A presentation about the biggest paint company in the country.

1. Presentation on asian paints
CENTRAL UNIVERSITY OF JAMMU
PRESENTED BY: - ABHAY SHARMA
DEPARTMENT: - M.B.A. MARKETING
SUBJECT: - FUNDAMENTALS OF MANAGEMENT
ROLL NO.: - 0101521
SESSION: - 2021-23
PRESENTED TO: - Dr. ANJU THAPA MAM

2. “
”
Har Ghar Kuch Kehta Hai…
asian paints

3. • Only company in India to grow at a CAGR of 20% from
the past 60 years.
• The share price of the company doubles itself after every
4 years.
• Asian Paint is the market leader in the Indian paint
industry from the past 55 years.
• Just to give you an estimate about how asian paints
become a gold mine for it’s investors is that if you had
invested Rs. 1,00,000 in asian paints in the year 2000 it
would be approximately around 1.87 Cr. Without
including dividends.
Some Facts or Highlights
About the Company

4. But now the Big Question is what makes
Asian Paints a Market Leader in paint
industry for so many years? What’s the
secret formula behind this massive
success?
Don’t you need to be worry that’s why I am here to answer this question so let’s tie our
seatbelts and come on a journey with me that goes to year 1942 from the days when Asian
paints was started from a small garage in Mumbai and try to understand what makes this
company so massive and profitable. So, let’s start…

5. How asian paints was started?
The story goes back to the year 1942, at that time India was under the rule of British
Government and at the same time World War II was also going on. At that time British Govt.
decided to temporarily ban the import of paint in India. During that time only few foreign
companies sold their paints in India and the major Indian player was Shalimar Paints. But due to
this ban on the import of paints, it emerges as a great opportunity for the domestic players. And
spotting this opportunity a boy from Mumbai named Mr. Champaklal Choksy along with his
three friends setup Asian Paints in Mumbai in 1942 from their garage.

6. Initial Days Of The Company…
In the initial days of the company Champaklal Choksy approached large distributors to sell their paints but
he was brutally rejected. Then he moved towards the rural population of the country. He noticed that
people in the villages used to paint the horns of their cows and in South India the entrance of the houses
is painted as it is considered auspicious. When the demand of paint shot up among the dealers of paint in
the villages soon after some time the demand also started to coming from the bigger distributors. In the
next ten years with this rural to urban approach company hit a revenue of 23 crores.

7. A Little Story About Gattu(The
Mischievous Boy)
In the year 1954 Asian Paints approached Mr. R.K. Lakshman, a very renowned cartoonist of that time to
draw a mascot for the company when the company had a huge turnover of 23 crores. Lakshman started
searching inspiration for the mascot. One day while he was smoking, he saw a little boy with a paint
brush in his hand in the smoke of the cigarette and that's how Gattu was born. After that a contest was
organized by the company " Give Me A Name ". The contest was organized to decide a name for the
mascot and 47000 people entered the contest. Two people won the contest and a cash prize of 500 was
awarded to them. In this way the mischievous boy with the brush got it's name i.e. GATTU.
The Art
The Artist

8. The Year That Changed Everything for Asian
Paints...
Now the obvious thing over here is that asian paints couldn’t have become market leaders just
by selling paints for cows horns. 1954 was the year when things changed for asian paints. It is
the time when they came up with the product called Washable Distemper. It has the qualities
of plastic emulsion but was way cheaper than the emulsion product. And this product was
marketed using a very successful marketing campaign which said “Don’t Lose Your Temper, Use
Tractor Distemper”. Within no time washable distemper became a huge hit in the market. From
the year 1954 to 1962 the revenue of the company grew at a CAGR of 21%. By the year 1967
asian paints became the largest paint company in India.

9. 3 Critical Factors For Asian Paints Dominance For
Such A Long Time
Factor 1
Regular Payment
Performance
Discount
Factor 2
Technology Can Do
Wonders and Data Is
Digital Gold
Factor 3
State of The Art
Distribution Channel

10. Regular Payment Performance Discount
If the dealer made the payment of the paint within the 30 days of it’s purchase throughout the year, he/she will
get a discount of extra 3.5%. And if the dealer made the payment in cash then the dealer will get 5% discount on
the procurement price. Now this was a very very big deal because paint industries by default operate at a razor
thin margin at the dealer level. This initiative worked wonders because it was a win-win for both asian paints and
dealers. Because asian paints was a able to rotate it’s capital faster, so they are able to serve large number of
distributors will very less working capital. And at the same time dealers were getting discounts and manage their
working cycles better.

11. Technology Can Do Wonders and Data
Is Digital Gold
In the year 1970 Mr. Champaklal Choksy founder of asian paints bought a supercomputer
for a whopping amount of Rs. 8 crores. Adjusted to inflation that amount would be today
around 16billion, 532million, 78thousand and 632rupess approximately. The thing that will
more surprise is that asian paints had a supercomputer 10 years before ISRO and IIT
Bombay and 21 years before any other Indian company.

12. State of The Art Distribution
Channel
From 1970’s onwards asian paints removed all the middlemen in it’s distribution channels
including distributors and whole sellers and this meant that they are supposed to supply
directly to the dealers. And because of this today asian paints the manufacturer reaches
70000+ dealers without any channel intermediaries. Therefore, with only 5-7% average
margins for the dealers, asian paints is able to keep 93-95% of the margins for itself. In the tier
4 cities if you have ordered the products in the evening it will be delivered to you by the next
day noon. And in tier 1 cities asian paints logistics system deliver goods 2 times a day and in
some case 4 times every single day.

13. Numbers Don’t Lie…

14. Corporate Social Responsibility at asian paints is about a sustainable business model, which
looks after the interest of all stakeholders. Asian Paints corporate social responsibility
budgets have been consistently higher than the prescribed amounts. Some of the CSR
initiatives of the company are mentioned in the next slide.
Corporate Social Responsibility

15. Gyan Shakti:-
Basic primary education in rural areas in prevalent; quality education is not. Students passing out of government
schools don’t have a firm grasp of science and English language. Gyan Shakti is a three-year holistic programme for third to eighth
graders which fills the void.
Colour Academy:-
The flagship programme is connected to the heart of conglomerate- the paint application trade. The mission
of Colour Academy is to make India a hub for this trade. In this process , CSR of asian paints contributes to the government’s Skill
India Campaign.
Safar: -
Truck drivers face a lot of challenges on the road. Safar is a preventive health initiative to correct the lifestyle habits of
truckers and provide them with medical facilities.
Project Drishyam:-
The eye care CSR initiative hopes to achieve corrective vision for all, hence the name Project Drishyam. Apart
from distributing eye glasses, this CSR initiative by Asian Paints also treats many eye diseases.

16. Please Accept My
Deepest Gratitude…
I Hope You Liked My Presentation and If You Have
Any Doubts or Questions You Can Ask Me.