Accolades

2947

247
 ASIAN PAINTS- STARTED IN 1942 BY FOUR ENTREPRENEURS

ASIAN OIL & Paints Company

SURYAKANT DANI CHIMANLAL CHOKSEY CHAMPAKLAL CHOKSEY ARVIND VAKIL

1967-82 1987-97 1999

EXTENSION AND MOVING CLOSER
CONSOLIDATION PHASE TO THE CONSUMER THE NEW ASIAN PAINTS

1942-67 1982-86 1997-99

EVOLUTION PHASE THE YEARS OF CHANGING RULES OF THE
EXCELLENCE GAME
Business Verticals Decorative Coatings
•
•
Interior walls
Exterior walls
• Wood finishes
• Metal finishes
Business contribution 2019-20 • Water proofing's
• Wall coverings
• Painting tools & implements
• Adhesives & Sanitizers

Industrial Coatings
489.1; 2% • Automotive coatings – 2nd leader
457.7; 2% • Refinishes – market leader
• Protective coatings
2341.8; 12% • Powder coatings

Home Improvements
• Bath fittings and accessories
• Curated washrooms
16922.7; 84% • Kitchen and wardrobes

International Operations
• Asia
• Middle East
• South Pacific
• Africa
Decorative Coatings International Operations
Industrual Coatings Home Improvement
PAINT INDUSTRY ANALYSIS

Per Capita Rural Market

Consumption
Only 10% rural market is Market size
penetrated 65000 crore
1 kg vs 15-20 kg in
Includes both decorative
developed nations
and industrial paints
 CONTRIBUTION OF DECORATIVE PAINTS IN
THE OVERALL INDIAN PAINT INDUSTRY HAS
EVIDENTLY INCREASED OVER THE YEARS

INDIAN PAINT INDUSTRY HAS

GROWN AT 10.4% CAGR OVER
12 YEARS

Top 3 Region covers 80% of Global: APAC shares 45% of market share
market share
GLOBAL PAINT INDUSTRY
is $610 Billions
DECORATIVE PAINTS
INDIA’S PER CAPITA CONSUMPTION OF PAINTS FAR LESS VIS A VIS GLOBAL AVERAGE GROWING PER CAPITA CONSUMPTION IN INDIA

T IVE
A
COR S AT E
C DE OW TH
I R
EST T G OVER S
M EN R R
DO EGM CAG YEA
S 4% T 12
.
11 LAS
INDUSTRIAL PAINTS
• Industrial paint’s lower contribution in India’s overall paint market is probably attributable to lower industrial
and infrastructure development compared to other matured countries and developing countries
• higher technical know-how required in the industrial paint segment, which in turn leads to negligible
involvement of unorganized players and thus a lower market size

Domestic industrial paint segment grows at 7.9% CAGR

Auto sector slowdown in the recent years
over the last 12 years
DEMAND DRIVERS FOR DECORATIVE PAINTS
MARKET DRIVERS FOR DECORATIVE PAINTS Percentage of population residing in urban areas to increase to 40% in 2030

URBANIZATION AND NUCLEARIZATION OF FAMILIES

Many macro-economic and demographic factors:

• Gross household income has been continuously increasing:
• Propensity to save is declining - reflecting consumers’ willingness to
spend more than what they used to
• India’s urbanization trajectory has shaped well from 25.6% in 1990 to
Propensity to save declined thereby reflecting increase in spends
34.5% in 2019 (34.9% 2020P)
• Supported by real estate demand and improving infrastructure
• Rising number of households due to increasing nuclearization of
families
• Rise in home loans
• FY20, retail housing loans have grown at a 10-year CAGR of more
than 16% - shows consumer’s growing aspiration to own a house.
MARKET DRIVERS FOR DECORATIVE PAINTS

VALUE MIGRATION

• Growing the bottom of the pyramid space by continuous new offerings and focused advertising and marketing.
• Increased awareness among rural households about applying lower/undercoat (putty and primer) before applying final
coat (distempers) has aided demand for low-end products.
• Still headroom for paint companies to grow within the bottom of the pyramid space - presence of the unorganized
sector in the lower-end paint segment is much higher than the overall industry.

