Asian Paints is India's largest paint company, with a turnover of Rs. 77.06 billion in 2011. It has 23 manufacturing facilities worldwide serving over 65 countries. The company was founded in 1942 in Mumbai by four entrepreneurs and was initially called The Asian Oil & Paint Company. It has emerged as the market leader in India's paint industry since 1968. Asian Paints manufactures a wide range of decorative and industrial paints under various brands like Asian Paints, Royale, Apex, etc. It has a presence in 17 countries through subsidiaries like Berger International, Apco Coatings, SCIB Paints, and Tubman's.

1. Asian Paints
Asian Paints is an Indian paint company headquartered in Mumbai,
India. Asian Paints is India’s largest paint company and Asia’s third largest
paint company, with a turnover of Rs 77.06 billion. It is one of the largest
paint corporations that operates in 17 countries and has 23 paint
manufacturing facilities in the world servicing consumers in over 65
countries. Besides Asian Paints, the group operates around the world
through its subsidiaries Berger International Limited, Apco Coatings, SCIB
Paints and Tubman’s.
History
Origins:
Over the course of 25 years Asian Paints has become a corporate force
and India's leading paints company. Driven by its strong consumer-focus
and innovative spirit, the company has been the market leader in paints
since 1968. Today it is double the size of any other paint company in India.
Asian Paints manufactures a wide range of paints for Decorative and
Industrial use.

2. 1st February, 1942:
Armed with little knowledge and great determination, Champaklal H.
Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get
together to manufacture paint in a garage on Foras Road, Bombay. They
name their company 'The Asian Oil & Paint Company', a name that they
picked randomly from a telephone directory.
1945:
Asian Paints touches a turnover of Rs. 3,50,000, with an innovative
marketing strategy "to reach consumers in the remotest corners of the
country with small packs."
Asian Paints mascot, Gattu, the mischievous kid, is born.
1957 – 66:
The family-owned company makes the transition to a professionally
managed organisation. British company Balmer Lawrie rejects the products
of a giant British paint company in favour of Asian Paints. Asian Paints
embarks on an ambitious grassroots marketing campaign, partnering with
thousands of dealers in small towns all over India.
1967:
Asian Paints emerges as India's leading paint company ahead of any
international competition.
Today:
Asian Paints becomes the 10th largest decorative paint company in the
world Asian Paints is more than twice the size of its nearest competitor It is
one of the most admired companies in India Present in 22 countries with 27
manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 -
SCM solution 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 On the recommendations of Booz, Allen and
Hamilton, Asian Paints restructured itself into Growth, Decorative and
International business units and adopted SCM and ERP technology Asian

3. Paints aims to bcome the 5th largest decorative paint company in the
world.
Major Products and Services
Asian Paints manufactures and markets industrial and decorative coatings.
The company's key products and brands include the following:
Products:
Decorative paints:
Interior wall paints Exterior wall paints Wood surface paints Metals surface
paints
Industrial coatings:
Protective coatings Floor coatings Road markings
Automotive:
Body coatings Plastic coatings
Ancillaries:
Brands:
Ace & Apex Apcolite Apex Apex Ultima Asian Paints Colour Next Premium
Gloss Enamel Royale Royale Play Touchwood Tractor Emulsion Utsav.
Forbes listing
Forbes Global magazine USA ranked Asian Paints among the 200 Best
Small Companies in the World for 2002 and 2003 and presented the 'Best
under a Billion' award, to the company. Asian Paints is the only paint
company in the world to receive this recognition. One of the country's
leading business magazines "Business Today" in Feb 2001 ranked Asian
Paints as the Ninth Best Employer. It has been recognized by "Economic
Times" as well. Forbes has also ranked Asian Paints among the Best under
a company in Asia In 2005, 06 and 07.

4. Financial Deals
Asian Paints has acquired 30% stake in Dutch Boy Philippines from Berger
International Limited (BIL), an indirect subsidiary of Asian Paints. Asian
Paints executed a conditional stock purchase agreement relating to the
sale of 427,000 shares of Dutch Boy Philippines, which ceases to be an
associated company of BIL. Asian Paints, Ltd. (APL) has entered into a
50:50 new joint venture agreement with PPG Industries, Inc. (PPG), a US-
based provider of paints, coatings and specialty products, to accelerate the
growth of non-decorative coatings business in India.
This is the second joint venture between APL and PPG. They currently
have a 50-50 joint venture named Asian PPG Industries Ltd (APPG).
Revenue
The company recorded revenues of INR77,888.7 million (approximately
$1,708.1 million) in the fiscal year ended March 2011, an increase of 14.2%
over 2010. The company's operating profit was INR13,956 million
(approximately $306.1 million) in fiscal 2011, an increase of 2% over 2010.
Its net profit was INR8,432.4 million (approximately $184.9 million) in fiscal
2011, an increase of 0.9% over 2010.
International operations
Asian Paints operates in 17 countries across the world. It has
manufacturing facilities in each of these countries and is the largest paint
company in eleven of these markets. Asian Paints operates in five regions
across the world viz. South Asia, Southeast Asia, South Pacific, Middle
East and Caribbean region through the five corporate brands viz. Asian
Paints, Berger International, SCIB Paints, Apco Coatings and Tubman’s.
The countries that Asian Paints has presence are as follows:
Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka) SCIB
Paints in Egypt Berger in South East Asia (Singapore), Middle East (UAE,
Bahrain and Oman), Caribbean (Jamaica, Barbados, Trinidad & Tobago)
Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu)
Tubman’s in South Pacific (Fiji and Samoa) The company has a dedicated
Group R&D Centre in India and has been one of the pioneering companies

