CHAPTER 1

INTRODUCTION
1. INTRODUCTION
The paint industry, often called the "paint and coatings industry," is comprised of
manufacturers, wholesalers and retailers who sell paints, stains and other coatings.
The term usually extends to those who manufacture or sell related items, often
called "sundries," such as brushes, rollers and drop clothes. Those who provide
painting services may also be said to be part of the paint industry. Products
manufactured and sold within the paint industry include items involved in
painting homes, buildings and structures. Products intended for use on vehicles,
with the exception of marine varnishes and stains, are usually classified as a
specific subindustry, namely "automotive coatings." Artist and craft paints are
generally classified as part of the arts and crafts industry. Coatings and chemicals
are the cornerstones of the paint industry. These include all types of paints, such
as interior, exterior, enamel, latex and spray paints. This classification also
includes other types of finishes, such as varnish, polyurethane and both water- and
oilbased stain.

1.2.INDIAN PAINT INDUSTRY

Size of the Industry Today India has more than 20,000 outlets in operation,
probably the highest for any country.

Geographical Mumbai, Ahmedabad, Coimbatore, New Delhi, Surat,

distribution Chennai, Delhi, Jaipur, Bangalore, Kolkata, Karur,
Tripura, Ludhiana, Bhilwara, Erode, Jodhpur, Rajkot,

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 Naiad, Panipat, Amritsar, Vadodara, Kanpur, Madurai,
Gurgaon, Hyderabad, Navy Mumbai, Tripura ,Thane,
Shanghai, Pane, Karachi, Faridabad, Indore, Ghaziabad,
Varanasi, Faisalabad, Cochin - Alappuzha.

Output per annum The high volumes of low cost distempers sold in India,
which amounts to approximately 200,000 tonnes per
annum at an average cost of Rs35 per kg ($0.88) at the
present rate.

Market capitalization The market for paints in India is expected to grow at 1.5
times to 2 times GDP growth rate in the next five years

1.3.. History Of Indian Paint Industry

History of Indian Paint has fascinated culture throughout the years. Color has
been the major attraction for more than 20,000 years. Two anthropologists
conducted a worldwide study of color naming in 1960's. Many languages only
contained two color they are the white (light) and black (dark).Today after all the
research and finding we have numerous combination colors of : black, white, red,
orange, yellow, green, blue, purple, pink, grey and brown. Paint is generally made
up of a pigment. Paint Companies in India bring to you a wide range of paints,
varnishes, pigments and coatings for the perfect finishes for the home interior and
exteriors décor and beautification. The paint industry in India has flourished into a
full-fledged manufacturing and sale market catering to the international standards
being demanded for the painting jobs. The industrial segment, which was
traditionally a low user of paints, vis-à-visits counterparts in the decorative
segment, too contributed to this notion. In line with this misconceived notion, the
government drastically increased duties on paints in the early nineties with an aim
to bolster exchequer revenues. The result was obvious. This inevitably brought
about a down turn in the fortunes of the industry. .In line with the liberalized
policies and the realization that paints are not necessarily a luxury item, duties
were progressively reduced from 1993-94.This squared growth as most companies
passed on duty reductions.

1.4. Growth of the Industry

There is a phenomenal growth on the housing sector front with rapid urbanization
and availability of easy to secure housing loans which have become the prime
drivers of growth in the decorative paint segment, which comprises 70% of the $2
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billion Indian Paint industry. An average increase of growth of about 10% in the
automobile sector contributes to 50% of the revenues in the industrial paints
segment. Paints can be classified as Decorative Paints & Industrial Paints.
Decorative Paints are usually meant for the housing sector. Distemper is mostly
affordable by all and used in the suburban and rural markets. Interestingly, 20% of
all decorative paints in India are distempers. Indian Paint products are highly in
demand in countries of United States, China, India, United Kingdom, Australia,
Pakistan, Hong Kong, Canada, etc forming the turning points in the Paint Industry
of India. The paint products are being governed by FERA (Foreign Exchange
Regulations Act) and MRTP (Monopolies & Restrictive Trade Practices Act),
Indian companies were restricted from enhancing their production capacity. Due
to liberalization there shackles were taken off and the industry expanded. Today
manufacturers in India hardly face any threat from the foreign players. Most of
them have deals with global players in terms of latest technology and markets

accessibility.

