asian Paints

Paint Industry

Paint industry estimated at INR 135bn.

Unorganized sector accounts to 35% of paint market.

Volume growth estimated at 15%.

India’s 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.

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Competitors

Market Share in India

Segments se

gm

ents

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

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.

Continued

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:

Market Share Gain

Market Expansion

Organic Growth

International

M & A’s

Domestic

M & A’s

Inorganic Growth

Buys Taubmans Paints (Fiji) In September 2003.

Acquires ICI India’s 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