Академический Документы
Профессиональный Документы
Культура Документы
Company Analysis
SWOT Analysis
By: Nagaraj M
Agenda
By: Nagaraj M
Paint Industry Overview
GROWTH PER YEAR
8%
6%
5%
2.50%
3%
ASIA PACIFIC EASTERN LATIN AMERICA NORTH AMERICA WESTERN
EUROPE EUROPE
Source: World Paints and Coating Industry Association
By: Nagaraj M
Paint Industry Overview
CAGR Growth Per Year of Major Countries in Asia Pacific
5.2%
(Sales Indonesia India China
Volume)
5%
11%
8% CAGR
6.4%
(Sales
Source: World Paints and Coating Industry Association Value)
By: Nagaraj M
Paint Industry Overview
21%
3 Segments
21%
By: Nagaraj M
Paint Industry Overview
Global Consumption of Paint
China 60%
6% India 14%
17%
Asia - Pacific
54% Europe
23% North America
Latin America
By: Nagaraj M
Paint Industry Overview
Decorative Industrial
(70%) (30%)
High
Cement Automotive Powder Marine
Emulsions Enamel Distemper Performance Coil Coating
Paints Coating Coating Coating
Coating
By: Nagaraj M
Paint Industry Overview
Paint Industry is Raw Material Intensive
Around 300 raw materials are used which constitutes 70% of the total cost
S P
50% of them are Crude Oil based
30% of the raw materials has to be imported
A B Pigments Solvents
Additives Binders
E Fungicides, Driers
Domestically Procured
B Resins
Domestically Procured
By: Nagaraj M
Paint Industry Overview
Per Capita Consumption Per Year
0 5 10 15 20 25
KG
Developed Countries 22
Global Average 15
SE Asia 4
India 2.6
By: Nagaraj M
Paint Industry Overview
Top 10 paint companies in the world
18
16
14
Sales in $ Billion
12
10
8
6
4
2
0
Akzo PPG Sherwin RPM Inc Valspar Axalta Diamond BASF SACAL Nippon
Nobel Williams Paint
By: Nagaraj M
Paint Industry Overview
Indian paint industry is estimated at Rs.406 Billion
54%
18%
By: Nagaraj M
Company Overview
Revenue Segmentation in %
By: Nagaraj M
Asian Paints Company Overview
% TO NET REVENUE
60.9
Raw Materials Cost
59.6
51.6
By: Nagaraj M
Asian Paints Company Overview
1597
1327
1169
1050
958
774 775
375 362
By: Nagaraj M
Asian Paints Company Overview
By: Nagaraj M
Asian Paint SWOT Analysis
• Strengths:
– Market Leaders with 54% Market Share
– It has in house raw material supply and so
it can reduce raw material cost
– Good operating and Distribution Network
• Operating in 17 countries 300 Colour Ideas stores provided
• It has 25 Manufacturing facilities in the world more than 2.8 Lakh consultancies
• Serving customers in 65 countries to help consumers achieve their
dream look for their homes.
• Has 3000 dealers in its network
• 50:50 Joint Venture with PPG for Industry
Coating Segment
By: Nagaraj M
Asian Paint SWOT Analysis
• Strengths:
– Presence in Home Improvement Business
Sleek today is the only player in India in the kitchen space that deals in both Expansion and promotion for
“Kitchen Components” as well as “Full Kitchen Solutions”. range of bath fitting offerings in
the premium range
By: Nagaraj M
Asian Paint SWOT Analysis
• Strengths:
– Achieving disruptive digital transformations in Information
Technology
• IT architecture that supports personalized consumer journeys across
physical , digital and human touch points through seamless integration of
multiple systems.
• Upgraded its core ERP to a highly scalable in-memory S/4 HANA platform.
• Constant Investments in Predictive and Data mining
By: Nagaraj M
Asian Paint SWOT Analysis
• Strengths
– Best in Working Capital Management
Inventory Turn Over Ratio
9
8
7
6
5
4
3
2
1
0
2011 2012 2013 2014 2015
AP Berger KNP Shalimar
By: Nagaraj M
Asian Paint SWOT Analysis
• Weakness
– It has only 15% Market Share in Industrial Coating Segment
– Widening product mix puts strain on production distribution,
accounting and administration.
By: Nagaraj M
Asian Paint SWOT Analysis
• Opportunities
– Increasing the Market Share in Industrial
Segment
– Railway ministry has made a budgetary
allocation of Rs1200bn in FY17 as against
Rs480bn in FY14, a part of which will flow
to improvement in existing stations and
maintenance of Rolling stock and assets
which will increase demand for paints.
By: Nagaraj M
Asian Paint SWOT Analysis
• Opportunities
• Road Sector
GOI has announced an allocation of Rs970bn for roads
sector in FY16-17 budget. Improvement in ordering, tender
pipeline and traffic growth in the Indian Road sector is
expected to open up new opportunities for the paint
companies by way of
– Road marking and central divider, Flyovers, bridges
– Side and Centre grills to protect them from corrosion
– Beautification of the areas surrounding infrastructure
projects
By: Nagaraj M
Asian Paint SWOT Analysis
• Threats
Weakening of Rupees
By: Nagaraj M
THANK YOU
By: Nagaraj M