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Name Karan Khona Anand Agarwal Shweta Malekar Dhannya Devassy Roll. No. 20 22 24 26

CHIMANLAL. Asian Paint embarks on an ambitious grassroots marketing campaign.CHOSI. Armed with little knowledge and great determination CHAMPAKLAL. They name their company the ASIAN OIL AND PAINT COMPANY. Asian Paints. And from fifteen position it has been come in the first best five paint companies in the world.C. BOMBAY. Asian paints more than twice the one of the most admired companies in India. and Kasna . They are located at Mumbai (Maharashtra). incorporated in 1942.000 tone per annum (tpa). R. partnering with thousand dealers in small towns of all over India. is India’s largest paints company and the market leader in decorative paints. The family-owned company makes the transition to professionally managed organization in 1957. Ankleshwar (Gujarat).CHOKSEY.H. Patancheru (AP). N.VAKIL get together to manufacture paint in a garage on FORAS ROAD.DHANI AND ARVIND. It has four manufacturing facilities in the country.30. a name that they pick randomly from a telephone directory. British company BALMER LAWRIE rejects the products of GAINT BRITISH COMPANY in favor of ASIAN PAINTS.Chintan Varia 49 EVOLUTION OF THE COMPANY :With over three decades of unchallenged leadership in the industry and 63 untiring years of commitment behind it. Asian paints has come a long way from the humble four-man enterprise started way back in 1942 to be ranked among the top 15 decorative coatings companies in the world. SURYAKANT. The plants have a combined capacity of around 2.

The competitive environment consists of those groups with which the organization must interact. Organizations are open systems that are affected by and.000 tpa. BUSINESS ENVIRONMENT 1) External Factors i ii suppliers & competitors social & political 2) Internal Factors i mission & objectives ii image & brand equity iii human resource iii technological iv international. in turn. The external environment includes all factors outside the organizational boundaries to which managers must pay attention to help their organization compete effectively. The company’s Ankleshwar and Patancheru plants are the largest in the country. . BUSINESS ENVIORNMENT.(UP). The macro-environment includes the more general factors or elements that can potentially influence strategic decisions. affect their external environments.Many forces influence an organization’s success. The simplest distinction between macro and competitive environments is the amount of control a firm can exert on external forces. CLARIFICATION OF CONCEPT IN BUSINESS ENVIRONMENT WITH RESPECT TO “asian paints” COMPANY. with each having a capacity of 80.

The decorative business unit is unquestionably the flagship business of the company with its undisputed market leader status and strong presence across all product segments and all geographic regions.Asian Paints is well known all over the country. It possesses strong brand equity with the widest distribution network. They import 20% materials from materials from south Africa. It is seen as a company that is known for its interventions and that has successfully managed its industrial relations in today’s turbulent world. it possess a locally developed technical base that matches the best internationally. efficient operations and working capital management. They have appointed different agents in different countries. as the number one decorative paint company in the country today. multiplying its assets and profits rapidly. The company has grown in the public eye as a major blue-chip investment proposition. Asian paints stand tall . Germany. is definitely worth a mention with an admirable network of 70 sales units and over 15000 dealers. . The paint stands first in India. The companies marketing initiative.Business Environment Of Asian Paints. and many more. Dubai. with operational efficiency that has earned the company a place among the worlds leading manufacturers. They procure materials from both markets that is locally as well as internationally. Over the years it has sustained its growth. They are known for quality.

business policy etc are guided by the mission and objectives of the company.INTERNAL FACTORS  MISSION AND OBJECTIVES The business domain of the company . . Objectives Of Asian Paints. “by leveraging their expertise in the higher growth emerging markets. and shall design and operate our quality system accordingly We would organize our work practices to do a job right the first time. We would be committed to continuous improvement in quality in all business processes and shall track such improvement through measurable indicators. priorities direction of development.“ WE ENHANCE COMPETITIVE EDGE OF THE COMPANY THROUGH TOTAL ENGINEERING SOLUTIONS every time .Assuming global leadership in the next logical step for a company like Asian Paints They don’t believe in letting things happen as and when they do . We would zero defect as a quality absolute. every time. ” we would provide products and services that meet stated standards on time. They have charted out a specific blueprint for achieving their goals. They plan to achieve. Mission Of Asian Paints. business philosophy.