Unorganized segment has a higher Overall paints industry

share in distemper market vs
MARKET DRIVERS FOR DECORATIVE PAINTS

Re-painting constitutes ~70% of the decorative segment demand in India and globally, factors driving it are income
levels, festive & marriage season and lifestyle improvement.

FACTORS INFLUENCED TO SIGNIFICANT REDUCTION OF RE-PAINTING CYCLE FROM 7-8

YEARS TILL EARLY 2010S TO 4-5 YEARS NOW.

RISE IN INCOME LEVELS, IMPORTANCE TO AESTHETICS

INCREASE IN NUMBER OF RENTED HOUSES CHANGE IN LOOKS

EASE OF THE PAINTING PROCESS APPEARANCE OF THEIR PREMISES

MARKET DRIVERS FOR DECORATIVE PAINTS
Housing for all/affordable housing measures by the government has aided fresh painting demand and will aid repainting demand
in the future;

• Pradhan Mantri Awas Yojana - Housing for All (Urban)

• Housing for All mission, the Pradhan Mantri Awas Yojana Gramin
• Smart City Mission
GROWING DEMAND FROM SMALLER TOWNS AND
RURAL
Demand in AREAS
smaller cities and towns has been growing at a faster pace
than metro and tier I cities.
25%
• Rise in disposable income

• Incremental consumption expenditure

• Increase in awareness, development of rural markets

75%
• Various launches have fueled the paint industry’s growth

• Expansion of dealer base Metro smaller towns (tier II/III/IV

cities) & rural areas

Business picked up in tier II/III/IV cities where the demand conditions were better, while in metro and
tier I cities the business was slower.
• Tier III and tier IV cities have outgrown metro and tier I cities.
• Western region, including Mumbai and hinterlands, is far more affected. Across India, metros like
• Chennai, Kolkata, Bengaluru and Delhi have been affected and tier I cities like Ahmedabad, Surat are also affected.
• Dealer expansion has happened in the months of May and June, especially in tier III and tier IV cities
MARKET DRIVERS FOR DECORATIVE PAINTS
INNOVATIONS, UPGRADATION AND GROWTH IN PREMIUM SEGMENT

• Up-trading/premiumization over more than a decade including shift from-

• Distemper to interior emulsion
• Mid-segment to top-end segment
• Low-end to top-end segment
• Cement paint to exterior emulsions
• Unorganized to organized in smaller towns, especially in tier III/IV cities and rural areas
 KEY HIGHLIGHTS FROM RECENT CHANNEL CHECKS
DEMAND:
Demand for the products of APNT is undoubtedly higher
than the other players. There is outright demand for other
companies’ products as well, but not as high as APNT’s.
INVENTORY DAYS:
Average inventory days hover around 10-15 days – 5-6 days
for APNT and 15-18 days for other companies. Further,
order placed with APNT is generally fulfilled within 4-6
hours while for other companies it takes between 12-24
hours.
PREFERENCE FOR RETURNS OVER MARGINS
Return generated on account of higher number of rotations
is far ahead of what can be earned from products of other
companies. Thus, it is the return that dealers primarily look
at rather than margins.
RISE IN CONSUMER AWARENESS
Gone are the days when dealers used influence purchase of
paint; Now demand is purely dependent on the customer’s
preference.
GROWTH IN TOP-END PRODUCTS AS WELL AS LOW END
PRODUCTS:
Dealers have stated that there is healthy growth in premium
products, especially value-added products like APNT’s Royale
Shield and BRGR’s Easy Clean. Across regions, there is high
grown in bottom of pyramid products like distemper and
putty. Sale of Birla and JK Cement’s putty is much ahead of
any other paint companies.
NEGLIGIBLE SALE OF SANITIZERS FOR PAINT COMPANIES AS
OF NOW:
Some paint companies have been pushing their dealers to
buy sanitizers but there is hardly any pick-up as no consumer
would go to a paint or a hardware shop to buy sanitizers.
Few dealers believed that companies need to advertise for
their sanitizers on a local level rather than national level
DISTRIBUTION
REVENUE PER DEALER (FY 19-20)
NETWORK

