A Presentation on

Strategy Management of Asian Paints

Group-4 Shailesh Bhosale : 9 Vijay Dhadwal : 17 Roopeshwar Darwin

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Suhas Kamble : 41 Sujata Koyande : 49 Hitesh Patel : 72 Avinash Patil : 73 Vivek Patil : 74 Akshay Polekar : 79 Yusuf Shaikh : 92 Shyam Yadav : 110 Amol Bhopte : 126 1

Paint industryPaint industryPaint industryPaint industry

• Paint industry estimated at INR 135bn.• Unorganized sector accounts to 35% of paint market Volume growth estimated at

15%.• India’s share in the world paint market is 1.6%.

Company Industrial Market Decorative Market

APIL 14.50% 37.50%

KNPL 42.50% 10%

Berger Paints 14.20% 11.20%

ICI (Akzo Noble) 7.80% 7.80%

Jenson & Nicholson 8.10% 5.50%

Others 12.90% 38%

Players in Indian MarketPlayers in Indian Market

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APIL KNPL BPIL ICI (Akzo Noble)

JNIL

•Focus on decorative Paints and complete vacant slots in product range• Gain Market share in auto OEM through JV

• Provide paint shop management services to sell solutions rather than product

• Increase focus on southern markets in India

• Increase capacities to strengthen presence in fast growing architectural segments

• Leverage on JV for growth in Industrial segments

Paint Market by Year 2016Paint Market by Year 2016

Identification Of Focus Area of CompetitorIdentification Of Focus Area of Competitor

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• In its latest report based on the data available on the coating industry, for the year 2011-12 has valued the Indian paint industry at Rs 26,000 crore with 71 per cent of it being decorative paints and the remaining being industrial.

• In volume terms, the size of the industry is 3.1 million tonnes with decorative paints being 2.4 million tonnes and industrial paints being 0.7 million tonnes.

• The per capita paint consumption has been estimated to be 2.57 kgs.• The paint market is estimated to double to Rs 50,000 crore by 2016 with

per capita consumption increasing to over 4 kgs.

Entry of Global Players in Paint Industry: Recent JV agreementsEntry of Global Players in Paint Industry: Recent JV agreementsCompany Collaborator Purpose

Asian Paints Nippon Paints

PPG Industries

Sigma Coatings

BASF

Pre treatment chemicals, Coil &

Powder coating

Automotive paints

High performance coating

Can coating

GNP Kansai Paints

Nihon Tokushu

Auto & Industrial coating

Auto coating

Berger Herberts

Valspar Corp.

Teodur

Auto coating

Heavy duty coating

Powder coating

J&N Tikkurila

Herberts

Chugoku

Decorative

Auto refinish

Marine

Rajdoot Becker Coil coating

Shalimar Salphi

W.R.Grace

Marine coating

Can Coating & metal packaging

ICI India ICI Auto refinish 4

Share of Market - Share of Market -

IndiaIndia

Share of Market - Share of Market -

IndiaIndia

Competition – Competitive Base positionCompetition – Competitive Base position

Name Last Price

Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

Asian Paints 531.30 50,962.18 8,971.70 1,050.00 3,069.02

Berger Paints 228.35 7,911.71 3,024.21 209.80 1,287.45

Kansai Nerolac1,120.3

06,037.52 2,856.60 292.20 1,346.47

Akzo Nobel 844.80 3,941.86 2,231.98 218.83 1,105.30

Shalimar Paints 92.65 175.37 530.18 11.02 163.12

Jenson Nicholson

2.00 7.49 59.25 -5.84 -230.945

Company ProfileCompany ProfileCompany ProfileCompany Profile

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Achievements/ recognition:Achievements/ recognition:

Asian Paints is the 10th largest decorative paint company in the world

Awarded the 'Sword of Honour' by the British Safety Council for all the paint plants in India. This award is considered as the pinnacle of achievement in safety across the world.

Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia in 2005.

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.

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

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Overall Corporate Strategy: Asian PaintsOverall Corporate Strategy: Asian PaintsOverall Corporate Strategy: Asian PaintsOverall Corporate Strategy: Asian Paints

DISCOVERDEVELOP

DEFEND DEEPENBuild Complementary/new competency to fortify position in Existing Market

MARKET OPPORTUNITIES

Distinctive Competencies

NEW

EXISTING

EXISTING NEW8

RESEARCH Asian paints, the largest paint company of India have a very strong research methodology. (i)Market Research (ii)Research & Development of the products according to customers need & choices.

SERVICE- (i)Decorative Paints (ii)Industrial Paints(iii)Automotive paints.

DISTRIBUTION STRATEGY Offer the widest range of products, shades and packs 13000 dealers network of over 47 depots.

PROMOTION STRATEGY Campaign, sales promotion, personal selling, direct marketing and public relation. ‘Mera Walla Blue” “har ghar kuch kehta hia” Colour world store - Jjahan Milen world ke saare colour” Home Solutions Sates promotion Giving discount to the dealer Specialty advertising Trade show Consumer preference

Positioning of Asian PaintsPositioning of Asian Paints

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Threat from Threat from

competitorcompetitor

Threat from Threat from

competitorcompetitor

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The Company’s Competitive Advantage - Customer BaseCustomer BaseThe Company’s Competitive Advantage - Customer BaseCustomer Base

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Product - PositioningProduct - Positioning

TARGETING :TARGETING :

Tire – 1 strategic solution seekersTier –2 value or brand sensitiveTier –3 consumer are price sensitiveTier-4 small mfg & local companies Tier-5 special attention as hey are highly innovative in nature

SegmentationSegmentation

Base Decorative coating Industrial coating Automotive coat

Premium Medium Popular High performance

coating

Powder coating Quality

coating

Finished

coating

FORM – Rural SectorFEATURE- comparison with tractor emulsionCUSTOMIZATION-Durability

DifferentiationDifferentiation

STDPSTDP

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ANSHOFF ANSHOFF

MATRIXMATRIX

ANSHOFF ANSHOFF

MATRIXMATRIX

• Market Penetration Product Development

• Wood Finishes, Wall paints• Metal Paints

• Market Development Diversification• Venturing APIL Products Marine Paints

• Market Penetration Product Development

• Wood Finishes, Wall paints• Metal Paints

• Market Development Diversification• Venturing APIL Products Marine Paints

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Industry Analysis: Porters 5 force ModelIndustry Analysis: Porters 5 force ModelIndustry Analysis: Porters 5 force ModelIndustry Analysis: Porters 5 force Model

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Strategy Followed:Strategy Followed:

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