ASIAN PAINTS

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.

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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.

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.

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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).

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.

KEY INDIAN PRODUCTS PORTFOLIO

KEY INTERNATIONAL PRODUCT PORTFOLIO

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.

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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.

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.

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Segmentation, Targeting & Positioning

• Automobiles Engineering• Consumer Durables• Construction Projects-

Societies, Roadways, etc.Segmentati

on

• Asian Paints is the market leader in Decorative Paints segment.

• Its main value proposition is the quality of paint it supplies.

Positioning

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.

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)

Market Share in India

Asian Paints 55%

Nerolac 17%

Berger 17%

ICI 11%

COMPETITION

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

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

MANUFACTURING CAPACITY AND VOLUME

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Dealer Network & Reach20

•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

PRODUCT OFFERING

Different Phase

Increasing penetration in the rural markets

Extension of the brand High salience Ensuring service to network

Products

Asian paints product range includes Decorative Industrial

Decorative paints • Interior wall finishes• Exterior wall finishes• Enamels• Metal finishes • Wood finishes

PRODUCTS

Industrial paints Automotive Powder Protective coating Road marking Floor coating

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

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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

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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

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CSR

Environment and safety. Improving infrastructure and

healthcare at local schools; adopting school education.

Total water management. Age care.

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Environment and Safety29

Reuse

Recycle

Eliminate waste

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.

Promotional Strategies

DMU

INITIATORS

GATEKEEPERS

BUYERS

DECIDER

USERS

INFLUNCERS

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 looks that last long

Wood finishesINTERIOR

•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

SmartCare Waterproofing Solutions and Products

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