Presented By,Mahesh MurugeshMathews VargheseMilan AgarwalMoninthar NayakNitin DeshmukhRajitha Naik

About Asian Paints• Started in 1942 by four entrepreneurs: Choksey Brothers.• In 1967, Asian Paints became the 10th largest paint company in the world.• In 1973, it became a public limited company.• In 2002, it was a market leader of Indian decorative paints.• With a turnover of Rs.158.5 billion ,Asian Paints operates in 19 countries and have 26

manufacturing facilities, and serving customers over 65 countries

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.”

International Strategy• All the research and development centres of the company is in India.

Asian Paints have a Research & Technology centre at Turbhe on the outskirts of Mumbai. PPG Asian Paints, the subsidiary of Asian Paints Ltd have a R&D centre in Mumbai and Chennai.

• Asian Paints have 23 manufacturing facilities around the world. All of these facilities are managed by the corporate office in India.

Corporate strategy of Asian Paints

Swot Analysis• Strength:1. The largest paint company in India and third largest company in Asia2. They have over 50% of market share and are clear leaders decorative paints and are strong competitors to Kansai Nerolac Paints to be leaders in Industrial paints and coatings.3. They operate in 17 countries and have 24 manufacturing facilities providing service to 65 countries all over the world.4. Asian paints has strong international presence with its four 4 subsidiaries; Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

5. Most renowned brand in Indian Paint Industry & its strong customer focus and innovative-spirit has made it market leader since 1968.

6. Superior technologies deployed to achieve maintain the competitive edge for eg. Supply chain management system that integrates plants, regional distribution centers, outside processing centers etc. hence they have strongest supply chain system with7. They have maintained their brand name and increased awareness by unique ways of advertising and roping in celebrities like Saif Ali Khan.8. The company has strong financials.

• Weakness:1. Limited market share in industrial paints segment with Kansai Nerolac

and Akzonobel giving stiff competition.2. In decorative paints Industry Customer tastes and perceptions change

very fast and products may become obsolete with change in trends, hence production planning and inventory problem.

• Opportunities:• 1. Big an international standard paint company it should look for more

opportunities abroad2. There is a good scope for growth especially in industrial paints category3. Needs to have more focus on Automobile industry in industrial paints segment• 4. Competitors are going for Hi-tech process and Asian paints with good

financial and intellectual capital can go for hi-tech.

• Threats:• 1. Growth prone to slowdown effects

2.Stringent Government rules and regulations regarding the quality of products and manufacturing facilities as Environment policies are given more emphasis3.Raw material scarcity and volatlility in prices.

Climate(PEST Analysis)• Political Factors:• India is the largest democracy in the world• The Government is federal public• Political situation is more or less stable in nature• Export oriented economy

• Economic Factors• Market based Economy• Second fastest growing economy in world• Third largest in terms of purchasing power• Introduction of FDI in new sectors

5C Analysis

• Social Factors• India, second largest populated in world• Rise in price of raw material• Import of raw material

• Technological Factors:• Emerging IT sector• Modernization of paint like water proof, Teflon, creative colors• Lead free paints

PEST Analysis

Company

Parent Company Asian Paints

Category Paint Industry

Sector Industrial Products and Chemicals

Tagline/ Slogan Merawala blue; Har ghar kuch kehta hai ki ;Ask Aparna

USP India’s biggest brand with widest reach.

STP

Segment

Caters to all segments with brand Royale aimed at premium

segment and rest at mass market.

Target Group

Home-owners, industries-hotels, education, healthcare, agro &

manufacturing equipment and automobile etc.  infrastructure,

govt. buildings

Positioning A complete array of products to cater to everyone.

• Jenson & Nicolson India Limited, Kansai Nerolac Paints, Akzonobel,  Sherwin-Williams,  Nippon Paint, PPG Industries

Competitors

• Advertising: Not much spending on advertising required• Motivation – Life necessity• Distribution channels- Retail, wholesale• Quantity and frequency of purchase - Daily• Income level of customer – All classes of customer

Customers

• Suppliers: Chemicals are largely a commodity. Business partners around the country along with local sourcing helps in reducing cost

• Distributors: Wholesale shops, Retails Stores.Collaborators

INDIAN PAINT INDUSTRY SEGMENTATION

INDIAN PAINT INDUSTRY SEGMENTATION

Decorative Segment• Acoustic Paint: specially designed for acoustic tiles.• Alkyd Resin Paint: good trim, doors, faux finishes and other maximized use areas.• Drip less Paint: This paint is thicker and is most suitable for application on ceilings.• Latex Paint: good for applicability and it dries much quickly & easier to wash.• One-Coat Paint: It is the more expensive version of the latex and alkyd paints and

is mostly chosen for surfaces that require flawlessness in colour.• Primers: paint used in the initiation for all interior paint works.• Rubber-Base Paint: This is best for concrete and bricks

Industry Analysis – EFE MatrixOPPORTUNITIES Weight Rating Weighted

Score

1. Being an international standard paint company it should look for more opportunities abroad

0.18 3 0.54

2. There is a good scope for growth especially in industrial paints category 0.17 2 0.34

3. Needs to have more focus on Automobile industry in industrial paints segment

0.1 3 0.3

4. Competitors are going for Hi-tech process and Asian paints with good financial and intellectual capital can go for hi-tech processes.

