A

Presentation on
ASIAN PAINTS
Presented by-

vaishnavi Somani
vaishnavi Ladkat
Snehal Kshirsagar
Ashwini Ramteke
 BUSINESS MODEL FOR THE COMPANY

 Asian Paints is one of the Most admired Companies in India.

 It Operates in 17 Countries with 25 Manufacturing Facilities.

Objective of Asian Paints is to deliver Products efficiently

to Customers without Holding Large Amount of Inventory.

 It Provides the ideal Formulation For Manufacturing Products.

 All materials Transport From Factories to the Depots.

Product Categories Of Asian Paints

Segments

Paints Chemicals

Decorative Industrial
Paint Paint
 Key Qualitative Parameter of the Asian Paints

Positive point
The Company manufactures paints in the category of Decorative,
Automative and Industrial segment.

The Company specially looks after the environmental aspects and tries to Avoid
Pollutants by adapting eco-Friendly Production Methods.

The Company has succeeded in establishing themselves in rural parts of India

By large Distribution Network,Retail Outlets etc.

High level of Customer Services.

Good Operating & Distribution Network.

Widest product range in Terms of Products,Shades.

Negative points

 Seasonal Demands and hence in off Seasons it can lead to Cash Flow
problms.

 In Industrial Sector its performance is not Satisfactory.

 With the advancement of Technology the demand and choice of

people changes rapidly.So Intensive R&D will need to be
Continued to Continously enhance the quality of the Product.
 KEY FINANCIAL PARAMETERS
Ratio Analysis of Of Asian paints
Current ratio :
Current ratio is less in2013 to2015 but in 2016-2017ratio
is 2.60
Increase in current ratio is indicate that firm is liquid &has ability
to pay its current obligation in time
Liquid Ratio :
Liquid ratio of Asian paints in 2013 is 0.88,it is decrease in
2014 i.e 0.76.In 2015 it was 0.85 and in 2016 it is 1.67.the
higher liquid ratio is mainly necessary for those companies
which face difficulty in borrowing.Asian paints is consistently
performing well.
Net profit ratio –
In 2013-14 10.82, 2014-15 13.91, 2015-16 16.36 , 2016-17
35.25 ratio is increased yearly it indicate efficient management
of affairs of business .
Key financial parameters
Other income of the company have increased over the year . Much of this income
Can be attributed to interest income received from investment as the investment of the
Company shows similar trend.

Company purchase in stock in trade has risen continuosly over the year, it mean the
scale of operation Has increased.

Loans and advances of the company, both short and long term have shown an
irregular Trend over the period. Some of the amount redeemed from the short term loan
and Advances may also have been cosolidated in to investment .

Employee benefit expenses have increased from 2014to 2016 showing that the
company is Willing to share the benefit of increased revenues with its employees.

Non current investments have risen continuously.

 COST INCURRED:

Column1 Column2 Column3 Column4 Column5

2013-14 2014-15 2015-16 2016-17

Revenue

Net Operating Revenue 16295.1 19162.7 20969.8 23165.4

Other Income 70.3 124.5 1108.4 892.9

Total Income 16365.4 19287.2 22078.2 24058.3

Expenses

Employee Benefits Expense 6971.5 7201.2 7410.1 7744.4

Subcontracting Expenses 3401.2 6418.2 7802.8 8756.9

Other Expenses 2361.1 2316.7 2343.2 2992.3

Cost Of Production 12733.8 15936.1 17556.1 19493.6

Selling & Admin Expenses 0 0 0 0

Cost Of Sales 12733.8 15936.1 17556.1 19493.6

 0
1000
1500
2000
2500
3000
3500
4000
4500
5000

500
1951.55
2,197.34
2704.84

EBITDA
4685.66

1739.23
1,974.23
2466.51

EBIT
4390.23
profitability

1713.15
1,947.10

EBT
2443.11
4371.37

1179.64
1,340.93
EAT 1662.79
3516.42
2016-2017
2015-2016
2014-2015
2013-2014
 SWOT ANALYSIS
Strength

Market leader
Quality product
Huge distribution channel
Across the country plants
Large product line
Potential to compete with other
competitor

Weakness

Industrial business performed below expectation

Low market share in Industrial and Auto paints
Strong competitors
Opportunities

New store openings

More product expansion
Innovation of new products and services
Attract more customers by effective advertisements

Threats

Increasing rates of interest

Too much competition
Rising cost of raw materials
 SUGGESTIONS

The market share of asian paint is on an increasing trend .

The company has huge base of raw materials suppliers, giving

Bargaining power resulting in higher profit margins than competitors

Internet purchasing is now becoming one of popular way to purchase .

So adequet measure will be taken to satisfy the customer regarding
Designing of website and providing a brief demonstration.

ASIAN PAINTS is Indias largest paint company having a strong brand and huge
Distribution network. It has sound financial past and is expected to have robust
growth, both in the short term and long term.

Company has built its good goodwill in the market

Shareholders can invest in this company because company’s EAT is in

increasing trend.
.
THANK YOU