Swot analysis of asian paints

Presentation on Asian Paints

Presented by: Team 1

Objectives

EACH COLOR HAS A STORY TO

TELL

History

• 1942:- • Established

• Headquartered in Mumbai.

• The MD & CEO is Mr.K.B.S. Anand.

History

1945

1967

1973

2002

Objectives

OBJECTIVES

INCREASING THE MARKET SHARE WITH THE VIEW TO BECOMING

NO 1 IN MARKET SHARE.

GROUP SUBSIDIES

There are 4640 employees at present.

Asian Paints is India's largest paint company and Asia's third largest paint company.

Asian Paints operates in 17 countries and has 24 paint manufacturing facilities in the world servicing consumers in over 65 countries.

Products of Asian Paints

Types of products

Decorative paints1. Asian Paints Apex Ultima2. Asian Paints Apex 3. Asian Paints Duracast Fine Tex

• Automotive• Industries1. Protective coatings2. Floor Coatings3. Road Marking

Company Analysis

• According to the Consolidated - Audited financial statement for the Year of 2012, total net operating revenues increased with 25.06%, from INR 7,788.87 tens of millions to INR 9,740.54 tens of millions

• Operating result increased from INR 1,318.14 tens of millions to INR 1,618.59 tens of millions which means 22.79% change

• The Current Ratio (Current Assets/Current Liabilities) went from 1.16 to 1.28 when compared to the previous year.

SWOT ANALYSIS

STRENGTH

• MARKET LEADER

• GAINT OF INDIAN PAINT INDUSTRY

• CAPACITY EXPANSIONS

• MANUFACTURER

• WIDE DISTRIBUITON NETWORK

WEAKNESS

• LESS GROWTH FROM INDUSTRIAL BUSINESS

• INTERNATIONAL BUSINESS PERFORMING BELOW PAR.

• LESS PRESENCE IN INTERNATIONAL BUSINESS

OPPORTUNITIES

• THE RAPID GROWING OF ECONOMY• GROWTH IN MANY MAJOR PARTS OF THE

COUNTRY• DECLINE IN CONSUMPTION OF DISTEMPER IN

FUTURE• STEADY GROWTH IN INDUSTRY• CHANGE IN TASTES ON CONSUMERS.

THREATS

• COMPITION FROM INTERNATIONAL AND NATIONAL PLAYERS

• RISING COST OF RAW MATERIALS

• ECONOMIC SLOWDOWN

MICHAEL PORTERS FIVE FORCE MODEL

RIVALARY AMONG

COMPETING SELLERS

THREAT OF NEW ENTRANTS

THREAT OF SUBSTITUTE PRODUCTS

BARGANING POWER OF SUPPLIERS

BARGANING POWER OF BUYERS

RIVALARY AMONG COMPETITORS

• ORGANISED MARKET CONTROLLED BY 5 TO 6 MAJOR PLAYERS.

• THIS MARKET SEASONAL IN NATURE.

• IMPORTS ARE MINIMAL DUE TO HIGH COSTS

• PRODUCT DIFFERENTIATION.

BARGANING POWER OF SUPPLIERS

• MAJOR RAW MATERIAL BEING CRUDE THIS CONSTITUTES MAJOR PART OF PURCHASES

THREAT OF SUBSTITUE PRODUCTS

• HIGH RISK INVOLVED FROM SUBSTITUE PRODUCTS DUE TO RAISING COSTS.

THREAT FROM NEW ENTRANTS

• LESS GOVERNMENT INTERFERENCE HAS CREATED NO ENTRY BARRIERS

• THERE ARE THREAT FROM EVEN FOREIGN PLAYERS.

BARGANINING POWER OF BUYERS

• BARGANING POWER IS NEITHER LOW OR HIGH ITS CONSTANT

• DISCOUNTS ON BULK BUYING QUANTIY• THE MAIN PART OF BARGAINING COMES

FROM INDUSTRIES

KEY SUCCESS FACTORS OF ‘ASIAN PAINTS’

o Marketing Strategies- Electronics, Print media, and Informative brochures.

o Distribution- Semi urban to metropolitan market.

o Use of Information Technology- Computerisation of branches and depots.

o Width of Product Line- Wall, metal, wood and plastic finishes.

Asian Paint has offered brands in all possible applications. For instance:

Synthetic / Acrylic Washable Distempers : TractorsAcrylic Emulsion : Apcolite (Quality I,) Royale (premium category)Plastic emulsion Paint (Interiors / Exteriors) : Decoplast (Quality) II),Apex (Quality )Synthetic Enamel : Apcolite, GattuPacket Distemper : UtsavWooden Surfaces : Touch Wood, Silkwood, Apcolite Natural Wood finish.Cement Paint (external) : Gattu

Industrial SegmentGeneral Industrial Finishes : Apcolite (Hammerton Finish)Other Industrial Products : Expory Coatings, Chlorinted Rubberfinishes, vinyl & Polyurethane Systems.

DRIVING FORCES OF PAINT INDUSTRY

o Growth in country’s automobile, Construction and housing sectors.

-CHANGING TRENDS IN INDIAN PAINT INDUSTRY:

o Standard of living

o Colour preferences- focused on more eco-friendly look.

o Hiring Architects or interior designers in order to choose best colour.

THANK-YOU

Objectives

EACH COLOR HAS A STORY TO

TELL