Asian Paints is India's largest and Asia's third largest paint company. It has a market share of around 32.4% in the Indian paint industry. The company is planning large capacity additions through multiple projects. Asian Paints also benefits from its integrated manufacturing capabilities and extensive distribution network. The company posted a 19.5% rise in net sales for 9MFY11 and analysts expect its earnings to grow over the next two years.
Asian Paints is India's largest and Asia's second largest paint company with over 70 years of innovation in paint. It was founded in 1942 by four friends and has since grown to operate in 19 countries with 26 manufacturing facilities worldwide, serving consumers in over 65 countries. Starting from small beginnings, Asian Paints became India's leading paint company by 1967 and has remained the market leader. The company's vision is to become one of the top five decorative coatings companies globally by leveraging expertise in emerging markets and building long term value in industrial coatings through global partnerships. The Board of Directors includes the founders' families as well as independent directors with expertise in fields like banking, engineering, chemicals, and marketing.
Asian Paints is an Indian paint company founded in 1942. It has grown to become the largest paint company in India with 55% market share. The presentation provides an overview of Asian Paints' company profile, history since 1942, key people, vision, HR and marketing strategies, subsidiaries, manufacturing plants, SWOT analysis, CSR activities, and future plans to become a top 5 global paint company.
This document provides an overview of Asian Paints, a public Indian chemicals and paint company. It discusses the company's history, leadership, operations, products, marketing strategies, and awards. Key information includes that Asian Paints was founded in 1942, is headquartered in Mumbai, employs over 4,937 people, and has a market share of 55% in India's decorative paint industry. The document also performs a SWOT analysis and lists the company's places of operations both within and outside of India.
This document discusses social and personal factors that influence consumer behavior towards Asian Paints products. It provides an overview of Asian Paints as India's largest paint company operating in 16 countries. It then describes the company's product categories and brands. The document focuses on how personal factors like personality, lifestyle, occupation, economic condition and age impact paint choices. It also examines social factors such as reference groups, family roles and status, and aspirations that shape consumer behavior. Brand positioning campaigns highlighting these factors are outlined. The summary concludes with appreciation for the information provided.
Asian Paints was founded in 1942 in Mumbai by four entrepreneurs. It has since grown to become the largest paint company in India with a 55% market share. The company aims to become one of the top five decorative coatings companies worldwide by expanding into emerging markets while building its industrial coatings business. It now operates in over 20 countries through subsidiaries and has over 4,700 employees.
Asian paints Marketing Management Presentationankit8kumar
This document provides an overview of Asian Paints, India's largest paint company. It discusses the company's vision to become one of the top five decorative coatings companies worldwide. Asian Paints was established in 1942 and has since grown to a talent pool of 6,067 employees with 26 manufacturing facilities serving over 65 countries. The company has a 38% market share in India and is a leader in both the overall and decorative paint markets domestically. The document outlines Asian Paints' product portfolio, strengths, weaknesses, opportunities, threats, manufacturing locations in India and globally, and commitment to quality.
Asian Paints is a public Indian paint company founded in 1942 with its headquarters in Mumbai. It has become the largest paint company in India with a 55% market share and is among the top 10 largest paint companies in the world. The company manufactures paints, chemicals, and industrial coatings with 27 manufacturing plants across India and other countries. Asian Paints aims to become the fifth largest decorative paint company globally through expansion, new product development, and focus on sustainability.
Asian paints - Adverising effectiveness study10021980
VisionAsian Paints aims to become one of the top five Decorative coatings companies worldwide by leveraging its expertise in emerging markets. It also intends to build value in its Industrial coatings business through global partnerships. Asian Paints is India's largest paint company and Asia's third largest, operating in 17 countries with 23 manufacturing facilities worldwide serving over 65 countries. It aims to continuously rejuvenate living and working spaces and bring joy to people's lives.
Asian Paints is India's largest and Asia's second largest paint company with over 70 years of innovation in paint. It was founded in 1942 by four friends and has since grown to operate in 19 countries with 26 manufacturing facilities worldwide, serving consumers in over 65 countries. Starting from small beginnings, Asian Paints became India's leading paint company by 1967 and has remained the market leader. The company's vision is to become one of the top five decorative coatings companies globally by leveraging expertise in emerging markets and building long term value in industrial coatings through global partnerships. The Board of Directors includes the founders' families as well as independent directors with expertise in fields like banking, engineering, chemicals, and marketing.
Asian Paints is an Indian paint company founded in 1942. It has grown to become the largest paint company in India with 55% market share. The presentation provides an overview of Asian Paints' company profile, history since 1942, key people, vision, HR and marketing strategies, subsidiaries, manufacturing plants, SWOT analysis, CSR activities, and future plans to become a top 5 global paint company.
