Team Names

CONTENTS
Company History Asian paints today Market Share in India SWOT Analysis Core Competency Value Chain analysis

Company History
1st February, 1942
Champaklal H. Choksi, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to manufacture paint in a garage on Foras Road, Bombay. They name their company 'The Asian Oil & Paint Company.

1945
Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing strategy "to reach consumers in the outmost corners of the country with small packs."

1954
Paints mascot, Gattu, the mischievous kid, was born. Asian

1957 - 66
The family-owned company makes the shift to a professionally managed organization.

Asian Paints embark on an ambitious mass marketing campaign, pertaining with thousands of dealers in small towns all over India.

Contd
1967
Asian Paints emerges as India's leading paint company ahead of any international competition.

1973
AP becomes public ltd company

2002
AP was a market leader of Indian Decorative Paints with market share of 44%

Asian paints today

Asian Paints becomes the 10th largest decorative paint company in the world
Asian Paints is more than twice the size of its nearest competitor. It is one of the most admired companies in India Present in 22 countries with 27 manufacturing locations. Asian Paints aims to become the 5th largest decorative paint company in the world.

Market Share in India

% Mkt. Share
4% 6%

ICI 11%
Asian Paints 41%

13%

Nerolac
Berger ICI J&N Shalimar

Asian Paints 55%

15%

21%

Market leaders with 44% market share by value of decorative paints segment, the closest competitor does not have even half of APs share.
Comprehensive nationwide coverage of the market urban, semi-urban and rural areas. They have quite a number of brands, covering all segments and filling all gaps. For example, they have brands in different price slots like Utsav for rural lower-end markets and Apcolite for high end-markets. APs logo Gattu, an impish boy with the paint tin and brush, is most popular and easily recognized. Widest product range in terms of products, shades, pack sizes. 1,100 different shades of paint to choose from, in any paint type, be it emulsions distempers or enamels, in the decorative paints segment. Unlike its competitors who only concentrate only in urban areas, AP is found everywhere. It also has the best reach, with 14,500 dealers throughout India, 35 per cent of who are exclusive dealers, with 67 stock points to supply them. Strong in inventory control. Inventory is kept at about 60 days, while debts are cleared in about 30 days. the entire cycle, from order placement to when a new batch of paints, takes less than 15 days. The pricing strategy is oriented to middle/lower end consumers. AP is quite strong in production-marketing coordination. Their policy of offering tailor-made products to suit customer need has resulted in an ever growing product range. In-house production, no outsourcing, high reliability in suppliers, superior in quality assurance.

In industrial paints, AP has only a 27% market share. It is far behind the leader Nerolac, which has a market share of 43%. Since this is going to be the major growth segment in the future, a lag in this segment will end up as a major weakness. Widening product mix puts strain on production distribution, accounting and administration.

Over independence on single division.

Innovation in developing new products is adequate, they follow! No tie ups with foreign manufacturers although it has units in several countries.

Seasonal demand and hence in off season it can lead to cash flow problems. Weakness on technology front in industrial paints.

Acquiring/ increasing market share in Industrial paint sector Developing market in automobile industry, which accounts for 50% of Industrial paint market. Market of exterior paints.

Domination of few foreign companies Since both Goodlass Nerolac (43%) and Bergers (14%) have a higher market share than APs (27%), it is possible that in the future, they may capture the entire industrial paint market. Competition is catching up fast, hi-tech facilities gives abundant choices- like Berger installing color tinting machines and AP not following that route.

Core Competency
Customers - the very core of all AP business activities- customer centric. A simple but unbeatable concept of going where the customer is drives all AP retail strategies.

Products match exacting international standards even in the most sophisticated product categories.
The R&D centre, one of the finest in Asia has enhanced APs core competence by enabling AP to offer innovative ideas in paints.

Cost implications should be low.

AP have been able to leverage the core strengths of APIL brands, distribution, supply chain management and operational efficiencies to create a more integrated and scalable business model throughout the globe. Good corporate governance is therefore integral to the Companys value system.

Value Chain of Asian Paints

Choose the value Segmentation Targeting Positioning Provide the value Product development Service development Pricing Manufacturing Distributing Communicate the value Sales force Sales Promotion Advertising