live assignment

1. ASIAN
PAINTS

2. COMPANY PROFILE
 Asain Paints company incorporated in 1942.
 Asian Paints was established on February 1,
1942 by Champaklal H. Choksey, Chimanlal N.
Choksi, Suryakant C. Dani and Arvind R. Vakil.
 Asian Paints has come a long way to become
India’s largest and Asia’s third largest paint
company, with a turnover of Rs. 109.70 billion.
 Asian Paints operates in 17 countries and has
25 paint manufacturing facilities in the world
servicing consumers in over 65 countries.

3. CONTINUED…
 Asian Paints also operates through ‘PPG
Asian Paints Pvt Ltd’ (50:50 JV between Asian
Paints and PPG Inc, USA, one of the largest
automotive coatings manufacturer in the world)
to service the increasing requirements of the
Indian automotive coatings market.
 Asian Paints has formed another 50:50 JV
with PPG named ‘Asian Paints PPG Pvt Ltd’ to
service the protective, industrial powder,
industrial containers and light industrial
coatings markets.

4. INTERNATIONAL PRESENCE
 Today the Asian Paints group operates in 17
countries across the world and is the largest
paint company in eleven countries.
 The group operates in five regions across the
world viz. South Asia, South East Asia, South
Pacific, Middle East and Caribbean region
through the five corporate brands viz. Asian
Paints, Berger International, SCIB Paints,
Apco Coatings and Taubmans.

5. CONTINUED…
The Group operates as:
 Asian Paints in South Asia (India, Bangladesh,
Nepal and Sri Lanka)
 SCIB Paints in Egypt.
 Berger in South East Asia (Singapore), Middle
East (UAE, Bahrain and Oman), Caribbean
(Jamaica, Barbados, Trinidad & Tobago).
 Apco Coatings in South Pacific (Fiji, Tonga,
Solomon Islands and Vanuatu).
 Taubmans in South Pacific (Fiji and Samoa).

6. PRODUCT PORTFOLIO
 Asian Paints manufactures and markets industrial and
decorative coatings.
 The company also provides home painting services and
solutions.
 The company's key products and brands include the
following:
 Decorative paints: Interior wall paints, Exterior wall paints,
Wood surface paints, Metals surface paints.
 Industrial coatings: Protective coatings, Floor coatings,
Road markings.
 Ancillaries: Wall primer, Acrylic Wall Putty, Exterior Wall
Putty, Wood Primer.

7. KEY INDIAN PRODUCTS
PORTFOLIO

8. KEY INTERNATIONAL PRODUCT
PORTFOLIO

9. FINANCIALS OF ASIAN
PAINTS
Standalone:- (For year 2011-2012)
 Net Revenue from Operations
Increased by 25.7% to 7964.2 crores.
 EBITDA
Increased by 21.2% to 1493.2 crores.

10. CONTINUED….
Group:-(For year 2011-2012)
 Net Revenue from Operations
Increased by 24.7% to 9632.2 crores.
 EBITDA
Increased by 15.8% to 1616.2 crores.

11. MAJOR CLIENTS OF ASIAN
PAINTS
General Industrial Business broadly caters to following customer
groups:
 OEM Accounts : These include 2 Wheelers, 3 Wheelers, Tractor
Manufacturers, Commercial Vehicles & Heavy Equipment.
 Ancillary Base : The ancillary account includes Auto Part and Wheel
manufacturers
 Two Wheelers account for 50% of GI’s revenue. Major Accounts include Hero
Honda, Bajaj Auto, TVS Motors, Honda Motorcycles, and Mahindra Two
Wheelers
 CV accounts include Ashok Leyland , Man-Force and Swaraj Mazda. Tractor
manufacturers include New Holland & John Deere.
 General Industrial customers primarily consist of Two and Three Wheeler
Manufacturers, Commercial Vehicles, Tractor Manufacturers & Ancillary
base. These customers are spread all over the country.

12. CONTINUED…

13. Segmentation, Targeting &
Positioning
• Automobiles Engineering
• Consumer Durables
• Construction Projects-
Societies, Roadways, etc.
Segmentation
• Asian Paints is the market
leader in Decorative Paints
segment.
• Its main value proposition is the
quality of paint it supplies.
Positioning

14. 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.

