Paint Industry

The per capita consumption of paints in India is still low at 1.25 kg (as against 51.7 kg in Qatar, 38 kg in Singapore or 25.8 kg in the U.S. Even China has a per capita consumption of 2.5 kg and Sri Lanka 3.5 kg).

India has a long way to go. Therefore, the future of the industry in India is quite bright.

HISTORY On 1st Feb. 1942, a partnership was started by four entrepreneurs.

In 1945, the firm was turned into a company.

In 1957, a plant was set up at Bhandup, Mumbai.

In 1973, APIL became a public ltd company.

In 2002. APIL was a market leader of Indian Decorative Paints with market share of 44%.

Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution

Core Thought

Asian paints is about people who invest emotional energy in creating their homes.

Asian Paints is about homes which reflect the taste and love of their owners/residents.

BOARD OF DIRECTORS

Mr. Ashwin ChoksiNon Executive

Chairman

Mr. Ashwin DaniNon Executive Wise Chairman

Mr. Mahendra Choksi

Director

Mr. Abhay Vakil

Director

Mr. P M Murty

MD and CEO

PRODUCT LINES

Sector-Wise Distribution

Major segments:i. Decorative paints:

o Enamels - 50% o Distemper - 19% o Emulsions - 17% o Exterior Coatings - 12% o Wood Finishes - 2%

ii. Industrial paints:o Automotive Paints - 50% o High Performance Coating - 30% o Powder Coating - 10% o Coil Coating - 5% o Marine Paints - 5%

COMPANY COMPETITORS

Market Share of Decorative Segments

• DECORATIVE SEGMENT

• Asian Paints • 38%

• Kansai • Nerolac 14%

• Berger paints • 9%

• ICI 9%

• Jenson and • Nicholson

• 5%

• Shalimar 6%

• Others 19%

Increase in Market Share

BCG MATRIX

1. Water Based Colors1. Metal/Industrial paints

2. Wood Finishes(Varnish, Polish)

1. Wall Paints (Interior & Exterior Paints)

2. Decorative paints

1. Marine Paints

2. Black board Paints

LOW

HIGH

LOWHIGH

Market Share

Busin

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ate

PROMOTIONAL CAMPAIGNS

AAN DO(Apex Ultima) 2007

Choosing Colours Made Easy!(Asian Paints) 2008

Faded Memories(Apex Ultima) 2008

Musicians(Royale Play) 2008

Har Ghar Kuch Kehta Hai(Asian Paints) 2008

SWOT ANALYSIS

• STRENGTH: NO.1 Player in decorative paints

and 2nd in industrial paint segment.

Market leaders with 51% market shares.

Wide distribution network i.e. 19,000 dealers in India.

Strong in inventory control. The pricing strategy is oriented to

middle and lower end consumers. Widest product range in terms of

products, shades, pack sizes. Comprehensive nation wide

coverage of the market.

• WEAKNESS:

Seasonal demand and hence in off seasons it can lead to cash flow problems.

Innovation in developing new product is inadequate.

Weakness on the technology front in industrial paints.

Contd

• OPPORTUNITIES The automobile

industry accounted for 50% of the industrial markets.

Potential in overseas markets.

• THREATS:

Growing industry and low capital intensive nature of business will attract competition.

The external environment saw an entry of a lot of multinationals trying to attack us on various segments

Competition is catching up fast, hi-tech facilities gives abundant choices.

COMPANY’s FUTURE PLANS

• Setting up a new manufacturing plant in North India, to keep pace with future demand.

• Building a auto paints plant in South India, in partnership with US-based PPG Industries.