MANAGERIAL

ACCOUNTS

Group Members
Manoj Thakur - 26
Vipul Raut - 54
Amol Bamne - 03
Arvind Yadav - 07
Harikant Sharma 13

COMPANY PROFILE
Company Name:

Asian Paints.

Type:

Public Ltd.

Industry:

Paint.

Founded:
1942.

1ST FEB,

Head Quarter:
India.

Mumbai,

Key people:
P.M.Murti CEO & MD.

Mr.

Workforce:

4700

Company History
1st February, 1942
Champaklal H. Choksi, Chimanlal N. Choksi, Suryakant
C. Dani and Arvind R. Vakil get together to manufacture
paint in a garage on Foras Road, Bombay. They name
their company 'The Asian Oil & Paint Company.

1945
Asian Paints touches a turnover of Rs. 3,50,000, with an
innovative marketing strategy "to reach consumers in
the outmost corners of the country with small packs."

Company History
1954
Paints mascot, Gattu, the mischievous kid, was born.
Asian

1957 - 66
The family-owned company makes
professionally managed organization.

the

shift

to

Asian Paints embark on an ambitious mass marketing

campaign, pertaining with thousands of dealers in small
towns all over India.

Company History
1967
Asian Paints emerges as India's leading paint
company ahead of any international competition.

1973
Asian paints becomes public ltd company

2002
Asian paints was a market leader of Indian
Decorative Paints with market share of 44%

Founders of
company

P M Murty
CEO &MD

Mr. Ashwin Choksi

Non-Executive
Chairman

Mr. Ashwin Dani

Non-Executive Vice
Chairman
Ms. Tarjani Vakil
Chairperson of Audit
Committee

Asian paints today

Asian Paints becomes the 10th largest decorative paint
company in the world
Asian Paints is more than twice the size of its nearest
competitor.
It is one of the most admired companies in India
Present in 22 countries with 27 manufacturing locations.
Asian Paints aims to become the 5th largest decorative
paint company in the world.

Vision
Asian Paints aims to become one of the top five
Decorative coatings companies world-wide by leveraging
its expertise in the higher growth emerging markets.
Simultaneously, the company intends to build long term
value in the Industrial coatings business through alliance
with established global partners.

Group subsidiaries
Company in South pacific island.
Asian paints operates in Australia,
Fiji, Tonga,Soloman Island under
brand name APCO.

It is a England Company. In 2002

became part of Asian paints

Group subsidiaries
Egypt company which became
part of Asian paints in August
2002
US Company with 50:50 equity
sharing with Asian paints in 1997.
Pittsburgh
Paints
and
Glass
Industries (PPG), USA
Fiji company became a part of
Asian paints in September 2003.

Distribution Network
Secunderaba
d based
location

Delhi
based
location

ANKLESH
WAR
PLANT
KASNA
PLANT

77
DEPOT
CENTRE
S

Bangalor
e based
location

PATANCHE
RU

BHANDUP

PLANT

Chennai
based
location

Kolkata
based
locatio
n

ASIAN
ASIAN
PAINTS
PAINTS
HEADQUART
HEADQUART
ERS
ERS
MUMBAI
MUMBAI

Ahmedaba
d
based
location

Raw material Requirements

Paint Industry is raw material
intensive with RW being 70% of
production costs.
300 types of raw materials used in
manufacturing process
The most critical ones are

Titanium Dioxide (TiO2)

Phthalic Anhydride (PAN)
Pentaerythritol (PENTA)

30 %
20 %
15 %

Product Portfolio
Segments

Paints

Decorative
paints

Chemicals

Industrial
Paints

Pathetic
Anhydride
Pentaerythrit
ol

Total Raw material procured (2013 14)

Product Name
Pigments,
Extenders &
Minerals

Unit

Quantity

Value (In Rs Cr.)

