The document provides an overview of the Indian paint industry. It discusses the history of painting in India dating back to 10,000 BC. It then describes different types of paints available and their uses. It notes that the housing sector and automobile sector drive growth in the decorative and industrial paint segments respectively. The size of the Indian paint industry is estimated to be $2 billion with the organized sector comprising 54% of volume and 65% of value. Asian Paints is highlighted as the market leader with over 50% market share. The document also includes a PESTEL analysis, SWOT analysis, Porter's Five Forces analysis, and future expansion plans of Asian Paints.

1. Asian Paint
By:
Awanish Singh

2. INDIAN PAINT INDUSTRY
History
The history of Indian Paint Industry is as old as the history of the Indian people. The earliest examples of Indian
painting are cave paintings going back to 10,000 B.C. The tradition of painting in Indian subcontinent grew and
developed over time, resulting in a fully developed and finest style, incorporating the culture and faith of the region
and religion. Indian paints always embrace rich color and clear symbolism, using specific iconography to make
religious figures clearly recognizable.
The types of paints available in the market and their utility are:
Acoustic Paint: specially designed for acoustic tiles
Alkyd Resin Paint: good trim, doors, faux finishes and other maximized use areas
Drip less Paint: This paint is thicker and is most suitable for application on ceilings
Latex Paint: good for applicability and it dries much quickly & easier to wash.
One-Coat Paint: It is the more expensive version of the latex and alkyd paints and is mostly chosen for surfaces that
require flawlessness in colour.
Primers: paint used in the initiation for all interior paint works.
Rubber-Base Paint: This is best for concrete and bricks.

3. Brief Introduction
There is a phenomenal growth on the housing sector front with rapid urbanization and availability of easy to secure housing
loans which have become the prime drivers of growth in the decorative paint segment, which comprises 70% of the $2
billion Indian Paint industry. An average increase of growth of about 10% in the automobile sector contributes to 50% of the
revenues in the industrial paints segment. Paints can be classified as Decorative Paints & Industrial Paints.
Size of the industry
A large number of Paint outlet or shops have automated/manual dealer tinting systems. Today India has more than 20,000
outlets in operation, probably the highest for any country. There are only approximately 7,000 tinting systems in China for
a market two and half times of India's size. 30% to the paint industry revenue in India is accumulated from Industrial
Paints. The size of the Paint Indian industry is around 940 million litres and is valued at approximately $2 billion. The
organized sector comprises 54% of the total volume and 65% of the value. In the last ten years, the Indian Paint Industry
has grown at a compounded annual growth rate (CAGR) of 12-13%.
Total contribution to the economy/ sales
The market for paints in India is expected to grow at 1.5 times to 2 times GDP growth rate in the next five years. With GDP
growth expected to be over and above 7% levels, the top three players are likely to clock above industry growth rates.
There are high volumes of low cost distempers sold in India, which amounts to approximately 200,000 tons per annum at an
average cost of Rs35 per kg ($0.88) at the present rate.

4. Asian Paint
75 Years of Innovation in Paint
Since its foundation in 1942, Asian Paints has come a long way to become India’s leading and Asia’s
third largest paint company, with a turnover of Rs.193.50billion. We operate in 16 countries and have
27 paint manufacturing facilities in the world, servicing consumers in over 65 countries. Asian Paints
Limited is an Indian multinational paint company headquartered in Mumbai, Maharashtra. The
Company is engaged in the business of manufacturing, selling and distribution of paints, coatings,
products related to home decor, bath fittings and providing of related services. Asian Paints is India's
largest and Asia's third largest paints corporation. As of 2015, it has the largest market share with
54.1% in the Indian paint industry. Asian Paints is the holding company of Berger International.
Vision
Clear Goals for a Clear Future
“To be the fore runner of inspiring décor and to actively empower customers to create their dream
homes”

5. PESTEL Analysis
No. Factor Key Driver Opportunity
/Threat
Strengt
h
Implication
1 Political • Political consensus
on economic
reforms
Opportunity Moderate Reduction in excise duty on cars and two
wheelers will benefit the paint industry.
2 Economical • Economic
Performance of
India
Opportunity High Economic performance of India in the
near future 5-10 years will remain stable
given – government expenditure, stable
demand because of disposable income,
and increasing investment into new
industries.
3 Social • Making home is the
important matter,
time they decorate
their home with
paints in the
occasion like Diwali,
Marriage.
Opportunity Moderate The most of the demand of the
decorative paint is in
the Diwali and Marriage Season. So,
socially paint is highly connected to the
consumer, Every color has its socially
acceptance. The increase in the middle
class also helps to boost the demand of
the paint.