Utsav. much more important.The company embarked on an ambitious grass-root level marketing campaign.6%. But. the company intends to build long term value in the industry coating business through alliances with established global players.511 combinations of various colours.Simultaneously. Apcolite in the middle segment. Its one-stop colour shop has software to choose and select 1. Gattu. Wood Finishes. Image & Brand Equity Of Asian Paints. Presently. Metal Paints. are all well-established brands. launching new products etc.  COMPANY IMAGE & BRAND EQUITY The image of the company matters while raising finance. Primers and others. Its product range includes Wall Paints. To provide challenging and meaningful jobs to the employee thus making them realize their immense potential. Asian Paints brands. entering purchase or sale contracts. Tractor . Brand equity is also relevant in several of these cases. The phthalic anhydride division is also one of the major players in the industry with a market share of 17. And integrate new entrants into prevalent organizational ethos with a great deal of success.. and a 20% share in the coil coating sector. forming close bonds with thousands of dealers in small towns all over India. . The products that are offered by Asian Paints are extensive and exceptional. Royal in the preimium segment. Today Asian Paints is more than twice the size of its largest competitor . forming joint ventures or other alliances soliciting marketing intermediaries. etc in the lower segment. The company jolted its multinational competitors by emerging as India’s No. 3-Mango.1 paint company. it enjoys a market share of 10% in protective coatings. it is considered one of India’s four “Most Respected Companies” All four paint manufacturing facilities are accredited with ISO 9001the quality certification & the ISO 14001-certification for environmental standards.

but here you get to work in many diverse groups with in one company. talent management . training. compensation. You can be the part of two man HR team handling the entire HR for a plant with a turnover of INR 450 crores. 300 workmen and 150 staff . The involvement initiative etc of people at different levels may vary from organization. Attitude etc could contribute to the strength and weakness of an organization. Quality. The organizational culture and overall environment have bearing on them.  HUMAN RESORCE The Characteristics of human resources like Skill. As an human resource professional at Asian Paints you are open to a wide arena of areas as in a FMCG . HR challenges at Asian Paints – creating a high performance workplace. performance management and career planning needs of the staff and officer cadre of the sales and manufacturing units as well as the marketing material and technology functions. Some organizations find it difficult to carry at restructuring or modernization because of resistance by employees whereas they are smoothly done in some others. . Commitment.It has carved out a significant position for itself in the market. Market. competing actively with the best in the industry. ensuring that people partner the organization in achieving its ambitious growth plans. Human resources at Asian Paints:Deco HR caters to the recruitment.

lock-out or any other production problem may affect seriously to the company. . .Pigment for whitening.Water or turpentine.Resin/ Emulsion for fixing paint to wall. Raw Materials Required : 1. 3. It is very risky to depend on the single supplier because of strike. They supply raw-materials & components to the company. Supplier Of Asian Paints:BPCL & HPCL are the main supplier of Petroleum products such as Mineral Turpentine Oil & Xylene. 2. Similarly a change in the attitude of the supplier may affect business. . an Indian vendor.EXTERNAL FACTORS  SUPPLIERS Suppliers are an important force in the micro-environment of the company. Golcha and many more. The importance of reliable source of supply to the smooth functioning of the business is obvious.Kerala Metal Mineral Limited (KMML). Other suppliers are Dupont Product. Rutile Solvent Adhesive . 20 Microns .

drying etc. Competitors For Asian Paints:Asian Paints has a fixed customer.For fragnance.  COMPETITORS Competitors are important factors that affect business environment. Addictives . Asian paints is a well established brand and due to its brand it the competitors decrease their price or they themselves increase the price customer will not leave the brand unless & until there is a major quality issue. They compete for each & every share in the market. Asian Paints Has Various Competitors Such As : Goodlass Nerolac  Lewis Berger  ICI duloux  Genson & Nicholson  SOCIAL ENVIRONMENT . A firms competitors include other firms which market same or similar kinds of products.4. They compete in terms of price. quality. Their market share is approx 50% of the organized sector in deco business unit. quantity etc. They seek opportunities to take over the market.

