BP & SM

PAINTED BY:

GROUP-J

AJAY PRATHAP S (12255111 SANDEEP T(1225111429) SOWMYA K(1225111426) TRISHAGNI B(1225111430) RUSHENDAR C(1225511107) HIMA BINDU K(1225311104)

PAINT INDUSTRY

Product Profile
Interior Paints.

Exterior Paints.
Wood Furnishes. Wood & Metal Furnishes.

Vision
Asian Paints aims to become one of the top five EXISTING STARTEGIES Decorative coatings companies world-wide by leveraging its expertise MISSION growth in the higher Focus on Customer service the company emerging markets. Simultaneously, TO BE THE Improving product mix LARGEST intends to build long term value in the Industrial DECORATIVE PAINT CO. coatings business through alliances with Expanding dealer network WORLDWIDE established global partners. AND TO BE chain Enhancing manufacturing and supply

THE 5TH LARGEST PAINT activities MANUFACTURING CO. Forge stronger partnerships with supplier base. WORLDWIDE.

Pursue quality with zeal. Good in distribution.

TECHNOLOGY
Asain Paints Berger

35%
5% 6%

32.8%
10.8%
10.8%

kansai

IcI
others Unorganized

90 80.81
80 80.74

FINANCIAL RATIOS
Financial ratio-1

70

1.2
60 1

Financial ratios-2
0.93 0.89 37.78 39.12

1.13 0.99

1.09

50

40 32 30

0.8

0.6

27

28.36 0.59 0.47 0.38

0.6

20 0.4 10 0.2 0 2011 2010 0.34

17.5

17
13

0.14 2009 0.003 2008 0.04 0.06 2007 2009 2008 0.08

Earnings0 per share

2011

Dividend Per Share

2010

2007

Current ratio

Quick ratio

Debt Equity ratio

O R G N I Z A T I O N A L
C H A R T

Market Positioning
India
AP Nerolac Berger Akzo Nobel + +/+/-

International
AP Nerolac Berger Akzo Nobel +/+

Decorative Segment

Industrial Segment

AP Nerolac Berger Akzo Nobel

+/+ +/-

AP Nerolac Berger Akzo Nobel

Relative market position: + Strong Weak

+/- Moderate

VALUE CHAIN ANALYSIS

Secondary activities
Firm Production Outbound Marketing Services Infrastructure Logistics and Sales Inbound logistics Position among top 10 paint companies in the world; HRD Integration State of the Great Color World; Low debt-equity ratio; functioning of art supply investment in Expert help; Economies of scale; entire chain system; Advertising Home department; and sales; solution; HRD Open and interactive culture; Waste Project Employee coaching; minimization solution; Performance management system; Color speaks; and conservation Color Technological of resources; Dedicated R&D; calculator; Development Water Integrated Supply chain management solution; Readily Disaster recovery system; Management; available service at free Procurement Backward Integration; of cost; Highly sophisticated Planning system; Alternative material scenario; JDA factory planning software; Advanced scheduling software

Strengths

Brand image Market leader Strong inventory control Widest product range In-home production Dedicated Human resources

PORTERS MODEL
OTHERS

12.90%
5.50%

MEDIUM

38%

JENSON

COMPETITORS SHARE
8.10%

ICI

7.80%

7.80%
11.20%

BEGER

14.20%
10%

GNPL

42.50%
37.50%

APIL

14.50%
5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

0.00%

Decorative Market

LOW

Insustrial Market

Political :

The British units Industrialization and liberalization Fiscal Incentives are provided by the Government.

PESTL

Economic : Industrial

- 30% and decorative -70%. Entry of MNCs in auto, consumer durables etc. Increased demand largely dependent on the construction activity of the country. To meet competition company needs to be flexible and adaptable

Social : (Reduce )working hours of the workers

Conscious Because of high automation the employment is expected to decline

Technological : Decorative segment easily replicable and also of low cost

Industrial not easily replicable Environmental friendly Tie-ups with PPG of the USA and Nippon Paint Co, Japan

Legal :

The Government put forward the need to control the prices and stabilize the market.

Opportunities

Rise in income levels Heavy infrastructure spending Boom in India home sector Rise in disposable income Fiscal Incentives provided by govt Developing automobile industry which need 50% IP

strengths opportunities

TWOS MATRIX

weakness

Grab the boom in the market as they are market leaders. Heavy infrastructural can be supplied by strong inventory.
Threats Strongest Distribution and

Government fiscal incentives can be utilized to balance cash flow problems in unseasonal market. Can invest in industrial paint sector

Human resources helps to face competitors. widest product range can grab the market

Technology is to be improved by JVs and Acquisitions in other countries More investment in R&D to develop more innovative products.

ASIAN PAINTS High Low

High

DECORATIVE
Market growth

INDUSTRIAL

Low

CHEMICALS

Market share

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GE MATRIX
I N D U D S T R Y

HIGH H I G H

BUSINESS STRENGHT MEDIUM

LOW

M E A D T I T U R M
A C T I V E N E S S

I
L O W

Existing strategies Strong customer focus, High operational efficiency acquisitions with Berger International, Online help New Strategies Intermediaries Full line service Improvement in technology Pull strategy-improve its brand name Rural strategy-cost benefit

Future plans Have its presence in the major developed markets Improve the services Profitable acquisitions Increase the plant capacity Ability to handle the size of business Recommendations Expand its services Concentrate on industrial category Diversification of products Developed new strategies on main business

Bibliography Moneycontrol.com EBESCO PROQUEST Asainpaints.com http://smartinvestor.business-standard.com http://books.google.co.in http://www.businessworld.in http://www.coatingsworld.com

than ku