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Asian Paints Is a Paint and Varnish Company in India

Updated August 18, 2022

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Asian Paints Is a Paint and Varnish Company in India essay

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Asian Paints is India’s largest paint company and Asia’s third largest paint company, with a turnover of Rs 77.06 billion. The group has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity.

Asian Paints operates in 17 countries and has 23 paint manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans. Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and 2003 and presented the ‘Best under a Billion’ award, to the company. Asian Paints is the only paint company in the world to receive this recognition.

Forbes has also ranked Asian Paints among the Best under a Billion companies in Asia In 2005, 06 and 07. The company has come a long way since its small beginnings in 1942. Four friends who were willing to take on the world’s biggest, most famous paint companies operating in India at that time set it up as a partnership firm. Over the course of 25 years Asian Paints became a corporate force and India’s leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968.

Today it is double the size of any other paint company in India. Asian Paints manufactures a wide range of paints for Decorative and Industrial use. In Decorative paints, Asian Paints is present in all the four segments v.i.z Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative concepts in the Indian paint industry like Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting solutions for kid’s room), Colour Next (Prediction of Colour Trends through in-depth research) and Royale Play Special Effect Paints, just to name a few. Asian Paints has always been ahead when it comes to providing consumer experience. It has set up a Signature Store in Mumbai where consumers are educated on colours and how it can change their homes.

Vertical integration has seen it diversify into products such as Phthalic Anhydride and Pentaerythritol, which are used in the paint manufacturing process. Asian Paints also operates through APPG (50:50 JV between Asian Paints and PPG Inc, USA, one of the largest automotive coatings manufacturer in the world) to service the increasing requirements of the Indian automotive coatings market. Another 50:50 JV with PPG has been proposed which will service the protective, industrial powder, industrial containers and light industrial coatings markets. Asian Paints along with its subsidiaries has operations in 17 countries across the world and 23 paint manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans. Asian Paints operates in 5 regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate brands viz.

Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. In 7 markets, it operates through its subsidiary, Berger International Limited; in Egypt through SCIB Paints; in 5 markets in the South Pacific it operates through Apco Coatings and in Fiji and Samoa it also operates through Taubmans. International Presence: Today the Asian Paints group operates in 17 countries across the world. It has manufacturing facilities in each of these countries and is the largest paint company in eleven countries. The group operates in five regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate brands viz.

Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. The 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) The company has a dedicated Group R;D Centre in India and has been one of the pioneering companies in India for effectively harnessing Information Technology solutions to maximize efficiency in operations. Products ; Services: The company’s primary products include:

1. Asian Paints Acrylic Wall Putty Asian paints acrylic wall putty is water-based putty. It is one of the best product of its kind available in the market. It provides a very strong durable foundation & brings out the best performance from the finish paints.Both in looks & durability.

2. Asian Paints Apex Apex Weatherproof Exterior Emulsion is a water-based 100% acrylic, exterior wall finish. A high performance, long-lasting exterior paint specially formulated to withstand extreme tropical conditions of high rainfall, humidity and heat, Apex provides excellent resistance against the growth of algae and fungi on the walls. It offers excellent protection against alkali and UV degradation too.

3. Asian Paints Apex Dholpur Tex Cost range: premium finish: rich sheen availability: across all colour world dealers.

4. Asian Paints Apex Ultima Asian paints apex ultima advanced anti algal weather proof emulsion is a water-based, modified acrylic, anti algal, high performance exterior wall finish. It incorporates the latest state-of-the-art technology to provide long-lasting exterior performance even in the most extreme tropical conditions of India. Its unique advanced anti algal chemistry ensures that exterior walls are provided with power-packed resistance against algae and fungi growth. Its has very good dirt pick up resistance and dirt cleaning properties.

5. Asian Paints Decoprime Wall Primer St Asian paints deco-prime wall primer (st) is suitable for use as primer for masonry topcoats like distempers, emulsions, luster & matt wall finishes. It helps in providing a suitable surface for application of subsequent coats of putty & finish paint. It seta fast, has good sealing properties, good resistance to wall alkalinity, moisture & fungus.

6. Asian Paints Wood Primer Asian paints wood primer is specially formulated to protect wood. It has an excellent sealing & filling properties which protects wood from swelling due to absorption moisture. Wood primer penetrates wood fibre & gives excellent adhesion to substrates & also serves as a sound base for application of undercoats & finishing coats. It also protects the finish coat from exudation of resinous matter oozing out from wood.

