Business Analysis of Asian Paints
Asian Paints Limited (APL) incorporated in 1942 ranks among the top ten decorative paint companies in the world. It has presence in decorative and industrial coating segment of the paint business. Besides, the Company operates around the world through its subsidiaries Berger International Limited, Apco Coatings and SCIB Chemicals.
APL has its presence in almost all the segment through its brands Royale in the premium segment, Apcolite in the mid-segment, Gattu, Tractor, Utsav and 3- Mango etc. in the lower segment.
Vision Asian Paints aims to become one of the top five Decorative coatingscompanies world-wide by leveraging its expertise in the higher growthemerging markets. Simultaneously, the company intends to build long termvalue in the industrial coatings business through alliances with establishedglobal partners Mission To be the worlds largest decorative paints company worldwide and to be fifth largest manufacturing company worldwide. ABOUT THE COMPANY Asian Paints is India’s largest paint company and Asia’s third largest paint company,with a turnover of Rs 66.
The group has an enviable reputation in the corporateworld for professionalism, fast track growth, and building shareholder equity. AsianPaints operates in 17 countries and has 23 paint manufacturing facilities in the worldservicing consumers in over 65 countries. Besides Asian Paints, the group operatesaround 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 SmallCompanies 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 receivethis recognition. Forbes has also ranked Asian Paints among the Best under a Billioncompanies in Asia In 2005, 06 and 07, the company has come a long way since its small beginnings in 1942. Four friends whowere willing to take on the world’s biggest, most famous paint companies operating inIndia at that time set it up as a partnership firm. Over the course of 25 years AsianPaints became a corporate force and India’s leading paints company. Driven by itsstrong consumer-focus and innovative spirit, the company has been the market leader inpaints since 1968.
Today it is double the size of any other paint company in India. AsianPaints 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 WallFinishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced manyinnovative concepts in the Indian paint industry like Colour Worlds (Dealer TintingSystems), Home Solutions (painting solutions Service), Kids World (painting solutions forkid’s room), Colour Next (Prediction of Colour Trends through in-depth research) andRoyale 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 coloursand how it can change their homes. Vertical integration has seen it diversify into products such as Phthalic Anhydride andPentaerythritol, 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 thelargest automotive coatings manufacturer in the world) to service the increasingrequirements of the Indian automotive coatings market.
Another wholly ownedsubsidiary, Asian Paints Industrial Coatings Limited has been set up to cater to thepowder coatings market which is one of the fastest growing segment in the industrialcoatings market.
Asian Paints also operates in Road Markings, Floor Coatings andGeneral Industrial Liquid paints segments in industrial coatings. At Asian Paints, Research and Development (R;D) plays an important role in developing new products and innovations, and reducing costs by value re-engineering of formulations.
In India, the company’s 140 strong R&D team consisting of 7 doctorates and around 115 qualified scientists, has always backed the company’s business plan and demands of the market place. Right from the company’s inception, all its decorative products for the Indian market and also in the overseas market have been developed in-house. In the last few years, our R&D efforts have been focused on developing new exterior finishes, economy emulsions and distempers. Asian Paints’ R;D team has successfully managed to develop High-end exterior finished and wood finishes in-house, which was earlier imported into the country.