Not Reported

NA

1,743.26

Additives

Not Reported

NA

873.84

Solvents

Not Reported

NA

806.55

Monomers

Not Reported

NA

748.42

Oils

Not Reported

NA

277.51

Others

Not Reported

NA

224.55

Resins

Not Reported

NA

176.17

Orthoxylene

Not Reported

NA

0.00

Total

4,850.30

Source : Asian CERC

The Production Process

Making the paste
Pigment manufacturers send bags of fine grain pigments
to paint plants. There, the pigment is premixed with resin
(a wetting agent that assists in moistening the pigment),
one or more solvents, and additives to form a paste.
Dispersing the pigment
The paste mixture for most industrial and some consumer
paints is now routed into a sand mill, a large cylinder that
agitates tiny particles of sand or silica to grind the
pigment particles, making them smaller and dispersing
them throughout the mixture. The mixture is then filtered
to remove the sand particles.
Instead of being processed in sand mills, up to 90 percent
of the water-based latex paints designed for use by
individual homeowners are instead processed in a highspeed dispersion tank. There, the premixed paste is
subjected to high-speed agitation by a circular, toothed
blade attached to a rotating shaft. This process blends
the pigment into the solvent.

The Production Process

Thinning the paste

Whether created by a sand mill or a dispersion
tank, the paste must now be thinned to
produce the final product. Transferred to large
kettles, it is agitated with the proper amount
of solvent for the type of paint desired.

Canning the paint

The finished paint product is then pumped into
the canning room. For the standard 8 pint
(3.78 liter) paint can available to consumers,
empty cans are first rolled horizontally onto
labels, then set upright so that the paint can
be pumped into them. A machine places lids
onto the filled cans, and a second machine
presses on the lids to seal them. From wire
that is fed into it from coils, a bailometer cuts
and shapes the handles before hooking them

Total Sales for year 2013 14

Product Name

Sales Value (In Rs. Cr.)

Paints, Enamels, Varnishes &

Black

11,445.84

Traded Goods

415.39

Others

181.35

Subsidy

65.89

Processing Charges

45.56

Scrap

7.03

Sale of services

5.88

Lease Rentals

0.08

Total

12,167.02

Source : Asian CERC

Marketing Strategy
Company is using different techniques such as advertising
Campaign, sales promotion, personal selling, direct marketing and
A sales
total amount
public relation to increase
of 85 crore is
spent on the ad
campaign
by
Asian
paint.
Their particular
ads
campaign
Mera
Walla
Blue har ghar
kuch kehta hai
are being liked
by
the
customer.
Asian paint online marketing system is helping the company in lot
of ways, providing all the necessary information to the customer. It is
an unique way of promotion. ..

PROMOTION
HOME OWNERS

Costumer Engagement
Activities

ARCHITECT &
CONTRACTORS

Famous Campaign: Har Ghar

Kuch Kehta Hai
Celebrity engagement
CSR Activities

PROMOTION
SERVICES/CONSUMER ENGAGEMENT
ACTIIVITES FOR HOME OWNERS
HOME PAINTING GUIDE
COLOR BOOKS
WEB COLOR DESIGNER/
COLOR GENIE
BE COLOR CONFIDENT
COLOR CHEF
HASSLE FREE HOME
SOLUTIONS
INSPIRATION WALLS

Market Share in India

Market Share
ICI
11%
ICI
Dulux; 11%
Nerolac; 17%
Asian
Paints
Berger; 17% 55%

Asian Paints; 55%

HR Strategies
A talent pool of over 4700
employees employed across 23
countries bring in a unique blend of
mindsets and skills.
Asian paints provide an open and
interactive work culture to the
employees to bring out the best.
A sense of ownership and freedom to
experiment at their workplace brings
out creativity and innovation in every
individual.
Excellent

training

is

provided

to

Recruitment

Company
is
following aptitude
test
,
group
discussion
and
personal
interview
for
recruitment

Company
is
recruiting :
MBA
Students
for Company has
marketing.
Bsc
training centre in
(chemistry),BE
Mumbai for
Mechanical
&
fresher's.
Chemical
students
For production and
CA & Mcom for

alance Sheet of Asian Paints

Mar '14 (In Rs. CR's) Mar '13 (In Rs. CR's) Mar '12 (In Rs. CR's)
Sources Of Funds
Total Share Capital

