History[edit]

Asian Paints was established on 1 February 1942 by Champaklal H. Choksey, Chimanlal N.

Choksi, Suryakant C. Dani and Arvind R. Vakil. They name their company 'The Asian Oil &
Paint Company', a name that was randomly picked from a telephone directory[citation needed].
1945 Asian Paints touches a turnover of Rs. 3,50,000[citation needed]
1957 66 The family-owned company makes the change to a professionally managed
organisation.

Major products and services[edit]

Asian Paints manufactures and markets industrial and decorative coatings. Along with that 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.[4]
Industrial coatings: Protective coatings, Floor coatings, Road markings.[5]
Ancillaries: Wall primer, Acrylic Wall Putty, Exterior Wall Putty, Wood Primer.[6]
Asian paints made a foray in automotive paints in the year 1997 with a joint venture with PPG
Industries. The joint venture is called PPG Asian paints.[7] The company manufactures body
coatings and plastic coatings.
Paint brands owned by the company are: Ace & Apex, Apcolite, Apex, Apex Ultima, Asian
Paints, Colour Next, Premium Gloss Enamel, Royale, Royale Play, Touchwood, Tractor
Emulsion, Utsav.

Forbes listing[edit]
Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the
World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company. Asian
Paints is the only paint company in the world to receive this recognition. One of the country's
leading business magazine "Business Today" in Feb 2001 ranked Asian Paints as the Ninth Best
Employer.It has been recognised by "Economic Times" as well. Forbes has also ranked Asian
Paints among the Best under a companies in Asia in 2005, 06 and 07.

Financial deals[edit]

Asian Paints has acquired 30% stake in Dutch Boy Philippines from Berger International Limited
(BIL), an indirect subsidiary of Asian Paints. Asian Paints executed a conditional stock purchase
agreement relating to the sale of 427,000 shares of Dutch Boy Philippines, which ceases to be an
associated company of BIL. Asian Paints, Ltd. (APL) has entered into a 50:50 new joint venture
agreement with PPG Industries, Inc. (PPG), a US-based provider of paints, coatings and
speciality products, to accelerate the growth of non-decorative coatings business in India.
This is the second joint venture between APL and PPG. They currently have a 5050 joint
venture named Asian PPG Industries Ltd (APPG).
APL and PPG have agreed that APL will take lead in the second venture, while PPG will take
lead in APPG in order to utilise their respective strengths to best capture the growth in
infrastructure development and globally driven markets in India.
APPG currently services the Indian transportation coatings market and this change will expand
its scope to additionally service the industrial liquid, marine and consumer markets. The second
joint venture will service the protective, industrial power, industrial containers and light
industrial coating markets.
The transaction is subject to regulatory approvals and is expected to be completed during 2011.
It has recently acquired 51% in Sleek International Private Limited and is looking to have a
stronghold in home improvement.
Asian Paints Acquired 51% in Kadisco Chemical Industry Plc of Ethiopia

Revenue[edit]
The company recorded revenues of INR77,888.7 million (approximately $1,708.1 million) in the
fiscal year ended March 2011, an increase of 14.2% over 2010. The company's operating profit
was INR13,956 million (approximately $306.1 million) in fiscal 2011, an increase of 2% over
2010. Its net profit was INR8,432.4 million (approximately $184.9 million) in fiscal 2011, an
increase of 0.9% over 2010.

International operations[edit]
Asian Paints operates in 17 countries across the world. It has manufacturing facilities in each of
these countries and is the largest paint company in eleven of these markets. Asian Paints operates
in five regions across the world viz. South Asia, Southeast Asia, South Pacific, Middle East and
Caribbean region through the five corporate brands viz. Asian Paints, Berger International, SCIB
Paints, Apco Coatings and Taubmans. The countries that Asian Paints has presence are as
follows:
1.Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka).

2.SCIB Paints in Egypt.

3.Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman), Caribbean
(Jamaica, Barbados, Trinidad & Tobago).
4.Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu).
5.Taubmans in South Pacific (Fiji and Samoa).
The company has a dedicated Group R&D Centre in India and has been one of the pioneering
companies in India for effectively harnessing Information Technology solutions to maximize
efficiency in operations.

