Asian Paints is Asia's third largest paint company with a 38% market share in India. It operates in 17 countries with 24 manufacturing facilities serving over 65 countries. The presentation discussed Asian Paints' global expansion strategy, highlighting its priority markets of Indonesia, Singapore, Philippines, Malaysia, and Thailand due to growing paint industry sizes and competitive advantages. It also covered Asian Paints' history, market size, competition, SWOT analysis, and alternative entry modes into new markets.

1. Welcome To
The
Presentation
Global Expansion Strategy
of

2. Group Members
• Md. Mehedi Hasan
• Kazi Nurul Islam Sohel
• Ayesha Siddika
• Razib Chandra Pal

3. 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.

4. Global Presence
Asian Paints in South Asia
(India, Bangladesh, Nepal and
Sri Lanka)
SCIB Paints in Egypt
Berger in South East Asia,
Middle East, Caribbean
Apco Coatings in South
Pacific (Fiji, Tonga, Solomon
Islands and Vanuatu)
 Taubmans in South Pacific
(Fiji and Samoa)

5. History of Asian Paints
 It started the journey on Foras Road, Bombay in
1942.
 The name was picked randomly from a telephone
directory.
 After 25 years it became India's leading paints
company in 1968.
 Journey of a long way over 69 years.

6. 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 Paint
industry by 2015.

7. Market Share of Asian Paints
(India)

8. Region wise Asian Paints Sales
Contribution

9. 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%

11. 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.

12. Competitors
1. Kansai Nerolac
2. Berger Paints
3. Akzo Nobel
4. Shalimar Paints
5. Jenson & Nicholson

13. Market Targeting
Initially targeted smaller towns.
Then they targeted urban areas.

14. Market Segmentation
 Decorative Segment:
• Royale
• Gattu Synthetic
• UTSAV Enamel
• Tractor Acrylic Distemper
• Apex
 Industrial Sector:
•Apcomin Synthetic Enamel
•Apcomin Synthetic Powder
•Stainer
•Premium surface & fillers
 Automotive Sector:
•Allumium Paint
•Fiber Paint
•Apcolite Hammertone finish

15. Marketing Mix
(Product and Price)
 Sold over 800 million liters of paints in 2010-11
 It crossed the Rs.6322 crore figure

16. Place and Promotion
Place:
 4 manufacturing units
 6 regional distribution center
 15,000 Dealers (Urban + Rural)
 90,000 Sub dealers
 Exclusive 3000 Asian Paints
store
 4500 Color world stores
Promotion:
 Advertising, Public relations,
Sales promotion, External
communication, Events &
exhibitions.

17. Alternative Mode of
Entries
Asian Paints using following mode of
entries for their global expansion:
 Joint Venture
 Merging
 Acquisition

18. Priority list
1. Indonesia
2. Singapore
3. Philippines
4. Malaysia
5. Thailand

19. Indonesia
 World’s 4th most
populous country.
 Valued at $1,276
million 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 good
dealer networks.

20. Asian Paints Exit Operation
From China & Malaysia….

21. China
 Berger Paints (China)
Company Ltd. Ningbo.
 It is aggressively expanding its
distribution network.
 Building a record of successful
projects.
 100% market share.

22. Malaysia
 Berger International Sdn Bhd
was founded in 1997 and is
based in Klang, Malaysia.
 96% market share in the
Malaysian Market.
 Asian Paints Has only 4%
market share.

23. Continuing…
 The firm is expecting a "minor gain"
 Competitors are increasing gradually
 Competitive pressure will be strengthen

24. Thank You……