6. 4 Technological • Maturity of
technology
Threat Low The technology in the Chemical
Manufacturing sector is still not
reached maturity and most
players are vying for new
innovations that can enable them
to garner higher market share.
5 Environmental • Renewable
technology
• Extreme
weather
Threat Moderat
e
Environmental factor add cost of
operations of the Paints industry
as it has to invest in making its
supply chain more flexible.
6 Legal • Legal
protection of
intellectual
property
• Health and
safety norms
Threat High In the India and what Paints
Industry needs to do to meet
these norms and what will be the
cost of meeting those norms.
How Paints Industry will be
impacted if there are not enough
protection.

7. MARKET LEADER
PRICING POWER
WIDE DISTRIBUTION NETWORK
INDUSTRIAL BUSINESS PERFORMING BELOW AVERAGE
INTERNATIONAL PRESENCE RESTRICTED TO SMALL
POCKETS
SHORTER REPAINTING CYCLE
STEADY GROWTH IN INDUSTRIAL VOLUMES
DECREASE IN THE USE OF DISTEMPER
COMPETITION FROM THE WORLD MAJOR AND UNORGANIZED
SECTOR
RISING COST OF RAW MATERIALS
SWOT Analysis

8. Portal Five Force Model
1. Bargaining power of buyers
 Customers are more price sensitive because for them number of options
are available and decisions are made based on quality, price and
differentiating. The unorganized market has also have a large chunk of
market share providing many options to lower income segment
 Industrial segment is low margin high revenue business and buyers of
these segments are knowledgeable about their needs. Therefore, price
comparison is done effectively by the customers.

9. 2. Bargaining power of suppliers
• The Indian Paint industry is raw material intensive industry with more
than 300 products going into the manufacturing of the final products.
The raw material can be divided into different categories like pigments,
additives, solvents, binders etc.
• Titanium Dioxide is one of the key pigment used in he production of
paint and is facing a global supply shortage. Thus supplier of this
material has solid bargaining power.

10. 3. Competitive Rivalry
 About 80% of organized market is created to by the below four players
of Indian Paint Industry. But the current market growth rate can provide
ample room of opportunity for all the players of the industry to flourish.
 Competition will keep on increasing as market will get saturated, but
this will take some time to happen, till then one can keep satisfy
customer need with good margin. Also, the presence of unorganized
market does provide room for competition. Thus, on the whole
competitive rivalry for the Indian paint industry is Low to Medium.

11. 4. Availability of Substitute
 The availability of substitute of very minimal. In the rural areas lime
wash is conventionally used substitute for paints.
 One alternative option for decorative walls available today is Wallpaper.
Thus, the availability of substitutes in the Indian Paint Industry is Low to
Medium.

12. 5. Threat of new entrants
 As it has been stated earlier that the paint market in
Indian is dominated by few players, making it difficult for
anyone new entering the industry to compete.
 Since new technologies are also available to shorten
production life cycle of paint. Thus, Threat to new
entrant is Medium.

13. Future Plans of Asian Paints
 In largest capacity expansion, Asian Paints to invest Rs.4,000-cr this
fiscal.
 Rs.4,000 crore at its Visakhapatnam and Mysore facilities to add 1.1
million kilo liter to its present output.
 In the first phase, two mega plants with initial capacities of 3,00,000 KL
per annum each of water-based paints would be commissioned at
Mysore and Visakhapatnam in FY19.”
 Asian Paints is now focusing on expanding its portfolio into the
emerging markets of Asia and Africa, chairman Ashwin Choksi said.