MARKET SHARE OF MAJOR PLAYERS

UNORGANIZES SECTOR 35%

ASIAN PAINTS 32%

KANSAI 11% OTHERS 5% ICI(AKZO NOBEL) 6%

BERGER 11%

COMPANIES REPORT CARD

company
Asian paints Kansai Nerolac Berger paints Akzo Nobel Shalimar paints

10 year X-ray
Green Orange Green Red Orange

Future prospects
Green Green Green Orange orange

INDIAN PAINT INDUSTRY :GROWTH IN VOLUMES.

18% 18% 16% 14% 14% 16%

13%

13%

2005

2006

2007

2008

2009

2010

2011(E)

2012(E)

REVENUE BREAK DOWN OF INDIAN PAINT INDUSTRY

EXTERIOR EMULSION 12% INTERIOR EMULSION 17% WOOD FINISH 2%

ENAMELS 50% DISTEMPER 19%

INTRODUCTION
Started by --CHAMPAK LAL CHOKSEY --CHIMAN LAL CHOKSI --SURYA KANT DANI --ARVIND VAKIL ON 1st feb,1942 Manufactured paint in a GARAGE of BOMBAY THE ASIAN OIL & PAINT CO. -Randomly picked from TELEPHONE DIRECTORY

JOURNEY OF ASIAN PAINT

1945- REGISTERED as Pvt.co. 1954- Mascot-GATTU by R.K.LAKSHMAN 1965- ASIAN OIL & PAINT PVT.LTD changed to ASIAN PAINTS (INDIAN)PVT.LTD 1968- MARKET LEADER 1973- converted to PUBLIC LTD.CO. 1974- BHANDUP(M.H.) declared largest paint factoty 1985- 3rd plant at patancheru(A.P.) near hyderabad 4th plant in KASNA (U.P.) & agreement with NIPPON of JAPAN 1990- ASIAN PAINTS joint ventures in FIJI & TONGA 1996- 5th plant in RATNAGIRI. 2000- year of globalisation plant in OMAN & MAURITIUS & acquired business of PACIFIC PAINTS(AUSTRALIA) &DELMEGE FORSYTH &CO. of SRILANKA 2008- constuction of new plant at rohtak

ASIAN PAINT- CURRENT POSITION

Indias largest paint company Asias third largest paint company, with a turnover of Rs 77.06 billion Forbes Global -among the 200 Best Small Companies(2002,2003) and presented the 'Best under a Billion' award(ASIAs), to the company. Asian Paints is the only paint company in the world to receive this recognition(2005,2006,2007). Double the size of any other paint company in India. Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka) SCIB Paints in Egypt Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman), Caribbean (Jamaica, Barbados, Trinidad & Tobago) Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu) Taubmans in South Pacific (Fiji and Samoa) IN Asia's Fab 50 List by Forbes Asia Magazine (Sept 2011 Issue). Planning to set up plant at pune

STRATEGIES
REMOTEST CORNER SMALLER TOWNS GATTU SMALL PACKS CLOSE RELATION WITH DEALERS 1990s-Target by LOWERING prices(consumers are brand consicous and involved) VERTICAL INTEGRATION (PENTAERYTHRITOL & PHTHALIC ANHYDRIDE(PAN) SHADECARD 2004 positioned as umbrella brand, 2007-TIE UP WITH IIT HORIZONTAL INTEGRATION (VINYL PYRINDINE LATEX)FOR RUBBER TYRES SCM from i-2 & ERP from SAP Early 2000 Direct link with customers through help lines. Covers all the segment , KIDS WORLD,PAINT CALCULATOR Discounts to attract retailers , PROFESSIONAL PAINTING SERVICE Ads creates emotional. psychological and social among the customers More than 4000 colourworld machines

WORKING OF PAINT PLANT

ASIAN PAINT SALES OUTSIDE INDIA

SOUTH EAST ASIA 8% SOUTH PACIFIC 7%

SOUTH ASIA 15%

MIDDLE EAST 54%

CARIBBEAN 16%

INTERNATIONAL MARKET
Growth drivers China Egypt Malaysia,thailand Singapore Srilanka UAE
Market leaders

