ASIAN PAINTS LTD.
(FORMERLY ASIAN PAINTS (I) LTD.)
kyonki har ghar kuchh kehta hai!!!!!!!
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Group Members
MEMBER NAME ROLL NO.
SAHIL PARIANI
SALONI THAKKAR SANDEEP AGRAWAL SAUMYA VADLAKONDA KOMAL KENI
08131
08132 08133 08135 08062
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Market Overview
The industry has been growing at a CAGR of 10%
Market Growth of about $200 - $400 million per year over next 5
years
Per capita consumption of paint in India is 800-900 grams
compared to 15-25 kg in the developed countries annum
Growth rate in the Organized sector expected to be 15 17% per
Unprecedented boom in Housing sector to fill demand for over
30 million new homes.
Source: HDFC Securities Analyst Report
Market Segmentation
INDUSTRIAL SECTOR TOTAL PAINT INDUSTRY * source- http://india.virtusglobal.com/pdf/Indian%20Paint%20Industry.pdf
Introduction Of Company
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 company
Indias largest paint company and Asias third largest paint Operates in 20 countries with manufacturing facilities in
each of these countries
The largest paint company in eleven countries in the world
Introduction Of Company (Contd.)
The only paint company in the world to receive the 'Best
under a Billion' award company in India
Today Asian Paints is double the size of any other paint
The group operates in five regions across the world through
the five corporate brands of its various subsidiaries
Vision
To become one of the top five Decorative coatings
companies world-wide
To build long term value in the industrial coatings
business
Todays Position
The 10th largest decorative paint company in the world
It is more than twice the size of its nearest competitor
It is one of the most admired companies in India
It has over 2500 SKU's, Integrated SAP - ERP & i2 - SCM
solution
Global Presence
Markets of Asian Paints
South Asia India Nepal Sri Lanka Bangladesh South East Asia China Malaysia Thailand Singapore
AND ALSO COUNTRIES IN
Caribbean Middle East South Pacific
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Subsidiaries
Berger International SCIB Paints-Egypt Apco Coatings
Taubmans
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APL Group Net Sales
*OTHERS INCLUDE COMPANYS BUSINESS UNITS MANUFACTURING PHATHALIC,ANHYDRIDE AND PENTAERYTHRITOL
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Market Share
13
Products In India
Primers (Wood, Metal, Ancillaries Colorants
Wall) Distempers Enamels Emulsions Thinners Luster Finishes
Wood Finishes
Putty Laminates
Matt Finishes
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Product Price Flexibility
Oil Paints / Enamels
Rs.100/ltr to Rs.250/ltr
Interior Distemper-Emulsions
Rs.33/kg to Rs.650/ltr
Exterior Paints-Emulsions
Rs.30/kg to Rs.500/ltr
Marketing Strategy
Collaborations with Berger International Flexibility in price and products Working at grass root level
Innovative products
Regional Festivals Color Samplers Small Packs
Shift from brand name to company name
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Research & Development
Reduces cost by re-engineering products 140 Strong R&D teams consisting of 7 doctorates and
around 115 qualified scientists Successfully developed High-end exterior finished and wood finishes Provides technological support for international operations across 19 countries
Payment Details
To suppliers
90 to 120 days
From dealers
7 to 15 days
Distribution Strategies
Wide network & decentralization
Online billing for dealers
100 KMS
Licensing out its brands & technology Reach remotest customer
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Distribution Strategies (Contd.)
Targeting regional festivals Wide Network of supply Production at its nearest
The Best reach for customer
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Distribution Channel
ASIAN PAINTS
BHANDUP
ANKLESHWAR
KASNA
BADDI
TALOJA
SARIGAM
PATANCHERU
SIPERUMBUDUR
72 INTEGRATED DEPOTS
ALL INDIA DEALER NETWORK
SUB-DEALERS
CUSTOMERS
Supply Chain
Two chemical plants 18 Processing centres 350 Raw material and intermediate goods suppliers 140 Packing material vendors 6 Regional distribution centres 72 Depots Backed by i2-SCM
Dealer Base Comparison
ASIAN PAINTS KANSAI NEROLAC
4000 3500 3000 2500 2000 1500 1000 500 0 DEALER BASE
Govt. Policies for Paint Industry
Cenvat rate reduced from 16% to 14%.CST from 3% to
2% New norm of grievance cell New manufacturing plants Vat Implementation MRP on tins
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Effects On Industry
MRP got reduced
Labeling, Admin cost increased Small scale industry got benefited Govt. revenue increased
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Share Capital & Reserves and Surplus
Share Capital
Rs.95.92 crores
Reserves & surplus
Rs.832.58 crores
Net Sales & Profit Comparison YoY
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Profit Percentage
% OF PROFIT= (PROFIT / SALE) *100
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Sales Growth Comparison
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21.65
21.04 21.1
20
15.24
18.65
IN PERCENTAGE
13.29
15 10 5 0
14.91
APL SALES
8.69
KNPL SALES
2004-05
2005-06
2006-07
2007-08
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MET'S ASIAN MANAGEMENT DEVELOPMENT CENTRE
Current Ratio
30
Return On Investment Analysis
60 50 40 30 20 10 0 03--04 04--05 05--06 06--07 07--08 37.7 47.8 41.4 51 58.9
ROI
Earning Per Share (EPS)
40 35 30 25 20 15 10 5 0 03--04 04--05 05--06 06--07 07--08 16.11 18.53 EPS 22.98 28.36 39.12
Dividend Analysis
180 160 140 120 100 80 60 40 20 0 03--04 04--05 05--06 06--07 07--08 85 95 DIVIDEND IN % 170 125 130
Debt Equity Ratio
34
Production Cost Structure
20% 30%
Titanium Dioxide Petroleum Based Raw Products Others
50%
Human Resources
Believes that people are its strongest assets. HR systems designed to create a vision focus
performance
4700 employees employed across twenty-three countries Unique blend of mindsets and skills.
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Corporate Social Responsibility
Organizing medical camps
Financing rural education plans
One of the biggest Water Harvesting Project
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Awards
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
Excellence Award by the Asian Institute of
Management, Philippines
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Future Prospects
Alternate for raw material
Enter into automotive and industrial sector Improve Subsidiary Companys performance
Licensing out brands
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Areas For Improvement
Demand Vs Supply
Duplication of products No dealer loyalty No negotiations
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Recommendations
Dealers help for demand forecasting Dealers participation in fighting with duplicate
products
Long term contracts with suppliers
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Investment Opportunities
Ratio of industrial paints to decorative paints is
expected to be 50:50,in line with the global trend
Premium products doing well due to superior quality
and durability
Demand for paints from new housing industry
Chances For Foreign Players
Climatic conditions are not conducive for foreign
formulations
Modification cost in product formulation is quite high No threat to the Indian players Major players already have a tie-up with global players
QUESTIONS????
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