7. Asian Paints Tractor Synthetic Distemper Asian paints tractor synthetic distemper is a water-based, interior wall paint. It is the most popular distemper brand in india and gives walls a finish that is good looking, time-tested, durable and value for money. Asian paints tractor synthetic distemper gives a uniform matt film, which can be wiped with clean water. Being oil bound, the paint film becomes harder over a period of time, which gives better washability and durability. cost range: mid-range finish: matt availability: across all colour world dealers.

8. Floor Coatings Concrete floors represent a significant investment for any industry. Despite this, it is often the most neglected and abused part of the structure. Apart from the mechanical abuse, spillages of various kinds of chemicals also occur often weakening the reinforcement and concrete surface. The need to protect the surface with a suitable coating is quite obviously there. an increasing awareness of the limitations/drawbacks of concrete flooring is now resulting in wider acceptance of floor coatings. Limitations include the accumulation of dust due to the formation of laitance and difficulty encountered during cleaning owing to surface texture. Furthermore, the presence of cracks and surface porosity allows various oils to seep in, resulting in unappealing patches.

Weakening of the reinforcement and concrete surface due to chemical spillage and the possibilities of microbial growth are other significant drawbacks. apart from these, concrete floors are aesthetically unappealing making the workplace dull. the apcoflor coatings are hard wearing, abrasion resistant coatings available in wide range of attractive colours. They have excellent mechanical properties and provide floors that are tough and long lasting. They, apart from protecting the concrete surface, help tide over the limitations without affecting the intrinsic strength of concrete floor.

9. Protective Coatings Protecting industrial assets is increasingly becoming critical owing to rising asset costs, harsh weather conditions and mounting chemical pollution. Therefore asset owners are looking at specialised protective coatings specific to their requirements. We perceive this to be just the right environment for asian paints to demonstrate its growing technical strength. protective coatings from asian paints offer a choice of high-performance, heavy-duty coatings, designed to protect assets against the specific corrosive environment they are exposed to. Asian paints protective coatings are tested under extreme conditions to ensure that they are durable and can withstand the vagaries of the different climatic conditions. Today the range of coatings find use across diverse industries such as nuclear, thermal or hydel power plants, chemical, petrochemical or fertilizer plants, refineries, sugar, pulp and paper industry, offshore structures, pharmaceuticals etc. at asian paints, we understand the specific environment that your assets are exposed to, so as to offer the right coating solution for your needs.

10. Road Markings Road markings are the silent custodians of road safety in this era of four and six lane highways. Markings signify the delineation of traffic path and the lateral clearance from traffic hazard for the safe, smooth and orderly movement of traffic. Apart from traffic guidance, they also serve as a tool for controlling, warning and providing information to road users. though the cost of road markings is fractional in comparison to the cost of the road, its importance is indisputable. Often a key parameter used to judge the road quality is the quality of the installed road marking. asian paints commands market leadership in the field of thermoplastic road markings. asian paints offers a variety of road markings.

These include hot applied retroreflective thermoplastic material, fast drying highly durable 100% acrylic retro-reflective water borne paints and conventional water / solvent based road marking paints. apcotrak range of coatings includes coatings such as water based road marking paints conforming to is-164, 1981 (amended 1993) – specification for ready mixed paint for road marking, ordinary water based road marking paint and the 3rd generation road markings: apcotrak wbr, fast drying highly durable 100% acrylic retro-reflective water borne paints. These represent a generational shift in markings. They are safer to handle as heating is not required.

Do not soften on environmental heat and hence dirt pickup is eliminated. Corporate Information: Asian Paints is a fully integrated paints company that employs the most advanced and prudent principles for its working. Know about the company, its strategies, management structure in detail here. 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 History: 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 ?Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu Business Line; Most admired company to work for by ET-BT survey, 2000 ?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 1967: ?Asian Paints emerges as India’s leading paint company ahead of any international competition. 1957 – 66: ?The family-owned company makes the transition to a professionally managed organisation. ?British company Balmer Lawrie rejects the products of a giant British paint company in favour of Asian Paints. ?Asian Paints embarks on an ambitious grassroots marketing campaign, partnering with thousands of dealers in small towns all over India. 1954: ?Asian Paints mascot, Gattu, the mischievous kid, is born.

1945: ?Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing strategy “to reach consumers in the remotest corners of the country with small packs.” 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. They name their company ‘The Asian Oil ; Paint Company’, a name that they picked randomly from a telephone directory. Board of Directors: Manufacturing Plants In India: Manufacturing Plants Outside India: Marketing, Sales & Distribution: In an industry the availability of stocks is crucial determinant of sale, control of material units assumes great significance especially since Asian paints offer the widest range of products, shades and packs to the 13000 dealers in the country through the network of over 47 depots. This is achieved through a sophisticated material distribution system which optimizes production and movement from plants and meshes it with demand pattern in the market.

