Manufacturing Unit

Manufacturing involves the conversion of raw materials, usually supplied in simple or shapeless forms, into finished products with specific shape, structure, and properties that fulfill given requirements. This conversion into finished products is accomplished using a great variety of processes that apply energy to produce controlled changes in the configuration properties of materials. The energy applied during processing may be mechanical, thermal, electrical, or chemical in nature. The results are meant to satisfy functional requirements that were defined during the product design stage. In the past, design, materials engineering, and manufacturing were often treated as independent engineering specialties. However, modem manufacturing must be cost-effective and timely. This requires that everyone involved in the entire product life cycle work together concurrently to provide a functional product that can be produced efficiently, can be operated reliably, and is easy to maintain and recycle (Taguchi, 1993). This report identifies a large number of opportunities for improving unit processes. These can be considered as future options for the concurrent engineering teams. Manufacturing a product or component usually requires the integration of a number of processes. For example, the initial process may involve casting a metal into a mold to produce a desired shape. Next, the casting may be machined with cutting tools to generate surfaces of specified form. Finally, a surface treatment may be employed to improve the durability of the part. Each of these three individual operationscasting, machining, and surface treatmentis a unit manufacturing process. For brevity, in this report they will be referred to as ''unit processes." They are the individual steps required to produce finished goods by transforming raw material and adding value to the workpiece as it becomes a finished product.

Asian Paints is Indias largest paint company and Asias third largest paint company, with a turnover of Rs 77.06 billion. The group has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. Asian Paints operates in 17 countries and has 24 paint manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans. Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company. Asian Paints is the only paint company in the world to receive this recognition. Forbes has also ranked Asian Paints among the Best under a Billion companies in Asia In 2005, 06 and 07. The company has come a long way since its small beginnings in 1942. Four friends who were willing to take on the world's 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 India's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India. Asian Paints manufactures a wide range of paints for Decorative and Industrial use. In Decorative paints, Asian Paints is present in all the four segments v.i.z Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative concepts in the Indian paint industry like Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting solutions for kids room), Colour Next (Prediction of Colour Trends through in-depth research) and Royale Play Special Effect Paints, just to name a few. Asian Paints has always been ahead when it comes to providing consumer experience. It has set up a Signature Store in Mumbai where consumers are educated on colours and how it can change their homes.

COMPANY PROFILE Asian Paints India Ltd. Asian Paints, incorporated in 1942, is Indias largest paint company and the third largest paint company in Asia (Source: Crisil). The company currently operates in 21 countries has 29 paint manufacturing facilities all over the world and is servicing consumers in over 65 countries. Apart from Indian operations, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

Asian Paints Ltd. Asian Paints Ltd. (APL) is involved in the manufacturing of decorative paints and chemical business i.e. Phthalic Anhydride and Pentaerythritol. The decorative & chemical business contributes together contributes 77% of the total consolidated revenue. Asian PPG Ltd. Asian PPG Ltd. handles the automotive and industrial paints business. It was incorporated in year 1997, as a 50:50 Joint Venture between Asian Paints Ltd., and Pittsburgh Paints and Glass Industries (PPG), USA. The JV was formed primarily to obtain Cathodic Electro Deposition (CED) technology, later the whole auto furnish business of PPGs Indian operation was transferred to the JV. After acquisition of ICI Indias 2k auto furnishes business, the company has become the largest player in this segment in the domestic market. Asian Paints Industrial Coating Ltd. (APICL) Asian Paints Industrial Coatings Ltd. (APICL), wholly-owned subsidiary of the company handles powder coating business. APCIL has tied up with Protech Chemicals, one of the top ten powder coating companies in the world, for obtaining technological know-how for powder coatings.

Currently, the company ranks as third largest player in this segment. Besides the company also started is operations in Protective Coatings, Road Markings, Floor Coatings and General Industrial Liquid Paints.

