asian paints
TRANSCRIPT
Paint Industry
The per capita consumption of paints in India is still low at 1.25 kg (as against 51.7 kg in Qatar, 38 kg in Singapore or 25.8 kg in the U.S. Even China has a per capita consumption of 2.5 kg and Sri Lanka 3.5 kg).
India has a long way to go. Therefore, the future of the industry in India is quite bright.
HISTORY On 1st Feb. 1942, a partnership was started by four entrepreneurs.
In 1945, the firm was turned into a company.
In 1957, a plant was set up at Bhandup, Mumbai.
In 1973, APIL became a public ltd company.
In 2002. APIL was a market leader of Indian Decorative Paints with market share of 44%.
Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution
Core Thought
Asian paints is about people who invest emotional energy in creating their homes.
Asian Paints is about homes which reflect the taste and love of their owners/residents.
BOARD OF DIRECTORS
Mr. Ashwin ChoksiNon Executive
Chairman
Mr. Ashwin DaniNon Executive Wise Chairman
Mr. Mahendra Choksi
Director
Mr. Abhay Vakil
Director
Mr. P M Murty
MD and CEO
PRODUCT LINES
Sector-Wise Distribution
Major segments:i. Decorative paints:
o Enamels - 50% o Distemper - 19% o Emulsions - 17% o Exterior Coatings - 12% o Wood Finishes - 2%
ii. Industrial paints:o Automotive Paints - 50% o High Performance Coating - 30% o Powder Coating - 10% o Coil Coating - 5% o Marine Paints - 5%
COMPANY COMPETITORS
Market Share of Decorative Segments
• DECORATIVE SEGMENT
• Asian Paints • 38%
• Kansai • Nerolac 14%
• Berger paints • 9%
• ICI 9%
• Jenson and • Nicholson
• 5%
• Shalimar 6%
• Others 19%
Increase in Market Share
BCG MATRIX
1. Water Based Colors1. Metal/Industrial paints
2. Wood Finishes(Varnish, Polish)
1. Wall Paints (Interior & Exterior Paints)
2. Decorative paints
1. Marine Paints
2. Black board Paints
LOW
HIGH
LOWHIGH
Market Share
Busin
ess G
row
th R
ate
PROMOTIONAL CAMPAIGNS
AAN DO(Apex Ultima) 2007
Choosing Colours Made Easy!(Asian Paints) 2008
Faded Memories(Apex Ultima) 2008
Musicians(Royale Play) 2008
Har Ghar Kuch Kehta Hai(Asian Paints) 2008
SWOT ANALYSIS
• STRENGTH: NO.1 Player in decorative paints
and 2nd in industrial paint segment.
Market leaders with 51% market shares.
Wide distribution network i.e. 19,000 dealers in India.
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.
• 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.
Contd
• OPPORTUNITIES The automobile
industry accounted for 50% of the industrial markets.
Potential in overseas markets.
• THREATS:
Growing industry and low capital intensive nature of business will attract competition.
The external environment saw an entry of a lot of multinationals trying to attack us on various segments
Competition is catching up fast, hi-tech facilities gives abundant choices.
COMPANY’s FUTURE PLANS
• Setting up a new manufacturing plant in North India, to keep pace with future demand.
• Building a auto paints plant in South India, in partnership with US-based PPG Industries.