Asian Paints - Reference PPT by Yadnya

ASIAN PAINTS LIMITED
STOCK REVIEW & ANALYSIS BY YADNYA
©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited

Asian Paints Ltd –Key Topics to be discussed
Current Market Position &
Market Opportunity &
Brand Value & Business Financials – Valuations – Governance
Growths
model
Promoter Holding &

Milestones Paint Industry Cost Analysis Pledged holding?
PE Trend
Overview Major Shareholders
Share Price Top Management

Group subsidiaries Profile
Performance
Input Cost Valuation Ratios Board Composition
Sales and Profit Directors
Key Highlights
Percentages remuneration
Corporate
Market Share Latest Financials and Relative Valuation Governance
4 Ps of Marketing Comparison with Awards and
peers Recognitions

COMPANY
OVERVIEW

MILESTONES
1945
1st February 1942 Reached a turnover of INR 1967 2003
Started the company Asian 350,000 emerges as India’s leading Asian Paints (India)
Oil & Paints Asian Paints mascot Gattu paint company awarded the 9.2% stake
is born
/
2010 commencement of 2007 2006 2004
commercial production at Enters into agreement for Only Paint company to be
its new facility in Rohtak, Consolidated turnover
sale of stake in Asian awarded as Forbes Best
Haryana. Paints Queensland crosses INR 3000 crore under billion
2014
Asian Paints increased its
stake in Berger
International Limited (BIL)
to 96.7%

Global Subsidiaries
GROUP SUBSIDIARIES
Indian Subsidiaries
Asian Paints PPG:
Asian Paints PPG Pvt. Limited is leading player in the field of Protective Coatings, Powder Coatings, Floor
Coatings and Road Marking Coatings.
The company is 50:50 joint venture between Asian Paints Ltd. and PPG Industries, USA formed in 1997
PPG Asian Paints has 3 state of the art manufacturing units across India.
With successful operations across 20 states through a network of 42 sales offices, PPG Asian Paints is the
largest industrial coatings company in India generating a total turnover in excess of INR 8000 million
It has a Market share of 24% in the Industrial coatings, PPG Asian Paints is India’s second-largest player in the
automotive OEM paint segment.
It has an eminent client base in the automotive industry including Hyundai motors, General motors, etc

Indian Subsidiaries
Sleek: Ess Ess:
Sleek is a subsidiary of Asian Paints that provides complete In 2014,Asian Paints acquired the front end sales business
kitchen and wardrobe solutions. including brands, network and sales Infrastructure of Ess
Ess Bathroom Products Pvt Ltd.
Asian Paints acquired a 51% stake in Sleek in 2013 and in 2017

acquired remaining 49% stake, making Sleek a 100% Its key customers are Reliance Corporate, Ramoji Film city,
subsidiary of Asian Paints. MTNL, Videocon, etc
It has a turnover of around INR 30.85 crore Ess Ess has been rated 5 star by the Water Efficiency
Labelling and Standards(WELS)-Australia
It has become India’s largest modular kitchen brand with over

17 retail shop-in-shop outlets, 15 retail standalone outlets and
460 dealer outlets across India.

KEY HIGHLIGHTS
9th largest Paint company in world ,3rd largest in Asia and largest in India.
Operates in 16 countries spread across the globe.
Servicing consumers in over 65 countries.
Forbes Asia’s Fab 50 company, Five times in a row

Asian Paints revenue grew by 12% Y-o-Y mainly led by 12% growth in decorative paints segment and
24% growth in home improvement segment.
Two large paint manufacturing units of 300,000 KL/annum each at Mysuru and Visakhapatnam
during the year.
Total capex during FY19 was about INR1000 crore and planned capex of INR 700 crore for FY20.
Part of NSE NIFTY50 & BSE Sensex

COMPANY
OVERVIEW
4Ps OF MARKETING
Product | Pricing | Promotion | Place (Distribution)

