AN OVERVIEW HISTORY OF THE INDUSTRY

1.1BRIEF HISTORY OF THE INDUSTRY

The paint industry, often called the "paint and coatings industry,"
is comprised of manufacturers, wholesalers and retailers who sell paints, stains and
other coatings. The term usually extends to those who manufacture or sell related
items, often called "sundries," such as brushes, rollers and drop clothes. Those who
provide painting services may also be said to be part of the paint industry.

Products manufactured and sold within the paint industry include items involved in
painting homes, buildings and structures. Products intended for use on vehicles,
with the exception of marine varnishes and stains, are usually classified as a specific
sub-industry, namely "automotive coatings." Artist and craft paints are generally
classified as part of the arts and crafts industry.

Coatings and chemicals are the cornerstones of the paint industry. These
include all types of paints, such as interior, exterior, enamel, latex and spray paints.
This classification also includes other types of finishes, such as
varnish, polyurethane and both water- and oil-based stains. It further includes
chemicals commonly associated with paints, such as mineral spirits.

In addition to the coatings, the paint industry includes manufacturers

and distributors of sundries needed to apply paint. This category includes items
such as brushes and rollers in a wide array of sizes, types and densities, but it also

includes such items as painter's tape, automatic sprayers, shoe covers and

more. Paint manufacturers sometimes produce or brand their own line

of such tools.
1.2Business process of the industry

Paint has been in use for time immemorial. The evidence can be found in the
cave paintings. The Chinese are considered to be the pioneers of manufacturing
paints thousands of years ago. In modern times paint is made artificially and is used
in many different ways. It is a mixture of four elements, namely-solvents, binders,
pigments and additives. Solvents give the paint a liquid flow while the binder binds
it to the surface. Pigments impart colour and opacity to the paint and the additives
give it special resistance properties.

The Indian paint industry is over a century old. Its beginning can be traced
back to the setting up of a factory by Shalimar Paints in Calcutta in 1902. Until
World War II, the industry consisted of small producers and two foreign companies.
After the war, the imports stopped, which led to the setting up of manufacturing
facilities by local entrepreneurs, however, the foreign companies continued to
dominate the market. Initially British Paint companies such as Goodlass Walls (now
Goodlass Nerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and
Blundell & Eomite dominated the market.

The Indian paint market consists of both organized and unorganized sectors,
where the former is majorly observed. The industry consists of two segments,
namely
 Decorative segment : caters to the housing sector
 Industrial segment: consists of powder coatings, floor coatings and other
protective coatings catering to the automobile, marine and other
industries.

In the domestic market, Decorative segment accounts for 60% of the

total demand for paints whereas the industrial segment accounts for the remaining
40%. Decorative paints can further be classified into premium, medium and distemper
segments. Premium decorative paints are acrylic emulsions used mostly in the metros. The
medium range consists of enamels, popular in smaller cities and towns. Distempers are
economy products demanded in the suburban and rural market. Nearly 20 per cent of all
decorative paints sold in India are distempers and it is here that the unorganized sector has
dominance.
Globally, the demand for paints is almost equally distributed, where both the
segments account for close to 50% of demand.
 The  raw materials used in manufacturing paints ,roughly, constitute
approximately 56% of the total expenditure in paint companies. Titanium dioxide is
one of the major raw materials and price fluctuations in its cost have direct and
substantial impact on the cost of production. Crude oil derivatives are the other
major raw materials and have similar impact. Apart from these a large number of
other raw materials are used for adding or providing specific properties to the wide
product range offered by the industry players. The working of the paint industry can
be better understood as under:

1.3 Market demand and supply – contribution to GDP – Revenue generation

Asian paints expects an "uncertainty in demand" in the home improvement

categories, including paints, on account of disruptions in operations after the second
wave of the coronavirus pandemic, the company said in its latest annual report. Besides,
the country's leading paint maker is also concerned about the inflationary pressure on
the input materials in its product segments, said Asian Paints in the annual report.

"There has been a re-imposition of restrictions on business activity in many

states and this has again disrupted operations of our vast supply chain network."This is
expected to lead to uncertainty in demand in the larger home improvement categories,
including paints," said Asian Paints in its management discussion and analysis.

Though economic growth is expected to bounce back strongly in 2021-22 on global

as well as domestic fronts but a lot would hinge on how the pandemic plays out, given
the resurgence of the virus and the spread of infections, it added.
 Over the inflation in commodity prices, Asian Paints said input materials in its
product segments across geographies have risen "significantly" since the last quarter of
2020-21 and continues to be on the uptrend."The challenges to business posed by this
inflationary pressure and the uncertain market conditions would place a strong
emphasis on managing the business in a dynamic manner and altering operational
priorities to suit the changing market conditions," it said.

Asian Paints said the roll-out of the vaccination drive across the major economies,
including India, in the last quarter of 2020-21 has accorded a much-needed boost to
sentiments around a sustained recovery of economic activity across the globe. But, it
will take some time to deliver results as a large cross-section of the population will need
to be vaccinated before the spread of the virus can be curbed," said Asian Paints
Managing Director and CEO Amit Syngle.

The company will continue to accord the highest priority on the well-being of its
employees, encouraging them to follow necessary precautions, he said."We will also
have to anticipate intermittent business restrictions and disruptions to the supply chain
networks for some time," Syngle added.

While talking about 2020-21, he said Asian Paints not only adapted to new norms,
addressing the emerging realities, but also remained in pursuit of its long-term strategic
objectives that would enable it to deliver sustainable growth.In 2020-21, Asian Paints
had reported Rs 18,516.9 crore revenue from operations.The Mumbai-based company
is also present in the home improvement and decor segment and offers bath and
kitchen products.It has also introduced lightings, furnishings and furniture in its
portfolio.In the health and hygiene segment, Asian Paints offers a range of sanitisers and
surface disinfectants.Asian Paints operates in 14 countries and has 26 paint
manufacturing facilities in the world, servicing consumers across over 60 countries.

1.4 level and type of competition – firms operating in the industry

 Asian Paints is the market leader, with currently over almost 30% market
share. Its biggest competitors are- Berger Paints, Kansai Nerolac, Indigo Paints, Akzo
Nobel, Sirca Paints and Shalimar Paints. Asian Paints’ competitive advantage is its
distribution strength.
Its product portfolio, comprising the exhaustive list of painting needs, is also a
competitive advantage along with its visibility and geographical reach.
 The company’s stand-out feature is its range of exclusive signature stores
providing consumers with expert assistance from trained professionals
offering customized furnishing and decoration solutions. Many such
measures are taken by the company to reduce the influence of painters over
the customers’ choice of brands, in a novel way over the years.
 Prospective customers can even directly call the company’s helpline to check
out the product offerings and get a direct quote.
But ultimately, these advantages are imitable. What the company needs to do for
long-term leadership, is generate more demand by way of intermediaries.
 In the paint business, intermediaries like painters, contractors, designers,
decorators, etc have a high influence over consumers’ purchase decisions.
 Asian Paints could use these intermediaries to their benefit, by either
utilizing them as a marketing arm to promote their products as
spokespersons directly to the end-user.
 Or, the company could sideline intermediaries and open up a service arm,
cutting costs for consumers via bundling services and thus, increasing
demand via value addition.

