1. PESTEL ANALYSIS INDIA 1 Presented By Akshata Acharekar Nilofer Khan Deepavali Vankalu

2. Political Factors India is the biggest democracy in the World. The government type is federal republic. The political Situation in the country is more or less stable. State politics have been dominated by several national parties including the INC, BJP, the Communist Party of India (CPI), and various regional parties. Export oriented Economy 2

3. Economic Factors The economic factors in India are improving continuously. Market based economy Second fastest growing major economy in the world. Strong domestic market There is a continuous growth in per capita income. India has the third highest GDP in terms of purchasing power. Foreign direct investment rose in the fiscal year. Inflation rate is on a higher side 3

4. Social Factors India is the second most populous nation in the world with an approximate population of over 1.1billion people. An increase in the purchasing power the Indian consumer which preferred local brand which is far cheaper is now able to get a taste of the relatively expensive market. 4

5. Technology India is Known as a emerging leaders in the IT sector. State of art R & D facility, Manpower is available. Minimum efficient production level and influence outsourcing decisions 5

6. Environmental factors Include weather, climate, and climate change May especially affect industries such as tourism, farming, and insurance. 6

7. Legal factors Include – Discrimination law Consumer law Antitrust law Employment law Health and safety law 7

8. 8

9. Asian Paints is India's largest paint company Ranked among the top ten Decorative coatings companies in the world Turnover of INR 7750 crore ($1.73 Bn) Asian Paints along with its subsidiaries have operations in 17 countries across the world Consist of 23 paint manufacturing facilities Servicing consumers in 65 countries through Berger International, SCIB Paints – Egypt, Asian Paints, Apco Coatings and Taubmans 9 Introduction

10. TAG LINE 10 “EVERY COLOR TELLS A STORY”

11. HISTORY 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. 1945: Asian Paints touches a turnover of Rs. 3,50,000. 11

12. Cont …. 1954 Asian Paints mascot, Gattu, the mischievous kid, is born. 1957 – 66 The family-owned company makes the transition to a professionally managed organisation. 1967 Asian Paints emerges as India's leading paint company ahead of any international competition. 12

14. “Golden peacock environment management award” national quality award by union labour ministry.

15. “Five star rating” by British safety council in 2003 & 2005.

16. Awarded the "Sword of Honour" by the British Safety Council for all the paintplants in India. This award is considered as the pinnacle of achievement in safety across the world. 13

18. The Asset - one of Asia's leading financial magazine ranked Asian Paints amongst the leading Indian companies in Corporate Governance in 2002 and 2005.

19. Received the Ernst & Young "Entrepreneur of the Year - Manufacturing" award in 2003. 14

20. VISION Asian Paints aims “to become one of the top five Decorative coatings companies world-wide by leveraging its expertise in the higher growth emerging markets”. Simultaneously, the company intends “tobuild long term value in the Industrial coatings business through alliances with established global partners”. 15

21. 16 INTERNATIONAL PRESENCE

22. 17 Asian Paints operates in 5 regions across the world viz.

23. 18 The five corporate brads

24. 19 INTERNATIONAL MARKETS

25. GROUP SUBSIDARIES 20 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. 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. . In November 2002, BIL became a part of the Asian Paints Group. BIL has presence across three regions viz. Middle East, Caribbean and South East Asia.

26. Cont….. 21 Founded in 1979, SCIB Paints today is a reputed name and ranks amongst the top five paint companies in Egypt. SCIB Paints became a part of the Asian Paints group in August 2002 Asian PPG Industries Limited, a joint venture between Asian Paints (India) Limited and PPG Industries, Inc. USA with 50:50 equity sharing was established in March 1997 Taubmans Paints Fiji, the fourth largest paint company in Fiji, became a part of the Asian Paints family in September 2003.