PRODUCT MIX
Four Divisions:
1. Decorative coatings which includes Paints,
wall coverings, water proofing, kitchen
fittings, bath fittings, adhesives, services, etc
2. Industrial coatings which includes protective
coatings, powder coatings, floor coatings, and
road markings
3. Home Improvement businesses: Currently it
includes two categories of kitchen and bath
fittings comprising ranges of modular
kitchens and sanitaryware. Recently they
have introduced wardrobes
4. International operations

Growth - 24%
FY2018-19
3% 2%
12%
REVENUE MIX
(Segment wise)
83%
Growth - 12%
Decorative Paints International Industrial Coatings Home Improvement

DECORATIVE PAINTS
Largest Business unit-83% of revenue contribution
Products are categorised under four segments-interior wall, exterior wall, wood finish and metal finish
State of the art ,highly automated manufacturing eight plants
Asian Paints is a Market Leader in Decorative Paints Segment in India
Leader across all geographies except Kashmir
20-30 new products every year
Innovating the retailing foot print with 400+ Colour Idea stores
Experimenting with AP homes-Multicategory décor stores

Decorative: New Products Launched in FY18-19
The company mainly tried to adhere to eco-friendly theme in new products.
Royal Health Shield: developed to address safety and health issues of consumer, conforms to the
stringent anti-asthma requirements of American Asthma Foundation (AAF)
2k PU Magnum with 15 years waterproofing warranty for terraces developed and
commercialized.
Protek Lamino’ anti-graffiti self-cleaning exterior paint developed and launched with 15
years’ warranty
Nilaya Natural’ developed with 95% natural content with unique tinting system using powder
tinter
Developed and commercialized ‘Apcocryl TSA Anti dust Clear coat’ for the Fan industry
‘Asian Epoxy Dual Coat’ with 30 fast moving shades developed and launched through industrial
tinting system

INDUSTRIAL COATINGS
Operates in the Industrial coatings segment through Joint venture with PPG Inc. ,USA
Makes up about ONLY 3% of total revenues
Spectrum of Industrial Coatings-Automotive coatings, Refinishes, Protective Coatings, Floor Coatings and Powder
Coatings
Kansai Nerolac is the market leader in the auto segment of Industrial coatings in India
Auto segment registered a slowdown in the second half of year which impacted the profitability.
Focus on geographical expansion and enhancement of product portfolio through customer acquisition and product
launches

INTERNATIONAL BUSINESS
Contributes 12% to the overall group revenue. Market Position across all geographies as
follows:
Revenue breakup across all
geographies

HOME IMPROVEMENT BUSINESS
Home Improvements is spread over kitchen and bath business
Company operates in home improvement business through its two brands :Ess Ess and Sleek
Sleek also forayed into Wardrobes in Modular category which has shown strong growth
although on a low base.
Launched new products namely Bath Sense Fittings and Sanitaryware which were positively
accepted in the market

PRICING
Given the weak demand environment faced by customers, Asian Paints has not taken
sufficient price increases to offset raw material inflation in the industrial segment.
Still Asian Paint’s most products sell at 5-10% premium gaining competition.
The company experiences high margins due to its brand name and eco-friendly
products.
The overall pricing strategy in the marketing mix of Asian Paints is based on product
quality, competition and the solutions required by the customers.
Asian Paints’ primary target consumers are construction company and contractors
hence it provides volume discounts for exclusive purchase of Asian Paints products.

PRICING
The four product categories in decorative paint segments of Asian Paints along with their comparison with
those of Nerolac are as follows:
Asian Paints Kansai Nerolac
Product category Price Range (INR/ltr) Product Category Price Range

(INR/ltr)
Super Luxury 600-650 Super Premium 550-980
Luxury 400-450 Premium 310-478
Premium 200-350 Popular 170-250
Value for Money 100-200 Economy 125-190

PROMOTION AND BRANDING
Asian Paints always focussed on marketing since early 1950’s.
They started with their tagline ”Don’t lose your temper, use
Tractor Distemper.”
To target the middle-class segment, the company created a

mascot “Gattu” which was created by famous cartoonist R.K.
Lakshman.
Associated with the advertising agency Ogilvy & Mather which

came up with the tagline “Har Ghar Kuch Kehta Hain” that
instantly connects with people
Asian Paints has roped in popular Bollywood actor Ranbir

Kapoor, actress Deepika Padukone and Cricketer Rahul Dravid as
their brand ambassadors.