1.5. The Indian Paint Industry

In India, Indian Paint industry’s total market size is US$1400 million. The
organized sector of the industry is 55%. The 45% unorganized sector has about
2500units
The Indian Paint Industry

Unorganized
Sector
45% Organized Sector
55%

1.6. Major segments of paints industry

The paints industry is mainly divided into two segments – Decorative and
Industrial. The decorative segment accounts for a major portion of the paint
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industry’s value, around 75%, and the industrial segment accounts for the rest
25% of the industry’s value.

1.7. Structure of paints industry

• Decorative paints
The decorative segment consists of exterior and interior emulsions, enamels,
primer and thinner, distemper, wall putty. Emulsions and distempers are used for
painting walls, enamels for wood and metals, primers and putties for bringing
evenness on the walls before final paint is applied. Of the emulsion and distemper
paints, emulsion paints are comparatively costlier on account of its better quality
as emulsions provide smoother finish to walls and are more durable and long
lasting compared to distempers.

• Industrial paints
The industrial paint includes auto OEM paints and protective coatings, auto
refinish, GI (General Industrial) paints, powder coatings. Auto OEM paints and
protective coatings and auto refinish paints are used by auto producers for painting
automotive interiors and exteriors, GI paints are used for construction, heavy
engineering & agricultural equipment etc. Powder coatings are usually used for
coating metals and for auto ancillaries, electrical equipments, consumer durables
etc. This segment is dependent on business cycle activity and economic conditions

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while the decorative paints segment is dependent on the housing sector and
repainting cycle.

1.8.Organised and unorganised paints segment

The paints industry is largely dominated by organised players accounting for
about 65% of the industry’s value and the unorganised players accounting for the
rest 35%. Of the two segments in the paints industry, the industrial paints segment
mainly comprises organised players whereas the decorative segment also involves
some component of unorganised players as the decorative paints segment is not
significantly dependent on technology compared to the industrial paints segment
that involves higher technical know-how.

Market share of top players in organised paints industry for 2018-

19 (in %)

Around 80% of the organised market of paints industry is covered by the top
players with the largest share of 41.4% held by Asian Paints followed by Berger
Paints India, Kansai Nerolac Paint and Akzo Nobel India with a share of 13.5%,
13.1% and 9.3%, respectively, during 2018-19.Among these players, Asian Paints
is the market leader in the decorative paints segment while Kansai Nerolac Paint
is the market leader in the industrial paints segment.

22.7%
Asian Paints
41.4% Berger Paints India
Kansai Nerolac Paint
9.3%
Akzo Nobel India
Others
13.1%
13.5%

1.9.Water-based paints and solvent-based paints

The paints manufactured are of two types – Water based paints and solvent based
paints (also sometimes called as oil-based paints). For water based paints, binder
is water-based while for solvent based paints, the binder is oil-based. Emulsions
are water-based paints and enamels are solvent-based paints. The emulsions are
ideal for painting walls while enamels are used for woodwork and metals. Also,

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solvent-based paints are ideal for bathrooms and kitchens as these paints are not
much affected by water

1.10. Inputs used for manufacturing paints

The manufacturing of paints involves a significant input cost as raw materials
account for around 45-50% of the industry’s sales on an average. The raw
materials used for manufacturing paints include resins (binders), pigments,
solvents, additives. One of the key pigments used in the manufacture of paints is
titanium dioxide. It accounts for about 15-20% of the total raw materials cost of
the industry.