Further due to various initiatives undertaken by the company at all its manufacturing facilities. Thus. the four paint plants in India merited a Five-Star rating by the B SC. growth of science and technology. general awareness. beliefs. tastes and preferences. social values. which is considered as the pinnacle of achievement in safety across the world. The Changes in social environment could be seen in the form of change in life. investors expect higher rate of dividend and employees expect a better deal from employers. In 2002-03. the continued attempt is to reuse. The Sword of Honour is given to only 40 plants in the world each year and is designed to reward the best practices in this field.were awarded the BSC's much sought after "Sword of Honour". These changes are due to the spread of education.Social environment includes customs. recycle and eliminate waste. Asian Paints was the recipient of the prestigious 'Golden Peacock National Quality award' for 2003. This year. three of our plants . This has been achieved by the installation of upgraded effluent treatment facilities and installation of . Each group has some expectations from business firms. social awareness etc. All our paint plants have achieved 'zero industrial discharge' capability. which results in less and less waste being generated. values. Asian Paints instituted its own safety standards across all plants in India. style. spending habits. Consumers want quality goods at relational price. The social environment changes gradually but continuously. More significantly. which is based on the standards prescribed by the British Safety Council (BSC). To have three of the company’s paint plants ranked among the top 40 in the first year of audit emphasis’s our steadfast commitment to safety.Bhandup. Social Environment Of Asian Paints:Asian Paints approaches the environment issue from the perspective of waste minimisation and conservation of resources. Ankleshwar and Patancheru . traditions. The social environment reflects the expectations of different social classes operating in the society. buying and consumption habits of various social groups of the society. This is the most coveted quality award in the country. increase income.

have resulted in over 72 % reduction in waste after incineration. For instance. Our emulsion manufacturing facility has also achieved 'zero waste' status. Some of our innovative schemes. which enhance green productivity are Colour World dealer tinting system – allows for greater choice at the customer end thus reducing the number of shades produced in the factories. Upgradation of material handling and storage facilities . reuse and conservation measures in our plants. Rainwater harvesting – scheme developed by us has become the benchmark for industries. Solvent recovery plants . A s a result o f implementing various water recycling . Improved incinerating systems . these plants have resulted in almost zero solvent disposal and have already yielded a direct benefit of Rs.set up with an investment of Rs.5 million liters being harvested in 2003-04 and used at our plants. The remaining waste is also being re-used.4 million. For instance . We have adapted the principles of "Green Productivity".helps us re-use treated effluents in our cooling towers.10. Use of natural gas as fuel .instead of furnace oil or diesel has not only improved fuel efficiency but also reduced sulphur dioxide emissions by 77%. the improved filtration process has resulted in higher filtration rates and lower losses. This has reduced fresh water consumption by 50 kilolitres per day.1.such as the new bulk storage facility for monomers to reduce material losses and eliminate effluent generation arising out of barrel cleaning. Up gradation of process technology – has resulted in increased yield and therefore lesser pollution.8 million .reverse osmosis plants in conjunction with appropriate recycling & reuse schemes. Reverse osmosis . we have eliminated the need for disposal of incinerator ash by manufacturing bricks. These bricks are used for I internal construction purposes. Rainwater harvesting has resulted in around 14. our average water consumption has reduced by 45 % in spite of production . This has resulted in larger batch sizes and lesser number of changeovers leading to effluent reduction.