5. in India for effectively harnessing Information Technology solutions to
maximize efficiency in operations.
Group Subsidiaries
1) Apco Coatings is a subsidiary of Asian Paints in the South Pacific
islands. Asian Paints operates in Australia, Fiji, Tonga, Solomon Islands
and Vanuatu under the brand name of Apco Coatings.APCO COATINGS
2) Asian Paints Industrial Coatings Limited has been set up to cater to the
powder coatings market which is one of the fastest growing segments in
the industrial coatings market. ASIAN PAINTS.
3) In 1994, Berger units were brought under the single umbrella of the
holding company 'Berger International Limited (BIL)' with headquarters in
Singapore, which was also listed on the Singapore stock exchange. In
November 2002, BIL became a part of the Asian Paints Group. Incidentally,
Berger Paints Jamaica Limited, which is listed on the Jamaican stock
exchange, is amongst the top ten companies in the country in terms of
market capitalisation. In the Middle East too Berger is a well-respected
brand. It is the largest paint company in Bahrain. Using its state-of-the-art
manufacturing facilities there, and in United Arab Emirates, it exports to
countries in the Commonwealth of Independent States, Gulf Cooperation
Council and Africa. In South East Asia Berger enjoys a fine reputation and
has operations in Singapore and Thailand. BERGER
4) SCIB Paints ranks amongst the top five paint companies in
Egypt. SCIBPAINTS
Campaigns
Late Nineties:
During the late nineties the brand had to be reinvented. Because no longer
festivities formed an important part in ones life. Since many brands went
after festival seasons, the positioning platform has become cluttered. More
over the consumer buying behavior has changed. The category was
becoming less seasonal. People started associating more importance to
home decor and interiors. The choice of color became a high involvement

6. decision. From a low involvement category, paint was increasingly
becoming a high involvement category.
Logo Change:
The brand also went in a brand overhaul. The logo was changed to a
contemporary up market one designed by Enterprise IG based in
Singapore. The logo/design was to convey self expression, sophistication
and Technology. Thus came the birth of a wonderful positioning strategy
created by O&M. The insight was that the brand is about people and
homes and homes reflect the people living in it. Hence " Har Ghar Kuch
Kehta Hai" translated to " Every Home has a story to tell". This campaign is
a perfect example of a brand laddering up and connecting to a higher level
in the mind of the customer. The campaigns reinforced the brand as a
premium emotional brand. Along with the campaign Asian Paints also ran
parallel ads for its sub brands. Saif Ali Khan endorsed the premium brand
Royale .For Apex Ultima, the campaign was highly localized and was
different in different market.

10. Balance sheet
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Sources of funds
Owner's fund
Equity share capital 95.92 95.92 95.92 95.92 95.92
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 1,879.40 1,461.30 998.55 832.58 648.16
Loan funds
Secured loans 23.43 25.59 24.59 36.70 66.90
Unsecured loans 40.70 40.70 40.70 40.70 40.70
Total 2,039.45 1,623.51 1,159.76 1,005.90 851.68
Uses of funds
Fixed assets
Gross block 1,611.22 1,194.39 1,116.93 937.89 806.20
Less : revaluation reserve - - - - -
Less : accumulated depreciation 554.03 486.93 494.02 509.06 471.29
Net block 1,057.19 707.46 622.91 428.83 334.91
Capital work-in-progress 67.32 380.72 164.64 136.25 16.31
Investments 1,034.76 703.69 234.77 422.88 334.39
Net current assets
Current assets, loans & advances 1,729.79 1,364.85 1,172.36 1,035.22 869.21
Less : current liabilities & provisions 1,849.61 1,533.21 1,034.92 1,017.28 703.15
Total net current assets -119.82 -168.36 137.44 17.94 166.06
Miscellaneous expenses not written - - - - -
Total 2,039.45 1,623.51 1,159.76 1,005.90 851.68
Notes:
Book value of unquoted investments 632.33 155.31 157.39 345.50 257.01
Market value of quoted investments 568.57 186.79 178.76 254.26 183.02
Contingent liabilities 505.87 223.80 356.87 222.05 180.22
Number of equity sharesoutstanding (Lacs) 959.20 959.20 959.20 959.20 959.20