Group subsidiaries[edit]
1) Apco Coatings is a subsidiary of Asian Paints in the South Pacific islands. Asian Paints
operates in Australia, Fiji, Tonga, Solomon Islands and Vanuatu under the brand name of Apco
Coatings.APCO COATINGS
2) Asian Paints Industrial Coatings Limited has been set up
3) In 1994, Berger units were brought under the single umbrella of the holding company 'Berger
International Limited (BIL)' with headquarters in Singapore, which was also listed on the
Singapore stock exchange. In November 2002, BIL became a part of the Asian Paints Group.
Incidentally, Berger Paints Jamaica Limited, which is listed on the Jamaican stock exchange, is
amongst the top ten companies in the country in terms of market capitalisation. In the Middle
East too Berger is a well-respected brand. It is the largest paint company in Bahrain. Using its
state-of-the-art manufacturing facilities there, and in United Arab Emirates, it exps of the
Company at its meeting held on 8 August 2013 have approved the infusion of Rs 997.8 million
for 51% stake in Sleek International Private Limited (SIPL). Post the infusion, the company
would hold 51% stake in SIPL, said statement from Asian Paints.[8]

Campaigns[edit]
Gattu, the mascot[edit]
Gattu, the mascot for Asian Paints was created by cartoonist R.K. Laxman in 1954. Soon Gattu,
with his "shock of black hair eternally dangling over his right eye", became popular and
remained so for many decades, even featured in business quizzes[9][10] After over four decades, it
was eventually phased out after 2002, when company's advertising agency Ogilvy & Mather
(O&M) initiated a rebranding exercise.[11]

Logo change[edit]

The brand also went in a brand overhaul. The logo was changed to a contemporary upmarket, the
logo/design was to convey self-expression, sophistication and Technology. Thus came the birth
of a wonderful positioning strategy created by O&M. The insight was that the brand is about
people and homes and homes reflect the people living in it. Hence " Har Ghar Kuch Kehta Hai"
translated to " Every Home has a story to tell". This campaign is a perfect example of a brand
laddering up and connecting to a higher level in the mind of the customer. The campaigns
reinforced the brand as a premium emotional brand. Along with the campaign Asian Paints also
ran parallel ads for its subbrands. Saif Ali Khan endorsed the premium brand Royale. For Apex
Ultima, the campaign was highly localised and was different in different market.

Asian Paints Limited was established way back on February 1,1942 and today stands as Indias
largest paint company and Asias third largest paint company with an annual turnover of Rs
5,463 crore.
Presently the company is having its presence in 22 countries with 28 manufacturing locations,
over 2500 SKUs, Integrated SAP - ERP & i2 - SCM solution. Besides Asian Paints, the group
operates around the world through its subsidiaries Berger International, Apco Coatings, SCIB
Paints and Taubmans.
The company manufactures paints in the category of Decorative, Automative and Industrial
segment. Apart from these the company also manufactures various Acessories like, Wall Primar,
Wood Primer, Putty and Stainers etc.
Asian Paints along with its subsidiaries has operations in 20 countries across the world and 28
paint manufacturing facilities, servicing consumers in 65 countries through Berger International,
SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans. Asian Paints operates in 5
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. In 10 markets, it operates through its subsidiary, Berger
International Limited; in Egypt through SCIB Paints; in 5 markets in the South Pacific it operates
through Apco Coatings and in Fiji and Samoa it also operates through Taubmans.

The company is having its strategically located Indian plants at Bhandup (Maharashtra), Kasna
(Uttar Pradesh) and Sriperumbudur (Tamil Nadu), Ankleshwar (Gujarat), Patancheru (Andhra
Pradesh) and the newly built plant at Rohtak (Haryana).
The company is having state-of-the-art supply chain system using cutting edge technology to
integrate all its plants, regional distribution centres, outside processing centres and branches in
India. All the companys paints plants in India, two chemical plants, 18 processing centres, 350
raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional
distribution centres, 72 depots are integrated.
The company is having a big and experienced R&D team which has successfully managed to
develop High-end exterior finished and wood finishes in-house, which was earlier imported into
the country. These products are currently marketed under Asian Paints Elastomeric Hi-Stretch
Exterior paint and Asian Paints PU wood finish respectively.
The company is having three subsidiaries viz, Apco Coatings - it is a subsidiary

of Asian Paints in the South Pacific islands. The company operates in Australia, Fiji, Tonga,
Solomon Islands and Vanuatu under the brand name of Apco Coatings.
The other subsidiary of the company is Asian Paints Industrial Coatings Limited which has
been set up to cater to the powder coatings market which is one of the fastest growing
segments in the industrial coatings market.
Berger International Limited in November 2002, became a part of the Asian Paints Group.
Today, the name of Berger is synonymous with quality and innovation. BIL has presence
across three regions viz. Middle East, Caribbean and South East Asia.Asian Paints
participates in the Industrial Coatings segment directly, through a 50:50 JV with PPG Inc. of
US as well as through a 100% subsidiary
On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into
Growth, Decorative and International business units and has adopted SCM and ERP
technology. Asian Paints aims to become the 5th largest decorative paint company in the
world
Product range of the company includes:

Automotive Paints

Decorative Paints

Industrial Paints

Ancillaries - Range of ancillaries like primers, fillers stainers, and a lot more.