which are slow to react. Asian Paints is committed to operate its plants and facilities in a manner to ensure continual improvement towards achieving 'CLEAN ENVIRONMENT'. In the name of progression technology will continue to evolve organsiations that continue to ignore this will face extinction. which has a protective function in addition to the decorative one. will fall at the first few hurdles. The pace of technological change is so fast that in the computer industry the average life of a computer chip is approximately 6 months. Those businesses. Technological Environment Of Asian Paints:Paint is a highly raw material intensive commodity. industrial. This possesses a constant challenge for R & D efforts in formulating and reformulating products for . b) Facilities for Research and Development c) Technical Collaborations etc.volumes of water based products doubling in the last five years. An average range of trade sale. The challenge these organisation faces is to ensure that they can deliver on their promise. automotive and maintenance coating employs well 900 raw materials. Changes in technology are changing the way business operates. The Internet is having a profound impact on the marketing mix strategy of organisations. Technological environment consists of a) State of domestic or indigenous technology . Consumers can now shop 24 hours a d ay comfortably from their homes.  TECHNOLOGICAL ENVIRONMENT Technology relates more to technique of production or application of scientific know-how to improve the quality and quantity of the product and production process. There is renewed interest by many governments to encourage investment in R & D and develop technology that will give their country the competitive edge. This technological revolution means a faster exchange of information beneficial for businesses as they can react quickly to changes within their operating environment.

the experience of paint performance also keep on changing. keeps on changing with the expanding problems of industrialization and attendant pollution. This dependence on in house R& D efforts has paid rich dividend. As the environment in which paint is used. recognized by the Department of Science & Technology. demanding. new applications. specifications and standardization. . The R & D group is structured to provide separate focus to Industrial Paint Technology and Decorative Paint Technology. shade development and exploitation of new materials. The Role and Mission of the Technical Function is to: Maintain and improve competitive edge in the product quality through robust design concepts. cost reduction. Our ‘Firsts’ in the paint industry specialized chemical resistant coatings.  Troubleshooting and lending help to manufacturing in introducing and stabilizing new products / processes.  Respond to identified customer needs through development/ upgradation of products/ processes offering specified quality in acceptable cost parameters. acrylic finishes and economic plastic emulsion paint. Asian Paints has one of Asia’s largest paint research laboratories.  Scan the environment to forecast future technology needs and to conceive long term R&D plans and needs for import of technology. Naturally the company has always placed very high emphasis on its in-house R& D requirements.better performance. as the company and penetration of new market segments with new products. In the Technical function. involved in…  Developing new products / processes and modifying existing ones as per the market requirements. computerized color matching. By bringining in automation for example:-PLC (Program Logistics Control ) and faster production machines which reduced the cylcle time and man power. evolution in paint technology. Government of India.  Continue towards development of new/ alternative vendors and raw materials and build flexibility into formulation with respect to materials. thermosetting.

The executive i. the government implements or enforces the laws pass by legislature. the style of leadership. as do consumer and health and safety laws and so on. POLITICAL ENVIRONMENT Political factors can have a direct impact on the way business operates. The department ensures that proper replies. political. Political Environment of Asian Paints :Handling Excise disputes. proceedings cases and audit :The Excise Department is responsible to protect the company from excise and service tax dispute / demand by providing appropriate that may received from time to time. instability and many more factors. political development . Political Environment is a comprehensive terms and includes political system. the philosophy of various political party. executive and judiciary are the important pillars of political environment.e. Decisions made by government affect our every day lives and can come in the form of policy or legislation. the ruling party. appeals or written petitions are filed within the stipulated time before the appropriate authority to secure the company . The government’s introduction of a statutory minimum wage affects all businesses. and judiciary plays the role of watchdog to see that both the legislature and the executive wings function within the constitutional limits. Legislature.

 The Legal Department prepares new Agreements for Lease. theft. Purchase. The Department all this. Plants and CMD and all Branches/ Units will have to refer their excise/ service tax issues to Corporate Excise. trade marks and copyrights etc. weights and measures. Octroi. Cases such as Stamp Duty.Corporate Excise functions provides support to appropriately reply to audit issues raised during the excise audit. leave and license.e. Sale. for branches & other department.are handled by the department. Leave & License. purchase or sell of property of company have to be sent to legal department and approval is sort. Consumer Complaints  Replying the notice of the consumer for alleged defect in the material. all agreements involving lease. Legal Functions The legal proceeding certificates are obtained for producing them as the evidence in the suit for infringement of trade marks in the court of law as the certificates issued by the Trade Marks in not accepted as an evidence in court of Law.rights. Property Matter  Vetting the Agreements & Scrutinizing papers relating to premises i.  Challenging the complaint filed by the consumer in the Consumer Court. defamation. . etc.