1.11. Titanium dioxide

Titanium dioxide is a white pigment that provides white colour to liquids, pastes
or coatings. Apart from this, titanium dioxide scatters light and is Ultraviolet (UV)
resistant which prevents decolouration and also titanium dioxide makes substance
more opaque. Titanium dioxide (TiO2) is commercially available in two forms –
anatase and rutile. Of these two forms, rutile titanium dioxide is considered more
durable and stable compared to anatase titanium dioxide. Rutile form is also
considered to be more efficient in scattering light .

1.12. Imports of titanium dioxide

Country-wise quantity share of imports of titanium dioxide by India for 201819(in
%)

5.0 % 8.8 % China

Germany
6.8 %
41.6 % Korea Republic (South)
6.4 % Japan
USA
15.4 %
Czech Republic
Others
16.0 %

Source: CMIE

Most of the paint companies in India meet the requirements of titanium dioxide
through imports. Of the total titanium dioxide quantity imported by India from

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various countries, China accounted for the largest share of 41.6% followed by
Germany, Korea Republic (South) accounting for 16%, 15.4%, respectively,
during the year 2018-19. India imported 13,901 tonnes of titanium dioxide in
2018-19.
Rutile and Anatase price movements in India (in Rs. /kg)

The prices of rutile in Mumbai remained in the range of Rs.150-Rs.186 per kg

during the period April 2016-Februray 2017 and the prices of anatase were in the
range of Rs.136-Rs.147 during the period April 2016-March 2017. On an m-o-m
basis, the prices of rutile increased by 12.9% to Rs.210 per kg in March 2017 and
that of anatase grew by 8.2% to Rs.158.5 per kg in April 2017. Prices for rutile
then remained in the range of Rs.210-Rs.215 per kg during March-September
2017 and for anatase they were in the range of Rs.158-Rs.193 per kg during
AprilSeptember 2017. Resultantly, the prices of rutile and anatase averaged 29.2%
and 32.9% higher, respectively, during the period April-September 2017 on a y-o-
y basis. This increase in prices can be attributed to the growth in titanium dioxide
prices in China from which India imported 41.6% of titanium dioxide during
2018-19. The prices in China grew on account of stricter regulations imposed by
the government on production of titanium dioxide to control air pollution in
country .

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 Financials of the paints industry

Sales growth rate (in %)

14
13.0
12 11.9
10 10.5
8
6 6.5
4
2 2.2
0
2014-15 2015-16 2016-17 2017-18 2018-19

In the financial year 2017-18, sales of the 6 paint companies in our sample
increased by 6.5% on a y-o-y basis compared to 2.2% growth reported by the
industry in 2016-17. The increase in sales in 2017-18 was on account of various
product-mixes offered by the industry. However, sales growth was impacted in
second-half of the year due to demonetisation announced by the government in
November 2018.

Operating and Net Margin (in %)

As seen from the above chart, the operating and net profit margin expanded by
300-450 basis points in 2018-19 on a y-o-y basis and the expansion in margins
was maximum during the year among the years mentioned above. The expansion
in profit margins was mainly on account of input costs as raw materials as
percentage of sales dropped to 49.7% in 2018-19 from 51.2% in 2018-19.

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 Raw materials as percentage of sales (in %)

The drop in this ratio was primarily because of the decline in crude oil prices. The
prices of crude oils were at multi-year low during the year 2018-19 as shown
below. Many of the inputs used in the manufacturing of paints are crude oil
derivatives that accounts for about 30-35% of the total raw materials cost of the
industry.

The crude oil prices that ruled in the range of USD 107-115 per barrel during the
financial years 2014-15 slumped to USD 85.5 per barrel in 2015-16 and declined
to USD 47.3 per barrel in 2016-17. In fact, the Brent crude oil prices were at their
lowest in 2016-17 when compared to the last 10 years. The fall in prices was due
to global surplus oil production.

