints touched a turnover of Rs. 3,50,000, with an innovative marketing strategy "to reach

1957 - 66
The family-owned company makes the shift to a professionally managed organization.

Asian Paints embark on an ambitious mass marketing campaign, pertaining with thousands of dealers in small towns all over India.

Contd

1967
Asian Paints emerged as India's leading paint company ahead of any international competition.

1973
Asian Paints became a public ltd. Company.

2002
AP was a market leader of Indian decorative paints with market share of 44%.

Asian Paints Today

Asian Paints has become 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 23 countries with 27 manufacturing locations. Asian Paints aims to become the 5th largest decorative paint company in the world.

Board of Directors

Board of Directors

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 alliance with established global partners.

Product Assortment
Segments

Paints

Chemicals

Decorative paints

Industrial Paints

Pathetic Anhydride

Pentaerythritol

Group subsidiaries

This is a company in South pacific island. AP operates in Australia, Fiji, Tonga, Soloman Island under brand name APCO.

It is an English Company. In 2002 it became a part of Asian Paints.

Contd.
An Egypt Company which collaborated AP in August 2002.

An US Company with 50:50 equity sharing with AP in 1997. PPG is an acronym for Pittsburgh Paints and Glass Industries, USA. Fiji company joint hands with AP in September 2003.

Indian Manufacturing Plants

Asian Plants Bhandup: Maharashtra

Asian Plants Kasna: Uttar Pradesh

Asian Plants Sriperumbudur: Chennai

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

HR Strategies
A talent pool of over 4700 employees employed across 23 countries bring in a unique blend of mindsets and skills. AP provides an open and interactive work culture to the employees to bring out the best. 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 restrengthen competencies from within the organization.

Promotional Strategies

A video can represent this in a better manner.

Marketing Strategy
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 paints. Their particular ad campaign Mera Walla Blue Har Ghar Kuch Kehta Hai are word of mouth for the customer. Online marketing for urban customer: Asian paints online marketing system has emerged as boon for the customer. The company has tried to simplify its online service and has tried to make it as convenient as possible. Its an unique way of promotion.

SUPPLY CHAIN
MANUFACTURER

WHOLESELLER

RETAILER

CUSTOMER

Market Share in India

Asian Paints 55%

ICI 11%

ICI 11% Berger 17% Nerolac 17%

Asian Paints 55%

Recent Auditing figures

Total income from operations (net): Total Expenses: Profit from operations before other: incomes and finance costs (1-2) 9,632.24 8,244.60 1,387.64

Other Incomes:
Profit from ordinary activities before: finance costs (3+4)

107.41
1,495.05

Finance costs:
Profit from ordinary activities before: tax (5-6) Tax expense:

40.97
1,454.08 433.50

SWOT analysis

STRENGTH:
Market leaders with 55% 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. Brand name with 68 year experience.

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. In industrial paints, AP has only a 15% market share.

Contd..
OPPORTUNITIES:

Acquiring/ increasing market share in Industrial paint sector.

Competitors have gone in for hi-technology compare to AP. The automobile industry accounted for 50% of the industrial markets. THREATS:
Domination of few foreign companies.

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

Competitors in India

Akzo Nobel India ltd

Bombay Paints ltd

Hard Castle & waud manufacturing company ltd.

Jenson & Nicolson India ltd. Nerolac paint ltd. Sarika paint ltd.

GLOBAL COMPETATOR
1 Akzo Nobel ltd. 2 PPG Industries Inc. 3 DuPont Coatings & Color Technologies Group 4 ICI Paints 5 BASF Coatings 6 Nippon Paint Co. 7 Sherwin-Williams Co. (Netherlands) (Pittsburgh) (Wilmington) (Berkshire, UK) (Germany) (Japan) (Cleveland)

Awards and Recognitions

Awarded the "Sword of Honor" by the British Safety Council for all the paint plants in India. 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. Ranked 24th amongst the top paint companies in the world by Coatings World - Top Companies Report 2006.

contd.
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 In 2009 micro site AsianPaints.com has won the outstanding website award in the consumer goods category at the recently held Internet Advertising Competition Awards .

Future plan

Asian Paints is planning an international network of technology centers spread across Australia, Jamaica, Egypt, Dubai, Mauritius, Fiji and Singapore. production, packing, conveying and storage in an ecofriendly manner, with zero discharge of effluents. Company aims to come under top-5 paints companies list in the world in next 2 year.

The paint project will use the latest techniques in

THANK YOU
Presented by: Aman Kumar Abhishek Kumar Tiwari Abhishek Pratap Singh Abhishek Kumar Chandan Aditi Taneja