Acquisitions will be the company's route to achieving leadership in the international market. .1 paint company in any country it has entered. For example. A liberalisation of imports may help some industries which use imported items. Asian Paints has the distinction of become the No. Vanuatu. Australia. Soloman Islands. or the adoption of protectionist policies by foreign nations. with a strong presence in Fiji. to cater to the West Asian and the Indian Ocean rim regions. may create difficulties for industries depending on exports. In the over three decades that have elapsed since. INTERNATIONAL ENVIRONMENT The international environment is very important from the point of view of certain categories of business. the company's international business have grown beyond its own expectations. Two new plants were set up in Oman and Mauritius. the second largest company in Sri Lanka.Asian Paints made a tentative foray outside India by setting up a manufacturing plant in Fiji. within just five years of doing so. The first such move was the takeover of Delmege Forsyth & Co. Tonga. but may adversely affect import-competing industries. In fact. It is particularly important for industries directly depending on imports or exports and import-competing industries. Asian Paints today is a true Indian multinational. a recession in foreign markets. Sri Lanka and Nepal.. Asian Paints-international operations:In 1977. a boom in the export market or a relaxation of the protectionist policies may help the export oriented industries. On the other hand.

After the acquisition. Asian Paints is also the largest exporter of paints from India. Vanuatu. Barbadus and Bahrain. • PRESENCE IN THE 4 LARGE MARKETS: . Bahrain. Singapore. • 3rd LARGEST PLAYER IN 5 COUNTRIES: -UAE. United Arab Emirates(UAE). The turnover of the group in 2001 was $115 million(INR 3220 million). Berger International Limited (BIL) has operations in 11 countries that include China. Sri Lanka and Bangladesh. • 2nd LARGEST PLAYER IN 4 COUNTRIES: -Philippines. Its international paints units apart. This is Asian Paints largest acquisition in overseas markets and will expand the company's operations to 23 countries across the globe. Nepal. Asian Paints ranks amongst the top 10 decorative coatings companies in the world. • MARKET LEADERSHIP IN 10 COUNTRIES: -Fiji. Myanmar. Thailand. Mauritius. Malta. Besides. exporting to over 26 countries. it holds 30% stake in Dutch Boy Philippines Incorporated. Oman and Egypt. Tonga. Barbados and Trinidad and Tobago. Sis land. Malta. a holding company incorporated in Singapore. Jamaica. a Philippines based company. Trinidad and Tobago. Myanmar. Jamaica. Malaysia. Singapore.The company made a strong move towards its vision by acquiring controlling stake in BERGER INTERNATIONAL LIMITED (BIL).

so they have to curb themselves accordingly to their policies & customs. Thus is an enterprise which keep constant watch on different types of environment and adjust their business plans. .-Thailand. policies and operations as per the environmental changes taking place. thus resulting in stoppage of inventory piling and eliminating lapses between two production function. If in the market there was no competition Asian Paints would have monopolized the paint market. Due to changes in policies it greatly effects the business. This resulted in listing Asian Paints in 25th position among the whole industries in India and 1st among paint industry [ Economic Times survey] . Malaysia. Due to competition day by day it is coming upon with new innovation & schemes for the same and is working constantly on its brand name and goodwill . CONCLUSION Asian paints is largest exporter inn India dealing with paints its exports all over 26 countries. Australia and China. All products manufactured are made keeping in mind “ full customer satisfaction. For Asian Paints customer satisfaction is of their prime objective.” Thus they manufactures their products keeping in mind the customers. Also they have to operate in international market. To keep abreast with technology it has been computerizing its various operation for more than 25yrs. Its implementation of advanced planning and optimization software has reaped the informational flow for planning decision making & control .

GEETA SASHIDARAN for giving us this project on business environment. - ACKNOWLEDGEMENT Foremost we like to express our heartfelt thanks to our Prof. George Varghees for his guidance & corporation in the project. Mrs.asian paints has an integrated approach towards business. A vote of appreciation also goes to Mr. While completing the project we practically got a very clear idea of the concepts in business environment. We also thank our group members for their Mutual Corporation & kind support .

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