PROMOTION AND BRANDING - Digital
To promote their product Apex Ultima Protek it has used hashtags
“#Barishkoaanedo” that conveys the walls painted using Apex Ultima
Protek will sustain heavy rains.
Carried out several contests on social media like #DonateAWall to

attract customers.
Its website is interactive and provides users to upload a picture of

their walls and virtually observe different shades of paints on the
wall.

DISTRIBUTION
About 3000 dealers added every year
Over 135 depots servicing over 60,000 customers
Increased Reach-15,000 retailers to 60,000+ retailers

/
Increased Colour Idea stores to 4000 and colour world network to 46000.
Asian Paints Color Academy offers training facilities for both new and experienced painters
Set up Signature Stores in Mumbai, Kolkata and New Delhi where consumers can get expert assistance on painting
ideas, know what’s trending, and visualize dream home using latest visualization technology.
Expanding its presence in Africa and South East Asia

MANUFACTURING

INNOVATION IN RETAILING
Colour Idea Stores-400+ Colour idea stores
• Showcasing latest products and offerings and enabling customers to try and decide with the help of
consultants
• It also serves as a great platform for architects, interior designers and contractors to visit along with their
clients and satisfactorily close the shade/finish decision.
AP Homes
• Multi category décor stores offering décor inspiration engaging in-store experience, personalisation,
consultations and holistic décor across multiple categories
• The footprint of AP homes as of FY19 spanned across 5 fully operational stores in Coimbatore, Delhi,Kochi,
Raipur and Karur.
Colour with Asian Paints

• COLOUR with Asian Paints" is an international award winning, one of its kind retail store in the world.
• Colour consultants guide through the different colour and finish options for home and help to choose the
best.

PAINT INDUSTRY
OVERVIEW

INDIAN PAINT INDUSTRY
Domestic Paint Industry estimated around INR 50,000 crore in 2018
The Paint Industry growth tends to be 1.5 -2 times GDP growth

DECORATIVE PAINT INDUSTRY
It consists of exterior wall

paints, interior wall paints,
Consists of 75% of Paint
wood finishes, enamels as
Industry
well as ancillary products
like primers, putties, etc.
Of all the products,

The average range for
emulsions are expensive
decorative paints is
because of their better
INR100-300 per litre.
quality.

INDUSTRIAL PAINT INDUSTRY
Industrial Paints segment includes includes a broad array of segments
like automotive coatings, marine coatings, packaging coatings, powder
coatings, protective coatings and other general industrial coatings
This segment is dependent on business cycle activity and economic
conditions.
Mainly comprises of organised players as it is far more technology

intensive as compared to decorative paint segment.
Industrial Paints are anti corrosive paints and average pricing is around
INR 300.
The automotive coatings market is primarily dependent on auto and

two wheeler markets and the significant slowdown in these industries
impacted the demand conditions.

INPUT COST – CRUDE DEPENDENT
The domestic paint industry still continues to have a 30-35% of
unorganized players in the industry, mainly in the decorative paint
business. Crude oil prices over the years
Input cost as raw materials consists of around 45-50% of Industry’s

sales on average.
Raw Material Intensive with over 300 raw materials petro-

chemical based. (derived from crude oil)
Experienced significant raw materials inflation due to rising crude

prices and depreciating currency which led to a few rounds of
price increases by the industry players to shore up margins.