Focus for turnaround

Jamaica
Trinidad Bahrain

australia
Mauritius Oman

Nepal
Tonga fiji

malta

DISTRIBUTION CHANNEL
800 RAW MATERIAL SUPPLIERS

300 PACKING MATERIAL VENDORS

2 CHEMICAL PLANTS,21 MANUFACTURING CENTRES,OPERATING IN 17 COUNTRIES,6 SUBSIDARIES 4200 EMPLOYEES,SERVICING CONSUMERS IN 65 COUNTRIES

6 DIVISIONS,35 job work centres,74 branches,500 industrial customers

90 DEPOTS,3000 SKUS,27000 RETAILERS,95000 SUB RETAILERS

MARKETING MIX
PRICE
-ROYAL FOR PREMIUM SEGMENT -APCOLITE FOR MIDDLE SEGMENT

PRODUCT/QUALITY
-WALL PAINTS -METAL PAINTS

-WOOD FINISHES
-BACKWARD INTEGRATION (PAN) -PYRINEDINE LATEX FOR RUBBER TYRES

-TRACTOR,UTSAV FOR LOWER SEGMENT

4ps of ASIAN PAINTS

PLACE/DISTRIBUTION
-23 PLANTS -90 DEPOTS -2500 SKUS -27000 RETAILERS

PROMOTION/ADVERTISEMENT
-WARRANTY SCHEME -50 ML PACKS -GATTU -SAIF ALI KHAN (ROYAL)FOR PREMIUM CLASS -BADIYA HAI CAMPAIGN(MIDDLE CLASS HOUSEHOLDS)

STREGNTH
-market leader(32% share) -capacity expansion plans -Pricing power -manufactures PAN

WEAKNESS
Industrial business performing below par -hiccups in international business(strife in egypt , bahrain) -international presence restricted to small pockets

-wide distribution network

-Gattu

SWOT analysis
OPPORTUNITIES
Increasing market share in industrial share
Developing market in automobile sector. Per caita consumption in india0.78kg p.a.

THREATS
Domination of few foreign players High tech instant spot fixing colour Automated paint blending in retail points

In europe 12 kg,usa 19kg,brazil 5.8 kg

Turning Points in the Paint Industry of India

Governed by FERA (Foreign Exchange Regulations Act) and MRTP (Monopolies & Restrictive Trade Practices Act) Restricted from enhancing their production capacity. With the advent of liberalization these shackles were taken off and the industry expanded. Reduction of import duty from 40% to 15.3%

Factors effects paint industry

political Social Legal Technology Enviornment economical

MADHAVS PART
D CUST 2DAY IS MCH MRE INVOLVED WID PROCES OF PAINTNG N IS LUKNG AT WHOLE EXPERINCE OF INTERIOR DECORATION AS WELL AS PAINTING AS AS EXPRESSION OF THEIR PERSNALITY,THEY R BUYNG IN2 A PRODUCT DAT PROMISES SELF EXPRESSION,SOPHISTICATION,TECH,EVEN SERVICES;;;;;HOW SHUD APIL(ASIAN PAINT )ADS EVOLVE ITSELF 2 REMAIN CONTINUSLY RELEVANT 2 DESE CUSTOMERS? HOW SHUD APIL AS A MARKET LEADER IN DECORATIVE CATEGORY,UPGRADE ITS CUSTOMER 2 VALUE ADDED/SUPERIOR QUALITY/HIGH MARGIN PRODUCTS? APIL HAS MADE SUBSTATNTIAL MARK 4 ITSELF IN DECORATIVE PAINT CATEGORY ,CN YU MADHAV DESSIGN A SUITBLE ADS STRTEGY 2 ENSURE DRE IS A +VE RUB OFF IN INDUSTRIAL SEGMENT ALSO ? YUR TYM BEGINS I WILL DO PESTEL INTRO,BACKGROUN,FACTS ,4P,STP,DISTRIBUTION,STRATEGIES COMPETITIORS R DUN