Case Study On MNC

asian paints
KYUNKI HAR GHAR KUCH KEHTA HAI

asian paints
Every Color tells a story

Presentation Structure
Intro. To Paint Industry Company Profile Business Profile Growth Strategy Supply Chain Corporate Governance CSR Future Outlook

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.

Introduction to Asian Paints

Started in 1942 by four entrepreneurs:

Champaklal choksey, Chimanlal choksey, Suryakant Dani and Arvind Vakil as ASIAN OIL & PAINTS COMPANY.
Within three years, their turnover reached 3.5 lacs. In 1967, Asian paints became the 10th largest paint company

in the world.

Vision

Asian Paints aims to become one of the top 5 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.

MISSION

TO BE THE LARGEST DECORATIVE PAINT CO. WORLDWIDE AND TO BE THE 5TH LARGEST PAINT

Asian Paints- Today

Company Profile Product Profile

INTERIOR PAINTS. EXTERIOR PAINTS. WOOD FURNISHES. WOOD & METAL FURNISHES.

The five corporate brands 11

Competitors
Market Share in India
Sh al im ar

4%

37% nts ai an p Asi

13 .8 Be rg er Pa in ts

%
lac ero sN dlas Goo %
15.9

International Operations
Caribbean Islands

Middle East

Barbados, Jamaica, Trinidad & Tobago.

Bahrain, Egypt, Oman & United Arab Emirates.

South Pacific

South East Asia

Fiji, Tonga, Vanuatu, Solomon & Samoa Islands.

South Asia Bangladesh, Nepal & Sri Lanka.

China, Malaysia, Singapore & Thailand.

GROWTH STRATEGY AND M&A

Growth Strategy: To increase sales growth rate of the group 15 beyond past levels using a two-pronged approach:

Mergers & Acquisitions

Buys Taubmans Paints (Fiji) In September 2003

Acquires ICI Indias Unit (February 2007)

Sells stake in Australian Unit (June 2007)

Marketing, Sales & Distribution

Rural Marketing Initiatives since 1960. Distribution is one of the main strategy of Asian Paints. Advertising & Promotional Expenditure started in 1980s. Advertising Methods- Radio, TVCs, Print, Internet,

OOH, POP, Retail Outlets, Seminars, Workshops.

Advertisements
Promotional Expenditure grew from 15% in 2003 to 21% in 2008.

Supply Chain Management

i2 Supply Chain Management to meet changing

demands.
ASHWIN DANI, VICE-CHAIRMAN AND MANAGING DIRECTOR, ASIAN PAINTS (INDIA) LTD, HAS BEEN PRESENTED WITH THE HIGHEST RECOGNITION IN SUPPLY CHAIN MANAGEMENT THE CHEMINOR AWARD FOR 2002 BY INDIAN INSTITUTE OF MATERIALS MANAGEMENT (IIMM).

Supply Chain
2 chemical plants & 18 processing centers 140 packaging & material vendors

350 raw material & intermediary good suppliers

6 Regional Distribution Centers & depots

Over 14500 direct dealers as opposed to 7000 of our nearest competitor Over 35% of the dealers do business only with APIL 67 sales locations situated all across the Country

Consumer-centric initiatives
Asian Paints Home Solutions - Offers a painted surface vs. just paint Aimed at controlling the quality of end product Overcomes major barriers to purchase/consumption Good response from the market; present in six cities Asian Paints Helpline Toll free access to the Helpline High conversion rate into actual sales

Cont
Colour World machines

3175 machines installed till February 1, 2003 827 machines installed under arrangement with Citibank Colour World dealers make more than 50% of sales Prediction of colour trends in India The launch of Kids World Royale Play Do-It-Yourself mode

 Satisfaction of the spirit of the law through

ethical business conduct Transparency and a high degree of disclosure levels Truthful communication about how the company is run internally A simple and transparent corporate structure driven solely by the business needs Strict compliance with Clause 49 of the Listing Agreement as amended from time to time Establishment of an efficient corporate structure for the management of the Company's affairs Management is the trustee of the shareholders' capital and not the owner

Human Resources
Majority of employees are hired from premium

management institutes.

Recreational facilities are provided to the employees.

CORPORATE SOCIAL RESPONSIBILITY

Water Conservation-Total

Water Management Center.

Age Care. Education. Other Initiatives.

Environment and Safety

FUTURE OUTLOOK
To further improving the operations. Plans to launch new products in line as:

- Introducing Water based Paints - Repositioning of existing Brands in Rural Market - Broadening of Distribution Network - Adding more choices for shades and effects - Enhancing Better Quality - Demand will be generated through the new constructions coming in housing and industries

PAINTERS
Sandesh Singh Sandip Kadam Sanjay Dailani Shakil Siddiqui Sukhad Deshmukh Naveed Razvi

(86) (87) (88) (95) (99) (104)

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