PAINT INDUSTRY - PROSPECTS
Decorative paints segment

Fiscal incentives by the
expected to witness higher Paint distribution is highly
government to housing Shift from unorganized to
growth due to rapid underpenetrated (per capita
sector have benefited the organized sector due to GST
urbanization and nuclear consumption of 4kg)
housing sector.
family growth.
Government’s focus on
Decreasing the GST rate on The demand outlook would
infrastructure development
paints from 28% to 18% is also depend upon the
would also provide impetus
expected to augur well for demand recovery in
to the industrial coatings
the paint industry. automobile sector.
segment.

PAINT INDUSTRY - MARKET SHARE (Value)

FINANCIAL INFO.

100.00
120.00
140.00
160.00
20.00
40.00
60.00
80.00
0.00
19/Aug/2016
19/Sep/2016
19/Oct/2016
19/Nov/2016
19/Dec/2016
19/Jan/2017
19/Feb/2017
19/Mar/2017
19/Apr/2017
19/May/2017
19/Jun/2017
19/Jul/2017
19/Aug/2017
19/Sep/2017
q52 Week Low – INR1119.6

CLOSE(NIFTY)
19/Oct/2017
19/Nov/2017
19/Dec/2017
19/Jan/2018
19/Feb/2018
19/Mar/2018
19/Apr/2018
19/May/2018
19/Jun/2018
19/Jul/2018
19/Aug/2018
CLOSE(Asian Paints Ltd)
19/Sep/2018
19/Oct/2018
19/Nov/2018
19/Dec/2018
19/Jan/2019
19/Feb/2019
19/Mar/2019
19/Apr/2019
19/May/2019
19/Jun/2019
SHARE PERFORMANCE
19/Jul/2019
q52 Week High – INR 1609.4
3 Year Returns
NIFTY 50 = 27.44%
Asian Paints = 43.55%
QUARTERLY PERFORMANCE – GROSS SALES
Gross Sales
7,000 25.00%
5,781
5,451
6,000 20.2% 19.7% 20.00%
5,033
4,873
16.7%
4,559
5,000 15.7%
14.8%15.00%
4,094
3,810
11.9%
Percentage Change
Gross Sales (Rs. Cr)
3,598
3,507
4,000 3,339 10.00%
3,111
2,779
6.9%
3,000 5.00%
2,000 0.00% 0.00%
-2.5%
1,000 -5.00%
-6.8% -6.9%
-7.7%
0 -10.00%
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
Gross Sales Percentage Change in Gross Sales

QUARTERLY PERFORMANCE – OPERATING PROFIT
Operating Profit
700 70.00%
58.2%60.00%
595
600
49.8% 50.00%
41.2% 40.00%
462
500
437
435
Operating Profit(Rs. Cr)
30.00%
404
Percentage Change
28.4%
376
400 23.2%
20.00%
339
326
309
14.5%
297
10.00%
300
241
4.0%
218
0.00% 0.00%
200 -7.7% -10.00%
-18.6% -20.00%
100
-26.7% -28.9% -30.00%
0 -40.00%
Operating Profit Percentage Change in Operating Profit

QUARTERLY PERFORMANCE – PROFIT AFTER TAX
PAT
400 100.00%
335.31
350 80.8% 80.00%
65.3%
257.11
300 60.00%
251.77
250.61
50.0%
225.74
Percentage Change
202.89
250 40.00%
191.04
31.3% 31.8%
PAT (Rs. Cr)
174.77
167.1
200 20.00%
151.88
13.9%
9.3%
115.65
150 0.00% 0.00%

96.67
-9.9%
100 -21.1% -20.00%
-36.4% -33.6%
50 -40.00%
0 -60.00%
Profit After Tax Percentage Change in Profit After Tax

18,779.56
Gross Sales
16,651.67
20,000.00 30.0%
16,203.39
14,974.24
18,000.00
25.9%
13,656.90
25.4% 25.0%
16,000.00
12,167.02
10,462.94
14,000.00
19.9% 20.0%
9,118.92
Percentage Change
Gross Sales (Rs. Cr)
12,000.00
16.3%
7,242.65
10,000.00 14.7% 15.0%
5,776.47
8,000.00 12.2% 12.8%
9.6% 10.0%
6,000.00
8.2%
4,000.00
5.0%
2,000.00 2.8%
0.00 0.0%
Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
Gross Sales (crores) Percentage Change in Gross Sales
ANNUAL PERFORMANCE – Gross Sales