11. Asian Paints Report Card
Attribute Value Date
Market Capital (Rs.cr) 26,605.81
PE ratio 34.08 29/04/2011
EPS (Rs) 81.40 Mar 2010
Sales (Rs crore) 5,776 31/03/2010
Face Value (Rs) 10
Net profit margin (%) 12.99 31/03/2010
Reserves (Rs.cr) 1,461.30
Book value 162.35
Dividend yield 0.97
Asian Paints Related Indices
Indices Price Change %Change
BSE100 7,942.77 14.83 0.19
BSE200 1,853.46 2.57 0.14
BSE500 5,785.83 7.15 0.12
CNX 100 4,485.90 8.55 0.19
CNX MIDCAP 6,095.50 -16.35 -0.27
CNX NIFTY JUNIOR 8,312.10 -21.00 -0.25
Asian Paints Stock Returns
Time Span Price Change %Change
Today 2,593.10 -1.85 -0.07
Week 2,666.45 -71.50 -2.68
Month 2,881.00 -286.05 -9.92
Three Months 3,149.40 -554.45 -17.60
Six Months 3,308.30 -713.35 -21.56
One Year 2,819.75 -224.80 -7.97
Two Years 1765.25 829.70 47.00
Three Years 871.90 1,723.05 197.62
Five Years 733.55 1,861.40 253.75

12. Ratios
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Per share ratios
Adjusted EPS (Rs) 80.11 69.47 38.63 39.25 27.93
Adjusted cash EPS (Rs) 89.96 75.80 44.59 43.82 32.66
Reported EPS (Rs) 80.81 80.74 37.78 39.12 28.36
Reported cash EPS (Rs) 90.66 87.08 43.74 43.68 33.10
Dividend per share 32.00 27.00 17.50 17.00 13.00
Operating profit per share (Rs) 121.07 107.69 61.92 59.37 45.48
Book value (excl rev res) per share (Rs) 205.93 162.35 114.10 96.80 77.57
Book value (incl rev res) per share (Rs.) 205.93 162.35 114.10 96.80 77.57
Net operating income per share (Rs) 688.70 559.61 470.20 374.85 307.90
Free reserves per share (Rs) 195.88 152.29 104.05 86.75 67.52
Profitability ratios
Operating margin (%) 17.57 19.24 13.16 15.83 14.77
Gross profit margin (%) 16.14 18.11 11.90 14.62 13.23
Net profit margin (%) 11.61 14.29 7.97 10.28 9.11
Adjusted cash margin (%) 12.92 13.42 9.40 11.52 10.49
Adjusted return on net worth (%) 38.90 42.79 33.85 40.55 35.99
Reported return on net worth (%) 39.24 49.73 33.10 40.40 36.56
Return on long term funds (%) 55.79 62.95 49.35 58.11 52.70
Leverage ratios
Long term debt / Equity 0.03 0.04 0.05 0.06 0.07
Total debt/equity 0.03 0.04 0.05 0.08 0.14
Owners fund as % of total source 96.85 95.91 94.37 92.30 87.36
Fixed assets turnover ratio 4.25 4.68 4.17 3.97 3.81
Liquidity ratios
Current ratio 0.93 0.89 1.13 1.02 1.24
Current ratio (inc. st loans) 0.93 0.88 1.13 0.99 1.09
Quick ratio 0.34 0.37 0.58 0.47 0.59
Inventory turnover ratio 7.08 7.95 9.80 8.03 8.27
Payout ratios
Dividend payout ratio (net profit) 46.06 39.03 54.19 50.84 52.36

13. Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Dividend payout ratio (cash profit) 41.05 36.19 46.81 45.53 44.87
Earning retention ratio 53.54 54.64 47.00 49.34 46.82
Cash earnings retention ratio 58.63 58.43 54.09 54.61 54.53
Coverage ratios
Adjusted cash flow time total debt 0.07 0.09 0.15 0.18 0.34
Financial charges coverage ratio 75.34 56.68 39.57 46.09 30.56
Fin. charges cov.ratio (post tax) 54.22 44.73 27.37 32.13 21.70
Component ratios
Material cost component (% earnings) 57.71 55.26 58.55 55.71 58.68
Selling cost Component 17.08 17.51 17.27 17.98 17.23
Exports as percent of total sales 0.66 0.64 0.64 0.67 0.81
Import comp. in raw mat. consumed 23.86 20.74 19.49 21.04 17.96
Long term assets / total Assets 0.54 0.56 0.45 0.47 0.42
Bonus component in equity capital (%) 97.98 97.98 97.98 97.98 97.98