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…KYUNKI HAR GHAR KUCH KEHTA HAI…

asian paints
Presentation Structure

 Industry analysis
 Introduction to the company
 Company profile
 Competitors/International operations
 Growth cycle of the company
 Mergers & Acquisitions
 Marketing, sales & distribution
 Supply chain management
 Financial analysis
 Human resource management
 Corporate social responsibility
 Future of the company
Paint Industry
 Paint industry estimated at Rs. 135bn.

 Unorganized sector accounts to 35% of paint market.

 Volume growth estimated at 15%.

 India’s share in the world paint market is 0.6%.

 Per capita consumption of paint in India is


1.2kg/annum.
Introduction to Asian Paints

 Started in 1942 by four entrepreneurs:


Champaklal choksey,
Chimanlal choksey,
Suryakant Dani and
Arvind Vakil as
“ASIAN OIL & PAINTS COMPANY.”

 Within three years, their turnover reached 3.5 lacs.

 In 1967, Asian paints became the 10th largest paint


company in the world.
Vision

“Asian Paints aims to become one of the top 5


Decorative Coatings companies worldwide by
leveraging its expertise in the higher growth
emerging markets. Simultaneously, the
company intends to build long term value in
the Industrial coatings business through
alliances with established global partners.”
MISSION

TO BE THE LARGEST DECORATIVE


PAINT CO. WORLDWIDE AND TO BE
THE 5TH LARGEST PAINT
MANUFACTURING CO. WORLDWIDE.
Asian Paints- Today
Company Profile

Product Profile
•INTERIOR PAINTS.

•EXTERIOR PAINTS.

•WOOD FURNISHES.

•WOOD & METAL


FURNISHES.
Competitors

Market Share in India


International Operations
Caribbean Islands Middle East

Bahrain, Egypt,
Barbados, Jamaica,
Oman &
Trinidad & Tobago.
United Arab
Emirates.

South Pacific South East Asia

South Asia China, Malaysia,


Fiji, Tonga,
Vanuatu, Solomon & Singapore &
Samoa Islands. Thailand.
Bangladesh, Nepal
& Sri Lanka.
Mergers & Acquisitions

 Buys Taubmans Paints (Fiji) In September 2003.

 Acquires ICI India’s Unit (February 2007).

 Sells stake in Australian Unit (June 2007).


Growth Cycle of the company

a)1942-1967 Evolution Phase

b)1967-1982 Extension and Consolidation Phase

c)1982-1986 The years of Excellence

d)1987-1997 Moving Closer to the Consumer

e)1997-1999 Changing rules of the game

f)1999- The new Asian Paints


Marketing, Sales & Distribution

 Rural Marketing Initiatives since 1960.

 Distribution is one of the main strategy of Asian Paints.

 Advertising & Promotional Expenditure started in 1980s.

 Advertising Methods- Radio, TVCs, Print, Internet,


OOH, POP, Retail Outlets, Seminars, Workshops.
Advertisements

•Promotional Expenditure grew


from 15% in 2003 to 21% in 2008.
Supply Chain Management

 i2 Supply Chain Management to meet changing


demands.

ASHWIN DANI, VICE-CHAIRMAN


AND MANAGING DIRECTOR, ASIAN
PAINTS (INDIA) LTD, HAS BEEN
PRESENTED WITH THE HIGHEST
RECOGNITION IN SUPPLY CHAIN
MANAGEMENT — THE CHEMINOR
AWARD FOR 2002 — BY INDIAN
INSTITUTE OF MATERIALS
MANAGEMENT (IIMM).
Diagrammatic Representation of Supply Chain
Management
Supply Chain Cycle

2 chemical plants & 140 packaging &


18 processing material vendors
centers

350 raw material 6 Regional


& intermediary Distribution
good suppliers Centers & depots
Human Resources

 Majority of employees are hired from premium


management institutes.

 Recreational facilities are provided to the employees.


Human Resources
Human Resources

Performance Appraisal:
 360 Degree Appraisal.
 Development Centre.
 ECA(Essential Competency
Acquisition)

Other Initiatives:
 Taking care of the Employees.
 Employee Portal- EGLOO
Financial Analysis

4500 Gross Sales Rs. In crore

4059.9
4000

3500 3360.7

3000 2777.4

2500 2338.8
2025.9
2000

1500

1000

500

0
2003-04 2004-05 2005-06 2006-07 2007-08
Net Sales
Profit after tax
400
376.6
Profit After Tax (Rs. In crores)
350

300
269.9
250

200 187.8
173.8
147.6
150

Profit After Tax (Rs. In crores)

100

50

2003-04 2004-05 2005-06 2006-07 2007-08


Earnings Per Share
EPS
45

40 39.4
35

30
28.14
25

20 EPS
19.58
18.12 (In Rs.)
15 15.39
10

0
2004 2005 2006 2007 2008
Market Capitalisation
CORPORATE SOCIAL RESPONSIBILITY

 Water Conservation-
Total Water Management
Center.

 Age Care.

 Education.

 Other Initiatives.
Future of the Company
 Asian Paints is planning to increase the capacity by setting up a plant at Rohtak, Haryana.

 No other company is planning to increase its capacity in the near future, this will give Asian
Paints a competitive advantage in terms of pricing.

 GDP growth slowdown in the growth rate of two important activities i.e. repaint activity and
construction activity will have direct impact on the volume of APL, thus effecting its
profitability and margins.

 Rural markets have considerable potential. Companies that can establish a dealer network in
these markets are likely to get the edge in positing above par growth rates over the next few
years.

 As setting up distribution infrastructure is expensive, it would mean that the competition is


limited to the top players.

 Due to substantial hike in raw material prices, Asian Paints has raised the prices of solvent
based paints, thus demand would be affected to some extent.
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