Operating Profit
3,206.71
3,500.00 120.0%
2,889.65
2,679.02
3,000.00
2,430.10
100.0% 100.0%
1,964.73
2,500.00
Operating Profit (Rs. Cr)
80.0%
1,731.54
Percentage Change
1,549.81
2,000.00
1,394.24
60.0%
1,138.67
1,123.77
1,500.00
40.0%
1,000.00
22.4% 23.7%
20.0%
500.00
11.2% 11.7% 13.5% 11.0%
10.2% 7.9%
0.00 1.3% 0.0%
Operating Profit (crores) Percentage Change in Operating Profi t
ANNUAL PERFORMANCE – Operating Profit

PAT
2,134.76
2500 25.0%
23.6%
1,894.80
22.3%
1,801.72
1,622.81
2000 20.0%
1,327.40
Percentage Change
1,169.06
1500 15.0%
1,050.00
PAT (Rs. Cr)
13.5%
958.39
12.7%
775.15 11.3% 11.0%
774.5
1000 10.0%
9.6%
500 5.2% 5.0%
0 0.1% 0.0%
PAT (crores) Percentage Change in PAT
ANNUAL PERFORMANCE – Profit After Tax

ROCE
80.42
90 70.0%
80 60.0%
56.9%
61.97
50.0%
70
59.01
53.39
40.0%
51.09
Percentage Change
49.62
60
47.5
30.0%
40.92
ROCE (%))
50
38.67
38.38
20.0%
40
10.0%
30
-2.9% -0.7% 0.0%
-4.8% -4.3% -4.3% -5.5%
20
-9.5% -10.0%
-13.9%
10 -20.0%
-22.9%
0 -30.0%
ROCE (%) Percentage Change in ROCE
ANNUAL PERFORMANCE - ROCE

COST ANALYSIS
LATEST FINANCIALS VS CATEGORY
PARAMETERS Asian Paints CATEGORY AVG. RANK IN PAINT CATEGORY
Market Capitalization 142,411.5crores -
Profit After Tax (PAT) (TTM) 2208 crores -
EBITDA Margin(TTM) 20.1% 17.14% 1st
Profit After Tax Margin (PATM)

11.4% 9.38% 1st
(TTM)
Return on Capital Employed (ROCE) 23.2% 18.6% 1st
Return on Equity (ROE) 30.4% 10.91% 1st
Return on Assets(RoA) 14.7% 11.55% 1st
Current Ratio 1.52x 1.87x 2nd
D/E Ratio 0.01 0.103 2nd

COMPARISON WITH COMPETITORS
Asian Paints Kansai Nerolac Berger Paints
Market Capitalization 142,411.5crores 23,173.6 crores 29,357 crores
EBITDA Margin(TTM) 20.1% 15% 16.29%
Profit After Tax Margin (PATM) (TTM) 11.3% 8.3% 8.59%
Return on Capital Employed (ROCE) 34.8% 21.1% 28.67%
Return on Equity (ROE) 24.2% 13.7% 21.38%
Return on Assets(RoA) 14.7% 10.4% 9.53%
Current ratio 1.52x 2.44x 1.64x
D/E Ratio 0.07 0.03 0.21