1.5 PRICING STRATEGY IN THE INDUSTRY

Asian Paints follows different pricing strategies according to the targeted segment.
As mentioned above, the Royale product range is marketed towards high-income
groups and hence, is priced higher.
Asian Paints follows a value-based pricing approach for the medium and economic
segments. As per the exclusive features in the product category, the price also
varies. The pricing decisions are often influenced by the raw material used to
manufacture paints, as well as competitors’ prices. The company’s success can also
be attributed to its high incentives for distributors. Summed up, Asian Paints has
adopted a flexible pricing policy.
 
Pricing Strategy used by Asian paints

They (Asian paints) started marketing low priced products. They (Asian
Paints)introduced a low priced distemper targeted at rural and semi – urban
consumers under the brand name “utsav”

Companies also use product bundling or combining different products

offered at varying price to attract customers. Use of refill packs or recyclable and
reusable packs to offer low prices. Since the cost of packaging is reduced is another
useful tactics.

This was Successfully Adopted by Asian Paints when they introduced “10 and 20
liter reusable buckets” pack for paints. Rural consumers’ preference for a product
at a low price point however should not be interpreted as their preference for cheap
products.

They (Rural consumers’) are very intelligent in judging the Quality of the
products, which are affordable and provide value for money

.Companies need to reengineer their products and packaging if they need to

attract rural consumers

1.6 INDUSTRIAL PERFORMANCE GLOBAL ,NATIONAL, REGIONAL

During FY 2019-20, revenue from operations on standalone basis increased to

`17,194.1 Crores as against `16,391.8 Crores in the previous year – a growth of 4.9%. The
Profit After Tax (PAT) for the year was `2,654.0 Crores against `2,132.2 Crores in the
previous year – a growth of 24.5%. Despite the economic slowdown, the Decorative
business has done extremely well among the organised players. While the Company has
been able to maintain its operating profitability by efficiently reducing formulation costs
and continued focus on cost control measures, it was also supported by the softening raw
material prices. The top line growth was at 9.5% in value terms and there was a strong
double digit growth in volume terms till the end of third quarter. The growth was impacted
in particular by the abrupt seizure in business during the last fortnight of the year. This has
resulted in revenue growth declining from the high growth trend witnessed for the first
nine months of the financial year to the 4.9% growth registered for the full year. However,
in volume terms, the Company was still able to close the financial year with a healthy double
digit growth. The Bath business had a tough year and we saw all the major companies in the
sector decline. However, the sanitary market did reasonably well and our foray in the same
yielded good results. Overall, the Company still grew by double digits for the year, excluding
the last fortnight during which business was shut. Sleek International Private Limited
(Sleek), the Company’s subsidiary, had a moderately good year until the business got
impacted in the last fortnight of the year. Though it was still able to end the year with low
double-digit sales growth, the loss was significantly higher than the previous year. The
Company has carried out an assessment of the fair value of investment made in Sleek, taking
into account the recent business performance, prevailing business conditions and the
revised expectations of the future financial performance. Based on these factors and as a
matter of prudence, the Company has made a provision for diminution in the value of
investment made in Sleek to the tune of ₹29.7 Crores in the year ended 31st March 2020.
The same is disclosed under ‘Exceptional Items’ in the Statement of Profit and Loss. The
international operations performed well during the year notwithstanding some loss in
business in the last fortnight of March 2020. The Joint Venture (JV) entity in the automotive
industrial coatings segment was impacted through the year due to the downturn in the
automotive sector, while the second JV entity in the non-automotive industrial coatings
segment performed reasonably well amidst a tough environment. On a consolidated basis,
the Company, its subsidiaries and JV companies achieved revenue of `20,211.3 Crores
against `19,248.4 Crores in the previous year – a growth of 5.0%. Net profit after non-
controlling interest for the group for the year was `2,705.2 Crores as compared to `2,155.9
Crores in the previous year – a growth of 25.5%.

1.7 PROSPECTS AND CHALLENGES IN THE INDUSTRY

Prospects
 The industry is playing an important role in the infrastructural
development of the country by ensuring protection of fixed
assets. The protection enabled by paint coatings adds to the
longevity of structures, ensuring lesser expenses and thus
contributing to the economy. 

 The sector is expected to grow by 8 to 10 percent per annum as

there is scope for increase in consumption backed by economic
growth. 
 Companies are bringing in new types of paints that can be used
at hospitals and other colour sensitive areas. Fire retardant
paints are even being used to reduce fire related incidents.
 Plastic emulsion, distemper, weatherproof exterior coat and
synthetic enamel are the key products that hold the major
market share. Plastic emulsion and distemper are close
substitutes of each other. The emulsion is basically used in high-
end residences all over the country and distempers are economy
class products generating demand in semi-urban and rural
markets.
 The development in the real estate sector, gradual increase in
consumer awareness about the need for protection of houses
and increasing urbanisation fuelled the growth of the paint
industry. 
 The availability of house loans and a shift from semi-permanent
to permanent housing structure, a progress in shipbuilding
industry and consistent economic growth are the other catalysts
for such a growth. 
  However, the spiralling prices of raw materials in international
markets, depreciation of the local currency and new
supplementary duties have slowed down the sector’s growth to
a great extent in recent times.
 Five percent supplementary duty has been imposed on painting
products, which is generally, applied on luxury and non-
essential goods or socially undesirable goods, or the goods that
are not justified in public interest.

Challenges

 Cyclical nature of decorative paints

The demand of decorative paints is cyclical in nature i.e. it increases for a period,
then decreases and after certain period of time it again increases thus showing
cyclical pattern. It happens because people generally have their houses white-wash
during festive seasons. Also, once houses get painted, then it needs a white wash
after 4-5 years.

 Environmental hazards

The majority of paints manufactured in India contain a large amount of lead, mercury and
chromium. These elements are very hazardous in nature and can pose a threat to health of
human beings.

 Other threats

Import policies : Import policies plays a very significant role in determining the prices of
paints because around 30% of the raw materials has to be imported from foreign countries.
So, any change in import tax regime will have an impact on the costing.
Exchange rate   : Since the major raw materials are imported, any movement in rupee-
dollar prices is very critical and hence need to be closely looked. For example, whenever
rupee depreciates against dollar, the buyer has to shelve out more money.

