AD-Times

2015-16
 COMPANY
TYPE PROFILE Public
BSE : 500820
TRADED AS
NSE : ASIAN PAINTS

INDUSTRY Paints/Varnishes

HEADQUARTERS Mumbai , India

AREA SERVED Global

KEY PEOPLE K.B.S Anand (MD and CEO)

PRODUCTS Paints and Specialty products

 OVERVIEW

 India’s largest paint company

 Asia’s third largest paint company with, a turnover of Rs 141.83 billion

 Operates in 19 countries

 26 paint manufacturing facilities in the world

 Servicing consumers in over 65 countries

 GLOBAL PRESENCE
 Asian paints in South Asia (India ,Bangladesh, Nepal, Sri-Lanka)

 SCIB paints in Egypt

 Berger in South East Asia (Singapore), Middle East(UAE,Bahrain,Oman),

Caribbean (Jamaica, Barbados, Trinidad & Tobago)

 Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and

Vanuatu)

 Taubmans in South Pacific (Fiji and Samoa)

 HISTORY OF ASIAN PAINTS
•Established on 1st February, 1942

•It started journey on Foras Road, Bombay

•Set up as a partnership firm by 4 friends namely,

Champaklal H. Choksey
Chimanlal N. Choksi
Suryakant C. Dani
Arvind R Vakil
•The name was randomly picked from a telephone directory

•After 25 years it became India’s leading paints company in 1967

•Today, it is double the size of any other paint company in India

 VISION

Asian Paints aims to become one of the top five decorative coatings companies
world-wide 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
 HIGHLIGHTS
Net Revenue from Operations
Increased by 11.81% to ` 11649 crores
EBITDA
Increased by 12.6% to ` 2197 crores
Capacity Expansion
•Expansion of Rohtak plant in Haryana by 2,00,000 KL per annum to 4,00,000 KL
per annum
•Expansion of the manufacturing capacity in Bangladesh from 12,000 KL to 24,000
KL per annum
•The maximum capacity of the proposed manufacturing facility at
Visakhapatnam, Andhra Pradesh would be 4,00,000 KL per year

Dividend
Total dividend per share is ₹ 6.1
 Financial Performance

Profit Before Tax & Profit After Tax ₹ in Crores

2014-15 1934 1327

2013-14 1703 1,169

2013-12 1516 1,050

2012-11 1363 958

2011-10 1122 775

PBT after exceptional items

PAT
 Asian Paints Products
PAINTS Paints–
 Interior paints
 Exterior paints
 Metal finishes
Wood finishes
 Waterproofing

EFFECTS
 Royale Play
 Royale Play wall
 Kids world fashion
 Ultima Allura
 Apex Duracast
Indian Product-lines
International Product-lines
 Market Segmentation
 Decorative Segment:
• Royale
• Gattu Synthetic
• UTSAV Enamel
• Tractor Acrylic Distemper
• Apex
 Industrial Sector:
•Apcomin Synthetic Enamel
•Apcomin Synthetic Powder
•Stainer
•Premium surface & fillers
 Automotive Sector:
•Allumium Paint
•Fiber Paint
•Apcolite Hammertone finish
 Competitors

1. Kansai Nerolac
2. Berger Paints
3. Akzo Nobel
4. Shalimar Paints
5. Jenson & Nicholson
 SWOT ANALYSIS
STRENGTHS WEAKNESSES
Largest paint company in India and third largest
Limited market share (15%) in industrial
company in Asia paints segment with
 Has strong international presence with its four 4 Kansai Nerolac and Akzonobel giving
subsidiaries: Berger International Limited, Apco stiff competition
Coatings, SCIB Paints and Taubma Weakness on the technology front in
 Have maintained their brand name and industrial paints
increased awareness by unique ways of advertising Seasonal demand and hence in off
and roping in celebrities seasons it can lead to cash flow problems
like Saif Ali Khan
 The company has strong financials
 Widest product range in terms of products,
shades
 Nation wide coverage of the market
 SWOT ANALYSIS
OPPORTUNITIES
 Forecasted growth of 12-13% from 280Bn in 2013 to 500Bn by 2018
 Introducing Water – based Paints
Repositioning of existing Brands in Rural market

