Welcome To ThePresentationGlobal Expansion Strategy of
Group Members• Md. Mehedi Hasan• Kazi Nurul Islam Sohel• Ayesha Siddika• Razib Chandra Pal
Overview Asia’s 3rd largest paint company. 38% market share in India. Currently is in the 13th position. With a turnover of Rs 77.06 billion in 2011. Operates in 17 countries. It has 24 paint manufacturing facilities. Servicing in over 65 countries. Trying to make position among the top 10 players.
Global PresenceAsian Paints in South Asia(India, Bangladesh, Nepal andSri Lanka)SCIB Paints in EgyptBerger in South East Asia,Middle East, CaribbeanApco Coatings in SouthPacific (Fiji, Tonga, SolomonIslands and Vanuatu) Taubmans in South Pacific(Fiji and Samoa)
History of Asian Paints It started the journey on Foras Road, Bombay in1942. The name was picked randomly from a telephonedirectory. After 25 years it became Indias leading paintscompany in 1968. Journey of a long way over 69 years.
Market Size The Indian Paint industry is estimated at 170 billion. Organized and unorganized players at ratio of 70:30. Highest growth during the festival seasons. It expected to capture 59% of the Indian Paintindustry by 2015.
Competition Analysis More than 12 players in the organized sector. Over 2,000 in the unorganized sector. Company Industrial Market Decorative Market APIL 15% 38% KNPL 42.50% 10% Berger Paints 14.20% 11.20% ICI 7.80% 7.80% Jenson & Nicholson 8.10% 5.50% Others 12.90% 38%
SWOT Analysis Strength: Weakness: • Market leader in overall paint market • Industrial paint sector only 15% share (44%) & in decorative paint market in India • No tie up with foreign manufactures (38% ) although it has units in several countries. • Pricing policy oriented to all kinds of • Seasonal demand and hence in off customer seasons it can lead to cash flow problems • Strong in inventory control • Widest product range in terms of products, shades • Nation wide coverage of the market SWOT Opportunity: • It can acquire / Increase market share in Threat: Industrial paint sector. • Competitors have gone in for hi-tech insta- • Developing market in automobile industry, colour spot mixing. which accounts for 50% of Industrial paint • Divestment in few foreign markets. market. • Competition is catching up fast, hi-tech • Introducing Water – based Paints. facilities gives abundant choices e.g. • Repositioning of existing Brands in Rural Nerolac is advancing rapidly in Industrial Market. market. • Broadening of Distribution Network.
Marketing Mix (Product and Price) Sold over 800 million liters of paints in 2010-11 It crossed the Rs.6322 crore figure
Place and PromotionPlace: 4 manufacturing units 6 regional distribution center 15,000 Dealers (Urban + Rural) 90,000 Sub dealers Exclusive 3000 Asian Paints store 4500 Color world storesPromotion: Advertising, Public relations, Sales promotion, External communication, Events & exhibitions.
Alternative Mode of EntriesAsian Paints using following mode ofentries for their global expansion: Joint Venture Merging Acquisition
Indonesia World’s 4th mostpopulous country. Valued at $1,276million in 2011 Expected to grow to$1,444 million by 2013 60% by value and 79%volume. High brand awareness,competitive pricing,extensive reach, and gooddealer networks.
Asian Paints Exit Operation From China & Malaysia….
China Berger Paints (China)Company Ltd. Ningbo. It is aggressively expanding itsdistribution network. Building a record of successfulprojects. 100% market share.
Malaysia Berger International Sdn Bhdwas founded in 1997 and isbased in Klang, Malaysia. 96% market share in theMalaysian Market. Asian Paints Has only 4%market share.
Continuing… The firm is expecting a "minor gain" Competitors are increasing gradually Competitive pressure will be strengthen