Asian Paints Ltd

INTRODUCTION
Asian Paints: A brief History

 Founded in 1942
 India’s largest and Asia’s third largest paint company
Annual Profit INR 1,803.10 Cr in 2016-17
 Operates in 16 countries and has 24 manufacturing
facilities
 Subsidiaries – Berger International Limited, Apco
Coatings, SCIB Paints, Kadisco and Taubmans
COMPANY TIMELINE
APL from 1942 to 2017

Start and Growth

Initial Years

1942 : A partnership was established

1945: The partnership changed to a
company
1954: First Plant set up in MUmbai
1967 : APL becomes market leader
Formative Years
Domestic Leadership and entry to Foreign
Markets
1978 : Entered Fijian Market through a JV
1982: Entered Tonga, an island in South
Pacific
1982: Went Public; Share issues
1983: Entered Nepal
1985: Entered Solomon Islands
1995: AP enters Australia
1996: 50:50 JV with PPG forautomotive
Paints
Restructuring and New
Vision
Aggressive GlobalStrategy

1998: Restructuring
1999: Entered Oman
2000: Acquired Pacific Paints in Australia
2002: Acquired SCIB chemicals inEgypt
2002: Acquired Berger Internationaland its 11
subsidiaries in Singapore
2012:JV with PPG Industry USA
2015:51% stake is Kadisco Ethiopia
2017:Acquired Causeway Paints Lanka
STRENGTH WEAKNESS
The largest paint company in India and third Low Market Share in Industrial
largest company in Asia and Auto Paint
They have 54% Market Share and clear leader Seasonal demand and hence in
in decorative paint off season it can lead to cash flow
Strong global presence problem
The wide range of Products
Strong supply chain management
SWOT
OPPORTUNITY THREATS
Growing Indian Economy The threat of Slowdown
Growth in Industrial Sector Unorganized sector
The scarcity of Raw materials
Competitors are going for Hi
tech process
 Sustainable Competitive Advantage
Valuable Costly to imitate Rare Unsubstitutable Impact Returns

Asian Paints * * * *
(Services & (Innovation, (Signature (Most renowned SCA AAAR
products) Pricing) Stores) brand, reach)

Nerolac * * *
(Services & (hold on CA AAR
products) industrial &
automotive
segment)
Dulux * * CP AR M:- SCA
(Services & (Pricing)
products) A:-Value
Shalimar * CD BAR generation
Paints Services & D:
products in
lower prices) improve/maintain
 Competitive Strategy

Leader Asian Paints (Decorative sector)

Challenger Nerolac Paints

Follower Dulux Paints

Asian Paint uses Defensive marketing strategy to protect and expand its
market share
 Marketing Warfare Strategies

Defensive Offensive Flanking Guerilla

Asian Paints
Nerolac
Shalimar
 Inbound Operations Outbound Marketing Services
logistics logistics and sales

Asian paints 9 10 10 10 10

Nerolec 10 9 8 8 9

Dulux 9 7 9 9 8

Shalimar 8 8 7 7 7

M- VCA
A – Value Generation
D- Maintain /Improve
 Ansoff matrix
M:- Growth strategy
A :- Market and Product Growth
D :- Market Developement
Existing Product New Product
Penetration Market Product Development
Exsiting market

 Entered through retail store and signature store  Interior walls

(flagship store).  Exterior walls
 Home painting services.  Wall covering, stickers
 Colour consultancy.  Wood finishes
 Metal finishes
 Adhesive
Market Development Diversification
New Market

 Exported in more than 24 countries.  Modular kitchen.

