Perspective Management at Asian Paints company

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Presented By :-
Nikhil Hulwan
Dipesh Pawar
Prathamesh Bhosale
Manisha Arutla
Siddhi Patil

2.  Asian Paints is India's largest paint company
 Ranked among the top ten Decorative coatings companies in
the world
 Turnover of INR 7750 crore ($1.73 Bn)
 Asian Paints along with its subsidiaries have operations in 17
countries across the world
 Consist of 23 paint manufacturing facilities
 Servicing consumers in 65 countries through Berger
International, SCIB Paints – Egypt, Asian Paints, Apco
Coatings and Taubmans
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3. TAG LINE
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“EVERY COLOR TELLS A STORY”

4. HISTORY
 1st February, 1942: Armed with little knowledge
and great determination, Champaklal H. Choksey,
Chimanlal N. Choksi, Suryakant C. Dani and
Arvind R. Vakil get together to manufacture paint
in a garage on Foras Road, Bombay.
 1945: Asian Paints touches a turnover of Rs.
3,50,000.
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5. Cont ….
 1954
Asian Paints mascot, Gattu, the mischievous kid, is
born.
 1957 – 66
The family-owned company makes the transition
to a professionally managed organisation.
 1967
Asian Paints emerges as India's leading paint
company ahead of any international competition.
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6. Cont……
 Ranked 24th amongst the top paint companies in
the world by Coatings World – Top Companies
Report 2006.
 The Asset - one of Asia's leading financial
magazine ranked Asian Paints amongst the leading
Indian companies in Corporate Governance in 2002
and 2005.
 Received the Ernst & Young "Entrepreneur of the
Year - Manufacturing" award in 2003.
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7. 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”.
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The five corporate
brads
Asian Paints
Berger
International
SCIB Paints
Apco
Coatings
Taubmans

10. Growth drivers
• Bangladesh
• China
• Egypt
• Malaysia
• Myanmar
• Singapore
• Sri Lanka
• Thailand
• UAE
• Growth Drivers
Market Leaders
• Jamaica
• Barbados
• Trinidad &
Tobago
• Bahrain
• Nepal
• Fiji
• Solomon
Islands
• Vanuatu
• Tonga
Focus for
Turnaround
• Australia
• Mauritius
• Oman
• Malta
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11. THE NEW ASIAN PAINTS GROUP
71%
5%
24%
Asian paint group
Paints - India
Chemical - India
International
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12. segments
Paint
Decorative
Paints
Industrial
Paints
Chemicals
Phthatic
Anhydried Penraerythritol
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•Wall Finishes
•Exterior Finishes
•Enamels
•Wood Finishes
Decorative
Paints
•Powder Coatings
•Protective Coatings
•Road Marking Coatings
Industrial
Paints

14. MARGINS STRATEGY
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Firmer RM prices (6-8%) + Price
increases (2-3%) Jul’15
R & D efficiencies &
Sourcing efficiencies
Control on overhead costs
Improved realisations from chemicals
business
Margin
expansion
despite
input
price
increase

15. INTERNATIONAL MARKET - STRATEGY
• To enter the high-growth emerging markets
• Adopt a regional hub approach to international
operations
• Apply the emerging market business model:
– Introduce new products suited to local needs
– Introduce new technology, accordingly
– Focus to improve all areas of operations,
especially supply chain
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17.  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
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19. 0
50000
100000
150000
200000
250000
300000
350000
400000
354150
153900
157946
43000
282602
99130
138179
39161
Installed Capacity
(tones)
Production (tones)
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•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
APIL GNP Berger ICI
15000
7000
4500
3700
Retail outlets directly serviced

22. RETAIL INITIATIVES
Asian Paints has fostered a customer-
centric approach to business.
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23. 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
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24. 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
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25.  Environment and safety.
 Improving infrastructure and healthcare at
local schools; adopting school education.
 Total water management.
 Age care.
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26. Environment and Safety
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Reuse
Recycle
Eliminate
waste

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28. Information Technology
 Asian Paints is the first company in India to have
integrated Supply Chain Management (SCM)
Solution from i2 Technologies, and Enterprise
Resource Planning (ERP) solution from SAP.
 Asian Paints has launched a supplier portal that
includes an automated digital document exchange
facility
 An employee portal
 Customer Relations Management (CRM)
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29. Investment in I.T.
• Benefits:
– RM & FG inventory reduction
– Revenue Increase by avoiding retail shorts
– Reduction in dead & slow moving stock
– Plant through-put improvement
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30. Research and Development (R&D)
R&D efforts have been focused on
developing new exterior finishes, economy
emulsions and distempers.
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31. R & D / INNOVATION STRATEGIES
Developing new products and
innovations
Reducing costs by value re- engineering
of formulations
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32. Research and Development (R&D)
Structure
 In India, the company's has :
 140 strong R&D team
 7 doctorates
 115 qualified scientists
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33. R&D new developments
 The development of the water based wood
polish which is odourless and is of same
quality as of solvent based polish.
 The company is also in the process of
setting up a new R&D centre near Mumbai
(India)
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34. TODAY
 Asian Paints becomes the 10th largest decorative paint company in the
world.
 Asian Paints is more than twice the size of its nearest competitor.
 It is one of the most admired companies in India.
 Present in 22 countries with 27 manufacturing locations, over 2500 SKU's,
Integrated SAP - ERP & i2 - SCM solution.
 On the recommendations of Booz, Allen and Hamilton, Asian Paints
restructured itself into Growth, Decorative and International business units
and adopted SCM and ERP technology.
 Asian Paints aims to become the 5th largest decorative paint company in
the world.
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35. 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
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