ASIAN PAINTS

A visit to Campus: Grab the Opportunity

INTRODUCTION
Largest Paint Company in India and 3rd largest in ASIA. 10th largest decorative paint company in the world. Rated Best Employer by BT-Hewitt survey. Aims to become the 5th largest decorative paint company in the world. Operates in 17 countries & headquartered in Mumbai.

Company History
1st February, 1942
Champaklal H. Choksi, Chimanlal H. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to bmanufacture paint in a garage on Foras Road, Bombay. They name their company The Asian Oil & Paint Company.

1945
Asian Paints touches a turnover of Rs. 3,50,000 with an innovative marketing strategy to reach customers in the outmost corners of the country with small packs.

MASCOT
GATTU : The Mischievious Kid Created by R. K. Laxman in 1954. Eventually, it phased out in 2002, when O & M (Ogilvy & Mather) introduced cooler version of the mascot.

Cont.(History)
1967 Asian Paints emerges as Indias leading paint company ahead of any international competition. 1973 AP becomes Public Limited Company 2002

AP was the market leader of Indian Decorative Paints with market share of 44%.

Ashwin Choksi, Chairman

Vision KBS Anand, MD & CEO Asian Paints aims to become one of the top five 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.

PRODUCT PORTFOLIO
Decorative Paints
Exterior Walls Interior Walls Metal Surfaces Wood Surfaces

Automotive
Car Paints Car Maintenance Kit

Ancillaries
Primers Fillers Stainers Floor colours

Industrial Paints
Protective Coatings Floor Coatings Road Markings General Industrial Coatings

USP (Unique Selling Proposition)

Exterior Paints:
Using combinations of various colours rather than using a single colour which will help to enhance the look of your exteriors walls. It gives such a base to the paint that if any creativity using crayons and sketch pens made on the walls dont lead to cracking on them. A 20 kg container of Asian Paints distemper will cost you anywhere between Rs 600 to Rs 900 whereas, Nerolac box price is between Rs 600 to Rs 670. The Berger Paints distemper

Interior Paint Care: Distemper:

comes in the range of Rs 700 to Rs 720 for 20-liter container.

Completely lead-free paints.

Group Subsidaries
Company in South Pacific Island. AP operates in Australia, Fiji, Tonga, Soloman Island under brand name, APCO

It is an England company. In 2002, became part of AP.

Contd
Egyptian company which became part of AP in August, 2002 US company with 50:50 equity sharing with AP in 1997. Pittsburgh Paints and Glass Industries (PPG), USA

Fiji company became part of AP in September, 2003

Indian Manufacturing Plants

OVERSEAS

Today
Asian Paints becomes the 10th largest decorative paint company in the world Asian Paints is more than twice the size of its nearest competitor It is one of the most admired companies in India Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution

Today
On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and International business units and adopted SCM and ERP technology Asian Paints aims to become the 5th largest decorative paint company in the world

Marketing Strategy
Company is using different techniques such as promotion on rock shows like Zeal and events like Royale Jashn. Radio City Connect and Asian Paints joined hands to bring that dash of colour to Mumbaikars' lives at unexpected places and moments with the campaign, Lift Kara De'. A total amount of 85 crore is spent on the ad campaign by Asian Paints. Their particular ad campaign, Mera Wala Blue & Har Ghar Kuchh Kehta Hai are being liked by the customer. Online Marketing for urban customer: Saif Ali Khan Online website is an example of Online Marketing. It is an unique way of promotion. (Ref: https://saifalikhanonline.wordpress.com/tag/asian-paints/page/2/)

Business Strategy
AP believed in making products based on the preferences of consumers. It gathered feedback from the consumers and turned out products, shades and pack sizes on the basis of such feedback. Another important area was the offer of painting solutions for children with the launch of Kids World. A foray into Kids' World marks yet another milestone wherein the company offers painting designs for Kids Rooms as well as Kids Corners. With the introduction of Colour World, almost all wall-finishes from Asian Paints offer a wide range and choice in colours be it for interior or exterior application. Futuristic approach should be gaining competitive advantage through channel control or occupying mind space.

Business Strategy: Rural Market

(To target semi-urban & rural areas)
AP GOES RETAIL
Going directly to retail dealers was the next major strategic decision of AP in the realm of marketing and distribution.
GOES IN FOR AN OPEN-DOOR DEALER POLICY AP

Followed an open-door policy in the matter of adding retail dealers to its network.
AP VOTES FOR NATIONWIDE MARKETING

AP took yet another important and strategic decision in the realm of distribution.

Business Strategy: International markets

(Few Initiatives)
Middle East : Emirates
Touching the heart of Society Berger Emirates conducted several social activities for the community during the year like Municipality initiative 'Clean Up Your World'.

South Asia: Singapore

Anti drug campaign 'Anti-Drug Message Campaign' conducted by People's Association Youth Movement (PAYM) and the National Council Against Drug Abuse.

South Pacific: Tonga

Careers and cleanliness Apco Coatings Fiji partnered 'Foundation for Rural Integrated Enterprises 'N' Development', an NGO, working towards alleviating poverty, for a unique campaign. (Ref: www.asianpaints.com)

(Sponsoring Rock Shows by Saif Ali Khan)

Promotional Strategies

Global Competitors
Akzo Nobel nv (Netherlands) PPG Industries Inc. (Pittsburgh) DuPont Coatings & Colour Technologies Group (Wilmington) ICI Paints (Berkshire, UK) BASF Coatings (Germany) Nippon Paint Co. (Japan) Sherwin-Williams Co. (Cleveland)

Competitors in India
Akzo Nobel India Ltd. Bombay Paints Ltd. Hard Castle and Waud Manufacturing Company Ltd. Jenson and Nicolson India Ltd. Nerolac Paint Ltd. Sarika Paint Ltd.