Supply chain : The paint industry requires a lot of working capital because the
manufacturer has to buy 300 raw materials and from different vendors. So, the company
which has a very robust vendor and distribution network will largely benefit from it.

Technology advancements : The paint industry is highly technology intensive due to which
small players find it very difficult to invest in newer technologies and thus succumb to
competition from foreign companies. Large players have tied up with foreign companies
and they are still dominant in the market.
 COMPANY PROFILE

2.1 BRIEF HISTORY OF THE ORGANISATION AND CURRENT BOARD OF

DIRECTORS/Organizational charts

Asian Paints Ltd  is an Indian multinational paint company, headquartered

in Mumbai. The company is engaged in the business of manufacturing, selling and distribution of
paints, coatings, products related to home decor, bath fittings and providing of related services

1945 - The Company was incorporated as a private limited company under the name of
Asian Oil and Paint Company Pvt. Ltd. It was converted into a public limited company in

1973. The Company manufacture a wide range of surface coatings catering to different
end-uses. It also manufactures vinyl pyridine latex used in the manufacture of rubber
tyres. - The company expanded its products range, developed its own technology, set up
a distribution network penetrating in smaller towns and ploughed back a large part of
earnings into creation of new facilities. 1965 - The name was changed from Asian Oil
and Paint Company Pvt. Ltd. to Asian Paints (India) Pvt. Ltd.

1974 - A major modernisation programme was undertaken to streamline the paint

production facilities by improving the layout of machines, addition to balancing
equipment and replacement of old machinery. The Company embarked on phased
modernisation of resin manufacturing facilities as well. - The Bhandup plant of the
Company is reportedly the largest single paint factory in the country and one of the
most up-to-date with sophisticated machinery and equipment for manufacturing a wide
range of paints and other products besides adequate resin manufacturing capacity to
meet its entire requirements. 1975 - Bonus Equity shares issued in the prop. 1:2 in
1961, 1:3 in 1962, 1:1 in 1966, 1:2 in 1969, 2:3 in 1971 and 1:2 in 1975. 1978 - 1,00,000
Bonus Equity shares issued.

. 1978 - 1,00,000 Bonus Equity shares issued in the prop. 2:3. 1980 - 50,000 unclassified
shares classified as prefernece shares and issued. They are redeemable during the
period 30.6.1987/1990.

1982 - The main objects of the public issue of capital during August, were to fulfill the
listing requirements of the Stock Exchange and to provide part of the finance for the
increased operations.

1983 - Equity shares subdivided. 10,00,000 Bonus shares issued in prop. 2:5, 16,85,185
No. of Equity shares issued (prem. Rs 13 per share) through prospectus in August 1982.
Out of these, 84,259 shares and 33,704 shares were reserved for preferential allotment
to the employees and to the business associates of the company respectively. 15,67,222
shares offered to the public of which 4,21,296 shares were offered to NRIs on
repatriation basis.

1985 - The Company undertook to set up a third paint unit at Patancheru, a notified
backward area near Hyderabad, for the manufacture of 15,000 MT of paints and
enamels. - A letter of Intent was obtained for setting up a fourth paint plant in Uttar
Pradesh with a capacity of 23,000 tonnes per annum of paints, varnishes and enamels
and 65,000 tonnes per annum of synthetic resins (for captive consumption). - The
Company entered into a collaboration agreement with Nippon Paints Co. Ltd., Japan, to
obtain technical know-how to manufacture powder coating and coil coatings under an
exclusive licence. Necessary manufacturing facilities for the powder coatings with a
capacity of 300 MT were installed and commissioned at Kasna plant during

1992-93. - 31,11,111 Bonus equity shares issued in prop. 3:5. 1987 - The Company
commissioned a plant for the manufacture of synthetic rubbers lattices with a capacity
of 1,200 tonnes per annum. The Company received a letter of intent to manufacture
9,000 tonnes of phthalic anhydride. The project would be based on imported Van
Heyden low energy process technology with engineering package from Davy McKee of
Cologne, West Germany. The project was commissioned in March 1990. But, a fire
accident in the succeeding month damaged a storage tank, nearby pipes and support
structures. The plant was repaired and restarted only in August

1990. - The Company jointly with Tamil Nadu Industrial Development Corporation
(TIDCO) promoted a joint sector Company under the name Pentasia Chemicals Ltd.
(PCL), for the manufacture of 3,000 TPA of pentaerythritol and 1,800 TPA of sodium
formate. The project commissioned in March. - 41,48,148 Bonus equity shares issued in
prop. 1:2. 1988 - The Company issued 9,00,000 - 14% secured non-convertible
debentures of Rs 100 each to ICICI, UTI, LIC, GIC, NIC, New India Assurance Company
Ltd., Oriental Insurance Co., Ltd and United India Insurance Co., Ltd. on private
placement basis. These debentures are redeemable in five equal instalments on the
expiry of 5th, 6th, 7th, 8th and 9th year from the date of allotment at a premium of Rs 5
per debenture.

1989 - A scheme of arrangement was finalised for vesting of the assets and liabilities of
the Company's Apcotex division with Apcotex Lattices Ltd. (ALL). As per the scheme of
arrangement, one equity share of Rs 10 each of ALL was allotted without payment in
cash to the shareholders of Asian Paints (India) Ltd., for every 13 equity shares held by
them in the company, i.e., Asian Paints (India) Ltd. - The first phase of the project with
an initial installed capacity of 16,000 tonnes per annum was commissioned during the
year.

1990 - Asian Paints (South Pacific) Ltd., in Fiji and Asian Paints (Tonga) Ltd., are two
joint venture set up abroad with the Company supplying the necessary know-how. Both
these are the Company's subsidiaries and the equity participation by the Company
amounted to 51% in the former and 25% in the latter as at 31st December. Asian Paints
(South Pacific) Ltd., holds an additional 25% in the equity capital of Asian Paints
(Tonga) Ltd. - The Company also set up two more joint ventures under the names and
styles of Asian Paints (Nepal) Pvt. Ltd., and Asian Paints (S.I.) Ltd., both of which are
subsidiaries of the Company. - The Company had set up a joint venture unit Asian Paints
(Vanuatu) Ltd., for the manufacture of paints and enamels in the Pacific Island of
Vanuatu. The Vanuatu company had issued 54,000 ordinary shares of US $1 each to the
Company as fully paid-up shares against the plant and machinery supplied. 1991 -
Pentasia Chemicals Ltd., became a subsidiary of the Company. Pentasia Investments
Ltd., is a subsidiary of the Company. - The Company acquired 19,10,000 equity share of
Rs 10 each in the share capital of Pentasia Chemicals Ltd., from TIDCO in May.
Consequently, PCL became a subsidiary of the Company. - The Company issued 5,00,000
- 17.5% secured non-convertible redeemable debentures of Rs 100 each aggregating to
Rs 500 lakhs to Unit Trust of India on private placement basis. These debentures are
redeemable in three equal instalments on the expiry of 6th, 7th and 8th years from the
date of allotment at a premium of Rs 5 per debenture.