MARKET SHARE TOP 5 PLAYERS

MANUFACTURING SITES OF KEY
CATEGORISATION
PLAYERS
Interior/Exterior
Paints

Putty

Distemper

Decorative
Cement paints

Wood coating

COMPITITORS MARKET SHARE

PAINTS Primers & thinners

Automotive &
Refinish paints

GI Coating

Industrial
Protective coating

Powder coating
CHALLENGES FOR ASIAN PAINTS

INDUSTRIAL SEGMENT OF INDIAN PAINT INDUSTRY WHERE AP 01

HAS A WEAK PRESENCE

RURAL MARKET STILL REMAINS WIDELY UNEXPLORED AND

02 DOMNICATED BY SMALL PLAYERS

LOW MARKET SHARE IN AUTOMOBILE PAINT

03
INDUSTRY

AI AND IT ENABLED INITIATIVE AND GROWTH AGAINST

04
COMPETITION

LOW MARKET SHARE IN AUTOMOBILE PAINT

05
INDUSTRY
 S W
Strong Market Share
Wide variety of Product range
Wide Distribution network.
Large network of Dealers
Consumer Oriented Pricing
only 14% market of Industrial
Paints.
Asian Paints has major
weaknesses on the technology
of industrial paints.
Difficult to position the
premium brands in Rural
areas.
O T
Tapping Automobile Paint Entry of foreign players
industry.
Huge investment by Nerolac in AI
Rural Market penetration
Burger’s regular expansion plans
DIY initiatives Entry of Grasim
Digital Marketing Hold of Akzo and Nerolac on auto
paint industry

Highly qualified staff There is seasonal demand for

Proper coordination between
production marketing activities.
Innovative and user friendly,
reliable products.
No compromise in quality.
certain products which creates
cash flow issues
Wide variety of product mix &
expanding market shares pulls
strain on production
distribution, inventory
management, accounting and
administration.
 S W
Technical innovation for better
client service.
Best Branding and Marketing
Strategy .
Excellent Research and
Development
Top Automotive brand client list
Good supply chain
Top Celebrity as an brand
ambassadors
Won multiple awards.
Change in consumer demand
will arise the problem in
product planning and
inventory
Business model-can be easily
replicated by its rivals
Costly Supply Chain and
Logistics
O T
Enhanced advance in Change in Government Policies
technology
Keep fluctuating prices
Online Opportunities
Raw material shortages and
Low rate of inflation and market volatility
greater price stability
Intense competition from both
New Products launched the local and international market
according to market demand
and trends.
Offers on bulk purchase and
special discounts.
Sanitizer Manufacturing
 S W
Second-largest manufacturer
of Paint.
Wide variety of Product range
operations in a Foreign
countries
countrywide secure supply
chain network
Retail prices have shown
steady growth
Diverse customer base from
businesses and service sectors
Created a market entry
barrier to new competition.
Started an eco-friendly
painting
Relies heavily on one segment
Negative ads taints the
company’s brand image.
smaller distribution network
No premium alternative only
targeted a specific segment
No pricing power because of
a duopoly in the industry.
O T
Less market spend compared Prices of the raw materials are
to rivals highly fluctuate
Strategic and consistent Changing government laws
marketing communication
Stiff competition
Untapped market potential
Increase the demand of paint
Unorganized players
New Launches Economic slowdown have
negative impact
Expand base to emerging
developing Market
Wide potential for
commodity diversification
Government Policies
 S W O T
The world's best-selling in Changes in customer teste and Capitalizing on emerging Very limited growth
paint and coatings preferences Asian Markets is critical opportunities in Europe Market

Major producer of specialty
chemicals
Operations in 80 countries
Wide variety of Product range
Change in trends
Large working Capital
More advertising like other Local competitors
competitor
Easy to enter into potential
market in strong way