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 In the year 2017-18, no major expansion was seen in profit margins compared to
the expansion witnessed in profit margins during 2016-17. An increase in raw
material expenses is believed to have weighed on the margins. The prices of crude
oil and titanium dioxide which were lower on a y-o-y basis in the initial months of
the year 2018-19 increased on a y-o-y basis in later half of the year.

Top leading Companies

• Asian Paints India

• Nerolac India Paints
• Berger
• Dulux India Paints
• Shalimar Paints

Scope
The Indian paint industry has come a long way from the days when paint
corrosion through paints is relatively high, a development That should be a huge
boost to the paint industry. This report provides in-depth information and analysis
on the US$ 925.0 million (2000-01) worth Indian paint industry. The Indian paints
industry offers lucrative scope for stable revenue streams to manufacturers of both
decorative and industrial paints. The report stays focused on all such crucial
parameters that make India a favorable proposition. Factors that have been given
emphasis include the low per capita consumption of paints (1.0 kilogram), growth
in construction sector (it is being offered industry status) and growth in the
auto/white goods market respectively spurring demand for decorative and
industrial paints. The industry has also witnessed increased activity in the
industrial variety of paints with the entry of MNCs in auto, consumer durables etc,
which has been The report covers both the segments of decorative and industrial
varieties of paints along with elaboration on product sub-segments within these
two product segments. The typical characteristics of the Indian paints industry
have been discussed in depth covering the typical features of the Indian industry
viz., raw material intensiveness, working capital intensiveness, seasonality of The
current global scenario with reference to the paint industry has been covered in the
report with special focus on auto-coats market, which is a key growth area in the

International market.

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 1.13. Government rules and regulations
Government take steps to resolve paint industry crisis December 11, 2008 (India)
Government has announced several relief measures to support the paint industry
from time to time, which has been representing that paint exports have been
affected by the global recession. Steps taken by Government to help and improve
paint industry include the following:

(1) The Technology Up gradation Fund Scheme (TUFS) was launched to facilitate
the modernization and up gradation of the paint industry both in the organized and
unorganized sector. The Scheme has been further fine tuned to promote the rapid
investments in the targeted sub-sectors of the paint industry. The cost of machinery
has been further brought down by reducing the customs duty on imports.

(2) To provide the paint industry with world-class facilities for setting up their
paints units, meeting international environmental and social standards, a
PublicPrivate Partnership (PPP) based Scheme known as the “Scheme for Integrated
paint (SIP)” has been introduced in August 2005.

(3) In 2004-05 Budget, the entire paint sector, except for man-made and filament
yarm was provided optional exemption from excise duty. In 2005-06 Budget, Central
Value-added Tax (CENVAT) on Polyester Filament Yarn has been reduced from 24%
to 16%. These modifications in fiscal levies aim at attracting more investments for
modernization of textile sector.

(4) To facilitate import of state of the art machinery to make our products
internationally competitive in post quota regime, in 2005-06 Budget, the customs duty
paint machinery has been brought down to 10% except for 23 machinery appearing in
List 49, which attracts Basic Customs Duty (BCD) of 15%. The concessional duty of
5% continues to be at 5% on most of the machinery items.
(5) Government has launched the Debt Restructuring Scheme w.e.f. Sept., 2003
with the principal objective to permit banks to lend to the paint sector at 8-9% rate of
interest.