Asian Paints Distribution Straregy

AP goes retail. AP goes in for an Open-Door Dealer Policy.

Going to individual consumers implied wide product range and complex distribution. Wide product range implied expensive distribution.
AP goes to semi-urban and rural areas.

Market Share Segment-Wise in India

APIL dominates the decorative segment with a 38% market share. 2nd is GNPL(Kansai) in the decorative segment, with a 14% market share. Berger and ICI have 9% and 8% shares respectively.

(Decorative Paints)

J&N and Shalimar have 1% and 6% shares.

Market Share Segment-Wise in India

(Industrial Paints)
GNPL dominates the industrial paints segment with 41% market share. APIL, the leader in decorative paints, ranks 2nd after Goodlass Nerolac(GNPL) in the industrial segment with a 15% market share. Berger and ICI are the other players in the sector with 10% and 9% shares respectively.

MARKET SHARE
Ref:
http://articles.economictimes.indiatimes.com/2012-0220/news/31079599_1_berger-paints-paint-companies-paint-industry

Comparison with Competitors

Asian Paints

18 20

9
Berger

53
Kansai Nerolac

Others

Six Year Review

Corporate Social Responsibilites

Environment & Safety: Asian Paints approaches the
environment issue from the perspective of waste minimization and conversation of resources. Thus, the contunued attempt is to reduce, recycle and eliminate waste, which results in less and less waste being generated.

Total Water Management:

We propogate some methods to help you conserve water Asian Paints has built a Total Water Management (TWM) Centre, at its Bhandup manufacturing facility, which is the first of its kind in the entire country. The TWM centre showcases live working models on water conservation and rainwater harvesting. Asian Paints provides expertise to citizens free of charge to implement rainwater harvesting and total water management solutions.

Contd...
Tsunami Relief: Helping community in need of time A total amount of Rs. 4.7 million was generated as relief aid and was handed over to the Tsunami victims. Besides India, all the units across the world also contributed to the best of their capacities toward Tsunami relief.

HR Strategies

A talent pool of over 4700 employees employed over 23 countries bring in a unique blend of mindsets and skills. AP provides an open and interactive work culture to the employees to bring out their best. A sense of ownership and freedom to experiment at their workplace brings out creativity and innovation in every individual. Excellent training is provided to develop leaders and restrengthen competencies from within the organization.

Recruitment
Company is following: Group Discussion and Personal Interview
Company is recruiting: MBA students for marketing B.Sc. Chemistry, BE Mech. and Chemical students for production CA and M. Com for Finance Dept. Company has training centre in Mumbai for fresher's.

Awards and Recognition

Awarded the Sword of Honor by the British safety Council for all the paint plants in India. Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu Business Line; Most admired company to work for by ET-BT survey, 2000 Forbes Global Magazine, USA ranked Asian Paints amongst the 200 Best Small Companies of the World in 2002 and 2003 and amongst the top 200 Under a Billion Firms of Asia in 2005. Ranked 24th amongst the top paint companies in the world by Coatings World- Top Companies Report, 2006.

Contd
The Asset One of Asias leading finance magazine ranked Asian Paints amongst the leading Indian companies in Corporate Governance in 2002 and 2005.

Received the Ernst & Young Entrepreneur of the Year Manufacturing award in 2003. In 2009, micro site Asian Paints has won the outstanding website award in the consumer goods category at the recently held Internet Advertising Competition Awards.

World's Top Paints Companies 2011 Annual Report

1. AkzoNobel (Dutch) $13 billion 2. PPG (USA) $10 billion 3. Henkel (Germany) $9.7 billion 4. Sherwin-Williams (USA) $6.5 billion 5. DuPont (USA) $3.8 billion 6. BASF (Germany) $3.42 billion 7. RPM (USA) $3.41 billion 8. Valspar (USA) $3.0 billion 9. Kansai (Japan) $2.8 billion 10. Nippon (Japan) $2.5 billion 11. Sika (Switzerland) $2.3 billion 12. Jotun (Norway) $2.0 billion

13. Asian Paints (India) $1.9 billion

14. Comex (Mexico) $1.6 billion 15. Masco (USA) $1.5 billion

The top 5 Indian companies make up more than 80% sales of the organized market

What are the growth drivers ?

1.Increasing level of income and education 2. Increasing Urbanization 3. Increasing share of organized sector 4. Development of the Realty, Automobile and Infrastructure sector 5. Availability of financing options 6. Increasing Penetration in the Rural Markets

, Indian Paint Industry Forecast to 2015

According to our new research report, Indian Paint Industry Forecast to 2015, the Indian paint market has substantially grown over the past few years and caught the attention of many international players. The country continues to enjoy a healthy growth rate compared to other economies, backed by the increasing level of disposable income, and demand from infrastructure, industrial and automotive sectors, which is expected to facilitate the maintenance of the growth momentum in future. On the back of such advocacy, we anticipate that the sector will post a CAGR of around 15% during FY 2012 to FY 2015. Presently, the growth of the industry is being witnessed from new demand pockets, especially in Tier-II and Tier-III cities, thus, signaling the growing acceptance of quality products among the masses.

Future Plan
Asian Paints is planning an international network of technology centers spread across Australia, Jamaica, Egypt, Dubai, Mauritius, Fiji and Singapore. The paint project will use the latest techniques in production, packing, conveying and storage in an ecofriendly manner, with zero discharge of effluents. Company aims to come under top 5 paint companies list in the world in next 2 years.

ALL THE BEST For your PLACEMENTS!