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…KYUNKI HAR GHAR KUCH KEHTA HAI…
asian paints
Presentation Structure Industry analysis Introduction to the company Company profile Competitors/International operations Growth cycle of the company Mergers & Acquisitions Marketing, sales & distribution Supply chain management Financial analysis Human resource management Corporate social responsibility Future of the company
Paint IndustryPaint industry estimated at Rs. 135bn.
Unorganized sector accounts to 35% of paint market.
Volume growth estimated at 15%.
India’s share in the world paint market is 0.6%.
Per capita consumption of paint in India is 1.2kg/annum.
Introduction to Asian PaintsStarted in 1942 by four entrepreneurs: Champaklal choksey, Chimanlal choksey, Suryakant Dani and Arvind Vakil as “ASIAN OIL & PAINTS COMPANY.”
Within three years, their turnover reached 3.5 lacs.
In 1967, Asian paints became the 10th largest paint company in the world.
Vision
“Asian Paints aims to become one of the top 5 Decorative Coatings companies
worldwide 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.”
MISSION
TO BE THE LARGEST DECORATIVE PAINT
CO. WORLDWIDE AND TO BE THE 5TH
LARGEST PAINT MANUFACTURING CO.
WORLDWIDE.
Asian Paints- Today
Company Profile
Product Profile• INTERIOR PAINTS.
• EXTERIOR PAINTS.
• WOOD FURNISHES.
• WOOD & METAL FURNISHES.
Competitors
Asian paints
37%
Goodlass
Nerolac 15.9%
Shalimar
4%
Berg
er Pa
ints
13.8%
Market Share in India
International OperationsCaribbean Islands
Barbados, Jamaica,
Trinidad & Tobago.
South Pacific
Fiji, Tonga, Vanuatu, Solomon & Samoa Islands.
South Asia
Bangladesh, Nepal & Sri
Lanka.
South East Asia
China, Malaysia, Singapore &
Thailand.
Middle East
Bahrain, Egypt,Oman &
United Arab Emirates.
Mergers & Acquisitions
Buys Taubmans Paints (Fiji) In September 2003.
Acquires ICI India’s Unit (February 2007).
Sells stake in Australian Unit (June 2007).
Growth Cycle of the company
a)1942-1967 Evolution Phase
b)1967-1982 Extension and Consolidation Phase
c)1982-1986 The years of Excellence
d)1987-1997 Moving Closer to the Consumer
e)1997-1999 Changing rules of the game
f)1999- The new Asian Paints
Marketing, Sales & Distribution
Rural Marketing Initiatives since 1960.
Distribution is one of the main strategy of Asian Paints.
Advertising & Promotional Expenditure started in 1980s.
Advertising Methods- Radio, TVCs, Print, Internet, OOH, POP, Retail Outlets, Seminars, Workshops.
Advertisements
• Promotional Expenditure grew from 15% in 2003 to 21% in 2008.
Supply Chain Managementi2 Supply Chain Management to meet
changing demands.
ASHWIN DANI, VICE-CHAIRMAN AND MANAGING DIRECTOR, ASIAN PAINTS (INDIA) LTD, HAS BEEN PRESENTED WITH THE HIGHEST RECOGNITION IN SUPPLY CHAIN MANAGEMENT — THE CHEMINOR AWARD FOR 2002 — BY INDIAN INSTITUTE OF MATERIALS MANAGEMENT (IIMM).
Diagrammatic Representation of Supply Chain Management
Supply Chain Cycle
350 raw material &
intermediary good suppliers
2 chemical plants & 18 processing
centers
140 packaging & material vendors
6 Regional Distribution
Centers & depots
Majority of employees are hired from premium management institutes.
Recreational facilities are provided to the employees.
Human Resources
Human Resources
Human Resources
Performance Appraisal:360 Degree Appraisal.Development Centre.ECA(Essential Competency Acquisition)
Other Initiatives:Taking care of the Employees.Employee Portal- EGLOO
Financial Analysis
2003-04 2004-05 2005-06 2006-07 2007-080
500
1000
1500
2000
2500
3000
3500
4000
4500
2025.92338.8
2777.4
3360.7
4059.9Gross Sales Rs. In cr...
Net Sales
Profit after tax
2003-04 2004-05 2005-06 2006-07 2007-080
50
100
150
200
250
300
350
400
147.6173.8
187.8
269.9
376.6Profit After Tax (Rs. In crores)
Profit After Tax (Rs. In crores)
Earnings Per Share
2004 2005 2006 2007 20080
5
10
15
20
25
30
35
40
45
15.3918.12 19.58
28.14
39.4
EPS
EPS
(In Rs.)
Market Capitalisation
CORPORATE SOCIAL RESPONSIBILITY
Water Conservation-Total Water
Management Center.
Age Care.
Education.
Other Initiatives.
Future of the Company Asian Paints is planning to increase the capacity by setting up a plant at Rohtak,
Haryana.
No other company is planning to increase its capacity in the near future, this will give Asian Paints a competitive advantage in terms of pricing.
GDP growth slowdown in the growth rate of two important activities i.e. repaint activity and construction activity will have direct impact on the volume of APL, thus effecting its profitability and margins.
Rural markets have considerable potential. Companies that can establish a dealer network in these markets are likely to get the edge in positing above par growth rates over the next few years.
As setting up distribution infrastructure is expensive, it would mean that the competition is limited to the top players.
Due to substantial hike in raw material prices, Asian Paints has raised the prices of solvent based paints, thus demand would be affected to some extent.
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