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1.14. Industry present & future Trends:-
The Indian paint and coatings industry is riding high on the growth in the Indian
automobile industry, new construction in the housing segment and improving
infrastructure throughout the country. Thirty percent of the paint business is
comprised of new construction projects. GDP growth projections of six to 6.5% in
the current year mean a growth of nine to ten percent in Indian paint business. The
growth will be 12-13% in the industrial segment and eight to nine percent for
decorative paint. The Indian automobile industry has been performing remarkably
well and will benefit the market leader in the segment, Good lass Nerolac. As for
the future, the industry has predicted a CAGR of eight to nine percent for the next
five years compared to last year’s growth levels of 27.4% for cars and 8.9% for
two wheelers. The Indian housing industry is likely to do well in the current year
as well, recording a growth rate of 35%last year. As a result of the overall health
of India’s economy, it is safe to predict a nine to ten percent growth rate for the
Indian paint industry in the next five years. Consumers can look forward to new
product launches, some for application in special areas. Companies will be
increasing the value added services available to customers by offering a variety of
finishes through specialized and trained applicators. There will be more options
like ranges of colors/finishes for wood applications through the tinting machines.
Additionally; the trend towards water-based coatings is likely to set in both for
industrial and decorative applications.

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 CHAPTER – 2

ASIAN PAINTS LIMITED is an Indian Multinational Paint Company

headquartered in Mumbai, Maharashtra. The company is engaged in the business
of manufacturing, selling and distribution of paints, coatings, products related to
home décor, bath fittings and providing of related services. Asian Paints is India’s
largest and Asia’s third largest paints corporation. As of 2019, it has the largest
market share with 54.1% in the Indian paint industry. Asian Paints is the holding
company of Berger International.

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2.1 Asian Paints limited

Type Public

Traded as BSE:500820
NSE : ASIAN PAINTS

Industry Chemicals

Founded 1942

Founders Champaklal Choksey, Chimanlal

Choksi,
Suryakant Dani and
Arvind Vakil

Headquarters Mumbai, Maharashtra India

Area Served World wide

Key People Ashwin Dani ( Executive Chairman)

K.B.S Anand (CEO & MD)
Abhay Vakil (Non Executive Director)

Products Basic and industrial chemicals,

decorative Paints,
Industrial(re)finishing Products,
Coatings

Revenue from paints segments 4,899.09 crores

Revenue from home improvements 119.12 crores
NET PROFIT 2,097.52 crores
TOTAL PROFIT 19,576.89 crores

Number of Employees 7500 +

Website www.asianpaints.com

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 2. HISTORY
The company was started in a garage in Gaiwadi, Girgaum - Mumbai by four
friends Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind
Vakil in February 1945. During World War II and the Quit India Movement of
1942, a temporary ban on paint imports left only foreign companies and Shalimar
Paints in the market. Asian Paints took up the market and reported annual turnover
of ₹23 crores in 1952 but with only 2% PBT margin. In 1967, it became the
leading paints manufacturer in the country. The four families together held the
majority shares of the company. But disputes started over the global rights in
1990s when the company expanded beyond India. The disputes resulted in
Choksey selling their 13.7% shares and exiting in 1997.Champaklal died in July
1997 and his son Atul took over. After failed collaboration talks with the British
company Imperial Chemical Industries, Choksey's shares were mutually bought
by the remainder three family and Unit Trust of India. As of 2008, the Choksi,
Dani and Vakil families hold a share of 47.81%.In 1950s, the company launched a
"washable distemper", which was a balance between the cheap dry distemper
that peeled easily and the more expensive plastic emulsions. Promoting their
brand Tractor Distemper, the company used "Don't lose your temper, use
Tractor Distemper" in their advertisings. In 1954,"Gattu" – a mischievous boy
with a paint bucket in his hand – was launched as Mascot. Created by
R.K.Laxman, the Marketing and advertising mascot found appeal with the middle
classes. He was used only in print advertisements and packaging till 1970s and by
1990s was also seen on television advertisements. Gattu helped in bringing the
commodity-led business of painters to the actual end users of home-owners.
Ogilvy & Mather, the advertising agency associated with Asian Paints, launched
marketing strategy by focusing on festive occasions in 1980s with their tag line
"Har Ghar Kucch Kehta Hai" (Every home says something).

