MANAGERIAL ECONOMICS

…KYUNKI HAR GHAR KUCH KEHTA HAI…

asian paints
Asian Paints- A flashback.
 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

Sh
al
im
ar
4%
ts 37%
n pain
Asia
8%

Goo %
3.
15.9
s1

dlas
nt
ai
rP

sN
e
rg

ero
Be

lac
 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.
 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

 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

 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

 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

 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

 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

 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

 Mergers & Acquisitions

 Buys Taubmans Paints (Fiji) In September 2003.

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

 Sells stake in Australian Unit (June 2007).

 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
Net Sales
Profit after tax
Earnings Per Share

(In Rs.)
Return On Capital Employed
Market Capitalisation
Dividend Payout Ratio
Debt- Equity Ratio
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.
 PAINTERS (alphabetically)

Ashish Kapoor (08016)

Jeet Thakkar (08051)
Jimish Dedhia (08052)
Kamal Vora (08053)
Kamlesh Dhakad (08054)
Kapil Jagasia (08055)