Asian Paints is India's largest and Asia's third largest paint company. It has a market share of over 20% in India's paint industry. The company was established in 1942 and over the past 70 years has become a market leader through innovative products, strong distribution network across the country, and focus on consumer needs. A SWOT analysis indicates the company's strengths in leadership position, expansion plans and pricing power, though it faces threats from increasing raw material costs and competition from other big players.
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Asian Paints is India's largest and Asia's third largest paint company. It has a market share of over 20% in India's paint industry. The company was established in 1942 and over the past 70 years has become a market leader through innovative products, strong distribution network across the country, and focus on consumer needs. A SWOT analysis indicates the company's strengths in leadership position, expansion plans and pricing power, though it faces threats from increasing raw material costs and competition from other big players.
Asian Paints is India's largest and Asia's third largest paint company. It has a market share of over 20% in India's paint industry. The company was established in 1942 and over the past 70 years has become a market leader through innovative products, strong distribution network across the country, and focus on consumer needs. A SWOT analysis indicates the company's strengths in leadership position, expansion plans and pricing power, though it faces threats from increasing raw material costs and competition from other big players.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPTX, PDF, TXT or read online from Scribd
Asian Paints is India's largest and Asia's third largest paint company. It has a market share of over 20% in India's paint industry. The company was established in 1942 and over the past 70 years has become a market leader through innovative products, strong distribution network across the country, and focus on consumer needs. A SWOT analysis indicates the company's strengths in leadership position, expansion plans and pricing power, though it faces threats from increasing raw material costs and competition from other big players.
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ASIAN PAINTS BUSINESS STRATEGY ANALYSIS
CLEAR GOALS FOR A CLEAR FUTURE
Founder of Asian Paints
Champaklal H. Choksey Chimanlal N. Choksi
GENESIS OF PAINT INDUSTRY
First paint Industry Shalimar Paints, Colour Varnish Company, !he paints "as #enerally imported $rom the %ritain Due the &nd "orld "ar many 'ompany entered in India like (oodlass )all*+,+-., /lephant 0il 1ills *+,+2. Asian Paints 3ansai Nerola' 'ame into pi'ture a$ter the post independen'e Paints "ere 'onsidered as a lu4ury item 5o" used in Industrial se#ments !here "as a ne#ative #ro"th in industry and pri'e "as elasti' Introdu'tion o$ li6erali7ation poli'y
Demand $or auto paints shot up suddenly Rapid industriali7ation aided 6y (overnment8s li6eral poli'ies resulted the #ro"th o$ the paint industry
NATURE OF INDUSTRY
Indian Paint industry, estimated to 6e a Rs.&+,999 Cr. industry, #ro"in# at a rate o$ a6ove +:; $or the past $e" years.
Factors responsible for the growth
In'reasin# level o$ in'ome and edu'ation In'reasin# <r6ani7ation In'reasin# share o$ or#ani7ed se'tor Development o$ the Realty, Automo6ile and In$rastru'ture se'tor In'reasin# Penetration in the Rural 1arkets
+,,9= Present Spreads it 6oundary Completed 29 years :th lar#est de'orative paint 'ompany in the "orld Admired 'ompanies in India 1arket leader o$ paint industry
+,B2=+,-: +,A&=+,B: Company stated its 6usiness the mis'hievous kid "as 6orn Name "as India@s leadin# paint 'ompany Converted into a pu6li' limited 'ompany /ntered into a 'olla6oration a#reement
PESTEL ANALYSIS POLITICAL FACTOR India, the lar#est demo'ra'y in the "orld
!he #overnment is $ederal repu6li' !he politi'al situation is more or less sta6le in nature /4port oriented /'onomy
!CO"O#IC FACTOR
1arket 6ased e'onomy
Se'ond $astest #ro"in# e'onomy in the "orld India is the third lar#est in term o$ pur'hasin# po"er In$lation rate is B.B& as on Canuary &9+> Introdu'tion o$ FDI in $e" se'tors
OCIAL FACTOR India is the se'ond lar#est populated e'onomy in the "orld Rise in pri'e o$ ra" material Import o$ ra" material
!"%IRO"#!"TAL FACTOR Impa't o$ volatile or#ani' 'ompounds *V0Cs. 5ead $ree paints Season and 'limate 'han#es
L!GAL FACTOR Pollution Control 5a" Consumer 5a" Health and Sa$ety 5a" /nvironmental 5a"
PORTERS 5 FORCES ANALYSIS
&ARGAI"I"G PO'!R OF &()!R
Household users = The contractors D Hi#her 6ar#ainin# po"er sensitive more pri'e
The end customer * Num6er o$ options are availa6le De'isions are made 6ased many $a'tors
Industrial users = A lo" mar#in hi#h revenue 6usiness !he 6uyers kno"led#ea6le Pri'e 'omparison is done e$$e'tively 6y the 'onsumers
&ARGAI"I"G PO'!R OF (PPLI!R
Ra" material intensive industry 1ore than >99 produ'ts reEuired to manu$a'ture o$ the $inal produ'ts 1any Cate#ories Pi#ments additives Solvents %inder et'.
