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Paint Industry

Ø The per capita consumption of paints in India is still


low at 1.25 kg (as against 51.7 kg in Qatar, 38 kg in
Singapore or 25.8 kg in the U.S. Even China has a
per capita consumption of 2.5 kg and Sri Lanka 3.5
kg).

Ø India has a long way to go. Therefore, the future of
the industry in India is quite bright.

HISTORY
q On 1st Feb. 1942, a partnership was started by four entrepreneurs.


q In 1945, the firm was turned into a company.

q
q In 1957, a plant was set up at Bhandup, Mumbai.

q
q In 1973, APIL became a public ltd company.

q
q In 2002. APIL was a market leader of Indian Decorative Paints with market share
of 44%.

q
q Present in 22 countries with 27 manufacturing locations, over 2500 SKU's,
Integrated SAP - ERP & i2 - SCM solution

q
Core Thought

Ø
Ø
Ø Asian paints is about people who invest
emotional energy in creating their homes.
Ø
Ø
Ø Asian Paints is about homes which reflect
the taste and love of their
owners/residents.
BOARD OF DIRECTORS

Mr. Ashwin Mr. Ashwin Mr. P M


Choksi Dani
Non Executive
Murty
Non Executive MD and CEO
Chairman Wise Chairman

Mr. Mahendra Mr. Abhay


Choksi Vakil
Director Director
PRODUCT LINES
Sector-Wise Distribution
Ø Major segments:
i. Decorative paints:
o Enamels - 50%
o Distemper - 19%
o Emulsions - 17%
o Exterior Coatings - 12%
o Wood Finishes - 2%
ii. Industrial paints:
o Automotive Paints - 50%
o High Performance Coating - 30%
o Powder Coating - 10%
o Coil Coating - 5%
o Marine Paints - 5%
ü

COMPANY COMPETITORS
Market Share of Decorative
Segments

DECORATIVE SEGMENT

Others 19% Asian Paints


Shalimar 6% 38%

Jenson and
Nicholson
5%
Kansai
ICI 9%
Nerolac 14%
Berger paints
9%
Increase in Market Share
BCG MATRIX
HIGH LOW
1.Metal/Industrial  Water Based Colors
HIGH

paints
2.Wood Finishes
Business Growth Rate

(Varnish,
Polish)
1.

1.Wall Paints 1.Marine


(Interior Paints
& 2.Black board
Exterior Paints
Paints)
LOW

2.Decorative
paints

Market Share
Choosing Colours Made Easy!
PROMOTIONAL CAMPAIGNS (Asian Paints) 2008

Musicians
(Royale Play) 2008

Faded Memories
(Apex Ultima) 2008 AAN DO
(Apex Ultima) 2007

Har Ghar Kuch Kehta Hai


(Asian Paints) 2008
SWOT ANALYSIS
• STRENGTH: • WEAKNESS:
q NO.1 Player in decorative paints and 2nd in
industrial paint segment.
q Market leaders with 51% market shares. •
q Wide distribution network i.e. 19,000 dealers q Seasonal demand and hence in off seasons it
in India. can lead to cash flow problems.
q Strong in inventory control. q Innovation in developing new product is
inadequate.
q The pricing strategy is oriented to middle and
lower end consumers. q Weakness on the technology front in
industrial paints.
q Widest product range in terms of products,
shades, pack sizes.
q Comprehensive nation wide coverage of the
ü
market.


Contd
• OPPORTUNITIES • THREATS:
q The automobile industry
accounted for 50% of the
industrial markets. •
q Potential in overseas markets. q Growing industry and low capital
intensive nature of business
q will attract competition.
q
q The external environment saw an
entry of a lot of multinationals
trying to attack us on various
segments
q Competition is catching up fast,
hi-tech facilities gives
abundant choices.


COMPANY’s FUTURE PLANS

• Setting up a new manufacturing


plant in North India, to keep pace
with future demand. 

• Building a auto paints plant in South


India, in partnership with US-based
PPG Industries. 


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