Diversification compared to
other competitor brand

Continuous R&Ds with

international facilities

Covers Asia-Pacific market and

the North American market
 DECORATIVE SEGMENT
• Market leader in this segment
• Growing at CAGR of 11.4%
• Real estate has shown tremendous growth in last 10
years
Key Learnings • Home loans & Home improvement loans are on rise
• Increase in spending capacity by Indians
from market • Per capita paint consumption is increasing
• Rural penetration is limited
data • Repainting cycle is shortening
• Govt. initiative to provide pakka makaan

AUTOMOTIVE INDUSTRY
• Though not a market leader but share can be increased
by acquisition and launching innovative products
QUANTUM GROWTH STRATEGIES

PENENTRATION OF RURAL GROWTH

DIVERSIFICATION THROUGH BACKWARD

INTEGRATION BY PROVIDING
ADMIXTURES TO CONCRETE SECTOR

ACQUISITION OF SHALIMAR PAINT

COMPANY

INCREASE THE MARKET SHARE IN

DECORATIVE PAINTS THROUGH JV WITH REAL
ESTATE SECTOR
 STRATEGY-1
INCREASE THE MARKET SHARE
IN DECORATIVE PAINTS
THROUGH JV WITH REAL ESTATE
SECTOR
HOME IMPROVEMENT REVENUE OVERVIEW OF ASIAN PAINTS

Kitchen Business. (OCT 20 – MAR 21)

• Registered sales of INR 61 crores in Q2 touching base of previous year.

• First half sales at INR 86 crores, lower than previous year by 26%.
• Components as well as Full Kitchens segments recovered well in Q2.
• Projects segment, too, saw some pick-up on a sequential basis.
• PBT loss of INR 4.4 crores in Q2 (compared to a loss of INR 13.5 crores in Q1)

Bath Business. (OCT 20-MAR 21)

• Registered sales of INR 55 crores in Q2, lower than previous year by 4%.
• First half sales at INR 80 crores, lower than previous year by 25%.
• Recovery led by Economy range of products.
• Business reported PBT break-even in Q2 (compared to a loss of INR 7.4 crores in Q1).
• Supported by some improvement in Gross margin, cost control and lower spend in Marketing
STRATEGIES TO GAIN MARKET SHARE

• In India there are numbers of exhibitions &

events getting scheduled every year. Almost
more than thousands.

• In this Event many commercial and residential

developers are invited and product is been
show cased to them.

• In many Exhibition Asian Paints also participate

and shows their products like kitchen ware,
décor items, furnishing items, etc to developers.

• Through this strategy they get contacted to

developers and issue tenders to them according
to the projects.
 PAINTING SOLUTIONS WATERPROOFING SOLUTIONS
• In this Painting Solutions the Asian Paints is This Solutions also comes under the large
having very wide customer base and the projects of Asian Paints.
product sell in volumes.
• When it comes to big projects then below is • WATER TANKS & SWIMMING POOLS
the SEGMENTS could be tapped. • TERRACE & ROOFS
• BUILDERS • PODIUMS
• CORPORATES • WET AREA IN SOCIETY
• HOTELS • TILING SOLUTIONS
• HOSPITALS • INTERGRAL WATERPROOFING
• HOUSING SOCIETY • BASEMENTS
• EDUCATION • CRACKS, GAPS & JOINTS
• FACTORIES
INNOVATION
• New service of Safe Home
In this there are two types of products:
Paintings which is provided by
Asian Paints.
• EXTERIOR PAINTING SOLUTIONS • It is directly communicated with
• INTERIOR PAINTING SOLUTIONS the customer.
• Retail Consultancy has started
 STRATEGY-2
RURAL MARKET PENENTRATION
 STRATEGY TO GAIN MARKET SHARE IN RURAL INDIA