1954 2002 2012

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 2.2 Nature of Business Segments

• Decorative Segment
Asian Paints is India’s leading paint company with a group turnover of Rs 193.50
billion. The group has an enviable reputation in the corporate world for
professionalism, fast track growth, and building shareholder equity. Asian Paints
operates in 15 countries and has 26 paint manufacturing facilities in the world
servicing consumers in over 65 countries.

FIG 1: Decorative Segment

• Industrial Segment
Asian Paint second line of production deals with the industrial coatings. The
second 50:50 Joint Ventures with PPG named ‘Asian Paints PPG PVT Ltd’
services the protective, industrial powder, industrial containers and light industrial
coatings markets in India.

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 FIG 2: Industrial Segment (Bogibeel Bridge over Brahmaputra River in Assam
coated with AP-PPG Coatings, EPC contractor HCC)

• Home Decorative Items

Experimenting with AP Homes. Multi-category integrated decor store offering
products & solutions across categories of paints, wallpapers, kitchen, bath
fittings, sanitary ware, furnishings, light fittings, etc.

FIG 3: AP Dealing with Decorative Items

AP HOMES

MARKET
REGION COUNTRY POSITION BRAND

INDIA 1 ASIAN PAINTS

ASIA NEPAL 1 ASIAN PAINTS

SRILANKA 1 AP,CAUSEWAY
BANGLADESH 2 ASIAN PAINTS
INDONESIA - ASIAN PAINTS
SINGAPORE - BERGER PAINTS

BAHRAIN 1 ASIAN PAINTS

MIDDLE BERGER
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 EAST UAE 3 ASIAN PAINTS
BERGER
OMAN 4 ASIAN PAINTS
BERGER

ETHIOPIA 2 KADISCO ASIAN

AFRICA PAINTS

EGYPT 3 SCIB PAINTS

FIJI,SOLOMON
SOUTH ISLANDS,SAMOA, 1 TAUBMANS,APCO
PACIFIC VANUATU,TONGA

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 alliances with established
global partners.”

MISSION:
“Asian Paints aims to become the largest decorative paint company in the world
and to rank among the top 5 paint manufacturing companies of the World.”

2.3. Product Profile

• Interior Paints

Royale Aspira, Royale Play Safari, Royale Play Metallic’s, Apcolite Premium
Emulsion, Tractor Aqua lock, Tractor Acrylic Distemper, Royale Luxury
Emulsion, Royale Shyne, Royale Atmos, Tractor Emulsion Shyne, Tractor
Emulsion, Royale Health Shield

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• Metal Finishes (Enamels)

Apcolite Satin Enamel, Apcolite Gloss Enamel, Apcolite Rust Shield, Tractor
Enamel, Royale Luxury Enamel

• Wood Finishes Range

Woodtech PU Palette, Woodtech Aquadur PU, Emporio PU, Woodtech
Epoxy, Woodtech Insignia, Woodtech Touchwood, Woodtech Polyester ,
Woodtech Polyester Gold.

• Exterior Paints
Ace Shyne, Ace Exterior Emulsion, Apex Exterior Emulsion, Apex
Ultima, Apex Ultima Europa, Apex Ultima Protek Dura life (Base Coat &
Top Coat). Apex Ultima Protek (Base Coat & Top Coat).

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2.4.Competitors Profile

Nerolac is seen as one of Asian paints top competitors. Nerolac headquarters is in

Mumbai, Maharashtra, and was found in 1920.Nerolac competes in the diversified
Chemicals industry. Nerolac generates 36% of Asian paints’ revenue.

Berger paints is one of Asian paint’s top rivals .Berger paints was found in 1923,
and its headquarters is in Kolkata, West Bengal ,Like Asian paints Berger paints
also works within the specialty chemicals industry .Berger paints has 4,6000 fewer
employees than Asian paints.

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 A Shalimar paint is Asian paints’s third rival. Shalimar paints are a public
company that was founded in 1902 in Gurgaon, Haryana .Shalimar paints
competes in the construction materials field. Compared to Asian paints, Shalimar
paint has 6,828 fewer employees.