1992 - 74,66,666 Bonus equity shares issued in prop. 3:5. 1993 - Sales of phthalic
division was lower due to planned shutdown of the plant for 25 days and also due to
lower selling prices. - The Company undertook to set up a joint venture unit along with
its overseas subsidiaries, in Queensland, Australia for manufacture of paints, enamels
and varnishes. The Company was to invest a $2,00,000 in the share capital of Asian
Paints (Queensland) Pvt. Ltd. a joint stock company, Australia.

1994 - The Company proposed to expand its existing capacities for the manufacture of
paints and enamels to 50,000 tonnes per annum at each of its plants in Ankleshwar,
Patancheru and Kasna. - The Company placed before the operating agency approached
by BIFR, the proposal to amalgamate with itself Pentasia Chemicals Ltd.

1995 - Pantasia Chemicals Ltd. (PCL) was merged with the Company. The assets and
liabilities of the erstwhile PCL are vested with the Company with effect from 1.10.1994.
- The company undertook to set up a joint venture unit for the manufacture of paints,
enamels and varnishes in the Republic of Mauritius. The joint venture involves a total
cost of 1,83,00,000 Mauritius Rupees of which 49% will be financed by the Company
and the balance from Mauritian parties. - 199,11,110 No. of Equity shares allotted as
bonus shares .On 1996; Another 2,94,000 No. of Equity Shares of Rs 10 each were
allotted by the Company in pursuant to the order of BIFR to PCL in prop. 1:25.

1996 - The Company proposed to set up a fifth point manufacturing plant at Ratnagiri,
Maharashtra. - During 21st February, a fire broke and in the paint manufacturing block
of Mumbai plant causing extensive damage to the materials stored in the block. - A joint
venture company viz. Asian PPG Industries Pvt. Ltd. ws set up alongwith PPG Industries,
Inc. of USA to market and/or manufacture automotive paints and certain Industrial
products as may be decided upon mutually between the partners.
1998 - As at 31st March, a sum of Rs 1008 lakhs was outstanding against loans from
Financial Institutions. - The new initiative to install 350 colourworlds received
encouraging response and made significant contribution to performance. Three new
products, NC range of wood finishes, ACE exterior emulsion and Asian wall putty were
launched. - Asian Paints, the Rs.737.20 crore paints major, has launched a new
marketing thrust with the introduction of a one-stop colour shop for paints complete
with a software for consumers to choose and select their different shade combinations. -
Asian Paints, India's No.1 Paint Company recently, launched their latest offering `Asian
Paints Colour World'. - Credit Rating Information Services of India Ltd (Crisil) has
assigned a `AAA' rating to the proposed non-convertible debenture (NCD) obligation of
Asian Paints Ltd (APL). - Two subsidiaries of Asian Paints - Pentasia Chemicals and
Pentasia Investments - have been merged with the p arent company following the
approval of the Board for Industrial & Financial Reconstruction (BIFR). - Asian Paints
Limited, the largest paint company in India, launched its first exclusive showroom in
Mumbai.

1999 - The company has joint venture companies in the overseas market. All these
ventures are doing well and have a strong hold in their respective markets. - In its first-
ever acquisition overseas, Asian Paints Ltd (APL) has acquired a 76 per cent equity
stake in Sri Lanka-based Delmege Forsyth & Co (Paints) Ltd.

2000 - Asian Paints has launched two variants in polyurethane (PU) wood finish under
the brand name Opal. - The Company has proposed to issue bonus shares in the ratio of
three shares for every five shares held. - Asian Paints has opened a manufacturing plant
in oman in partnership with a local company. - Asian Pains has acquired the entire
paints business of Pacific Paints Company based in Australia for over Rs 1 crore. - Asian
Paints has lifted the lockout at its factory in Uttar Pradesh. The Company suspended
operations at Kasna in July after the workers resorted to a "sit-in-strike".

2001 - Asian Paints has introduced Utsav Enamel for the festive season. - Asian Paints
has appointed senior parnter of the solicitor firm Crawford Bailey & Co, R A Shah and
Deputy Director, National Chemical Laboratory Dr Swaminathan Sivaram as directors
on the company's board. - Asian Paints India Ltd has posted a marginal drop in net
profit at Rs 29.62 crore for the quarter ended September 30.
2001. 2002 -Revamps its international operations, transferres shares in its subsidiaries
in Fiji, Tonga, Solomon Island, Vanuata, Australia and the Sultanate of Oman to the
Mauritius based subsidiary Asian Paints International -Executes agreement for
purchase of 60% equity capital of SCIB Chemicals S.A.E., Egypt -Launches its $3 million
joint venture with Bangladesh-based Confidence Cements in which the holds 51 per
cent stake -Acquires controlling stake of 50.1 per cent in Berger International,
Singapore, for Rs 58 crore, appoint Jalaj Dani as CEO

2003 -Board recommends issue of bonus shares by capitalisation of Reserves in the

ratio of 1 equity share for every 2 equity shares held on the record date -Asian Paints,
via its Singapore-based subsidiary - Berger International - inks a technology and brand
licensing agreement with PT Abadi Coatings Solusi, an Indonesian paint company -
Shareholders approve the Scheme of Arrangement proposed to be made between
Pentasia Investment Ltd with Asian Paints India Ltd and the consequential reduction of
share capital of Asian Paints India Ltd. -Berger International starts restructuring
exercise to curtail cost -Acquires Taubmans Paints (Fiji) Ltd. through its subsidiary in
Fiji, Asian Paints (South Pacific) Ltd (APSP) -Acquisition of 9.2% shares in ICI India Ltd.
–

Asian Paints bags Ken Sharma award 2004 -10th Asian Paints Star Screen Weekly
Awards- aura of mystery -Asian Paints launches paint solutions for kids' 2005 -Berger
Intl partners with Filipino firm Dutch Boy -Company has changed its name from Asian
Paints (India) Ltd. to Asian Paints Ltd.

2006 -Asian Paints - APICL's new mfg plant at Baddi commences commercial
production 2008 -Asian Paints launches new campaign.