Milestones:
2011- Asian Paints has informed that the two plants of the company's subsidiary, SCIB
Chemicals SAE, Egypt which were shut due to prolonged curfew have restarted the
operations partially with effect from February 06, 2011.
2010- Asian Paints announced the commencement of commercial production at its new
paint manufacturing facility in Rohtak, Haryana.
2008- The company performs Bhoomi Pooja at its proposed paint plant site at Rohtak in
Haryana.
2007- Asian Paints enter into a share purchase agreement for the sale of its stake in Asian
Paints Queensland.
2006- Asian Paint Consolidated TurnOver Crosses Rs. 3000 crore.
2005- Four Asian Paints Plants Conferred With Sword of Honour By the British Safety
Council.

2004- Asian Paints is the only Paint Company in the World to be awarded the Forbes Best
under a Billion companies in the world.
2003- Asian Paints (India) awarded the 9.2% stake after emerging the highest bidder at a
bid price of Rs 205 per share for a total value of Rs 77.09 crore.
2003- Berger International (BIL) the Singapore based subsidiary of Asian Paints, Asia s
fourth largest paint company, has entered into a technical consultancy and advice
arrangement with Berger Paints Pakistan Limited, the second largest paint company in
Pakistan.
1957 - 66- The family-owned company makes the transition to a professionally managed
organisation. British company Balmer Lawrie rejects the products of a giant British paint
company in favour of Asian Paints. Asian Paints embarks on an ambitious grassroots
marketing campaign, partnering with thousands of dealers in small towns all over India.
1967 - Asian Paints emerges as India's leading paint company ahead of any international
competition.
1945 - Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing
strategy 'to reach consumers in the remotest corners of the country with small packs.' 1954
- Asian Paints mascot, Gattu, the mischievous kid, is born.
1st February, 1942 - Armed with little knowledge and great determination, Champaklal H.
Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to
manufacture paint in a garage on Foras Road, Bombay. They name their company 'The
Asian Oil & Paint Company', a name that they picked randomly from a telephone directory.
Achievements/ recognition:

Asian Paints is the 10th largest decorative paint company in the world

Awarded the 'Sword of Honour' by the British Safety Council for all the paint plants
in India. This award is considered as the pinnacle of achievement in safety across
the world.

Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small
Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion
Firms' of Asia in 2005.

Ranked 24th amongst the top paint companies in the world by Coatings World - Top
Companies Report 2006.

The Asset - one of Asia's leading financial 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.

Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu
Business Line; Most admired company to work for by ET-BT survey, 2000

Product Name

Year Month

Sales
Sales
Quantity Value(Rs.Million)

% of STO

Paints, Enamels,
2014

03

0.00

114458.40

94.07

2014

03

0.00

4153.90

3.41

2014

03

0.00

1813.50

1.49

Revenue from Home 2014

03

0.00

43.50

0.04

03

0.00

15.30

0.01

Varnishes and
Blacks
Paints, Putty,
Colourworld
Machines and
Others - Traded
Others
Sale of Services -

Solutions Operations
Other Operating
Revenues - Colour
Consultancy Income

2014

Paints, Enamels,
Varnishes and

2013

03

0.00

100019.60

Blacks

Paints, Putty, Colourworld Machines and Others - Traded

2013

03

0.00

2793.60 2.67

Others

2013

03

0.00

1236.80 1.18

2013

03

0.00

434.10 0.41

Other Operating Revenues - Processing and Service

Income
Sale of Services - Revenue from Home Solutions

2013

Operations
Other Operating Revenues - Scrap Sales
Other Operating Revenues - Subsidy from State

2013

03

0.00

67.90

0.06

2013

03

0.00

3.10

0.00

2013

03

0.00

0.60

0.00

Government
Other Operating Revenues - Lease Rent

STP

Caters to all segments with brand Royale aimed at

Segment

premium segment and rest at mass market.

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

agro & manufacturing equipment and automobile etc.
Target Group

infrastructure, govt. buildings

Positioning

A complete array of products to cater to everyone.

SWOT Analysis

Strength

1. The largest paint company in India and third largest

company in Asia
2. They have over 50% of market share and are clear
leaders decorative paints and are strong competitors to
Kansai Nerolac 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 with
7. 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.

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
Weakness

planning and inventory problem.