2.5. Awards Received

• Asian Paints was ranked 9th amongst the Top paint companies in the world by
Coatings World - Top Companies Report 2019 (July 2019 Issue).Included in the
Forbes List of World’s Best Regarded Companies (Sept 2019).

• Asian Paints wins ‘Outstanding Company of the year’ award for 2016 -‘CNBC
TV18 - India Business Leader Awards’

2.6.Corporate Social Responsibility

Asian Paints has been constantly expanding its manufacturing capabilities to
service the aspirations of a rapidly growing India. Community need is recognized
as an important aspect in all of the company’s programmes. The Corporate Social
Responsibility committee of the company provides strategic direction and
addresses core developmental areas including – Education, Healthcare and
hygiene, enhancing vocational skills and water conservation. The company has
consistently managed to improve upon its Environmental performance by using
principles of sustainable development to minimize impact on environment and
neighbouring communities. The CSR committee of the company forms
partnership with external and internal stakeholders including government, NGOs,
village panchayats, and also other companies for understanding projects or CSR
activities. As an organization, Asian Paints has understood and implemented
Business Basics from the beginning so as to bring about a progressive change
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across the regions and communities within the influence of its operations and
beyond. The company is also leading a positive change by continuously
researching and innovating to develop world class products year after year. The
R&D team of the company has also been successful in developing a number of
safe products and implementing energy saving processes.

2.7. Asian Paints Ltd. CSR Focus Areas and

Initiatives

While the company manages its operations using principles of sustainable

development to minimize impact on the planet as a whole, however the CSR
policy of the company focuses on development of communities around the
vicinity of its plants. The company takes up the CSR initiatives that make a
sustainable difference to the environment in which it operates including activities
which shall allow it to leverage its strengths. The CSR committee has identified
and worked upon the following thrust areas on which company focuses and
channelizes its resources on a sustained basis.

2.8. Education

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 Education is the key to unlock a better life.
It is a powerful tool to access opportunities

At Asian Paints, we are committed to encourage education for communities

around us. We are helping strengthen infrastructure for education to motivate
children by implementing various programmers through our project partners. Our
ambition is to enrich the ‘school-going’ experience for children. We support every
stage of a child’s education through these projects, helping him/her to transition
smoothly from being a student to an adult with the right means of livelihood.

2.9. Developing Infrastructure for Education

Asian Paints Ltd. helps at strengthening infrastructure for education and providing
access to learning resources to the local schools. In 2014-15, the company
renovated five schools and improved their kitchens to support the government’s
‘Mid- Day Meal’ scheme. The ‘Scrap- to-School’ project entailed repurposing
waste wooden pallets into over 1500 school benches which were donated to
government schools. The company also undertakes various projects from time to
time like upgrading school buildings, providing classroom setups, helping set up
libraries and science laboratories. During 2017-18, the company helped
refurbishing the infrastructure of three government schools by equipping a
classroom in each school with digital learning tools and enabling the use of
simplified activity based learning.

2.10. Skill Development

Asian paints Ltd. also works at enhancing employable skills and knowledge of
workforce so as to enable the youth to contribute to India’s economic growth. The
company aims at building a talent pipeline that can be fostered along its values.
The company also provides great learning opportunities and career development
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platforms to its employees. The organization taps talents from country’s best
educational institutes and helps the employees by nurturing a culture of
commitment and development.

2.11. Health care and Hygiene

With growing population, healthcare and hygiene become central to
India’s development agenda. The company thus focuses on promoting
primary health care services through diagnosis and treatment, building
awareness about sanitation and providing monetary support, setting of
rehabilitation centres, medical camps, and creating awareness through
various programs. The objective of the company is to make affordable
healthcare facilities available to communities around it by implementing
strategic partnerships.

