asian paints complete overview

8/13/2019 Asian Paints Complete Overview

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INTRODUCTION

• Largest Paint Company in India and 3rd largest in

ASIA.

• 10th largest decorative paint company in the world.

• Rated Best Employer by BT-Hewitt survey.

• Aims to become the 5th largest decorative paint

company in the world.

•Operates in 17 countries & headquartered inMumbai.



Company History

• 1st February, 1942

Champaklal H. Choksi, Chimanlal H. Choksi, Suryakant C. Dani

and Arvind R. Vakil get together to bmanufacture paint in a

garage on Foras Road, Bombay. They name their company‘The Asian Oil & Paint Company’.

• 1945

Asian Paints touches a turnover of Rs. 3,50,000 with aninnovative marketing strategy “to reach customers in the

outmost corners of the country with small packs”.



MASCOT

• GATTU : The Mischievious Kid

• Created by R. K. Laxman in

1954.• Eventually, it phased out in 2002,

when O & M (Ogilvy & Mather)

introduced cooler version of themascot.



Cont….(History)

1967

• Asian Paints emerges as India’s leading paintcompany ahead of any international competition.

1973

• AP becomes Public Limited Company

2002

• AP was the market leader of Indian Decorative Paintswith market share of 44%.



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.

Ashwin Choksi, Chairman KBS Anand, MD & CEO

http://www.asianpaints.com/



PRODUCT PORTFOLIO

• Decorative Paints

– Exterior Walls

– Interior Walls

– Metal Surfaces

– Wood Surfaces

• Industrial Paints

– Protective Coatings

– Floor Coatings

– Road Markings

– General Industrial Coatings

• Automotive

– Car Paints

– Car Maintenance Kit

• Ancillaries

– Primers

– Fillers

– Stainers

– Floor colours



USP Unique Selling Proposition)

• Exterior Paints: Using combinations of various colours rather

than using a single colour which will help to enhance the look ofyour exteriors walls.

• Interior Paint Care: It gives such a base to the paint that if

any creativity using crayons and sketch pens made on the wallsdon’t lead to cracking on them.

• Distemper: A 20 kg container of Asian Paints distemper will cost

you anywhere between Rs 600 to Rs 900 whereas, Nerolac

box price is between Rs 600 to Rs 670. The Berger Paints distempercomes in the range of Rs 700 to Rs 720 for 20-liter container.

• Completely lead-free paints.



Group Subsidaries

• Company in South Pacific Island. AP operates

in Australia, Fiji, Tonga, Soloman Island under

brand name, APCO

•

It is an England company. In 2002, becamepart of AP.



Contd…

• Egyptian company which became part of AP inAugust, 2002

• US company with 50:50 equity sharing withAP in 1997. Pittsburgh Paints and GlassIndustries (PPG), USA

• Fiji company became part of AP in September,2003



Indian Manufacturing Plants



OVERSEAS




Today

•Asian Paints becomes the 10th largest decorativepaint 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





Today•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




Marketing Strategy• Company is using different techniques such as promotion on rock shows

like Zeal and events like ‘Royale Jashn’.

• Radio City Connect and Asian Paints joined hands to bring that dash of

colour to Mumbaikars' lives at unexpected places and moments with thecampaign, ‘Lift Kara De'.

• A total amount of 85 crore is spent on the ad campaign by Asian Paints.Their particular ad campaign, “Mera Wala Blue” & “Har Ghar Kuchh

Kehta Hai” are being liked by the customer.

• Online Marketing for urban customer: ‘Saif Ali Khan Online’ website is an

example of Online Marketing. It is an unique way of promotion.

(Ref: https://saifalikhanonline.wordpress.com/tag/asian-paints/page/2/)

https://saifalikhanonline.wordpress.com/tag/asian-paints/page/2/






Business Strategy•

AP believed in making products based on the preferences of consumers.It gathered feedback from the consumers and turned out products,shades and pack sizes on the basis of such feedback.

• Another important area was the offer of painting solutions for children

with the launch of Kids World. A foray into Kids' World marks yetanother milestone wherein the company offers painting designs for KidsRooms as well as Kids Corners.

• 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 orexterior application.

• Futuristic approach should be gaining competitive advantage throughchannel control or occupying mind space.



Business Strategy: Rural Market(To target semi-urban & rural areas)

• AP GOES RETAIL

Going directly to retail dealers was the

next major strategic decision of AP in the

realm of marketing and distribution.

• GOES IN FOR AN OPEN-DOOR DEALER POLICY AP

Followed an open-door policy in the

matter of adding retail dealers to its network.

• AP VOTES FOR NATIONWIDE MARKETING

AP took yet another important and strategic

decision in the realm of distribution.



Business Strategy: International marketsFew Initiatives)

• Middle East : Emirates

Touching the heart of Society

Berger Emirates conducted several

social activities for the community during

the year like Municipality initiative

'Clean Up Your World'.• South Asia: Singapore

Anti drug campaign

'Anti-Drug Message Campaign' conducted by

People's Association Youth Movement (PAYM)

and the National Council Against Drug Abuse.

• South Pacific: TongaCareers and cleanliness

Apco Coatings Fiji partnered 'Foundation for

Rural Integrated Enterprises 'N' Development',

an NGO, working towards alleviating poverty,

for a unique campaign.

(Ref: www.asianpaints.com)



Promotional StrategiesSponsoring Rock Shows by Saif Ali Khan)



Global Competitors

• Akzo Nobel nv (Netherlands)

• PPG Industries Inc. (Pittsburgh)

• DuPont Coatings & Colour Technologies Group (Wilmington)

• ICI Paints (Berkshire, UK)

• BASF Coatings (Germany)

• Nippon Paint Co. (Japan)• Sherwin-Williams Co. (Cleveland)



Competitors in India

• Akzo Nobel India Ltd.