2009 - Asian Paints Ltd has submitted the disclosure under Regulation 7(3) of SEBI
(Substantial Acquisition of Shares & Takeovers) Regulations, 1997 to BSE - Asian Paints
Ltd has appointed Shri. S Ramadorai as an Additional Director of the Company pursuant
to Section 260 of the Companies Act, 1956.

2010 -Berger International Ltd Singapore (BIL), a subsidiary of Asian Paints Ltd , which
is a wholly owned subsidiary of the Company -The Company's new paint plant at
Rohtak in the State of Haryana has commenced commercial production -Asian Paints
Signed a MOU with Maharashtra Govt. to set up a Mega Project for manufacture of
Paints & Intermediate

2011 -Asian Paints to form second Joint Venture with PPG Industries. -Asian Paints -
Company's subsidiary, SCIB Chemicals SAE has temporarily restarted the operations of
its two plants in Egypt.

2012 -Asian Paints - Production at the Company's Plant at Rohtak, Haryana has been
restarted.

2013 -Asian Paints completes acquisition of Sleek Group -Commencement of

commercial production at new plant -Asian Paints has splits its face value from Rs 10/-
to 1/-

2014 -Asian Paints Ltd Enters into binding agreement with Ess Ess.

2015 -Asian Paints Ltd has signed a Memorandum of Understanding (MoU) with the
Government of Andhra Pradesh to set up a manufacturing facility for paints and
intermediates Vishakhapatnam District, .

BOARD OF DIRECTORS
 
1.Mr.Ashwin Choksi                          -             Non Executive Chairman                  
 
2.Mr.Ashwin Dani - Non Executive Vice Chairman                  
 
3.Mr.Abhay Vakil                          -                 Director
 
4.Mr.P M Murty                           -                   Managing Director & CEO
 
5.Mr.Mahindra Choksi              -                   Director
 
6.Mr.Amar Vakil                      -                Director
 
7.Mr.Hasit Dani                         -                    Director
 
8.Ms.Tarjani Vakil                    -                  Chairperson of Audit Committee
 
9.Mr.Dipankar Basu                  -                    Director
 
10.Mr.Mahendra Shah             -                   Director
 
11.Mr.Deepak Satwalekar          -                   Director
 
12.Mr.Rajendra Shah                -                  Director
 
 13.Dr.S Sivaram                   -                    Director
 
14.Mr.S Ramadorai                 -                    Additional Director
 

ORGANISATION CHART

.
2.2 MISSION AND VISION STATEMENT AND QUALITY POLICY FOLLOWED /
QUALITY CERTIFICATION ATTAINED

Generally, the main purpose behind the company’s mission and vision
statements is to inform the stake holders and general public regarding what the
organization is, what the reason behind establishing it is, what it seeks to accomplish
and who it seeks to serve.
Mission statements basically tend to be precise, clear and they should be realistic in
nature. The vision statement tends to be expressed as a perspective of what a
company wants to achieve in the future. Fig: Ashridge Model

MISSION STATEMENT OF ASIAN PAINTS

They are committed to provide paints to the market as per the demand, and
they ensure that the customer receives desired product quality and service. Asian
Paints aims to become the largest decorative The statement of core purpose answers
the question that why an organization does exists.Asian paints continuously strive for
rejuvenating each and every living and working space of the customers and to bring
happiness and joy to their lives.
Asian paints continuously strive for rejuvenating each and every living and working
space of the customers and to bring happiness and joy to their lives.

Behaviour standards
The mission statement clearly shows behaviour standards of the organization. Asian
paints mainly concentrates on the technology that makes constant innovations in
their paints (colours) and this process is the reason behind their victory, because they
clearly understand the needs and desires of the customers and they act accordingly.
They deal their customers with utmost care and respect. They also believe that trust is
very important to their business.

VISION STATEMENT OF ASIAN PAINTS

Vision statement creates the image of the organization about what it

desires to be and in broad terms, what it eventually wants to attain. In other words,
vision statement points at the position of the Organization in the near future.
The vision statement of Asian paints is “We want to be an innovative, agile, and
responsive world class research and technology organisation that’s aligned to future
customer needs and catalyses the growth of the company across existing and future

“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”\

QUALITY POLICY OF ASIAN PAINTS Ltd

  We shall comply with all statutory and other applicable requirements.
 We shall provide products and services that meet stated standards on
time, every time.
 We shall continually improve our processes to understand changing
stakeholder needs and preferences including statutory changes and use
the same as input for periodically reviewing and revising performance
standards of our products and services.
 We accept Zero Defect as a quality absolute and shall design and
operate our quality system accordingly.
 We shall organize our work practices to do a job right the first time,
every time.
 We are committed to continual improvement in quality in all business
processes and shall track such improvement through measurable
indicators.

2.3 BUSINESS PROCESS OF ORGANISATION – PRODUCT PROFILE

Product range of Asian paints:

 
· Interior wall paints
· Exterior wall paints
· Doors and window paints
· Furniture paints
· Ancillary paints
· Metal paints.
 
Interior wall paints :
Royale:
Royale is a premium acrylic emulsion made with the best acrylic copolymers,
for walls that stay new for years to come. Royale has a large range of super pastel
shades that provide the perfect backdrop for a luxurious room. It is easy to clean
and to maintain. The highlight of Royale is it's luxurious smooth finish with a silky
sheen.
 
Premium Emulsion:
 Premium Emulsion is the best choice for great looking walls. It gives a
smooth finish to the walls and is completely washable. The paint looks freshly
painted for years. It resists dust pick-up and provides long lasting protection.
 
 Tractor Emulsion Smooth Wall Finish:
  Tractor Emulsion Smooth Wall Finish is a good choice for people who are
looking for a value for money. It is washable and gives a smooth finish. Tractor
Emulsion Smooth Wall Finish is available in a range of 1000 shades. It will give your
walls the legendary quality of Tractor and the premiumness of an emulsion.
Super Decoplast Plastic Emulsion: 
Super Decoplast is a good choice for people who are looking for a value for money. It
is washable and gives a smooth finish. Super decoplast comes in a wide range of
over 1000 shades.
Interior Wall Finish Lustre:
Interior Wall Finish Lustre gives a gloss like finish. It is best suited for kitchens
and toilets where there is a lot of moisture and dirt. It is easy to clean and comes in
a vast range of shades to suit every colour scheme. It can also be used on regular
walls to get a shine on the walls.
Interior Wall Finish Matt:
Interior Wall Finish Matt gives a dead matt look to your walls. It has
practically no sheen and can be used to create the right contrast to your room. It is
an oil-based paint and comes in a vast range of shades.
Tractor Acrylic Distemper Washable:
 Tractor Acrylic Distemper Washable is the best distemper in the market
today. It gives a smooth finish very close to more expensive emulsions and also
comes in a range of over 400 shades. The ideal choice if one wants good-looking
walls but does not have the budget to go in for emulsions.
Tractor Synthetic Distemper Washable:
Tractor Synthetic Distemper Washable is India's largest selling distemper.
Trusted by millions of satisfied customers, Tractor Synthetic Distemper Washable is
the generic name for distemper. One will get a good wall finish that comes in
beautiful shades and is washable.
Utsav Acrylic Distemper :
Utsav Acrylic Distemper is a very economical wall finish. If you want to get a
good performance from your paint at a nominal cost, this is the paint for you.
Utsav Synthetic Distemper:
In case you wish to use choona, lime wash or local thaili distempers, consider
Utsav Synthetic Distemper. It comes in 1 Kg pouch packs and will provide a far
better finish to your walls than cheap alternatives at a slightly higher cost. The finish
gives a bright look to the room and does not come off on clothes like choona.