27. THE NEW ASIAN PAINTS GROUP 22

28. Business Profile 23

29. 24

30. MARGINS STRATEGY 25 Margin expansion despite input price increase

31. GROWTH STRATEGY AND M&A 26 Growth Strategy: To increase sales growth rate of the group beyond past levels using a two-pronged approach:

32. INTERNATIONAL MARKET - STRATEGY • To enter the high-growth emerging markets • Adopt a regional hub approach to international operations • Apply the emerging market business model: – Introduce new products suited to local needs – Introduce new technology, accordingly – Focus to improve all areas of operations, especially supply chain 27

33. M&A INTERNATIONAL - OPPORTUNITIES Asian Paints believes there is plenty of scope to achieve significant presence in targeted countries • Niches/segments available for Asian Paints in these markets • Vast potential exists for Asian Paints, as most paint companies in these markets operate sub-optimally viz., in Supply chain, manufacturing, technology & marketing 28

34. CORPORATE GOVERNANCE 29

35. The Corporate Governance philosophy of the Company is based on the following principles: Satisfaction of the spirit of the law through ethical business conduct Transparency and a high degree of disclosure levels Truthful communication about how the company is run internally A simple and transparent corporate structure driven solely by the business needs Strict compliance with Clause 49 of the Listing Agreement as amended from time to time Establishment of an efficient corporate structure for the management of the Company's affairs Management is the trustee of the shareholders' capital and not the owner 30

36. COMPETITIVE ADVANTAGE 31

37. Manufacturing capacity and volume 32

38. 33

40. Over 35% of the dealers do business only with APIL

41. 67 sales locations situated all across the

43. Consumer-centric initiatives • Asian Paints Home Solutions - Offers a “painted surface” vs. just “paint” – Aimed at controlling the quality of end product – Overcomes major “barriers to purchase/consumption” – Good response from the market; present in six cities Asian Paints Helpline – Toll free access to the Helpline – High conversion rate into actual sales 36

44. Cont…. Colour World machines – 3175 machines installed till February 1, 2003 – 827 machines installed under arrangement with Citibank – Colour World dealers make more than 50% of sales Prediction of colour trends in India The launch of Kids World Royale Play Do-It-Yourself mode 37

45. CSR Environment and safety. Improving infrastructure and healthcare at local schools; adopting school education. Total water management. Age care. 38

46. Environment and Safety 39

47. SUCCESS STORY 40

48. Information Technology Asian Paints is the first company in India to have integrated Supply Chain Management (SCM) Solution from i2 Technologies, and Enterprise Resource Planning (ERP) solution from SAP. Asian Paints has launched a supplier portal that includes an automated digital document exchange facility An employee portal Customer Relations Management (CRM) 41

49. Investment in I.T. • Benefits: – RM & FG inventory reduction – Revenue Increase by avoiding retail shorts – Reduction in dead & slow moving stock – Plant through-put improvement 42

50. FAILURE STORY 43

51. 44 Asian paint to exit from Thailand and China. Already sold stakes in two loss making units in Hong kong and Malaysia. Study conducted by the CSE’s Pollution monitoring laboratory found the Apcolite (Asian paint) sample with lead much higher than the standard.

52. Research and Development (R&D) R&D efforts have been focused on developing new exterior finishes, economy emulsions and distempers. 45

54. Reducing costs by value re- engineering of formulations46

56. 140 strong R&D team

57. 7 doctorates

58. 115 qualified scientists47

59. R&D new developments The development of the water based wood polish which is odourless and is of same quality as of solvent based polish. The company is also in the process of setting up a new R&D centre near Mumbai (India) 48

60. 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. 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 Paints aims to become the 5th largest decorative paint company in the world. 49

61. FUTURE OUTLOOK To further improving the operations. Plans to launch new products in line as: - Introducing Water – based Paints - Repositioning of existing Brands in Rural Market - Broadening of Distribution Network - Adding more choices for shades and effects - Enhancing Better Quality - Demand will be generated through the new constructions coming in housing and industries 50

62. THANK YOU 51