Presented By,

Mahesh Murugesh
Mathews Varghese
Milan Agarwal
Moninthar Nayak
Nitin Deshmukh
Rajitha 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 Asia
2. 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 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.
 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 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 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 emphasis
3.Raw material scarcity and volatlility in prices.
 5C Analysis
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
 PEST 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
 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 Indias biggest brand with widest reach.

STP

Caters to all segments with brand Royale aimed at premium

Segment segment and rest at mass market.

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

manufacturing equipment and automobile etc. infrastructure,

Target Group govt. buildings

Positioning A complete array of products to cater to everyone.

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

Advertising: Not much spending on advertising required

Motivation Life necessity
Customers Distribution channels- Retail, wholesale
Quantity and frequency of purchase - Daily
Income level of customer All classes of customer

Suppliers: Chemicals are largely a commodity. Business partners

around the country along with local sourcing helps in reducing
Collaborators cost
Distributors: Wholesale shops, Retails Stores.
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 Matrix
OPPORTUNITIES Weight Rating Weighted
Score
1. Being an international standard paint company it should look for more 0.18 3 0.54
opportunities abroad
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 0.1 3 0.3
segment
4. Competitors are going for Hi-tech process and Asian paints with good 0.15 4 0.6
financial and intellectual capital can go for hi-tech processes.
THREATS 0
1. Growth prone to slowdown effects 0.15 3 0.45
2. Stringent Government rules and regulations regarding the quality of 0.1 3 0.3
products and manufacturing facilities as Environment policies are given
more emphasis.

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

2.83
Profit Pool Analysis Asian Paints
Profit Pool Decorative Industrial
0.18
0.16
0.14
Operating Margin

0.12
0.1
0.08
0.06
0.04
0.02
0
94% 6%
Revenue Percentage
 INTERNAL ANALYSIS - IFE Matrix
Strengths Weight Rating Weighted Score
1. 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 0.15 4 0.6
industry.
3. They operate in 19 countries and have 26 manufacturing facilities providing 0.1 3 0.3
service to 65 countries all over the world.
4. Asian paints has strong international presence with its four 4 subsidiaries; 0.15 3 0.45
Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.
5. Most renowned brand in Indian Paint Industry & its strong customer focus and 0.05 4 0.2
innovative-spirit has made it market leader since 1968.
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 0.15 3 0.45
ways of advertising and roping in celebrities like Saif Ali Khan.
8. The company has strong financials. 0.05 4 0.2
Weakness
1. Limited market share in industrial paints segment with Kansai Nerolac and 0.1 2 0.2
Akzonobel giving stiff competition.
2.In decorative paints Industry Customer tastes and perceptions change very fast 0.1 3 0.3
and products may become obsolete with change in trends, hence production
planning and inventory problem.
3.25
 INTERNAL ANALYSIS - BALANCED SORECARD
OBJECTIVES1 Measures SCORE Remarks
Financial Operating Profit, 22 1,950(13-14) , 1,673(12-13) in Crores
Perspective Profit after Tax, 1,218(13-14) , 1,113(12-13) in Crores
Cash generation from operation 1,813(13-14) , 1,484(12-13) in Crores

Customer Product offering, 16 1.High level of service quality and product innovation.
Perspective Service offering, 2.Level of service is the same for all customers.
Relationship, 3.Easily accessible to the general public.
Brand image. 4.Constant publicity and innovation helps in strengthening
relationship.

Business Integrated IT enabled operation 18 1. Constantly pursuing its goal of technological up gradation
Process system. in a cost-effective manner for delivering quality customer
Perspective Maximum utilization of services ; service.
Increased efficiency and profit 2. Maximum utilization of services with controlled expense
margin. and losses.

Learning and Study and Improve the range of 15 1.Staff skills were improved by providing them appropriate
Growth business activity and customer base. training.
Perspective 2.Improved employee productivity lead to diversify customer
base and customer satisfaction.

TOTAL 71
 BCG MATRIX of INDIAN PAINT INDUSTRY
STAR QUESTION MARK
High

Asian paints Royale

Berger Exterior wall
Paints
Shalimar Superlac
Market Growth
Asian Paints - Wall Putty
Berger - Walmasta
Shalimar - extra premium

Synthetic enamel

CASH COW DOG

Asian Paints Utsav
Berger Synthetic Resins
Shalimar - Shaktiman exterior
emulsion
Low
Asian Paints exterior
Berger consultancy
Shalimar-Distemper

High Market Share Low

 BCG MATRIX FOR ASIAN PAINTS
STAR QUESTION MARK
Metal Paints
Wood finishes (Varnish & polish) Distemper Range (low end paints)
Home Improvement Business Kitchen & Bath
ROYALE Business

CASH COW DOG

Wall Paints (interior & exterior)-Utsav

Marine Paints, automobile paints & others
Decorative Paints
 PRODUCT PORTFOLIO STRATEGY

INDUSTRIAL DECORATIVE AUTOMOBILES ANCILLARIES

PAINTS PAINTS
Protective Coatings Exterior Walls Deltron Primers
Floor Coatings Interior Walls Delfleet Stainers
Road Markings Metal Surface 2K Nexa Fillers
Powder Coatings Wood Surface Autocolor
Pthalics
 PORTFOLIO STRATEGY FOR ASIAN PAINTS

Lots of Question Marks

products
Distempers They should have one One or more product
Kitchen Business or more star products. that falls in Cash Cow
category.
Bath Business
Home Painting Solutions
Future Growth options Assessment using Ansoff
Matrix
Existing Product New Product
Existing Market Penetration Product
market Wood Finishers & Metal Development
Paints Wall Paints(New
Washable & Acrylic
emulsion paints)
E.g.. Tractor and
Emulsion Acrylic
Paints
New Market Market Development Diversification
Venturing APIL Products Marine Paints(Heavy
abroad 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