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

16. Market Share in India
Asian Paints
55%
Nerolac 17%
Berger 17%
ICI 11%

17. COMPETITION
Name Last Price Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total Assets
Asian
Paints
425.10 40,775.50 8,971.70 1,050.00 3,069.02
Berger
Paints
204.05 7,066.33 3,024.21 209.80 1,287.45
Kansai
Nerolac
1,064.70 5,737.88 2,856.60 292.20 1,346.47
Akzo Nobel 770.70 3,596.11 2,231.98 218.83 1,105.30
Shalimar
Paints
55.25 104.58 530.18 11.02 163.12
Jenson
Nicholso
2.25 8.42 59.25 -5.84 -228.48

18. 18

19. 19

20. 20
•Over 14500 direct
dealers as opposed to
7000 of our nearest
competitor
•Over 35% of the
dealers do business
only with APIL
•67 sales locations
situated all across the
•Country

21. PRODUCT OFFERING

22. Different Phase
 Increasing penetration in the rural markets
 Extension of the brand
 High salience
 Ensuring service to network

23. Products
 Asian paints product range includes
 Decorative
 Industrial
 Decorative paints
• Interior wall finishes
• Exterior wall finishes
• Enamels
• Metal finishes
• Wood finishes

24. PRODUCTS
 Industrial paints
 Automotive
 Powder
 Protective coating
 Road marking
 Floor coating

25. INTERNATIONAL MARKET - STRATEGY
• To enter the high-growth emerging markets
• Adopt a regional hub approach to international
operations
• Apply the emerging market business model:
– Introduce new products suited to local needs
– Introduce new technology, accordingly
– Focus to improve all areas of operations,
especially supply chain
25

26. Consumer-centric initiatives
• Asian Paints Home Solutions
- Offers a “painted surface” vs. just “paint”
– Aimed at controlling the quality of end product
– Overcomes major “barriers to
purchase/consumption”
– Good response from the market; present in six
cities
• Asian Paints Helpline
– Toll free access to the Helpline
– High conversion rate into actual sales
26

27. Cont….
• Colour World machines
– 3175 machines installed till February 1, 2003
– 827 machines installed under arrangement with Citibank
– Colour World dealers make more than 50% of sales
• Prediction of colour trends in India
• The launch of Kids World
• Royale Play
• Do-It-Yourself mode
27

28.  Environment and safety.
 Improving infrastructure and healthcare at
local schools; adopting school education.
 Total water management.
 Age care.
28

29. Environment and Safety
29
Reuse
Recycle
Eliminate
waste

30. 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 paint. Their
particular ad campaign „Mera Walla Blue” “har ghar kuch kehta hai” are
being liked by the customer.
 Online marketing for urban customer: Asian paint online marketing system is
helping. The company in lot of ways, providing all the necessary
information to the customer. It is an unique way of promotion.

31. Promotional Strategies

38. DMU
INITIATORS
GATEKEEPE
RS
BUYERS
DECIDER
USERS
INFLUNCERS

39. Assumption (Hotel Industry)
 It has been decided that all the hotel need to be
white washed.
Requrements:
 Interior paints(Royale play) Ready to use special
effects
 Exterior paints(Apex exterior emulsion) Smooth
looks and weatherproof
 Metal finishes (premium gloss enamel)shiney new

40.  Wood finishes
INTERIOR
• Wide range of
clear,opaque &
water based
finishes,providing
new décor
possibilities.
EXTERIOR
• Protect your
exterior furniture
with a range of
Clear, opaque and
water based
finishes.
ITALIAN
• Presenting the
Ultra Luxury
Italian Range of
Décor Idea for
Wood.
Woodtech
emporio(clear
finishes)
Premium
Semi- gloss
enamel
Woodtech
Polyester

41. SmartCare Waterproofing Solutions and
Products

42. DMU COMMITEE
 INITIATORS: Director
 GATEKEEPERS: Production
manager/purchase manager.
 BUYERS: Overlap of gatekeeper & decider.
 DECIDER: Operation manager
 USERS: All the staff.
 INFLUNCERS:Interior decorator & Architect