FACTORS RESPONSIBLE FOR LOW MARKET SHARE STRATEGIES TO GAIN MARKET SHARE

Tapping Govt Initiatives in

Low Inclination Rural Areas
towards
Painting a house
S Visual Branding

CH Less awareness of O
Educating People through
AL benefits of colors L Campaigns
LE U
N TI Training and Development
GE No clarity on types of Stockist
of paints available O
S
N
EMI offers for maximum reach
S
High Price Assumption
Ensure word of mouth publicity
through users by offering
incentives
 STRATEGY-3
DIY PAINT KIT SCALING
UP
DIY BUSINESS STRATEGY OF ASIAN PAINTS

Comparison of DIY MARKET Why Asian Paint Into DIY business

• In India DIY culture is slowly developing , young

generation in Urban life like to paint their house with
himself/herself.
• Main growth segment of DIY industry is Cement and paint
Industry and being number one paint company in India
Asian paint is also shifting and promoting DIY business in
India .
• Business is growing at the rate of 17% per annum and if
they promote very well in Urban as well as Rural market it
will grow 25% per annum .
• This is the future growth driving segment from which
Asian paint will generate more than 1000 crore revenue in
next 5 yrs .
ASIAN PAINTS DIY KIT COSTING MARKET SHARE BOOST THROUGH DIY STRATEGY

PROMOTE BUSINESS ADVERTISMENT

ON MULTIPLE USING EXISTING
OCCASION CUSTOMER
REVIEW AND
INTERVIEWS

MEDIA
ADVERTISING

SUPPORTIVE
PAINTING TOOLS

CONSUMER VIRTUAL REALITY

TRAINING BASED PAINTING
CENTER AT CITY VISUALISATION TO
CUSTOMER
STRATEGY FOR MARKET PROMOTION AND SALES BOOST OF DIY COLOR KIT

PRODUCT
1. CUSTOMISED KITS AVAILABILITY
2. MORE THAN 4 PRICE RANGES TO CHOOSE FROM.
3. COMBO OF PATTERNS AND BASIC ROLLER
4. QUICK DRY TECHNOLOGY

PLACE
1. SEGMENTATION OF URBAN AND SEMI URBAN AREA.
2. ZONE CREATION OF MARKET & PRODUCTS AVAILABILITY.
3. FOCUS ON URBAN AND SEMI URBAB
4. EFFICIENT SUPPLY CHAIN TO CATER ALL AREAS.
PROMOTION
TOOLS AND
METHODS
PRICE
1. HASHTAGS LINKED DISCOUNT SCHEMES
2. SPECIAL PRICE FOR KIDS DIY KITS
3. REFERRAL DISCOUNTS TO CUSTOMERS

PRMOTOTION
1. HASHTAGS LINKED DISCOUNT SCHEMES
2. INFLUENCE THROUGH SOCIAL MEDIA
3. USER INTERVIEW BROADCAST
4. DEMO THROUGH VIRTUAL REALITY MODE
DIY INNOVATION- PRIMARY DATA
ANALYSIS (1/4)

Out of 75 respondents, 62.7% (47)

are from Metros ,25.3% (19) from
Urban, 8%(6) from semi urban and
4%(3) are from rural India.

Out of 75 respondent. 33.3% (25) monthly family

income is in the range of 51k to 1lac ,26.7%(20) is
above 1 lac, other 26.7%(20) is in between 25k to
50k and 12%(9) family income is less than 25k.
DIY INNOVATION- PRIMARY DATA
ANALYSIS (2/4)

In response to how often you paint your house. 40% (30)

have responded in above 5 years, 32%(24) between 4 to 5
years, 22.7%(17) between 2-3 years, remaining 5%(4)
people paint their house every year.

For who does painting at your house 70.7%(53) have

responded local painter,24%(18) professional painter
while 5.3%(4) have responded self
DIY INNOVATION- PRIMARY DATA
ANALYSIS (3/4)

To how much you spend on house paint assuming

1BHK(500 SQFT). Out of 75 people 40%(30) have
responded less than 30k, 24%(18) from 30k to 40k,
21.3%(16) from 41k to 50k while 14.7%(11)
responded above 50k.

