Asian Paints New

8/12/2019 Asian Paints New

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ASIAN PAINTSBUSINESS STRATEGY ANALYSIS


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Champaklal H. Choksey Chimanlal N. Choksi

Founder of Asian Paints

CLEAR GOALS FOR A

CLEAR FUTURE


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GENESIS OF PAINT INDUSTRY

First paint Industry Shalimar Paints, Colour Varnish Company,

!he paints "as #enerally imported $rom the %ritain

Due the &nd "orld "ar many 'ompany entered in India like

(oodlass )all*++-, /lephant 0il 1ills *++2 Asian Paints 3ansai Nerola' 'ame into pi'ture a$ter the post

independen'e

Paints "ere 'onsidered as a lu4ury item

5o" used in Industrial se#ments

!here "as a ne#ative #ro"th in industry and pri'e "as elasti'

Introdu'tion o$ li6erali7ation poli'y


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NATURE OF INDUSTRY

Indian Paint industry, estimated to 6e a

Rs.&+,999 Cr. industry, #ro"in# at a rate

o$ a6ove +:; $or the past $e" years.


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Factors responsible for the growth

In'reasin# level o$ in'ome and edu'ation

In'reasin#


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Indian Paint Industry

De'orativePaints*20;

Premium Ran#e*Hi#h end A'ryli'

/mulsions

1etros

5ar#e Cites

1edium Ran#e*/namel Paints

Small Cities

DistemperRan#e* 5o" end

Paints

Su6 = ur6an

Rural Areas

IndustrialPaints*>9;

Automo6ileSe'tor *a6out&?>rd share

ConsumerDura6les 1arines

Paints 0ther0/1@s

Domestic market

De'orative 29; industrial >9;.

Globally market

De'orative :9; industrial :9;.


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+&=+B: Company

stated its6usiness

themis'hievouskid "as 6orn

Name "as

+B2=+-: India@s leadin#

paint 'ompany Converted into

a pu6li' limited'ompany

/ntered into a'olla6orationa#reement

+9= Present Spreads it

6oundary

Completed 29years :th lar#est

de'orative paint'ompany in the

"orld Admired

'ompanies inIndia

1arket leader o$

paint industry

GENESIS OF ASIAN PAINTS


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PESTEL ANALYSIS

POLITICAL FACTOR India, the lar#est demo'ra'y in the "orld

!he #overnment is $ederal repu6li'

!he politi'al situation is more or less sta6le in nature

/4port oriented /'onomy

!CO"O#IC FACTOR

1arket 6ased e'onomy Se'ond $astest #ro"in# e'onomy in the "orld

India is the third lar#est in term o$ pur'hasin# po"er

In$lation rate is B.B& as on anuary &9+>

Introdu'tion o$ FDI in $e" se'tors


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11/23

!"%IRO"#!"TAL FACTOR

Impa't o$ volatile or#ani' 'ompounds *V0Cs

5ead $ree paints

Season and 'limate 'han#es

L!GAL FACTOR Pollution Control 5a"

Consumer 5a"

Health and Sa$ety 5a"

/nvironmental 5a"


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PORTERS 5 FORCES ANALYSIS

&ARGAI"I"G PO'!R OF &()!R

Household users =

The contractors Hi#her 6ar#ainin# po"er more pri'esensitive

The end customer *Num6er o$ options are availa6le

De'isions are made 6ased many $a'tors

Industrial users = A lo" mar#in hi#h revenue 6usiness

!he 6uyers kno"led#ea6le

Pri'e 'omparison is done e$$e'tively 6y the 'onsumers


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&ARGAI"I"G PO'!R OF (PPLI!R

Ra" material intensive industry

1ore than >99 produ'ts reEuired to manu$a'ture o$ the

$inal produ'ts

1any Cate#ories

Pi#ments additives

Solvents

%inder et'.

Pi#ments 'onstitute a6out +?>rd o$ the total ra" material

'osts. Titanium dioxideis one key pi#ments "hi'h is $a'in#

a #lo6al shorta#e supply.


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CO#P!TITI%! RI%ALR)

A6out -9; o$ the or#ani7ed market is 'atered 6y

the top $our players o$ the industry.

!he 'urrent market #ro"th rate provide ample room

$or all the players o$ the industry to $lourish.

Competition may in'rease as the market #ets

saturated.

!he presen'e o$ the unor#ani7ed market doesprovide room $or 'ompetition


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A%AILA&ILIT) OF (&TIT(T!

5ime "ash is 'onventionally used su6stitute $or paints.

In de'orative paints se#ments an alternative option is

"allpapers.

T$R!AT OF "!' !"TRA"T

!he paint industry in India is dominated 6y $e" players makin#

di$$i'ult $or anyone ne" enterin# the industry

/sta6lish $orei#n players may pose a threat 6y virtue o$ the

kno"led#e and e4pertise


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An'illaries

De'orative paints

IndustrialPaints

Automo6ile

PRODUCT PORTFOLIO


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+(!TIO" #AR,

Distemper Ran#e* 5o"end Paints

TAR

1etal?industrial Paints )ood $inishes *varnish,

polish

CA$ CO'

)all Paints*IN!/RI0R /!/RI0R PAIN!S D/C0RA!IV/ PAIN!S

DOG

1arine paints,Automo6ile paints others*6a'k 6oardpaints

BCG MATRIX


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SITUATION AUDIT

India@s lar#est paint 'ompany and Asia@s

third lar#est paint 'ompany

0perates in +2 'ountries and has & paintmanu$a'turin# $a'ilities in the "orld

servi'in# 'onsumers in over B: 'ountries.

0perates around the "orld throu#h itssu6sidiaries %er#er International 5imited,

Ap'o Coatin#s, SCI% Paints and

!au6mans


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COMPETITIVE ANALYSIS

2+;

++;

+9;

2; 9;9;#AR,!T $AR!

Asian Paints

%er#er Paints

3ansai Nerola'

Ak7o No6el

Shalimar Paints

enson Ni'olso


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Stren#ths

1arket leader Capa'ity

e4pansionplans

Pri'in# po"er )ide

distri6utionnet"ork

)eaknesses Industrial

6usinessper$ormin#6elo" par

Hi''ups ininternational6usiness

Internationalpresen'e

restri'ted tosmall po'kets

0pportunities

Fast #ro"in#Indian e'ono

Shorterrepaintin#

'y'les (ro"th in thetier II and IIIto"ns

Steady #ro"t

in industryvolumes

De'rease in tuse o$distemper

SWOT ANALYSIS


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CONCLUSION

Asian Paints, India8s lar#est paint 'ompany and Asia8s third lar#est

paint 'ompany, "ith a turnover o$ Rs B.>& 6illion.

Have an envia6le reputation in the 'orporate "orld $or

pro$essionalism, $ast tra'k #ro"th, and 6uildin# shareholder eEuity.

0ver the 'ourse o$ &: years Asian Paints 6e'ame a 'orporate $or'e

and India@s leadin# paints 'ompany. Driven 6y its stron# 'onsumer=

$o'us and innovative spirit, the 'ompany has 6een the market leader

in paints sin'e +B-.


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Asian Paints New