ASIAN PAINTS SUPPLY CHAIN MANAGEMENT

STORY OF DISTRIBUTION EXCELLANCE

Fact Files Annual sales turnover greater than 10000 crores Market share 38 percent and its nearest rival has

14 percent Wholly Indian in capital management and

technology. Marketing strategy is to reach consumers in the

outmost corners of the country with small packs.

Innovative Approach

Range in colour and packing sizes Present in every nook and corner of the

country. Automated machine kept at the retail outlet, to

give desired colour. Company has to maintain only the basic colour

with retailers.

History & Main Segments

In 1942 Champaklal H. Choksi started and name the company 'The Asian Oil & Paint Company.

In 1957 with help of then R.K.Laxman paints mascot, Gattu, the mischievous kid, was born. 

Decorative paints, industrial coatings , ancillaries like primer

Paint brands owned by the company are: Ace & Apex, Apcolite, Apex, Apex Ultima, Asian Paints, Colour Next, Premium Gloss Enamel, Royale, Royale Play, Touchwood, Tractor Emulsion, Utsav.

Elements of Strategy

Four manufacturing plants are present viz. bhandup tolaja ankleshwar and patancheru.

Bypass the bulk buyer and went to individual customers.

Concentrated on semi urban and rural areas Went directly to the retailers. Broke traditional method of minimum dealers.

Implications of Strategy

Wide product range and complex distribution. Smaller packs led to increase in product depth. Wide range led to expensive distribution. Semi urban and rural markets enlarged its

distribution. Entering the retail supplychain led to channel

management

Implementation

Large network of dealers. Establishes network of company depots

controlled by company. Created marketing organization that matched

its network.

Cost-Service Conflict

Effective inventory management.(28 days) Effective control of credit outstanding's.(15

days) IT initiatives in distribution cost control. Special discounts for perfection in payments Cash discount over 5 percent for payments

made in 24 hours.

Numbers Game 2800 items of paint (stock keeping unit). 9.88 billion profit 127.15 billion turnover. 300 new dealers added every year. Largest distribution network among all. 6 regional distribution centres. 50 plus company run depot of which each

handles 200-300 dealers. ‘Apcolite’ is available in 151 shades and 8 sizes

Thank You