Вы находитесь на странице: 1из 1

COMPANY BACKGROUND Asian Paints is Indias largest paint company and one of the largest paint companies in Asia,

with a turnover of Rs. 4.7 billion in 1992, having an annual growth rate of 25%. The companys net profit also showed phenomenal growth; increasing from Rs 37 million in 1983 to Rs 142 million in 1992. It has been able to establish itself as a leader in the paint industry and create tremendous value for its shareholders. Since then, APL has maintained an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholders equity. Driven by strong customer-focus and innovative spirit, APL has been the market leader in paints since 1968. It is nearly double in size compared to other paint companies in India. It has come a long way since its small beginnings in 1942 in a garage in Bombay. Four friends who were willing to take on the worlds biggest, most famous paint companies operating in India at that time set it up as a partnership firm. Over the course of 25 years, Asian paints became a corporate force and Indias leading paint company. Asian Paints manufactures a wide range of paints of decorative and industrial use. Decorative paints include wall finishes for interior and exterior use, enamels, wood finishes and ancillary products, such as primers and putties constituting about 60% of the total paint industry. Industrial coatings comprise high-performance coatings; powder coatings and auto refinish coatings which constitutes around 30% share in the market. ISSUES AND CONCERNS The Indian paint market is highly saturated with many paint companies with varieties of products. Goodlass-Nerolac, Berger Paints, Shalimar Paints, Jenson-Nicholson, and Garware Paints are the main competitors of Asian Paints. Among them, Goodlass-Nerolac has a very good market share in the industrial paint segment. Due to single-buyer dominance in exportation, most Indian paint companies are forced to accept comparatively low prices. Developments in the USSR had an adverse effect on Indias export business. Furthermore, paint is viewed as a luxury item in India thus, tax imposed on large paint manufacturers are high. The paint industry also suffers from scarcity of certain critical raw materials such as penta-erythritol, titanium dioxide, and carbon black with no substitutes. Importation of these materials is subject to foreign exchange rates and international market prices. The companys major divisions are currently not equally performing well. So, it has different objectives and planning to gain the top most position in the Indian paint market. APL has at present formulated different marketing strategies for the urban as well as the rural markets in India. The company always maintains some alternate strategies in keeping track with the strategies maintained also by its competitors. In the Decorative sector, company is strong enough, but needs to take care of the Industrial sector so as to increase overall sales.

STATEMENT OF THE PROBLEM Should the company continue w/ its operating and financial strategies to sustain its performance in the future? OBJECTIVES