This document provides an overview of Asian Paints, a public Indian chemicals and paint company. It discusses the company's history, leadership, operations, products, marketing strategies, and awards. Key information includes that Asian Paints was founded in 1942, is headquartered in Mumbai, employs over 4,937 people, and has a market share of 55% in India's decorative paint industry. The document also performs a SWOT analysis and lists the company's places of operations both within and outside of India.
This document discusses social and personal factors that influence consumer behavior towards Asian Paints products. It provides an overview of Asian Paints as India's largest paint company operating in 16 countries. It then describes the company's product categories and brands. The document focuses on how personal factors like personality, lifestyle, occupation, economic condition and age impact paint choices. It also examines social factors such as reference groups, family roles and status, and aspirations that shape consumer behavior. Brand positioning campaigns highlighting these factors are outlined. The summary concludes with appreciation for the information provided.
Asian Paints was founded in 1942 in Mumbai by four entrepreneurs. It has since grown to become the largest paint company in India with a 55% market share. The company aims to become one of the top five decorative coatings companies worldwide by expanding into emerging markets while building its industrial coatings business. It now operates in over 20 countries through subsidiaries and has over 4,700 employees.
Asian paints Marketing Management Presentationankit8kumar
This document provides an overview of Asian Paints, India's largest paint company. It discusses the company's vision to become one of the top five decorative coatings companies worldwide. Asian Paints was established in 1942 and has since grown to a talent pool of 6,067 employees with 26 manufacturing facilities serving over 65 countries. The company has a 38% market share in India and is a leader in both the overall and decorative paint markets domestically. The document outlines Asian Paints' product portfolio, strengths, weaknesses, opportunities, threats, manufacturing locations in India and globally, and commitment to quality.
Asian Paints is a public Indian paint company founded in 1942 with its headquarters in Mumbai. It has become the largest paint company in India with a 55% market share and is among the top 10 largest paint companies in the world. The company manufactures paints, chemicals, and industrial coatings with 27 manufacturing plants across India and other countries. Asian Paints aims to become the fifth largest decorative paint company globally through expansion, new product development, and focus on sustainability.
Asian paints - Adverising effectiveness study10021980
VisionAsian Paints aims to become one of the top five Decorative coatings companies worldwide by leveraging its expertise in emerging markets. It also intends to build value in its Industrial coatings business through global partnerships. Asian Paints is India's largest paint company and Asia's third largest, operating in 17 countries with 23 manufacturing facilities worldwide serving over 65 countries. It aims to continuously rejuvenate living and working spaces and bring joy to people's lives.
1. Asian Paints is the largest paint company in India and third largest in Asia, with over 50% market share in decorative paints.
2. Founded in 1942 in Mumbai, it has grown to operate in 17 countries with 24 manufacturing facilities serving 65 countries.
3. In fiscal year 2011, Asian Paints recorded revenues of INR77,888.7 million with net profits of INR8,432.4 million, increases of 14.2% and 0.9% respectively over the previous year.
Asian Paints Bangladesh Ltd began operations in Bangladesh in 2002 as a joint venture. It initially imported paints but then established its own plant in Gazipur with an annual production capacity of over 12,000 kiloliters. The company now manufactures a wide variety of paint products and has become the second largest paint company in Bangladesh, serving customers across 64 districts through a network of dealers and depots. The company aims to provide high quality products for both decorative and industrial segments. It has introduced innovative concepts and initiatives that have advanced the Bangladesh paint market. An expansion of factory capacity is planned to double current production levels by early 2013.
This award winning campaign for Aisan Paints has indeed proved to be effective to reach out to painters in Kerala & Punjab. It is essential for a brand like Asian Paints to have a top of mind appeal for painters (influencers).
MR KBS Anand is the Managing Director and CEO of Asian Paints. Asian Paints was established in 1942 in India and is now India's largest paint company with 26 manufacturing facilities worldwide serving over 65 countries. It has a turnover of Rs. 158.5 billion and over 6,000 employees. Asian Paints focuses on sales promotion, brand proliferation, achieving short-term targets, and withstanding competition. The company is focused on social responsibility in education, skills development, healthcare, hygiene, and water management.
Asian Paints is India's largest paint company with over 40% market share. It aims to become one of the top five decorative coatings companies worldwide through global expansion and alliances. Asian Paints has harnessed cutting edge technology, implementing an integrated supply chain system using an SCM solution from i2 Technologies and ERP from SAP. This allows it to integrate all its plants, distribution centers, and branches in India. Going forward, it plans further global forays to achieve its goal of being a top five company.