95.92

95.92

95.92

Equity Share Capital

Share Application
Money
Preference Share
Capital

95.92

95.92

95.92

3,505.01

2,926.34

2,391.86

3,600.93

3,022.26

2,487.78

6.65

9.28

17.01

Unsecured Loans

32.86

37.48

151.21

Total Debt

39.51

46.76

168.22

3,640.44

3,069.02

2,656.00

Reserves
Revaluation Reserves
Net worth
Secured Loans

Total Liabilities

Mar '14 (In Rs. CR's)

Mar '13 (In Rs. CR's) Mar '12 (In Rs. CR's)

Application Of Funds
Gross Block
Less: Accum.
Depreciation

2,908.10

2,803.73

1,659.51

895.9

701.84

650.47

Net Block

2,012.20

2,101.89

1,009.04

37.95

52.55

827.3

Investments

1,030.19

449.7

542.22

Inventories

1,665.05

1,480.79

1,264.42

Sundry Debtors

712.36

633.88

500.24

Cash and Bank Balance

745.36

566.86

450.94

Total Current Assets

3,122.77

2,681.53

2,215.60

Loans and Advances

478.6

362.61

361.22

Fixed Deposits
Total CA, Loans &
Advances

50.03

3,601.37

3,044.14

2,626.85

Current Liabilities

2,423.55

2,078.94

1,929.18

617.72

500.32

420.23

3,041.27

2,579.26

2,349.41

560.1

464.88

277.44

3,640.44

3,069.02

2,656.00

Capital Work in Progress

Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets

rofit & Loss account of Asian Paints

Mar '14 (In Rs. CR's) Mar '13 (In Rs. CR's) Mar '12 (In Rs. CR's)
Income
Sales Turnover

10,418.78

8,971.70

9,139.39

812.31

10,418.78

8,971.70

8,327.08

Other Income

163.7

126.15

90.43

Stock Adjustments

75.34

175.91

143.78

10,657.82

9,273.76

8,561.29

6,044.66

5,361.00

4,866.63

Power & Fuel Cost

114.65

101.65

74.29

Employee Cost
Other Manufacturing
Expenses
Selling and Admin
Expenses
Miscellaneous
Expenses
Preoperative Exp
Capitalised

482.43

404.59

343.51

77.05

1,672.74

2,075.11

1,733.10

36.77

8,716.85

7,600.34

7,070.99

Excise Duty
Net Sales

Total Income
Expenditure
Raw Materials

Total Expenses

Mar '14 (In Rs. CR's)

Mar '13 (In Rs. CR's)

Mar '12 (In Rs. CR's)