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 2.12.SWOC Assessment

• Strengths
1. The largest paint company in India and third largest company in Asia
2. They have over 50% of market share and are clear leaders decorative paints and are
strong competitors to Kansai Nerolac Paints to be leaders in Industrial paints and
coatings.
3. They operate in 17 countries and have 24 manufacturing facilities providing service to
65 countries all over the world.

• Weaknesses
1. Limited market share in industrial paints segment with Kansai Nerolac and
Akzonobel giving stiff competition.
2. In decorative paints Industry Customer tastes and perceptions change very fast and
products may become obsolete with change in trends, hence production planning and
inventory problem.

• Opportunities
1. Big an international standard paint company it should look for more opportunities
abroad.
2. There is a good scope for growth especially in industrial paints category

• Challanges
1. Growth prone to slowdown effects
2. Stringent Government rules and regulations regarding the quality of products and
manufacturing facilities as Environment policies are given more emphasis

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 2.13.MARKET SHARE
The current market price of Asian Paints Ltd. is Rs 1797.65 crores. Time period
given by the analyst is Intra Day when Asian Paints Ltd. price can reach the
defined target. Chandan Taparia recommended keeping stop loss at Rs 1765
crores. Asian Paints Ltd., incorporated in 1945, has a market cap of Rs
172430.19crores.Asian Paints Ltd. key Products/Revenue Segments include
Paints, Enamels, Varnishes & Black which contributed Rs 16196.87 Crores to
Sales Value (98.81 % of Total Sales), Other Operating Revenue which contributed
Rs 182.34 Crores to Sales Value (1.11 % of Total Sales) and Sale of services
which contributed Rs 12.57 Crores to Sales Value (0.07 % of Total Sales) for
year.

• ORGANIZATION AND STRUCTURE

Organizational structure of Asian Paints: - An organization is a collection of
people, systems and procedures which are put together to earn profits.

• FUNCTIONAL STRUCTURE
A functional organization structure is a hierarchical organization structure wherein people
are grouped based on their area of specialization. These people are supervised by a
functional manager with expertise in the same field. This expertise helps him to
effectively utilize the skills of employees, which ultimately helps organizations in
achieving its business objectives.

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 • MARKETING AND ADVERTISING
Rural Marketing Initiatives since 1970. Distribution is one of the main focus
strategies of Asian Paints. Advertising & Promotional Expenditure started in
1980s. Advertising Methods- Radio, TVCs, Print, Internet, POP, Retail Outlets,
Seminars, Workshops. Company is using different techniques such as advertising
Campaign, sales promotion, personal selling, direct marketing and public relation
to increase sales. A total amount of 85 crores is spent on the ad campaign by
Asian paint. Their particular ad campaign ‘Mera Walla Blue” “Har Ghar Kucch
Kehta Hai” Online marketing for urban customer as well as Asian paints has
started customer helpline service (24x7).

•
FINDINGS
• Asian Paints is India’s largest paint company and Asia’s third largest paint
company.

• The company has an enviable reputation in the corporate world for professionalism,
fast track growth, and building shareholder equity.

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 • SUGGESTIONS
• The industrial coatings business of the company has performed below expectations,
though the decorative business has done very well.

• It is important for company to take necessary step to expand their market share
towards industrial coatings.

• CONCLUSION
• The Great strategy undertook by Asian paints is the Master Painter Scheme which
helped to increase in sales and also benefitted the master painters who are lifting
emulsions from the dealers. From this scheme both the companies as well as the
master painters are benefitted.
• Asian paints also came with different marketing as well as promotional strategies

CHAPTER-3
LEARNINGS AND SUGGESTIONS.

3.BIBLIOGRAPHY
1. http://www.asianpaints.com/
2. http://en.wikipedia.org/wiki/asianpaints
3. http://www.equitymaster.com/research-it/sector-info/paint/Paintssctor-analysis-
report.asp
http://www.apcocoatings.com/

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