The document provides a PESTEL analysis of India. It discusses the following key points in 3 sentences: India has a stable federal republic government system with several national political parties. Economically, India has a market-based economy and is one of the fastest growing major economies in the world. Socially, India has a large and growing population that is increasing the purchasing power of Indian consumers.

1. PESTEL ANALYSIS INDIA1Presented ByAkshata AcharekarNilofer KhanDeepavali Vankalu

2. Political FactorsIndia 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 Economy2

3. Economic Factors The economic factors in India are improving continuously.Market based economySecond fastest growing major economy in the world.Strong domestic marketThere 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 side3

4. Social FactorsIndia 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. TechnologyIndia 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 decisions5

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

7. Legal factors Include – Discrimination lawConsumer lawAntitrust lawEmployment lawHealth and safety law7

8. 8

9. Asian Paints is India's largest paint companyRanked 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 worldConsist of 23 paint manufacturing facilitiesServicing consumers in 65 countries through Berger International, SCIB Paints – Egypt, Asian Paints, Apco Coatings and Taubmans9Introduction

10. TAG LINE10“EVERY COLOR TELLS A STORY”

11. HISTORY1st 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 – 66The family-owned company makes the transition to a professionally managed organisation.1967Asian Paints emerges as India's leading paint company ahead of any international competition.12

13. Asian Paints has won many awards & recognitions which includeForbes rated it under 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia in 2005, “Best small company in India” by Asia Money in 2002.

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

17. Cont……Ranked 24th amongst the top paint companies in the world by Coatings World – Top Companies Report 2006.

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. VISIONAsian 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. 16INTERNATIONAL PRESENCE

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

23. 18The five corporate brads

24. 19INTERNATIONAL MARKETS

25. GROUP SUBSIDARIES20Apco 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…..21Founded 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 GROUP22

28. Business Profile23

29. 24

30. MARGINS STRATEGY25Marginexpansiondespiteinputpriceincrease

31. GROWTH STRATEGY AND M&A26Growth 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 chain27

33. M&A INTERNATIONAL - OPPORTUNITIESAsian 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 & marketing28

34. CORPORATE GOVERNANCE29

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 ADVANTAGE31

37. Manufacturing capacity and volume32

38. 33

39. Dealer Network & Reach34Over 14500 direct dealers as opposed to 7000 of our nearest competitor

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

41. 67 sales locations situated all across the

42. CountryRETAIL INITIATIVESAsian Paints has fostered a customer-centric approach to business. 35

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 citiesAsian Paints Helpline – Toll free access to the Helpline – High conversion rate into actual sales36

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 salesPrediction of colour trends in IndiaThe launch of Kids WorldRoyale PlayDo-It-Yourself mode 37

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

46. Environment and Safety39

47. SUCCESS STORY40

48. Information TechnologyAsian 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 improvement42

50. FAILURE STORY43

51. 44Asian 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.