Description of the Industry Products of the surface-coating (paints) are essential for the preservation of all types of architectural structures, including factories,from ordinary attacks of weather. Uncoated wood and metal are particularly susceptible to deterioration, especially in cities where sootand sulfur dioxide accelerate such action. Aside from their purely protective action, paints, varnishes, and lacquers increase theattractiveness of manufactured goods, as well as the aesthetic appeal of a community of homes and their interiors. Coatings that are used tocover building, furniture, and the like are referred to as trade sales or architecture coatings in contrast to industrial coatings which are usedon materials being manufactured. Industrial finishes are applied to awide variety of materials, such as metal, textiles, rubber, paper, and plastics, as well as wood. Architectural coatings are usually applied towood, gypsum wall-board, or plaster surfaces.The paints industry is a branch of the chemical industries sector.Surface coating (paints) have been divided into: Solvent-based paints Water-based paints Varnishes; clear coatings. Printing inks. Resins (for paints and varnishes manufacture).Therefore, there are different production lines, plants can have as fewas one or two production lines or all of them.Service units (utilities) provide water and energy requirements as wellas maintenance, storage, packaging, testing, and analysis needs.The batch process is common in paints industry, old plants use openequipment, while modern plants use the closed one. Equipmentcleaning is necessary, and required between batches.

Paints Industry Paint is defined as the group of emulsions, consisting of pigments suspended in a liquid medium, for use as decorative or protective coatings. Paint ranges from the broad group of environmentally-sound latex paints used to decorate and protect homes and the translucent coatings that line the interior of food containers, to the chemically-complex, multi-component finishes that automobile manufacturers apply on the assembly line.

Market Structure The size of the Indian paint industry is valued at Rs.112 bn . Indian Paints Industry can be classifi ed into two sub-segments:

Demand Supply Dynamics The Indian Paint Industry grew by 18% from Rs. 95 bn. in FY06 to Rs. 112 bn in FY07 (Source: Company). The industry has a positive correlation with GDP as both have same drivers for growth. Demand for paints is both, derived as well as direct. The demand for decorative paints is a direct demand whereas the demand for industrial paints is a derived demand.

Raw Materials Liquid paints is a composite of a finely divided pigment dispersed in aliquid composed of a resin or binder and a volatile solvent. Therefore, paints are manufactured from three main constituents; pigments, binders, and solvents (thinners), in addition to many other additives togive the paints specific properties for specific purposes or applications.The liquid portion of the paints is known as the vehicle. Vehicles arecomposed of nonvolatile and volatile parts: Nonvolatile;-Solvent-based paints: oils and/ or resins plus driers and additives Lacquers: celluloses, resins, plasticizers, and additives.-Water-based paints: styrenebutadiene, polyvinyl acetate,acrylic, other polymers and emulsions, copolymers plusadditives. VolatileKetones, esters, alcohol, aromatics, and aliphatics

Paint manufacturing process

Major Products and Services

Asian Paints manufactures and markets industrial and decorative coatings. The company's key products and brands include the following:

Products: Decorative paints: Interior wall paints Exterior wall paints Wood surface paints Metals surface paints Industrial coatings: Protective coatings Floor coatings Road markings Automotive: Body coatings Plastic coatings Brands: Ace & Apex Apcolite Apex Apex Ultima Asian Paints Colour Next Premium Gloss Enamel Royale Royale Play Touchwood Tractor Emulsion Utsav

Paint Manufacture and Sustainability

Just because a paint is classed as 'Low-VOC' does not mean it is environmentally preferable. It is important to consider the entire manufacturing process of a product, and its' environmental impact.

Another problem with synthetic paints is post-application wastage and disposal. The petrochemical paints that currently dominate the market are predominately derived from oil, a non-renewable resource. In most paints up to 20% of a tin by volume can be the pigment Titanium Dioxide, a product that can have a very high environmental impact load associated with it. Waste needs to be specially treated to avoid adverse environmental impacts. The manufacture of petrochemical based paint is energy-intensive, and the production of of 1 tonne of solvent-based paint can produce 10-30 tonnes of toxic waste, much of which is non-degradable Plant and Mineral-based paints are made using naturally occurring ingredients, and therefore do not require high levels of processing. Many of the ingredients are made from renewable resources, such as linseed oil, and citrus oil, and therefore avoid contributing to greenhouse gas emissions over the life of the product. 'Natural' paints use plant-derived solvents and binders instead of synthetic ones, and usually have low VOC levels. It results in better health outcomes, and uses renewable resources for the

most sustainable living. Consumers and specifiers should also consider the carbon-emissions produced by manufacturers in the production of paint products. Paints are now available that have been independently certified carbonneutral.

Eco-labels can help you identify eco-preferable products. To obtain an ecolabel, manufacturers must undergo independant assessment by an ecolabeling body such as Good Environmental Choice Australia. The GECA program conducts a comprehensive life cycle based assessment of product compliance to voluntary environmental declaration standards. It is a member of the Global Ecolabelling Network.