Welcome To The Presentation

Global Expansion Strategy of

Group Members
Md. Mehedi Hasan Kazi Nurul Islam Sohel Ayesha Siddika Razib Chandra Pal

Overview
Asias 3rd largest paint company.

38% market share in India.

Currently is in the 13th position. With a turnover of Rs 77.06 billion in 2011. Operates in 17 countries. It has 24 paint manufacturing facilities. Servicing in over 65 countries. Trying to make position among the top 10 players.

Global Presence
Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka) SCIB Paints in Egypt Berger in South East Asia, Middle East, Caribbean Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu) Taubmans in South Pacific (Fiji and Samoa)

History of Asian Paints

It started the journey on Foras Road, Bombay in

1942.
The name was picked randomly from a telephone

directory.
After 25 years it became India's leading paints company in 1968. Journey of a long way over 69 years.

Market Size
The Indian Paint industry is estimated at 170 billion. Organized and unorganized players at ratio of 70:30. Highest growth during the festival seasons.

It expected to capture 59% of the Indian Paint

industry by 2015.

Market Share of Asian Paints (India)

Region wise Asian Paints Sales Contribution

Competition Analysis
More than 12 players in the organized sector.

Over 2,000 in the unorganized sector.

Company APIL KNPL Berger Paints ICI Jenson & Nicholson Others

Industrial Market 15% 42.50% 14.20% 7.80% 8.10% 12.90%

Decorative Market 38% 10% 11.20% 7.80% 5.50% 38%

SWOT Analysis
Strength: Weakness: Industrial paint sector only 15% share No tie up with foreign manufactures although it has units in several countries. Seasonal demand and hence in off seasons it can lead to cash flow problems

Market leader in overall paint market (44%) & in decorative paint market in India (38% ) Pricing policy oriented to all kinds of customer Strong in inventory control Widest product range in terms of products, shades Nation wide coverage of the market

SWOT
Opportunity: It can acquire / Increase market share in Industrial paint sector. Developing market in automobile industry, which accounts for 50% of Industrial paint market. Introducing Water based Paints. Repositioning of existing Brands in Rural Market. Broadening of Distribution Network. Threat: Competitors have gone in for hi-tech instacolour spot mixing. Divestment in few foreign markets. Competition is catching up fast, hi-tech facilities gives abundant choices e.g. Nerolac is advancing rapidly in Industrial market.

Competitors
1. 2. 3. 4. 5. Kansai Nerolac Berger Paints Akzo Nobel Shalimar Paints Jenson & Nicholson

Market Targeting

Initially targeted smaller towns. Then they targeted urban areas.

Market Segmentation
Decorative Segment: Royale Gattu Synthetic UTSAV Enamel Tractor Acrylic Distemper Apex Industrial Sector: Apcomin Synthetic Enamel Apcomin Synthetic Powder Stainer Premium surface & fillers Automotive Sector: Allumium Paint Fiber Paint Apcolite Hammertone finish

Marketing Mix (Product and Price)

Sold over 800 million liters of paints in 2010-11 It crossed the Rs.6322 crore figure

Place and Promotion

Place: 4 manufacturing units 6 regional distribution center 15,000 Dealers (Urban + Rural) 90,000 Sub dealers Exclusive 3000 Asian Paints store 4500 Color world stores Promotion: Advertising, Public relations, Sales promotion, External communication, Events & exhibitions.

Alternative Mode of Entries

Asian Paints using following mode of entries for their global expansion: Joint Venture Merging Acquisition

Priority list
1. 2. 3. 4. 5. Indonesia Singapore Philippines Malaysia Thailand

Indonesia
Worlds 4th most populous country. Valued at $1,276 million in 2011 Expected to grow to $1,444 million by 2013 60% by value and 79% volume. High brand awareness, competitive pricing, extensive reach, and good dealer networks.

Asian Paints Exit Operation From China & Malaysia.

China
Berger Paints (China) Company Ltd. Ningbo. It is aggressively expanding its distribution network. Building a record of successful

projects.
100% market share.

Malaysia
Berger International Sdn Bhd was founded in 1997 and is based in Klang, Malaysia.

96% market share in the

Malaysian Market.

Asian Paints Has only 4%

market share.

Continuing
The firm is expecting a "minor gain" Competitors are increasing gradually Competitive pressure will be strengthen

Thank You