THREATS
 Subdued demand across key sectors and rising inflation
Growth prone to slowdown effects
 Stringent Government rules and regulations regarding the quality of products
and manufacturing facilities as Environment policies are given more emphasis
 Raw material scarcity and volatility in prices
 Increasing competitive rivalry
 BRAND COMMUNICATION
In 1954, Asian paints asked the
famous cartoonist R.K Laxman to
create a mascot for the company
and from his pen was born –
Gattu, which emerged as one of
India’s most memorable mascots

Brand earlier focused mainly on mass and

rural marketing
 RESTRUCTURING THE BRAND
Since many brands went after festival seasons, the positioning
platform has become cluttered

The category was becoming less seasonal

People started associating more importance to home decor

and interiors

From a low involvement category, paint was increasingly

becoming a high involvement category
 RESTRUCTURING THE BRAND
Logo Change
•The brand also went in a brand overhaul. The logo
was changed to a contemporary up market one.
The logo/design was to convey self-expression,
sophistication and Technology
•Birth of a wonderful positioning strategy created
by O&M. The insight was that the brand is about
people and homes and homes reflect the people
living in it
• Hence " Har Ghar Kuch Kehta Hai" translated to "
Every Home has a story to tell“
• Along with the campaign Asian Paints also ran
parallel ads for its sub brands. Saif Ali Khan
endorsed the premium brand Royale
•For Apex Ultima, the campaign was highly
localized and was different in different market.
RESTRUCTURING THE BRAND
 COLOUR IDEA STORES
• The store, designed by an internationally reputed retail design
firm, offers a relaxed environment for you to browse through
various painted panels of special effects, new finishes and trend
colours.

• Free in-store colour consultancy by trained colour

professionals along with an option to visualise your colour choice
on Colour Visualizer is offered

•The store also serves as a great platform for architects, interior

designers and contractors to visit along with their clients to
experience the process together.

• This store helps demystify the painting process for the

consumer and guides consumers in selection of colours, finishes
and style for the home which suits individual’s tastes and
preferences
 LATEST HAPPENINGS
 Asian Paints Q1 Stand-alone Profit Up 38.5% :
Asian Paints Ltd. reported first-quarter stand-alone net profit of Rs 427.8 crore, up by
nine per cent from Rs.308.8 crore for the quarter ended June 30, 2015.
The Decorative business registered double digit growth during the quarter with good
growth across geographies

 Asian paints consolidated income from operations up by 18.3%

In Feb 2015, Kadisco one of the leading paint companies in Ethiopia became part of the
Asian Paints group.
 Arrangements for Acquiring a 51 per cent stake in Sleek Group
Asian Paints Ltd announced in March,2013 an arrangement with the promoters of the Sleek
Group for acquiring a 51 per cent stake in the Sleek Group that is into manufacturing,
selling and distributing kitchens, kitchen components etc with an all India presence.
In June 2014, Asian Paints acquired the entire front and sales business including Brands,
Network and Sales Infrastructure of Ess Ess Bathroom products Pvt Ltd

 BIL delisted from SGX-ST

Berger International Limited (BIL), Singapore, a subsidiary of Asian Paints (International)
Limited (APIL), Mauritius, a wholly owned subsidiary of the Company, had been delisted
from Singapore Exchange Securities Trading Limited (SGX - ST) with effect from Feb 11,
2014
SUMMER INTERN INTERACTION 2015
The selection process for the summer internship comprised the following:
• Group discussion
In structure lies security, challenges in chaos
Is the 100 crore club diminishing the quality of Bollywood movies?
Justice in today's context
Women are better managers
Maslow's hierarchy of needs in an organisation
Entrepreneurship is governed by human greed & fear
• Personal Interview
Firstly an introduction about yourself.
 A lot of questions were on academic projects, on all the brands on CV not limited to
marketing projects.
A lot of questions on football and marketing associated sporting companies (this was
how interview progressed)

• Selection
 6 students were selected, 3 for marketing and 3 for operations