1. Big an international standard paint company it should

look for more opportunities abroad
2. There is a good scope for growth especially in
industrial paints category
3. 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
Opportunity

for hi-tech.

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 emphasis
Threats

3.Raw material scarcity and volatlility in prices.

SWOT ANALYSIS OF ASIAN PAINTS

SWOT analysis is a basic, straightforward model that provides direction and
serves as a
basis for the development of marketing plans. It accomplishes this by assessing
an organizations strengths (what an organization can do) and weaknesses (what
an organization cannot do) in addition to opportunities (potential favorable
conditions for an

organization) and threats (potential unfavorable conditions for an organization).

SWOT
analysis is an important step in planning and its value is often underestimated
despite the
simplicity in creation. The role of SWOT analysis is to take the information from
the

environmental analysis and separate it into internal issues (strengths and

weaknesses) and
external issues (opportunities and threats).
SWOT analysis is done for a company, to find out its overall Strengths,
Weaknesses,
Threats and opportunities leading to gauging the competitive potential of the
company.
The SWOT Analysis enables a company to recognize its market standing and
adopt strategies accordingly. Here SWOT analysis of Asian Paints is made to
understand the
positioning of the company better.
2.1. Strengths:
1.
Market leaders with 35% market share in the organized sector, the closest
competitor does not have even half of APs share;
2.
Comprehensive nation wide coverage of the market urban, semi-urban and
rural areas. They have quite a number of brands, covering all segments and
filling all gaps. For example, they have brands in different price slots like Utsav
for rural lower-end markets and Apcolite for high end-markets;

3.
APs logo Gattu, an impish boy with the paint tin and brush, is most popular
and easily recognized;
4.

Widest product range in terms of products, shades, pack sizes - 40 different

decoratives, some in 150 shades, 8 different pack sizes;
5.
Unlike its competitors who concentrate only in urban areas, AP is found
everywhere. It has a country wide distribution 6.

Market leader: Asian Paints is the largest paint

company in India with a market share of 32.4%. It is
also the 3rd largest in Asia and among the top 10
decorative paint companies in the world.
Capacity expansion plans: The company has already
commenced its Rohtak operations recently that has a
capacity of 1.5 lakh kl per annum. In addition to this it
has plans for greenfield expansion of 4 lakh tonnes in
Maharashtra and 1 lakh tonnes per annum in AP.
Pricing power: Asian paints has had four price hikes in
CY2010. It intends to raise product prices again if the
raw material prices keep going northwards.
Manufactures PAN: The company manufactures
Phthalic Anhydride (PAN), a key raw material.
Wide distribution network: Comprising of 90 depots
and 27,000 retailers.
Weaknesses
Industrial business performing below par: The
industrial business of the company has performed below
expectations, though the decorative business has done
very well. The automotive business has performed in
line with expectations. Subject to regulatory approvals,
Asian Paints is planning to have a second joint venture
with PPG industries. Both the joint ventures would
cover the entire gamut of the non-decorative paint
business. Asian Paints would leverage PPG's technology
and customer relationships around the globe.
Hiccups in international business: The middle east
business is being hampered by strife in Egypt &
Bahrain.The Caribbean sales also dipped in Q3FY11.
But Asia & South Pacific business has been doing well.
International presence restricted to small pockets:
Asian Paints need to spread its business to big centres
worldwide, to become a true multinational.
Opportunities
Fast growing Indian economy: The fast growing
Indian economy and a growth in the realty and
construction industries presents a big opportunity for
Asian Paints.
Shorter repainting cycles: The growing affluence of

the Indian people is resulting in shorter repainting cycles

benefiting the paint industry.
Growth in the tier II and III towns: The paint demand
in these towns is growing at a faster rate than the tier I
cities.
Steady growth in industry volumes: The paint industry
has shown an average volume growth of 15.3% in the
past six years and the growth is expected to be 16% in
FY12.
Expected decrease in the use of distemper in future:
Increase in enamels & emulsion use would have a
positive impact on company's margins.
Threats
Competition from the world majors: Major world
players like Jotun, Nippon and Sherwin Williams are
now competiting with Asian Paints in the domestic
Indian markets.
Competition from the unorganized sector: The
unorganized sector, though fragmented holds a ~35%
share of the Indian paint industry and gives tough
competition to established players.
Rising cost of raw materials: The input costs for Asian
Paints and the other players in the industry are rising.
The price of crude derivatives and titanium dioxide, two
key inputs has seen a sharp upswing.
Slowdown in the economic growth: The paint industry
fortunes are positively co-related to the growth of the
economy.
Unstable political situation in middle east: This region
accounts for over 50% of company's international sales.