•

Bombay Paints Ltd.

• Hard Castle and Waud Manufacturing Company Ltd.

• Jenson and Nicolson India Ltd.

• Nerolac Paint Ltd.

• Sarika Paint Ltd.



Asian Paints Distribution Straregy

• AP goes retail.

• AP goes in for an Open-Door Dealer Policy.

• Going to individual consumers implied wide product

range and complex distribution.

• Wide product range implied expensive distribution.

• AP goes to semi-urban and rural areas.



Market Share Segment-Wise

in IndiaDecorative Paints)

• APIL dominates the decorative segment with a 38%

market share.

• 2nd is GNPL(Kansai) in the decorative segment, with a

14% market share.

• Berger and ICI have 9% and 8% shares respectively.

• J&N and Shalimar have 1% and 6% shares.



Market Share Segment-Wise

in India

Industrial Paints) • GNPL dominates the industrial paints segment with

41% market share.

• APIL, the leader in decorative paints, ranks 2nd after

Goodlass Nerolac(GNPL) in the industrial segment

with a 15% market share.

• Berger and ICI are the other players in the sector

with 10% and 9% shares respectively.



MARKET SHARE

• Ref http://articles.economictimes.indiatimes.com/2012-02-

20/news/31079599_1_berger-paints-paint-companies-paint-industry

5320

189

Comparison with Competitors

Asian Paints

Berger

Kansai Nerolac

Others

http://articles.economictimes.indiatimes.com/2012-02-20/news/31079599_1_berger-paints-paint-companies-paint-industry




















Six Year Review




Corporate Social Responsibilites•

Environment & Safety: Asian Paints approaches theenvironment issue from the perspective of waste minimization andconversation of resources. Thus, the contunued attempt is to reduce,recycle and eliminate waste, which results in less and less waste beinggenerated.

• Total Water Management: We propogate some methods to

help you conserve water Asian Paints has built a Total WaterManagement (TWM) Centre, at its Bhandup manufacturing facility,which is the first of its kind in the entire country.

The TWM centre showcases live working models on water conservation

and rainwater harvesting. Asian Paints provides expertise to citizensfree of charge to implement rainwater harvesting and total watermanagement solutions.



Contd...

Tsunami Relief: Helping community in need

of time

A total amount of Rs. 4.7 million was generated as relief aidand was handed over to the Tsunami victims. Besides India, all

the units across the world also contributed to the best of their

capacities toward Tsunami relief.



HR Strategies• A talent pool of over 4700 employees employed over 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 their best.

• A sense of ownership and freedom to experiment at theirworkplace brings out creativity and innovation in every

individual.

• Excellent training is provided to develop leaders and re-strengthen competencies from within the organization.



Recruitment

• Company is following: Group Discussion and Personal

Interview

• Company is recruiting:MBA students for marketing

B.Sc. Chemistry, BE Mech. and Chemical students for production

CA and M. Com for Finance Dept.

• Company has training centre in Mumbai for fresher's.



Contd

• The Asset – One of Asia’s leading finance 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 Asian Paints has won the

‘outstanding website’ award in the consumer goods

category at the recently held Internet Advertising

Competition Awards.



World's Top Paints Companies 2011

Annual Report

1. AkzoNobel (Dutch) $13

billion

2. PPG (USA) $10 billion

3. Henkel (Germany) $9.7

billion

4. Sherwin-Williams (USA)

$6.5 billion

5. DuPont (USA) $3.8 billion

6. BASF (Germany) $3.42

billion

7. RPM (USA) $3.41 billion

8. Valspar (USA) $3.0 billion

9. Kansai (Japan) $2.8 billion

10. Nippon (Japan) $2.5 billion

11. Sika (Switzerland) $2.3

billion

12. Jotun (Norway) $2.0 billion

13. Asian Paints (India)

$1.9 billion14. Comex (Mexico) $1.6

billion

15. Masco (USA) $1.5 billion

Th t 5 I di i k



The top 5 Indian companies make up more

than 80% sales of the organized market



What are the growth drivers ?



What are the growth drivers ?

1.Increasing level of income and education2. Increasing Urbanization

3. Increasing share of organized sector

4. Development of the Realty, Automobile and

Infrastructure sector

5. Availability of financing options

6. Increasing Penetration in the Rural Markets

“Indian Paint Industry Forecast to 2015”



, Indian Paint Industry Forecast to 2015

•According to our new research report, “Indian Paint IndustryForecast to 2015”, the Indian paint market has substantially

grown over the past few years and caught the attention ofmany international players.

•The country continues to enjoy a healthy growth ratecompared to other economies, backed by the increasing level

of disposable income, and demand from infrastructure,industrial and automotive sectors, which is expected tofacilitate the maintenance of the growth momentum infuture.

•On the back of such advocacy, we anticipate that the sector

will post a CAGR of around 15% during FY 2012 to FY 2015.•Presently, the growth of the industry is being witnessed fromnew demand pockets, especially in Tier-II and Tier-III cities,thus, signaling the growing acceptance of quality productsamong the masses.



Future Plan• Asian Paints is planning an international network of

technology centers spread across Australia, Jamaica,

Egypt, Dubai, Mauritius, Fiji and Singapore.

•

The paint project will use the latest techniques inproduction, packing, conveying and storage in an eco-

friendly manner, with zero discharge of effluents.

• Company aims to come under top 5 paint companies list

in the world in next 2 years.



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