Out of 74 .82.4%(62) people have responded yes to

question if they feel excited imaging painting their
house .While 17.6%(12) have responded no.
 DIY INNOVATION- PRIMARY DATA
ANALYSIS (4/4)

To what will motivate you color your house on

your own. People have exciting opinion like they
will be able to color their own way, different
designs. Some are looking for innovative idea and
tools for motivation.

To What inhibits you painting your own house.

57.5%(42) says professional painter will do better
painting,49.3%(36) don’t have skills,34.2%(25) don’t
have time ,32.9%(24),don’t have equipment's while
19.2%(14) feels labor is cheap and they don’t mind
paying
 STRATEGY-4
DIVERSICATION OF
BUSINESS- INTRODUCTION OF
ADMIXUTRES
 DIVERSIFCATION THROUGH BACKWARD INTEGRATION- New Product
Launch
MANUFACTURING OF ADMIXTURES (1/5)

BENEFITS OF ADMIXTURES
CONCRETE ADMIXTURES are natural or
manufactured chemicals or additives added • To achieve the targeted
strength and durability to
during concrete mixing to enhance specific
Ready-mix concrete (RMC).
properties of the fresh or hardened concrete,
• High range water Reducer
such as workability, durability, or early and final
• To Modify the properties of
strength.
concrete as per need
MARKET OVERVIEW • Increase Steel and concrete
• India ready mix concrete market was valued bond
USD 2378.11 Million in FY2020. • Increase slump and workability
• Growth forecast is at CAGR of 16.21% till
2030 the forecast period.

FACTORS BEHIND FORECASTED GROWTH

• Increasing urbanization
• Growing population so the nationwide infrastructure
• Rising focus of government on infrastructural development.
• Govt Initiatives like Smart cities & Make in India program by Govt to create cities boost local business set ups.
 MANUFACTURING OF – ADMIXTURES (2/5)

Competitor Analysis- Top Competitors PORTER’S 5 FORCES MODEL

THREAT OF NEW ENTRANTS

• No Entry Barrier
• Govt Boost for start ups
• Low cost to establishments
• Simplified process

60% 40%
SELLER POWER COMPETITIVE BUYER POWER
• Huge Market RIVALARY • Cheaper Source
- SUNANDA • Continuous demand • Growing competition
BASF SIKA &
- KRISHNA • Brand Image • Higher demand
• Economy of Scale FOSROC
- BASF - SIGMA • Easier to shift
- SIKA - CHEMBO
- FOSROC ND
- PERMA THREAT OF
SUBSTITUTION

• New technology
• Product Advancement
 MANUFACTURING OF – ADMIXTURES (3/5)

PRODUCT COSTING

PRODUCT NAME : ASIMIX Hydro (Hydration control admixture)

BATCH SIZE : 5 MT PACKING : 200 KG COST PER KG
PARTICULARS UNIT QTY RATE FREIGHT COST NET AMT. (INR) Costing Break Up Price (INR)

A.RAW MATERIAL RAW MATERIAL COST 288.4

Sodium Polycarboxylate KGS 5000 100 10 110 550000 PACKING COST 24.53
Sodium Naphthalene 1.50
Formaldehyde KGS 5000 55 10 65.00 325000 ANALYTICAL CHARGES
Sodium Lignosulphonate KGS 5000 35 10 45.00 225000 CONVERSION COST 2.50
Sodium Gluconate KGS 5000 50 10 60.00 300000 316.93
TOTAL COST OF PRODUCTION
1400000
Profit MARGIN 30 % 94.80
ADD: PROCESS LOSS @ 3% 42000
1442000 MRP/KG 412
RAW MATERIAL COST PER KG 288
B.PACKING MATERIAL
Drums HDPE NOS 1000 220 10 230.00 230000 AVERAGE
Labels KGS 20 170 10 180.00 3600 COST OF
ADD: PROCESS LOSS @5% 11680 COMPETITOR
245280
INR 460/ KG
PACKING COST PER KG 25
TOTAL COST OF RM +PM per KG 313
 MANUFACTURING OF – ADMIXTURES (4/5)