Exterior wall paints:

Elastomeric:

Asian Paints Elastomeric is a high performance, long lasting exterior paint

designed to withstand fluctuations in tropical climatic conditions. Its dry paint film
has an in-built elasticity coupled with excellent anti-algal and anti-fungal properties.
Moreover, it offers twin benefits of "Crack Bridging" and "Rain Guard". But it is
available in selected cities.
Life: 8-10 years
.Specialty: Excellent Crack bridging, Very long life Apex Weather Proof Exterior
Emulsion:
Apex Weather Proof Exterior Emulsion premium emulsion helps create beautiful
exteriors that last for years. It can withstand extreme tropical conditions of high
rainfall, humidity and heat. Apex Weather Proof Exterior Emulsion protects against
UV degradation, fungus and algae. It forms a tough bond with the exterior surface
and prevents peeling or cracking of the paint for years.
Life: 5-8 years

Ace Exterior Emulsion:

Ace Exterior Emulsion provides protection from the elements of nature. It is
suitable for non-coastal areas and places with a dry to moderate climates. It has
excellent resistance to chalking, cracking and weathering. It has superior surface
adhesion and is anti-fungal and anti-algal.
Life: 3-5 years
Specialty: Low dirt pick-up, Resistant to fungus
Gattucem Cement Paint:
It is an economical exterior wall finish. It is a decorative coating that should
only be used in dry and arid areas. It is also available in selected cities.
Life: 1-3 years

Ancillary

Product Name: Asian Paints Metal Prime

 Asian Paints Metal Primer is the most economical primer available in the
ranges of primers. This primer has good adhesion & gives fair corrosion resistance
to metal .Where the cost factor is of prime consideration, this is the ideal primer. It
can be easily brushed  sprayed to form a hard & tough adherent coating. It finds use
of priming as low cost shop primer in the steel furniture industry etc.
 
Product Name: Asian Paints Knifing Paste Filler
 Asian Paints Knifing Paste Filler is used on metallic or wooden surfaces for
filling their surface imperfections. It has butter like consistency & is easy in
application. It is supplied at ready to use consistency but can be thinned easily to
any desired consistency by using recommended thinner. On air drying or stoving, it
dries hard. Cutting is easy & involves no strain.
 
Product Name: Asian Paints Red oxide Oil Primer (Rust Protector)
Asian Paints Red oxide Oil Primer is based on synthetic resins & contains
corrosion resistance hence serves as a good quality metal primer. It can be easily
applied by brush or spray & dries hard to form a good adherent coating & is
economical in use.
 
Product Name: Asian Paints Wood Stains
Asian Paints Wood Stains have been formulated specifically to impart color to
wood. They offer4 uniform penetration along with a depth & clarity of tones that
emphasizes the natural pattern & character of wood grain. They can be used on all
kinds of veneers & MDF surfaces.
 
 Product Name: Asian Paints N.C. Sanding Sealer
Asian Paints N.C. Sanding Sealer is high quality product. Nitrocellulose based,
quick drying clear lacquer. It is recommended for interior wooden furniture.
 
 Product Name: Asian Paints Royale Play Tools
  Asian Paints Royale Play is a water-based special effects paint designed to
create a variety of special effects on interior walls. This product has been specially
formulated such that it is easy to apply. It has a soft sheen that lends elegance &
style to a surface.
 

Product Name: Asian Paints N.C. Wood Filler

Asian Paints N.C. Wood Filler is a quick drying wood filler which renders very
fine sanding properties shortly after application of top coats such as N.C sanding
sealer / N.C. lacquers. It is a grain filler for natural wood.
 
Product Name: Asian Paints Exterior Sealer
Asian Paints Exterior Sealer is an acrylic copolymer-based surface conditioner
for exterior surfaces. It is designed to penetrate into the exterior substrate & also
improves adhesion of the Exterior Emulsion Paint topcoats.
 
Product Name: Asian Paints Utsav Floor Colour
  Asian Paints Utsav Floor Colour is a high quality oxide powder, which keeps
your concentrate flooring looking attractive for years. It has high colouring strength
& mixes easily with cement. It is manufactured using genuine Oxide imported from
Persian Gulf. Its brilliance & gloss keeps increasing with time. Also, it is UV light
resistant & does not fade when exposed to sunlight.

Product Name: Asian Paints Decoprime Wall Primer WT

Asian Paints Deco-Prime Wall Primer (WT) can be used as primer for painting
of water-based wall finishes such as distempers & plastic emulsion paints. Its special
features are easy brushing, excellent covering, alkali resistance, quick drying & good
sealing properties. It is specially fortified with fungicides.
 
Product Name: Asian Paints Decoprime Wall Primer ST
  Asian Paints Deco-Prime Wall Primer (ST) is suitable for use as primer for
masonry topcoats like distempers, emulsions, luster & matt wall finishes. It helps in
providing a suitable surface for application of subsequent coats of putty & finish
paint. It sets fast, has good sealing properties, good resistance to wall alkalinity,
moisture & fungus.
 
Product Name: Asian Paints Acrylic Wall Putty
Asian Paints Acrylic Wall Putty is water-based putty. It is one of the best
product of its kind available in the market. It provides a very strong durable
foundation & brings out the best performance from the finish paints. both in looks &
durability.
 

Product Name: Asian Paints Exterior Wall Putty

Asian Paints Exterior Wall putty is a specially designed product based on
white cement, redispersible polymer & functional additives for application on
exterior rough plasters to give a smooth finish.
 
Product Name: Asian Paints Wood Primer
Asian Paints Wood Primer is specially formulated to protect wood. It has an
excellent sealing & filling properties which protects wood from swelling due to
absorption moisture. Wood Primer penetrates wood fiber & gives excellent
adhesion to substrates & also serves as a sound base for application of undercoats &
finishing coats. It also protects the finish coat from exudation of resinous matter
oozing out from wood.