Rural Marketing Initiatives since 1960. ?Advertising & Promotional Expenditure started in 1980s. ?Advertising Methods- Radio, Print, Internet, POP, Retail Outlets, Seminars, Workshops. ?Market leader -38% share in organized sector. ?Asian Paints bypassed the bulk buyer segment and went to individual consumers of paints ?Widest product range -product shades, wide colors, pack sizes ?40 different decorative paints -1200 shades, 8 different sizes in packing, ?No. of brands -all segments.

Strong in inventory control (18 processing centers, 350 raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional distribution centers, 72 depots are integrated) Example of Print Ad of Asian Paints: Example of Promotional Ad of Asian Pains: Example of Festive Ad of Asian Pains: Packaging: Asian Paints has four production plants and each has four distinct packing pattern. So that the work of the godown in charge becomes easier in recognizing the tins from which plant they have come. The packing is as follows ? Ankleshwar ? Bhandup ? Patancheru ? Kasna Pricing In the narrowest sense price is the amount of money charged for a product or service. Price has been the major factor in affecting buyer choice.

This is still true in poorer nations, among poorer groups and with commodity products. However non price factors have become more important in buyer choice behavior in recent decades. With respect to Asian Paints there are two price lists. ?Dealers price list ?Maximum price list. Dealer price list: It is applicable to dealers and consists of their trade discount of 3%, additional trade discount of 3%, cash discount 5%.

Maximum Price List: MPL = consists of dealers price list – trade discount 3% – additional trade discount 3% – cash discount 5% + local tax. Those dealers who have regular payment of performance are benefited largely by cash discount and those dealers whose payment is not regular do not get products. The company operates at a very low over due outstanding rate. Thus it can be said that the company has very stringent rules regarding the credit given to the dealers.

Promotion: Asian Paints promotional activities consists of advertisements, schemes, point of purchase, painters’ schemes. The advertisement activities are given who has designed the advertisements as shown and partly by contract ad agency. The success of Asian Paints is primarily attributed to marketing acumen. The company has made excellent use of the electronic and print media, besides publishing informative brochures for all its products. The company’s mascot “Gattu” created to give an ethnic touch has almost become synonymous with the generic product. Target Group According to the information provided by the company personnel the target group differs from product to product.

Utsav – rural (chunna and distemper) Distemper – middle income group Royal – higher income group Financial Results: ?The company has aligned the accounting year of all overseas subsidiaries in line with the parent company in FY 2009-10 oThe annual consolidated results are not comparable with the previous year as the previous year includes 15 month results of overseas subsidiaries (Jan 09 – Mar 10) oThe Quarterly consolidated results are not comparable with the previous quarter as the previous period includes 6 month results of overseas subsidiaries (Oct 09 – Mar 10) Sales Performance of Asian Paints – Q4 FY 2010-11: ?Standalone sales grew by 24.0% in value terms ?Paints segment sales has grown by 25% over Q4 FY 2009-10 ?Consolidated sales grew by 4.7% in value terms ?Growth of 22.6% with comparable period of overseas subsidiaries ?International Operations impacted by global slowdown & challenging market conditions oCivil unrest in Egypt and Bahrain disrupts operations in the last quarter oGrowth mainly led by the South Asian markets oHigh Raw material costs reduced margins considerably Significant Developments: ?Board of APL approved plans to accelerate growth of the non-decorative coatings ?businesses in India by enhancing its fourteen year old relationship with PPG Industries Inc. (PPG), one of the world’s leading coatings and specialty Products Company ?APL and PPG to expand their existing non-decorative coatings presence in India jointly through their current 50-50 joint venture relationship (APPG), and also by establishing a second 50-50 joint venture ?Industrial businesses of both APL and PPG will be part of this second JV and APL and APICL plants will toll manufacture for them ?APL to take the lead in the second venture and PPG to take the lead in APPG in order to utilize their respective strengths to best capture the growth in infrastructure development and globally driven markets in India ?The arrangement is subject to regularity approvals and is expected to be completed during 2011.  Paint: Basically, Paint is a mixture of four elements. ?Solvents ?Binders ?Pigments ?Additives Solvents Which give paint its flow, and enable it to be brushed on a surface Binders Which hold the paint together, as well bind it to the surface that is painted, thus giving its property of durability. Pigments Which give paint its color and opacity.

