ASIAN PAINTS

THE MARKET LEADER IN INDIAN PAINT INDUSTRY

SUBMITTED BYJAYANT KUMAR BM-09086 MAYANK JAGGI BM-09105 NAVNEET KUMAR BMNAVEEN PANDAY

PAINT INDUSTRY IN INDIA

Setting up of Shalimar paints in 1902 in calcutta.

An important sector in the national economy.

Decorative paints account for 70% and Industrialized paints share the balance of 30%.
Indian paint industry is at the cross roads.

MAIN MARKET PLAYERS

Asian paints ltd.

Dulux paints ltd. Berger paints ltd.

Nerolac paints ltd.

Shalimar paints.

ASIAN PAINTS
It

is Indias largest paint company ,operating in 21 countries , serving in 65 nations.

Asian

paints is only paints company recognized by Forbes magazine.

Asian

paints started in 1942.

Besides Asian

the group operates in world through its subsidiary Burger international , APCO, SCIB and Taubmans.

ASIAN PAINTS

Market leader with 33% share in the paint market.

Largest brand equity. Largest distribution network.

Dominates the decorative segment with 38% market share.

Manufacturing facilities at 4 locations. SKUs - 2800

DISTRIBUTION STRATEGIES

Distribution outfit Mixing at retail outlet automated machine Targeted the individual consumers of paints Concentrated on semi-urban and rural areas Went retail An open-door dealer policy

PORTERs 5 point model ANALYSIS

THREAT FROM SUBSTITUTE PRODUCT
Price

elasticity lead to high risk from substitute products, as lime wash

THREAT FROM NEW ENTRANTS Low capital intensive and minimum government interfernce lead to low entry barrier

Additional threat from foreigner player setting up base in india

BARGAINING POWER OF SUPPLIER Major raw material being crude based ,supplier have more control over price BARGAINING POWER OF CUSTOMER Low bargaining power of customer

INTERNAL MARKET ENVIORNMENT

Market

size Rs.112 billion

Dividend

among organized player 65% and unorganized 35%

Organized

market control by 5-

6 player
Market

seasonal in nature

RECOMMENDATIONS

Change in policies to satisfy dealers Extra reward for large dealers

Improve credit terms

Price relaxation for dealers