Professional Documents
Culture Documents
ORGANIZATION BEHAVIOR
SECTION: T1006
CLASS: BBA
COURSE NO.:MGT104
SEMESTER II
((DEPARTMENT OF MANAGEMENT))
TOPIC: ASIAN PAINTS
INTRODUCTION:
Asian paints is India’s largest paint company and ranks among the top
ten decorative coatings companies in the world today, with a turnover
of Rs.30.2 billion (USD 680 million). It was formed as a partnership
firm by four friends in 1942. The company has an enviable reputation
in the corporate world for professionalism, fast track growth, and
building shareholder equity.
South Asia
Bangladesh, Nepal, India and Sri Lanka.
Africa
Egypt
Caribbean Islands
Barbados, Jamaica, Trinidad and Tobago.
Middle East
Bahrain, Dubai and Oman.
South Pacific
Australia, Fiji, Solomon islands, Tonga, Samoa islands.
Strengths:
1. Market leaders with 35% market share in the organized sector, the
closest competitor does not have even half of ASIAN PAINTSs share;
3. ASIAN PAINTs logo Gattu, an impish boy with the paint tin and
brush, is most popular and easily recognized;
6. A network of 13,000 dealers spread all over the country. The nearest
competitor has less than 8,000. For this, they have large network of
regional offices and company depots and sales personnel to service the
nationwide dealer network;
7. Strong in inventory control. APs average inventory level is 28 days
sales against 51 days for the industry. AP has 45% edge in inventory
carrying costs;
13. Corporate reputation has been a major strength for AP. The image
is that of a successful and well-managed company. They have won
many accolades and awards.
For example, 1995 Corporate Excellence Award from HBSA and ET,
IDBI study rated ASIAN PAINT as one of India’s most excellent
companies; another study rated ASIAN PAINT among top 5
paint manufacturers in the world. They have an enviable track record
in breaking the position of MNCs in the Indian paint industry.
Weaknesses:
6. Seasonal demand and hence in off seasons it can lead to cash flow
problems;
Opportunities:
Threats:
2. Since both Good lass Nerolac (43%) and Berger (14%) have a
higher market share than ASIAN PAINTs (14%), it is possible that in
the future, they may capture the entire industrial paint market;
3. Competitors have gone in for hi-tech with insta color spot mixing.
For Example, J&Ns insta colour offers 626 shades;