Operating Profit

1,777.27

1,547.27

1,399.87

PBDIT

1,940.97

1,673.42

1,490.30

26.08

30.56

27.88

1,914.89

1,642.86

1,462.42

212.32

126.98

99.49

Other Written Off

Profit Before Tax

1,702.57

1,515.88

1,362.93

2.38

1,702.57

1,515.88

1,365.31

533.51

465.88

406.92

1,169.06

1,050.00

958.39

Interest
PBDT
Depreciation

Extra-ordinary items
PBT (Post Extra-ord
Items)
Tax
Reported Net Profit

Accounting Ratios
I. Operating Profit Ratio
= Operating Profit/Net sales*100

Mar '14

Mar '13

Mar '12

1777.27/10418.78*1 1547.27/8971.7*100 1399.87/8327.08*10

00
0
17.05%

17.25%

16.81%

Net Profit Margin ratio

= Net profit/net sales*100

Mar '14

Mar '13

Mar '12

1169.06/10418.78*1
00

1050/8971.7*100

958.39/8327.08*100

11.22%

11.7%

11.51%

Accounting Ratios

. Return on Net worth

= Net Profit/Net worth*100

Mar '14

Mar '13

Mar '12

1169.06/3600.93*10
0

1050/3022.26*100

958.39/2487.78*100

32.47%

34.74%

38.52%

. Debt equity ratio

= Total debt/net worth

Mar '14

Mar '13

Mar '12

39.51/3600.93

46.76/3022.26

168.22/2487.78

0.01

0.02

0.07

Accounting Ratios
Debtors turnover ratio
= Net sales/debtors

Mar '14

Mar '13

Mar '12

10418.78/712.36

8971.70/633.38

8327.08/500.24

14.63

14.15

16.65

Mar '14

Mar '13

Mar '12

10418.78/3640.44

8971.70/3069.02

8327.08/2656

2.86

2.92

3.14

Total asset turnover ratio

= Net sales/Total assets

Accounting Ratios
Profit Volume ratio (P/V)
= Contribution/total sales * 100

Mar '14

Mar '13

Mar '12

8234.42/10418.8*10 7195.75/8971.70*10 5054.74/8327.08*10

0
0
0
20.97%

19.80%

39.30%

Break Even Point

= Fixed Cost/Profit volume ratio

Mar '14

Mar '13

Mar '12

482.43/20.97%

404.59/19.80%

2016.25/39.30%

2301.06

2043.90

5130.73

STOCK EXCHANGE ANALYSIS

ASIAN PAINTS

STOCK EXCHANGE ANALYSIS

ASIAN PAINTS

Capital Structure
Period
From

To

Paid Up Capital
Instrument

Authorised
Capital (Rs.
Cr)

Issued
Capital (Rs.
Capital (Rs.
Cr)
Shares (nos) Face Value
Cr)
959,197,790
95.92
.00
1
95.92
95,919,779.
95.92
00
10
95.92
64,185,952.
64.19
00
10
64.19
64,185,952.
64.19
00
10
64.19
19,911,110.
19.91
00
10
19.91
19,911,110.
19.91
00
10
19.91
12,444,444.
12.44
00
10
12.44
12,444,444.
12.44
00
10
12.44
8,296,296.0
8.3
0
10
8.3
5,185,185.0
5.19
0
10
5.19
5,185,185.0
5.19
0
10
5.19

2013

2014 Equity Share

99.5

2012

2013 Equity Share

99.5

2002

2003 Equity Share

99.5

2000

2001 Equity Share

99.5

1994

1995 Equity Share

34.5

1992

1993 Equity Share

34.5

1990

1992 Equity Share

19.5

1987

1990 Equity Share

19.5

1985

1987 Equity Share

9.5

1984

1985 Equity Share

7.5

1983

1984 Equity Share

7.5

1980

1983 Equity Share

2.5

2.5

250,000.00

100

2.5

1978

1980 Equity Share

2.5

2.5

250,000.00

100

2.5

1975

1978 Equity Share

2.5

1.5

150,000.00

100

1.5

Future growth of Paint

Industry
Paint industry estimated at Rs. 135bn.
Unorganized sector accounts to 35%
of paint market.
Volume growth estimated at 15%.
Indias share in the world paint market
is 0.6%.
Per capita consumption of paint in
India is 1.2kg/annum.

Future growth of Paint Industry

Though competition is increasing due to entry of global
players and capacity expansions, analysts believe
companies have reasonable pricing power on account of
rising incomes and a shift in consumer preferences to
the high-margin and fast-growing emulsions category.
The demand for decorative paints, which account for a
bulk of Asian Paints revenues, is robust, as paints are
increasingly being looked at as a necessity and not just
a discretionary spend. The industry has a strong linkage
to the gross domestic product (GDP) growth. As a result,
the Indian paint industry gets to cater the secondfastest growing market after China.

Future Growth of Asian

Paint

Asian
Paints
is
planning
an
international network of technology
centers spread across Australia,
Jamaica, Egypt, Dubai, Mauritius, Fiji
and Singapore.
The paint project will use the latest
techniques in production, packing,
conveying and storage in an ecofriendly manner, with zero discharge
of effluents.
With a 55 per cent market
share,Asian Paints will be the
biggest beneficiary of the industry
growth. Moreover, competition is
limited, as its distribution network of
27,000 dealers (twice its closest
peer) is a good entry barrier.

CONCLUSION
Asian Paints, Indias largest paint company and Asias
third largest paint company, with a turnover of Rs 96.32
billion.
Have an enviable reputation in the corporate world for
professionalism, fast track growth, and building
shareholder equity.
Over the course of 25 years Asian Paints became a
corporate force and India's leading paints company. Driven
by its strong consumer-focus and innovative spirit, the
company has been the market leader in paints since 1968 .