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

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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

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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

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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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