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8/12/2019 Asian Paints New
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ASIAN PAINTSBUSINESS STRATEGY ANALYSIS
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Champaklal H. Choksey Chimanlal N. Choksi
Founder of Asian Paints
CLEAR GOALS FOR A
CLEAR FUTURE
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GENESIS OF PAINT INDUSTRY
First paint Industry Shalimar Paints, Colour Varnish Company,
!he paints "as #enerally imported $rom the %ritain
Due the &nd "orld "ar many 'ompany entered in India like
(oodlass )all*++-, /lephant 0il 1ills *++2 Asian Paints 3ansai Nerola' 'ame into pi'ture a$ter the post
independen'e
Paints "ere 'onsidered as a lu4ury item
5o" used in Industrial se#ments
!here "as a ne#ative #ro"th in industry and pri'e "as elasti'
Introdu'tion o$ li6erali7ation poli'y
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NATURE OF INDUSTRY
Indian Paint industry, estimated to 6e a
Rs.&+,999 Cr. industry, #ro"in# at a rate
o$ a6ove +:; $or the past $e" years.
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Factors responsible for the growth
In'reasin# level o$ in'ome and edu'ation
In'reasin#
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Indian Paint Industry
De'orativePaints*20;
Premium Ran#e*Hi#h end A'ryli'
/mulsions
1etros
5ar#e Cites
1edium Ran#e*/namel Paints
Small Cities
DistemperRan#e* 5o" end
Paints
Su6 = ur6an
Rural Areas
IndustrialPaints*>9;
Automo6ileSe'tor *a6out&?>rd share
ConsumerDura6les 1arines
Paints 0ther0/1@s
Domestic market
De'orative 29; industrial >9;.
Globally market
De'orative :9; industrial :9;.
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+&=+B: Company
stated its6usiness
themis'hievouskid "as 6orn
Name "as
+B2=+-: India@s leadin#
paint 'ompany Converted into
a pu6li' limited'ompany
/ntered into a'olla6orationa#reement
+9= Present Spreads it
6oundary
Completed 29years :th lar#est
de'orative paint'ompany in the
"orld Admired
'ompanies inIndia
1arket leader o$
paint industry
GENESIS OF ASIAN PAINTS
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PESTEL ANALYSIS
POLITICAL FACTOR India, the lar#est demo'ra'y in the "orld
!he #overnment is $ederal repu6li'
!he politi'al situation is more or less sta6le in nature
/4port oriented /'onomy
!CO"O#IC FACTOR
1arket 6ased e'onomy Se'ond $astest #ro"in# e'onomy in the "orld
India is the third lar#est in term o$ pur'hasin# po"er
In$lation rate is B.B& as on anuary &9+>
Introdu'tion o$ FDI in $e" se'tors
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!"%IRO"#!"TAL FACTOR
Impa't o$ volatile or#ani' 'ompounds *V0Cs
5ead $ree paints
Season and 'limate 'han#es
L!GAL FACTOR Pollution Control 5a"
Consumer 5a"
Health and Sa$ety 5a"
/nvironmental 5a"
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PORTERS 5 FORCES ANALYSIS
&ARGAI"I"G PO'!R OF &()!R
Household users =
The contractors Hi#her 6ar#ainin# po"er more pri'esensitive
The end customer *Num6er o$ options are availa6le
De'isions are made 6ased many $a'tors
Industrial users = A lo" mar#in hi#h revenue 6usiness
!he 6uyers kno"led#ea6le
Pri'e 'omparison is done e$$e'tively 6y the 'onsumers
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&ARGAI"I"G PO'!R OF (PPLI!R
Ra" material intensive industry
1ore than >99 produ'ts reEuired to manu$a'ture o$ the
$inal produ'ts
1any Cate#ories
Pi#ments additives
Solvents
%inder et'.
Pi#ments 'onstitute a6out +?>rd o$ the total ra" material
'osts. Titanium dioxideis one key pi#ments "hi'h is $a'in#
a #lo6al shorta#e supply.
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CO#P!TITI%! RI%ALR)
A6out -9; o$ the or#ani7ed market is 'atered 6y
the top $our players o$ the industry.
!he 'urrent market #ro"th rate provide ample room
$or all the players o$ the industry to $lourish.
Competition may in'rease as the market #ets
saturated.
!he presen'e o$ the unor#ani7ed market doesprovide room $or 'ompetition
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A%AILA&ILIT) OF (&TIT(T!
5ime "ash is 'onventionally used su6stitute $or paints.
In de'orative paints se#ments an alternative option is
"allpapers.
T$R!AT OF "!' !"TRA"T
!he paint industry in India is dominated 6y $e" players makin#
di$$i'ult $or anyone ne" enterin# the industry
/sta6lish $orei#n players may pose a threat 6y virtue o$ the
kno"led#e and e4pertise
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An'illaries
De'orative paints
IndustrialPaints
Automo6ile
PRODUCT PORTFOLIO
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+(!TIO" #AR,
Distemper Ran#e* 5o"end Paints
TAR
1etal?industrial Paints )ood $inishes *varnish,
polish
CA$ CO'
)all Paints*IN!/RI0R /!/RI0R PAIN!S D/C0RA!IV/ PAIN!S
DOG
1arine paints,Automo6ile paints others*6a'k 6oardpaints
BCG MATRIX
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SITUATION AUDIT
India@s lar#est paint 'ompany and Asia@s
third lar#est paint 'ompany
0perates in +2 'ountries and has & paintmanu$a'turin# $a'ilities in the "orld
servi'in# 'onsumers in over B: 'ountries.
0perates around the "orld throu#h itssu6sidiaries %er#er International 5imited,
Ap'o Coatin#s, SCI% Paints and
!au6mans
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COMPETITIVE ANALYSIS
2+;
++;
+9;
2; 9;9;#AR,!T $AR!
Asian Paints
%er#er Paints
3ansai Nerola'
Ak7o No6el
Shalimar Paints
enson Ni'olso
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Stren#ths
1arket leader Capa'ity
e4pansionplans
Pri'in# po"er )ide
distri6utionnet"ork
)eaknesses Industrial
6usinessper$ormin#6elo" par
Hi''ups ininternational6usiness
Internationalpresen'e
restri'ted tosmall po'kets
0pportunities
Fast #ro"in#Indian e'ono
Shorterrepaintin#
'y'les (ro"th in thetier II and IIIto"ns
Steady #ro"t
in industryvolumes
De'rease in tuse o$distemper
SWOT ANALYSIS
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CONCLUSION
Asian Paints, India8s lar#est paint 'ompany and Asia8s third lar#est
paint 'ompany, "ith a turnover o$ Rs B.>& 6illion.
Have an envia6le reputation in the 'orporate "orld $or
pro$essionalism, $ast tra'k #ro"th, and 6uildin# shareholder eEuity.
0ver the 'ourse o$ &: years Asian Paints 6e'ame a 'orporate $or'e
and India@s leadin# paints 'ompany. Driven 6y its stron# 'onsumer=
$o'us and innovative spirit, the 'ompany has 6een the market leader
in paints sin'e +B-.
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