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SWOT Analysis

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ASIAN PAINTS

SWOT Analysis

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.

4. Asian paints has strong international presence with its four 4 subsidiaries; Berger
International Limited, Apco Coatings, SCIB Paints and Taubmans.
5. Most renowned brand in Indian Paint Industry & its strong customer focus and
innovative-spirit has made it market leader since 1968.
6. Superior technologies deployed to achieve maintain the competitive edge for eg. Supply
chain management system that integrates plants, regional distribution centers, outside
processing centers etc. hence they have strongest supply chain system with

7. They have maintained their brand name and increased awareness by unique ways of
advertising and roping in celebrities like Saif Ali Khan.

Strengths 8. The company has strong financials.

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
Weaknesses inventory problem.

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
3. Needs to have more focus on Automobile industry in industrial paints segment

4. Competitors are going for Hi-tech process and Asian paints with good financial and
Opportunities intellectual capital can go for hi-tech.

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
Threats 3.Raw material scarcity and volatlility in prices.
NEROLAC PAINTS

SWOT Analysis

1. One of the largest coating company in India and market leader


in automotive and powder coating.
2. Being a subsidiary of Kansai Paint Company Limited, the
technological edge of Kansai has helped company innovate to
satisfy consumers needs in a better way.
3. Key factors to their success are: R&D, Innovation, Quality and
Aggressive Branding and Marketing strategies.
4. Being market leaders in automotive category they have most
coveted customers like Maruti Suzuki, Toyota Kirloskar, GM,
Tata Motors, HM, Yamaha, Honda, Volvo India, Ashok Leyland
etc..

5. It has robust supply chain network.

6. Its entering the Decorative segments category in a big way


Strengths with ad with celebrity brand ambassadors

1. In decorative paints Industry Customer tastes and perceptions


change very fast and products may become obsolete with change
Weaknesses in trends, hence production planning and inventory problem.

1. Leveraging its R&D competencies the company has good


scope in developing new products with PODs which can give
them competitive advantage.
2. Building perception as eco-friendly and greener brand.
3. Capitalizing on Growth potential in rural India and
Infrastructure development.

4. Expansion initiatives can be considered as economies of scale


and possibility of exporting to neighboring emerging economies
Opportunities then comes into the picture.

1. Stringent Government rules and regulations regarding the


quality of products and manufacturing facilities as Environment
policies are given more emphasis
2.Raw material scarcity and volatility in prices.
3. Competition from national and international brands as they
Threats target India owing to its large market.
SHALIMAR PAINTS

SWOT Analysis

1. Shalimar Paints was first large-scale paint manufacturing unit in South-Asia, hence has
vast experience in this industry.
2. Shalimar Paints offers wide range of decorative products both in interior and exterior
categories and it offers paints at all price bands thus catering to customers in all segments.
3. Introduction of tinting systems at dealer locations has helped customers a wide choice of
9000+ shades.

4. They are pioneers in industrial paints category as they have association with Pinchin
Johnson Co. & International paints.

5. With products in marine coating, High performance Coating, packaging and General
Industrial, they are 3rd largest in the industrial paints category.

6. Currently 3 manufacturing facilities strategically located at Howrah, Sikandrabad and


Nasik which jointly have capacity of 57000 tonnes p.a

7. Company has good Pan-India presence with well-established Sales & Distribution
Strengths Network

1. In spite of having the first movers advantage in the paints industry it lags behind Asian
Paints, Berger Paints, Akzonobel in many segments.
2. Customer tastes and perceptions change very fast and products may become obsolete with
Weaknesses change in trends, hence production planning and inventory problem.

1.Shalimar is introducing a Self-Clean Paint: paint with a new technology that doesnt allow
water to stay on walls, it turns water into tiny balls that roll down the wall taking dirt away.
2. New Facility at Chennai is under construction stage would increase the capacity by 18,000
tonnes p.a and would cater to South India.
3. Current Mfg. facilities stands only approx. 1/3 rd of the land available, hence there is a
great opportunity of expansion if desired.

4. Continuous R&D provides scope of reduction of VOC and HAP, develop more eco-
friendly products which have high potential growth.

Opportunities 5. Tremendous growth opportunities in Rural India

1.Stringent Government rules and regulations regarding the quality of products and
manufacturing facilities as Environment policies are given more emphasis
2.Raw material scarcity and volatlility in prices.
3. Competition from national and international brands as they target India owing to its large
Threats market.
BERGER PAINTS

SWOT Analysis

1. With nearly one-fifth market share and is ranked one of the top 2 in India.
2. Manufactures and markets wide range of decorative and industrial paint products under
various product brands and has a substantial market share
3. It has well established operations & supply chain network spanning throughout the
country with 7 manufacturing facilities, 85 depots, several regional & area offices with 2500
employees and over 15000 dealers.
4. Green Horizon an initiative taken towards reducing waste and conserving natural
resources; launching eco-friendly and energy efficient products

5. Berger Paints has excellent brand perception and brand awareness amongst its potential
customers.

6. It provides with high quality products and has very high market space both in terms of
visibility and sales.

7. The Company has international presence: it has 4 manufacturing facilities abroad;


operations in Russia, Nepal, Europe and Bangladesh.

8. Berger Paints is a lone supplier of protective coatings to Nuclear Power Plants.

9. Its industrial and automotive coating is used by the best automobile companies like
Strengths Mercedes.

1.Dependence on decorative segment where competition is intense


2. High levels of lead found leading to negative publicity
Weaknesses 3. Limited liquidity options

1. New Product launches and innovation with changing trends


2. Strong growth Potential in India owing to urbanization
3. Business diversification

Opportunities 4. product diversification

1. New entrants in the industry and local companies.


2. Fluctuations in raw material prices
Threats 3. Stiff competition

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