Pi#ments 'onstitute a6out +?>rd o$ the total ra" material 'osts. Titanium dioxide is one key pi#ments "hi'h is $a'in# a #lo6al shorta#e supply.
CO#P!TITI%! RI%ALR) A6out -9; o$ the or#ani7ed market is 'atered 6y the top $our players o$ the industry. !he 'urrent market #ro"th rate provide ample room $or all the players o$ the industry to $lourish. Competition may in'rease as the market #ets saturated. !he presen'e o$ the unor#ani7ed market does provide room $or 'ompetition
A%AILA&ILIT) OF (& TIT(T!
5ime "ash is 'onventionally used su6stitute $or paints. In de'orative paints se#ments an alternative option is "allpapers.
T$R!AT OF "!' !"TRA"T
!he paint industry in India is dominated 6y $e" players makin# di$$i'ult $or anyone ne" enterin# the industry /sta6lish $orei#n players may pose a threat 6y virtue o$ the kno"led#e and e4pertise
PRODUCT PORTFOLIO
An'illarie s
De'orativ e paints
Industrial Paints
Automo6ile
BCG MATRIX TAR 1etal?industrial Paints )ood $inishes *varnish, polish. CA $ CO' )all Paints*IN!/RI0R /F!/RI0R PAIN!S. D/C0RA!IV/ PAIN!S +(! TIO" #AR, Distemper Ran#e* 5o" end Paints.
DOG 1arine paints, Automo6ile paints others*6a'k 6oard paints.
SITUATION AUDIT India@s lar#est paint 'ompany and Asia@s third lar#est paint 'ompany 0perates in +2 'ountries and has &A paint manu$a'turin# $a'ilities in the "orld servi'in# 'onsumers in over B: 'ountries. 0perates around the "orld throu#h its su6sidiaries %er#er International 5imited, Ap'o Coatin#s, SCI% Paints and !au6mans
SWOT ANALYSIS 1arket leader Capa'ity e4pansion plans Pri'in# po"er )ide distri6ution net"ork Industrial 6usiness per$ormin# 6elo" par Hi''ups in international 6usiness International presen'e restri'ted to small po'kets
Fast #ro"in# Indian e'onom Shorter repaintin# 'y'les (ro"th in the tier II and III to"ns Steady #ro"th in industry volumes De'rease in th use o$ distemper
)eaknesses
Stren#ths
0pportunities
CURRENT ISSUES
1arket leader at present. 0verall 'ondition o$ the 'ompany is Euite sta6le. ReEuires a lot o$ ra" materials $or its produ'tion , /uropean 'risis resultin# the pri'es o$ the ra" materials have in'reased 'onsidera6ly. SolutionD Company 'an try to utili7e the domesti'ally availa6le materials to 'ut do"n on the e4tra manu$a'turin# 'ost.
CONCLUSION Asian Paints, India8s lar#est paint 'ompany and Asia8s third lar#est paint 'ompany, "ith a turnover o$ Rs ,B.>& 6illion. Have an envia6le reputation in the 'orporate "orld $or pro$essionalism, $ast tra'k #ro"th, and 6uildin# shareholder eEuity. 0ver the 'ourse o$ &: years Asian Paints 6e'ame a 'orporate $or'e and India@s leadin# paints 'ompany. Driven 6y its stron# 'onsumer= $o'us and innovative spirit, the 'ompany has 6een the market leader in paints sin'e +,B-.