VALUATION

P/E Ratio
80 80.0
70 67.0 67.6 70.0
60 58.4 57.0 56.7 60.0

57.48
51.4 55.2
50 50.0
44.9 44.8 47.1
45.1
40 44.7 40.0
31.3 32.4 35.0
33.3
30 25.3 29.5 30.0
20.8
22.3
20 22.4 20.0
18.9
10 10.0
0 0.0
Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 23rd Aug-
19
PE Ratio (x) Paint Category Average P/E
PE TREND
March-19 March-18 March-17 March-16 March-15 March-14 March-13 March-12 March-11 March-10
Price / Book
16.1 13.8 14.5 14.1 18.3 14.6 15.6 12.5 12.3 12.6
Value(x)
Dividend Yield(%) 0.7 0.8 1.0 0.9 0.7 1.0 0.9 1.2 1.3 1.3
EV/Net Sales(x) 8.7 7.6 8.1 7.0 6.7 5.0 5.2 3.9 3.8 3.8
EV/EBITDA(x) 39.8 33.6 34.5 30.5 35.2 26.8 27.8 20.6 19.3 16.9
EV/EBIT(x) 44.6 37.2 38.3 34.2 39.5 30.2 30.1 22.0 20.9 17.5
EV/CE(x) 10.9 9.3 9.9 9.5 10.7 7.8 8.3 6.4 6.2 4.3
M Cap / Sales 8.7 7.6 8.1 7.0 6.7 5.0 5.3 3.9 3.8 3.8
PAINT CATEGORY VALUATION RATIOS

Verdict:
As seen from the relative valuation
metrics(P/E and EV/EBITDA),company seems
to be trading at richer valuations, but these
seem justified given the brand name and
company's growth in decorative paints and
home improvement businesses.
RELATIVE VALUATION
CORPORATE
GOVERNANCE.

Promoter Holding , Pledged Holding, FII and DII
Sep-18 52.79% 14.87% 11.34% 21.00%
Dec-18 52.79% 15.67% 10.48% 21.06%
Mar-19 52.79% 16.33% 9.51% 21.37%
Jun-19 52.79% 16.65% 8.95% 21.61%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Promoter FII's DII's Others
Promoters have pledged 6.32% of total shares in FY19 as against 6.95% shares pledged in FY18
FIIs have increased their stake over time.

MAJOR PUBLIC SHAREHOLDERS
Jun-19 Mar-19 Dec-18 Sep-18

SBI Mutual Fund 1.186% 1.105% 1.071% 0.976%
ICICI Prudential Mutual Fund 0.898% 0.708% 0.720% 0.731%
Axis Mutual Fund 0.633% 0.548% 0.376% 0.152%
DSP Mutual Fund 0.332% 0.283% 0.230% 0.153%
UTI Mutual Fund 0.314% 0.291% 0.254% 0.235%

MANAGEMENT PROFILE
Name Designation Education Tenure at current

position
K.B.S Anand M.D&CEO MBA 7
(IIM Ahmedabad)
Amit Syngle COO MBA 1
Jayesh CFO CA,CS,LLB 1

Merchant

BOARD COMPOSITION & PROFILE
The board consists of 7 Independent directors and the company has received declarations that they meet the independence
criteria prescribed under the Company’s Act.
Name Designation Directorship held in Profile

other companies
Deepak Satwalekar Independent director 3 Former MD&CEO of HDFC Life
Insurance
S. Sivaram Independent director 3 A Scientist with IISER
Suresh Narayanan Independent director 1 CEO of Nestle India Limited
Pallavi Shroff Independent director 4 Managing Partner & Lawyer at Shardul
Amarchand Mangaldas & Co
M.K.Sharma Independent director 4 Chairman, ICICI Bank
Vibha Paul Rishi Independent director 9 Former Executive Director of Max India
R.Seshasayee Independent director 2 MD – Ashok Leyland

OTHER CORPORATE GOVERNANCE
Parameters On-going practices Verdict
Nomination committee Comprises of Independent Good
directors
Audit committee Comprises of Independent Good

directors
Auditor Deloitte Haskins & Sells LLP -

Auditor fees INR 4.14 crores
Auditor’s opinion Unqualified Good
Proxy Voting Allowed Good
Independent directors meeting Once in a year Good
Gender Equality Present Good