 Bathroom segments.
 Threat of New Porter’s five forces
Entrants
(Low)
Industry dominated by
very few players

BPOS Rivalry BPOB

(Low) (low) (Low)
Customers have
Some raw materials Berger, Kansai
other options,
scarcely available, Nerolac
Expertise in the
industry

Threat of • Model – Industry

Substitutes attractiveness
(low) • Applicability - Profitability
Substitutes like Lime • Decision – To continue
wash and wallpapers
rarely used
Mergers and Acquisitions

Acquisitions
• Kadisco Chemical Industry, Ethiopia(2015)
• Taubmans Paints, Fiji(2003)
• SCIB Paints, Egypt(2002)
• Berger, Singapore(2002)
• Sleek Group(2013)
Merger
• Pantasia Chemicals Ltd,Mauritius(1995)
 ROYALE (ASPIRA, MATT,

HIGH
ATMOS, SHYNE, LUSTRE ,
LUXARY EMULSION &
BCG Matrix
ENAMAL )
M- Resource Allocation
A - portfolio
INTERIOR D-
INDUSTRIAL
MARKET GROWTH RATE

1. automotive- invest
2. Industrial- invest
3. Interior (star)–invest
INTERIOR 4. Interior(cow)- Milk
AUTOMOTIVE
LOW

HIGH RELATIVE MARKET SHARE LOW

 Corporate Level Strategies

• Their tie-up with PPG(Pittsburgh Plate Glass)has given them a good presence in
automotive segment, capturing clients like Santro, GM, Ford etc
• Asian Paints now provide:
– Automotive OEM coatings
– Automotive Refurnish
– Industrial Coatings
– Marine Coatings
– Packaging Coating

(Which industry to be in, enter , divest)

 Business Level Strategy

• Asian Paints transition from being a product company to a services company

• Innovation through Digitalization
• Artificial Intelligence, Conversational chat bots, Natural language translation and 3-D
visualization of home décor.
• Creating a compelling digital vision to build technology platforms that foster
customer focused innovation.
• Devising innovative ways to help customers help themselves.
• Approaching the environment issue from the perspective of waste minimization and
conservation of resources.
 INTEGRATION

Digital & IT
Ess Ess Bathroom
products

PPG Asian
Subsidiaries Asian Paints Penta Sleek ( organized
paints
modern kitchen
space)
Fixed colour
academy

NSDC

Chemicals
 Rapid Market
GRAND STRATGEY Growth Subsidiaries, manufacturing
plants, Home painting
services, color consultancy
Market development Market development
wall covering, stickers,
Market penetration Market penetration
wood finishes, metal
Product development Product development
finishes, adhesive,
Divestment Forward Integration
Industrial, automotive,
Liquidation Backward Integration
digital,IT fixed colour
Horizontal integration
academy, NSDC, PPG- Asian
Related Diversification
Weak Paints.
Strong
Competitive
Competitive
position
Related Diversification Position
Retrenchment
Asian Paints Unrelated Diversification
Industrial Related Diversification
Coatings Ltd Unrelated Diversification Joint Ventures Modular Kitchen (
(APICL) has Divestment Sleek organized
closed down the
Liquidation structure)
operations of its Bathroom segments
powder coatings
plant in PPG- Asian Paints.
Himachal
Pradesh

Slow Market Growth

 Internationalisation
Global Strategy
o Research and Development centre =Turbhe
Mumbai
o PPG AP R & D = Mumbai and Chennai
o 24 manufacturing facilities Managed from India
Multi domestic Strategy
oThe Group operates as:
• 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)
o own customised product as well as Branding and
positioning for each market
o 24 manufacturing facilities use locally available raw
materials
 International Entry Strategy

Joint Venture PPG Asian Paints

Asian Paints PPG
Green-Field Venture APCO South Pacific Islands
Acquisition Kadisco Chemical Industry Ethiopia
Taubmans Paints Fiji
SCIB Paints
Berger
Sleek Group
Merger Pantasia Chemical Ltd
Strategic Alliance PPG US auto paints & powder coating
PT Abadi Coating Solution Indonesian Paint company
Nippon Paints Japan
Protech Chemical Canada
GE MATRIX
Business Strength Market Attractiveness
Strong Medium Weak Industry Industry
size growth
H
Decorative XXXL
Market Attractiveness

Industrial XL
Automotive XXL
M
Business Strength

Industry Industry
size growth
L
Decorative XL
Industrial M
Automotive L

Decorative Automotive
Industrial
Porters Generic Business Strategies
Competitive Advantage

Overall Cost Leadership Diffrentiation

Competitive scope Broad

BERGER PAINTS ASIAN PAINTS

Differentiation Focus
Cost Focus
Narrow

DULUX NEROLAC