Product Name: Asian Paints Exterior Wall Primer

Asian Paints Exterior Primer is water-based wall coating suitable for application
on exteriors as an undercoat to exterior emulsions. It has a good opacity &
whiteness, which helps improve the appearance of the emulsion top coat. Exterior
Wall Primers does not chalk & can be applied on freshly plastered surfaces that are
adequately cured. It does not require any water curing.
 
 
2.4 CUSTOMERS OF THE ORGANIZATION – LEVEL OF OPERATIONS (GLOBAL,
NATIONAL, REGIONAL)

GLOBAL LEVEL

Asian Paints group operates in 15 countries across the world. It is

fundamentally operating across four regions, namely Aisa, Middle East, South
Pacific, and Africa through the eight corporate brands: Asian Paints, Asian Paints
Berger, SCIB Paints, Apco Coatings, and Taubmans, Causeway Paints, and Kadisco.

The company's eight manufacturing plants across different locations

countrywide, with a combined capacity of 1.73 million KL per annum of decorative
paint products, feature state of the art technology. Its journey is identified by a
steady growth, which is furthered by a perception shift as a premium brand driving
innovations. 

The launch of many new products, backed by research, and aimed at fulfilling
consumer expectations, adds to this achievement. The exponential increase in its
brand equity is helping its global expansion efforts. 

As of today, Asian Paints has:

 26 manufacturing plants across the globe and servicing consumers in over 65

countries.
  It currently operates in 17 countries, including the USA, Australia, Sri Lanka,
and many more. 
 It is servicing 150,000+ retailers in India.
 It is established as the 9th largest paint company in the world and has been
the market leader in India for the past 50 years.
 It is Asia's third-largest paint company and has operations in 22 countries
worldwide.

Till today, it has done a lot of international collaborations and has maintained its
number 1 position in the Paint Industry in India.

National level

The Indian economy continued with its slow growth trend, with quarterly
growth rates trending downwards through the year. The decline was led by a
slowdown in the key construction sector, a restricted real estate space and
persistent downturn in the automotive sector. The fourth quarter witnessed a
growth rate of 3% - the lowest in almost a decade. It aptly highlighted the concern of
deceleration in the domestic economy even before the impact of COVID-19 shock.
The reasons for this consistent downward growth trajectory are multi-fold. The
large-scale defaults and governance issues in few large non-banking financial
institutions resulted in liquidity squeeze in the corporate debt markets. This not
only hurt some of the larger corporates, but also severely impacted the mid and
small-size companies as the lending channels practically froze. At the same time, the
vagaries of the monsoon – extended monsoon in some regions and deficit rainfall in
others – also adversely impacted the rural sector. The easy monetary policy regime
implemented by the Reserve Bank of India as well as measures taken by the Central
Government like sharp reduction in corporate tax rates have not helped the
economy get back to its growth trajectory

2.5 COMPETITORS OF THE COMPANY

MAJOR COMPETITORS

 
1. KANSAI NEROLAC
 
2. ICI INDIA
 
3. SHALIMAR PAINTS
 
4. BERGER PAINTS

Kansai nerolac

Kansai Nerolac Paints Limited is the largest industrial paint and third largest
decorative paint company of India based in Mumbai. It is a subsidiary of Kansai
Paint of Japan. As of 2015, it has the third largest market share with 15.4% in the
Indian paint industry

ICI INDIA

Imperial Chemical Industries (ICI) was a British chemical company. It

was, for much of its history, the largest manufacturer in Britain. [1] It was formed by
the merger of four leading British chemical companies in 1926. Its headquarters
were at Millbank in London. ICI was a constituent of the FT 30 and later the FTSE
100 indices.
ICI made general chemicals, plastics, paints, pharmaceuticals and speciality
products, including food ingredients, speciality polymers, electronic materials,
fragrances and flavourings. In 2008, it was acquired by AkzoNobel, which
immediately sold parts of ICI to Henkel, and integrated ICI's remaining operations
within its existing organisation.
Shalimar paints

Shalimar Paints is an Indian paints manufacturing company. The company is

engaged in manufacturing and marketing of decorative paints and industrial
coatings. Some of India’s buildings and structures such as the Howrah
Bridge, Rashtrapati Bhawan, Salt Lake Stadium, All India Institute of Medical
Sciences, and many others, continue to be painted with Shalimar Paints. [2]

the company introduced many firsts in the industrial coatings segment such as high
build zinc coatings, radiation resistant coatings for nuclear power plants,
polyurethane paint for fighter aircraft and railway coaches, among others. Shalimar
was the first company to paint a fighter aircraft for the Indian Army.
Berger paints

Berger Paints Ltd is an Indian multinational paint company, based in

Kolkata, India. This company has 16 manufacturing units in India, 2 in Nepal, 1 each
in Poland and Russia. It has manufacturing units at Howrah and Rishra, Arinso,
Taloja, Naltoli, Goa, Devla, Hindupur, Jejuri, Jammu, Puducherry and Udyognagar

2.6STRATEGIES – BUSINESS, PRICING, MANAGEMENT

Asian Paints Business Strategy ;

The Asian Paints' business strategy is based on four main pillars:

1. Defending the current market position

2. Deepening the existing competencies
3. Discovering new markets and competencies
4. Developing fresh market opportunities

According to its annual report, AP offers its services at local, state, national,
and international levels, being one of the largest paint companies in Asia. Here is
how the brand currently implements its business strategy.

The company focuses on providing its products and services to urban and rural
communities, making them the brand's two major target groups.

The Asian Paints urban market operations are characterized by:

1. Having a strong network of intermediaries, such as painters and designers,

who have an influence on consumer decisions
2. Using the influence of these intermediaries as the brand's marketing arm
3. Occupying a segment of the intermediaries' market share, enabling AP to be
present in different steps of the value delivery system
 4. Considering two major growth opportunities: forming a service arm to
engage with large markets, aiming at middle-class customers, or focusing on
providing value-added services, targeting its premium segment.

The company has the potential to benefit from both approaches by weakening
the influence of intermediaries across Asia. Establishing a strong brand name and a
powerful image would enable AP to empower the end consumers in urban markets.

AP's rural market strategy differs due to the fact that the majority of this
customer segment representatives would not appreciate the service-related offers.
Therefore, the brand has chosen a product-related strategy for this market segment:

1. Gradually penetrating the market by offering well-tailored products fitting

the regions' consumer ability
2. Upgrading the customers' interest towards higher-range products after
gaining trust and loyalty to the brand

The company's international strategy implies utilizing the experience gained in

India and scaling its supply chain management, launching newer products at a faster
pace. 