SALES STRATEGY

VALUE ADDITION
AGAINST BASF AND
FOSROC
FINDING GAPS IN TTARGETING TOP 10
THE EXISTING BUILDERS & PRIMARY
PRODUCTS AND FOCUS OF GOVT
FILLING THEM TENDERS WINNERS

BRAND
ON SITE
AWARENESS
ASSISTANCE
THROUGH
EXHIBITIONS

CUSTOMER ANNUAL REBATE SYSTEM

RETENTION
 MANUFACTURING OF -
ADMIXTURES (5/5)
FIXED COST CALCULATION MANUFACTURING FACILITY COSTING
COST BREAK UP Estimation
(Values in INR Cr) FACTORS OF PRODUCTION Estimation (in INR)
(Approx. Estimated)

Depreciation 0.11 Manufacturing Capacity 5 MT/Day

Salaries 1.00 Land & Building (1000 Sq Mtr) 1.43 Cr

Insurance 0.15
Plant & Machinery 39 Lacs
Overheads (electricity/ water etc) 0.20
Working Capital (for 2 Months) 1.29 Cr
Advertisement 0.10
TOTAL FIXED COST (Approx. 1.56 Cr Total Capital Investment 3.19 Cr
Estimated)
Estimation
ANNUAL PROFIT AND BEP ESTIMATION (In INR Cr)

SALES 890
Less: VARIABLE COST (RM +PM etc) 676
CONTRIBUTION 214
Less: FIXED COST 1.56
PROFIT 212 Cr
PV RATIO 24%
 STRATEGY-5
ACQUISITION OF
SHARLIMAR PAINTS
 AUTOMOTIVE PAINT INDUSTRY & ASIAN PAINTS

• 33% of the industrial paint sector • Leaders in auto refinishes

• Valued at INR 45 Bn • AP are 2nd with 14% market share
• Expected growth of 3% CAGR • 2nd in auto OEM segment
• 50:50 JV with PGG Inc.
 AUTOMOBILE INDUSTRY IN INDIA

• $300 Bn projection by 2026 from $118 Bn in 2021

• 80.80% of vehicles are two wheelers
• 4th largest market in the world (expected: 3rd largest by 2026)
• Maruti Suzuki are market leaders (Kansai Nerolac’s client)
• Berger paints contribute to top 4 two wheeler manufacturers
 STRATEGIES FOR AP IN AUTOMOTIVE
PAINTS

CHALLENGES STRATEGIES

• Low margins • Long term tie ups with leading

• Dependability on the automobile
sector
• High setup costs & heavy
investment in technology, raw
material etc.
automobile OEM’s (Capture Berger’s &
Kansai Nerolac’s market share)
• Aftermarket paint strategies
• DIY spray cans for spare parts like
silencers, handles, etc.

• Powder coating development for the

growing premium car market.

• Diversification strategy: Wraps & Vinyl

 STRATEGY TO GROWTH IN INDUSTRIAL SECTOR OF ASIAN
PAINT
• Industrial segment of Indian paint industry where AP has a weak presence and to grow that following are the strategy.
• Acquisition with Shalimar Paint.
• Partnership with BASF Chemical Company to grow further.
• R&D
• Innovation of Product

STRATEGY- ACQUISITION OF SHALIMAR PAINTS

Increase
New Plant Market
in Nashik Share

Benefit of 400 Dealer

Growth pan
Shalimar Network TS &
India
Acquisition AP Market

Increase New
Client Base Separate
& Sales Prevent
Volume INR Mixture
82 Cr. Unit
z
 CONSOLIDATED 3 YEAR QUANTOM REVENUE GROWTH
STREAM

ADMIXTURE MANUFACTURING DIY INNOVATION STRATEGY SHALIMAR ACQUISITION STRATEGY

286 Cr 985 Cr 404 Cr INR 1675 Cr

3 YEAR QUANTUM GROWTH
REVENUE GENERATION