0.15 4 0.6

THREATS 01. Growth prone to slowdown effects 0.15 3 0.452. Stringent Government rules and regulations regarding the quality of products and manufacturing facilities as Environment policies are given more emphasis.

0.1 3 0.3

3. Raw material scarcity and volatility in prices. 0.15 2 0.3 2.83

Profit Pool Analysis – Asian Paints

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0 0 0 0 0 0 0 0

Profit Pool Decorative Industrial

Revenue Percentage

Ope

ratin

g M

argi

n

INTERNAL ANALYSIS - IFE MatrixStrengths Weight Rating Weighted Score1. The largest paint company in India and third largest company in Asia 0.05 3 0.15

2. They have over 50% of market share and are clear leaders in decorative paints industry.

0.15 4 0.6

3. They operate in 19 countries and have 26 manufacturing facilities providing service to 65 countries all over the world.

0.1 3 0.3

4. Asian paints has strong international presence with its four 4 subsidiaries; Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

0.15 3 0.45

5. Most renowned brand in Indian Paint Industry & its strong customer focus and innovative-spirit has made it market leader since 1968.

0.05 4 0.2

6. Superior technologies deployed to achieve maintain the competitive edge. 0.1 4 0.4

7. They have maintained their brand name and increased awareness by unique ways of advertising and roping in celebrities like Saif Ali Khan.

0.15 3 0.45

8. The company has strong financials. 0.05 4 0.2Weakness 1. Limited market share in industrial paints segment with Kansai Nerolac and Akzonobel giving stiff competition.

0.1 2 0.2

2.In decorative paints Industry Customer tastes and perceptions change very fast and products may become obsolete with change in trends, hence production planning and inventory problem.

0.1 3 0.3

3.25

INTERNAL ANALYSIS - BALANCED SORECARDOBJECTIVES1 Measures SCORE Remarks

Financial Perspective

Operating Profit,Profit after Tax,Cash generation from operation

22 1,950(13-14) , 1,673(12-13) in Crores1,218(13-14) , 1,113(12-13) in Crores1,813(13-14) , 1,484(12-13) in Crores

Customer Perspective

Product offering,Service offering,Relationship,Brand image.

16 1.High level of service quality and product innovation. 2.Level of service is the same for all customers.3.Easily accessible to the general public.4.Constant publicity and innovation helps in strengthening relationship.

Business Process Perspective

Integrated IT enabled operation system.Maximum utilization of services ; Increased efficiency and profit margin.

18 1. Constantly pursuing its goal of technological up gradation in a cost-effective manner for delivering quality customer service.2. Maximum utilization of services with controlled expense and losses.

Learning and Growth Perspective

Study and Improve the range of business activity and customer base.

15 1.Staff skills were improved by providing them appropriate training.2.Improved employee productivity lead to diversify customer base and customer satisfaction.

TOTAL 71

BCG MATRIX of INDIAN PAINT INDUSTRY

Asian Paints - Wall Putty Berger - Walmasta Shalimar - extra premium

Asian paints – RoyaleBerger – Exterior wall

PaintsShalimar – Superlac

Synthetic enamel

QUESTION MARK STAR

Asian Paints – UtsavBerger – Synthetic Resins

Shalimar - Shaktiman exterior emulsion

CASH COW

Asian Paints – exteriorBerger – consultancyShalimar-Distemper

DOG

Mar

ket G

row

th

Market Share High Low

High

Lo

w

Metal Paints Wood finishes (Varnish & polish)

ROYALE

Distemper Range (low end paints)Home Improvement Business – Kitchen & Bath

Business

Wall Paints (interior & exterior)-UtsavDecorative Paints

Marine Paints, automobile paints & others

CASH COW DOG

QUESTION MARK STAR BCG MATRIX FOR ASIAN PAINTS

PRODUCT PORTFOLIO STRATEGY

INDUSTRIAL PAINTS

DECORATIVE PAINTS

AUTOMOBILES ANCILLARIES

• Exterior Walls• Interior Walls• Metal Surface• Wood Surface

• Primers • Stainers• Fillers

• Protective Coatings• Floor Coatings• Road Markings• Powder Coatings• Pthalics

• Deltron• Delfleet• 2K Nexa

Autocolor

PORTFOLIO STRATEGY FOR ASIAN PAINTS

Lots of Question Marks products

DistempersKitchen BusinessBath BusinessHome Painting Solutions

They should have one or more star products.

One or more product that falls in Cash

Cow category.

Future Growth options Assessment using Ansoff Matrix

Existing Product New ProductExisting market

• Market PenetrationWood Finishers & Metal Paints

• Product Development

Wall Paints(New Washable & Acrylic emulsion paints)E.g.. Tractor and Emulsion Acrylic Paints

New Market • Market DevelopmentVenturing APIL Products abroad

• DiversificationMarine Paints(Heavy Duty)Automotive Paints(TVS collaboration).

Future growth options• The paint industry is in growth stage in India as

construction activity has a high priority. • To keep their dominant position Asian Paints should

pursue vigorous R & D for innovative products .• Increase the number of depots for covering the entire

country• Has launched E-Strides, an ERP (Enterprise resource planning)

• Predator pricing- Predatory pricing (also undercutting) is a risky, and dubious pricing strategy where a product or service is set at a very low price, intending to drive competitors out of the market, or create barriers to entry for potential new competitors

Thank you