It was during the and after the World War II. That large number of paint manufacturing units was set up in India. Since then the Indian paint industry has made substantial progress. The paint industry has come to the recognition as an important sector in the national economy in producing industrial coating and decorative paints. Decorative paints available in wide range of combination account for 70% of the coatings total production.

While industrial paints share the balance of 30%. This rate is diametrically opposite to the trend in the industrialized countries where industrial paints account for 70% and Decorative paints for the balance of 30%. The Indian paint industry is at the crossroads. All most all-major paint companies have expanded or are expanding its capacity substantially.

With demand rising slowly competition is becoming increasingly intense. The decreasing growth rate has made the paint companies to woo customers aggressively. The customer is being offered 10% rebate in most products, Unheard in the industry so far. Most companies have increased their discounts to their dealers to unimaginable level dealers are offered higher credit levels, flexibility in payment, foreign trips for selling even low value products and the like. The increasing competition to offer solutions through technology has made all the paint make as offer a large number of shades through computerized colour dispensing system. Currently, the industry has a sales turnover of about Rs 3,600 crore.

In terms of volume, it corresponds to 5 lakh tones. The industry is composed of two sectors, the organized and the unorganized. The organized sector controls 70 per cent of the total market. The remaining 30 percent is in the hands of the unorganized sector, consisting of 2000 odd small-scale units. The industry is not capital intensive.

It is however working capital intensive. The demand for paints is fairly price-elastic and is linked to economic and industrial growth. Demand is somewhat seasonal in nature-low during monsoon months, high during festival seasons. The Main Segments: The industry comprises two main segments—application-wise— 1.Decorative/architectural paints 2.Industrial paints The Decorative/Architectural Paint segment accounts for 70 percent of the total paint market while in the industrial paint segment accounts for the remaining 30 per cent. The industry is, however, expected to undergo a structural shift towards industrial paints in the next few years, when its share is expected to go up to 50 per cent in line with the global trend. Industrial paints thus hold greater growth potential in the coming years.

Actually with the decorative segment gradually bottoming out, companies are already increasing their focus on industrial paints. Industrial paints are technology intensive. The Industrial Paints segment can be further classified into automotive paints, marine, powder coatings, high performance coatings, and others. Original equipment manufacturers (OEM) of products such as automobiles, furniture and while goods such as refrigerators are prime consumers of industrial paint.

The automobile industry accounts for 50 per cent of the industrial paint market. A good part of the demand is from shipping and heavy industry, Navy being the largest customer in shipping. Till early 90’s paints were treated a s luxury items by the governments this resulted in higher excise duty and higher end prices, leading low consumption of paints in India. However the progressive reduction of the excise duty from 40% in 93-94 to 18% in 96-97, the companies have passed on the duty reductions as price cuts. However the per capita consumption of India is still a merge of .5 kg compared to 26 kg in U.S and 1.2 kg in Thailand.

As already mentioned paints were viewed as luxury item by many even today. Their productive value is not under stood and repainting is limited and if ever done is once in 7 – 10 years. The government interest to protect all surfaces is also low and the loss due to corrosion is estimated to be over Rs. 5,000 crores p.a.

By the central Electro chemical Research institute at Karaikad, Tamilnadu. With a view to emphasize the importance of protection through painting the Indian paints Association (IPA) had brought slogan in 1995 “Paint and Protect”. This slogan is popularized through various communications however a lot needs to be done to reach the millions of customers effectively. Importance of Paints: Generally paints and coatings are applied to products to protect them from ?Environmental Corrosion. ?Protection of Food and Beverages in metal cans.

?Improve aesthetic appeal. Developments In Various Segments: Two significant developments took place in the last three years in the decorative paints segment. ?Advent of Computerized Colour Dispenser ?Sudden increase of Exterior Market. Colour Dispenser: Traditionally companies used to supply pre mixed shades to dealers who in turn offered to their customers. Asian Paints brought in the manual colour dispensing concept in 1998 and offered 151 shades through it. This was the first salvo in offering in variety of shades.

This concept took off and Asian Paints went about establishing 2000 colour corners which would stock the 151 shades. Additional shading requirements were catered by providing colours as per the demand after mixing the bases with strainers through colour dispenser other companies followed it soon and Goodlass Nerolac introduce ed 301 shades under the same concept. The concept is similar to that of the manual colour dispenser except that the dispensing is automatic pre decided formula registered in the computer and the shades are offered instantly shops to customers. Today Berger Paints, is the 2nd Company to enter this system offering 5000 shades a clear indication of the trend.

In the year 1997-98 has seen

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