 Price Strategy

Asian Paints follows different pricing strategies according to the targeted

segment. As mentioned above, the Royale product range is marketed towards high-
income groups and hence, is priced higher.
Asian Paints follows a value-based pricing approach for the medium and economic
segments. As per the exclusive features in the product category, the price also
varies. The pricing decisions are often influenced by the raw material used to
manufacture paints, as well as competitors’ prices. The company’s success can also
be attributed to its high incentives for distributors. Summed up, Asian Paints has
adopted a flexible pricing policy.
 
. The company’s main focus is being all about families, and emotionally
connecting with the customers. Many famous public figures have been Asian Paints
brand ambassadors such as Akshay Khanna, Ranbir Kapoor, brother-sister duo Saif
Ali Khan and Soha Ali Khan, with the most recent being Deepika Padukone.
A major promotional tool used by them is providing incentives to their distribution
network. Presently, a lot of their promotion is also executed through their social
media, touched upon in detail later, when speaking of their digital media presence.
 
Management strategies

The Company truly believes that business has and will always involve risks.
These risks are constantly evolving and changing, in terms of their impact, the
probability of occurrence and more importantly the velocity with which they can
occur. The Company constantly scans the external environment to identify the
emerging risks and also assesses them for their impact on the Company’s objectives.
There are internal risks linked to operations, ethics, safety and the likes, which the
Company continuously monitors. The Company is committed to treat these risks
and bring them to tolerable levels. In this process, the Company is ably guided by
the Risk Management Committee of the Board, which reviews the enterprise-wide
risk management efforts of the management. The Company evaluates risks that can
impact its strategic, operational, compliance and reporting objectives.

2.7 CSR ACTIVITIES

CSR vision is based on embedded tenets of trust, fairness and care and shall be
based the below keystones. - to actively initiate projects and/ or participate in
projects to improve the life of people living near its manufacturing facilities -
Company will strive to provide vocational training to improve skills of people in the
primarily unorganised sector. - Company commits to creating social value and also
allow individual employees to contribute in the various programs. - Company shall
manage its operations using principles of Sustainable development to minimize
impact on environment and protect health & safety of our employees, service
providers, neighbouring communities and customers.

The CSR Committee has identified the following thrust areas around which
the Company shall be focusing its CSR initiatives and channelizing the resources on
a sustained basis:

 Health & Hygiene: In healthcare we aspire to deliver facilities to communities and

other sections of the society in the form of primary health care support through
diagnosis and treatments, promoting preventive healthcare, building awareness
about sanitation and providing monetary support, setting up and managing
rehabilitation centers, medical camps, creating awareness through various
programs, etc.

 Education: In education we aspire to contribute to improving and facilitating the

literacy levels in various sections of the society, by providing support at every stage
of a child’s educational cycle including but not limited to developing infrastructure
for schools/educational centers, conducting education programs on “how to lead to
a healthy life”, engaging with students and parents leading to development of a
better community, livelihood enhancement projects, etc.

 Water: In water management we believe, abundant and stable supply of clean

water is the basic need of society. Water being an important resource, its
conservation has become imperative. The approach would include providing
support and infrastructure at each stage of water conservation, water preservation,
water re-charge and waste water treatment.

 Enhancing Vocational Skills: In the area vocational training, we aspire to provide

specialized and skill based training to painters, carpenters, workers, etc., to enhance
their skills, empower them, provide opportunities, enhance their ability take better
employment and better livelihood. The CSR areas highlighted in this policy shall be
monitored and reviewed by the Management, CSR Committee and the Board of
Directors (Board) from time to time.

All CSR Initiatives/projects/programs/activities are and will continue to fall under

the purview of schedule VII of the Act. The CSR Committee may include any other
areas falling within the Schedule VII of the Act (and amendments thereto) from time
to time. The CSR initiatives as stated aforesaid will be ongoing initiatives of the
Company and are proposed to be implemented on a continuous basis subject to
review and monitoring by the CSR Committee and Board

2.8 IMPORT AND EXPORT

.Import of paints and their raw material

years Import of paints Import of raw material

&million &million
2007 30.4 109.2
2008 27.2 93.6
2009 23.0 78.7
2010 35.0 138.9
2011 41.5 183.7
2012 43.6 206.2

Export of paints and coatings

Regional 2010 2011 2012

Arab countries 13,022,354 23,556,724 40,209,502
Africa 2,573,424 8,353,641 11,949,080
Europe 727,629 702,730 1,099,970
Asia 3,15,223 969,413 783,625
Other countries 1,621,562 3,804,523 4,374,842
Total exports 18,260,192 37,387,131 58,417,019

2.9 COLLABORATIONS AND EXPANSION

 Home Furnishing has always a played pivotal role in turning around the
décor of once home rather quickly, and realizing a rising demand in segment,
Asian paints rekindled its collaborations with one of indias most celebrated
designer Sabyasachi , to launch a first of its kind range of designer home
furnishings, under the brand Nilaya. Sabyasachis myriad inspirations for his
first ever home furning collections stem from a variety of experience, the
skillfully painted fabrics born along the coromandel coast; embroideries;
from an ancient world. Well remembered motives and patterns that continue
to enchant ; old world Calcutta with its fading luxury and the traditions of
miniaturists from colonial era murshidabad. The result is an uncommon and
unforgettable journey of transformation , bought to life by five executive site
collectiins , including thar , makhmal , soofa, Hazaribagh and chowk.
 Asian paints has joined hands with the pure concept, a leading premium
furnishing brand to foster a perfect collaborations to cement their way in the
home furnishing industry. Co – founded in 2012 by chanya kaur and Dabir
singh, over the years , it has been nurtured into an internationally
successful brand with quality and creativity being the driving force behind
producing unique furnishing fabrics for the home. As a result of the
collaborations , its two quintessential brands , namely, pure fine furnishing
and the pure concept, have been rebranded to co – exist with royale and
nilaya respectively, to of the most loved brands from the asian paints stable
denoting luxury and exclusivity
 Asian paints also launched a collection of its ador range of fabrics , a
collection of modern and contemporary products accessible to the budget –
conscious consumer.
2.10 swot analysis

Strengths

 Import of brand image as barriers a new entrance

 Good technology backup
 Wide distribution channel
 Effective retail initiatives

Weakness

 Raw materials price being very volatile

 Requirement of high working capital
 Real estate becoming expensive day by day

Opportunities

 Physical incentives provide by government

 Investment moving from commodity to FMVG
 Rise in dispossible income

Theats

 Foreign companies entering as sole players

 High technology instant spot fixing colour
 Margin across industry is under pressure due to surging inflation
 Uncertain macro economic challenges.