DIRECTOR’S REMUNERATION & COMPETITION
Company Name Director /KMP Designation Remuneration Ceiling as per
name (in INR crores) Company’s Act
(in INR crores)
Asian Paints K.B.S Anand MD & CEO 11.80 15.74
Asian Paints Jayesh Merchant CFO & CS 0.29 50.98
Asian Paints Non-executive 4.83 31.66
directors
Kansai Nerolac H.M Bharuka Vice chairman & MD 7.01 35.11
Kansai Nerolac Anuj Jain Whole time Director 1.74
Kansai Nerolac Non-executive 9.91 77.24
directors

India’s Most 8th Most Valuable
Best Regarded Respected Companies
Company Brands in India
(Indiaʼs Most Respected
(compiled by marketing and brand
(Included in Forbe’s List of World’s Companies" by Business World
consultancy Milward Brown and
Best Regarded Companies) Magazine (August 2018))
WPP Group (September 2018))
Recognised for Market Excellence in

Excellence’ Corporate Governance
(Economic Times Brand Equity FY2018-19
Marketing Awards(April 2018))
(Awarded by Legal Era India)
AWARDS AND RECOGNITIONS

Strengths Weaknesses
• Brand Name • Adverse impact of foreign
• Strong share in decorative exchange & Crude Oil
paint segment. prices
• Continued increase in • Dependence on imports
Dealer Network from China
• Using digitisation to • Major weakness on the
improve customer technology of Industrial
experience and increase Paints where they lag
SWOT ANALYSIS
its reach compared to competitors
• Good Quality Products • Seasonal demand
Opportunities
sometim
Threats
es
• Entry into home
improvement business.
create
• Geo-political concerns at a
global level
• Government policies to
boost infrastructure
cashflow
• Berger & Nerolac going
aggressive in Decorative
development
issues
paint segment

DATA SOURCE & DISCLAIMER
Data Source –
Asian Paints Ltd Company Website, Accord Equity
Disclaimer
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because we do not create the data, and because the processing required to make the data
useful is complex, we cannot be liable for omissions or inaccuracies. The data and any related
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implied. The entire risk of use of the data shall be with the user.
All in the information above is for Information purpose only. Please do not use the above
information as a substitute to Investment/Stock advise and please contact your Financial
advisor for final recommendations.

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Asian Paints - Reference PPT by Yadnya

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ASIAN PAINTS LIMITED

STOCK REVIEW & ANALYSIS BY YADNYA

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Promoter Holding &

Share Price Top Management

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Asian Paints acquired a 51% stake in Sleek in 2013 and in 2017

It has become India’s largest modular kitchen brand with over

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Operates in 16 countries spread across the globe.

Servicing consumers in over 65 countries.

Forbes Asia’s Fab 50 company, Five times in a row

Part of NSE NIFTY50 & BSE Sensex

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Decorative Paints International Industrial Coatings Home Improvement

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Makes up about ONLY 3% of total revenues

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Asian Paints Kansai Nerolac

Product category Price Range (INR/ltr) Product Category Price Range

Luxury 400-450 Premium 310-478

Premium 200-350 Popular 170-250

Value for Money 100-200 Economy 125-190

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To target the middle-class segment, the company created a

Associated with the advertising agency Ogilvy & Mather which

Asian Paints has roped in popular Bollywood actor Ranbir

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Carried out several contests on social media like #DonateAWall to

Its website is interactive and provides users to upload a picture of

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Over 135 depots servicing over 60,000 customers

Increased Reach-15,000 retailers to 60,000+ retailers

Expanding its presence in Africa and South East Asia

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Colour with Asian Paints

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Domestic Paint Industry estimated around INR 50,000 crore in 2018

The Paint Industry growth tends to be 1.5 -2 times GDP growth

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It consists of exterior wall

Of all the products,

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Mainly comprises of organised players as it is far more technology

The automotive coatings market is primarily dependent on auto and

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Input cost as raw materials consists of around 45-50% of Industry’s

Raw Material Intensive with over 300 raw materials petro-

Experienced significant raw materials inflation due to rising crude

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Decorative paints segment

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