Asian Paints is a major Indian paint company headquartered in Mumbai. It manufactures and sells paints and coatings and has a majority share of the Indian paint market. The company was founded in 1942 and became a public limited company listed on the Indian stock exchanges in 1973. It has extensive operations across India and internationally through subsidiaries and joint ventures.
Asian Paints is India's largest paint company and operates in 21 countries with 29 manufacturing facilities worldwide serving over 65 countries. It has been the market leader in India since 1968 and is double the size of any other Indian paint company. The company began in 1942 as a small partnership firm and has grown to become a major corporation through its consumer focus and innovation.
1) India has a federal republic government system and stable political situation. The economy is growing continuously with a market-based system and high foreign investment.
2) Asian Paints is India's largest paint company and one of the top ten globally. It has operations in 17 countries and 23 manufacturing facilities serving 65 countries.
3) The company focuses on expanding internationally in emerging markets through regional hubs and acquisitions, while pursuing margin growth and a customer-centric approach in India.
The document discusses a study on dealers' perceptions of Asian Paints in India. It finds that 45% of dealers have a direct dealership with Asian Paints. When asked what attracts them to a paint company, 25% said market profitability. The study also found that 35% of customers prefer Asian Paints, while 30% prefer Berger Paints. Most dealers are aware of Asian Paints' product categories and brand. The document recommends that Asian Paints promote advertising, gather customer feedback, and focus on after-sales service.
Asian Paints is a public limited company founded in 1942 in Mumbai, India. It is a leading paint company with a market share of 44% in the Indian decorative paint industry. The company has expanded to 22 countries with 27 manufacturing plants globally. Mr. P.M.Murti is the CEO and MD who leads over 4,700 employees. The company aims to become the fifth largest decorative paint company in the world through its marketing, financial, HR and CSR strategies.
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.
The document provides information about the paint industry in India and Asian Paints. It states that the paint industry in India is estimated at INR 135 billion with 35% of the market being unorganized. Asian Paints started in 1942 and has since become a market leader in India with over 35% market share. It has operations in 17 countries and 23 manufacturing facilities. While it faces threats from competition and raw material price fluctuations, it can leverage opportunities in the rural market and automotive industry.
Asian Paints is the market leader in the Indian paint industry with a 30% overall market share. It has a presence in 21 countries and saw 27% revenue growth in 2009-2010. The company focuses on decorative paints but is looking to expand in industrial paints. Asian Paints implemented a distribution strategy of focusing on rural and semi-urban areas, having many retail dealers through an open-door policy, and building a nationwide distribution network. This helped the company succeed where other paint companies focused only on urban areas and bulk buyers.
The paint industry is classified into decorative and industrial segments. Asian Paints is the domestic leader in decorative paints in India with a 25% ROCE. Key factors for competitive advantage include product innovation, IT usage, large size, R&D investments, strong dealer relationships, and brand equity. Asian Paints focuses on emerging markets for global expansion through joint ventures, acquisitions, and greenfield ventures. The company categorizes markets into leadership, growth, and turnaround markets to focus investments and strategy.
The document provides an overview of the paint industry in India and Asian Paints company. It discusses that the Indian paint industry is estimated at Rs. 135 billion with 35% coming from the unorganized sector. Asian Paints is India's largest and Asia's third largest paint company with a turnover of Rs. 54.63 billion. The summary provides details about Asian Paints' growth, subsidiaries, vision, and market leadership position in the Indian paint industry.
Asian Paints is the largest paint company in India and third largest in Asia. It has over 50% market share in the Indian decorative paint market and operates in 19 countries with 26 manufacturing facilities serving 65 countries worldwide. The company aims to become one of the top five decorative coatings companies globally by leveraging its expertise in emerging markets, while building long-term value in industrial coatings through global partnerships. Asian Paints conducts all research and development in India and has 23 manufacturing facilities worldwide managed from its corporate office.
25112127 operational-analysis-of-asian-paintsArun Schumacher
Asian Paints is India's largest paint company with a turnover of Rs.54.63 billion. It has 28 manufacturing facilities worldwide serving over 65 countries. The company's main product lines are decorative, industrial, and automotive paints. Capacity utilization across its 6 decorative paint plants in India is 75-80%. The company focuses on quality and has received several awards for its manufacturing standards. It sources many raw materials internally but also relies on an extensive supplier base. Asian Paints maintains low inventory levels of 28 days sales through efficient management, while providing high customer service.
Asian Paints Royale Luxury Emulsion is analyzed using the 4 P's of marketing framework. The product is an interior wall paint that provides a luxurious finish with high stain resistance. It is priced as a luxury product using value-based pricing. The paint has an extensive distribution network of manufacturing units, distribution centers, depots, dealers and sub-dealers as well as Asian Paints stores. Promotional strategies include advertising, public relations events, and in-store displays to create and sustain demand for the product.
- The document provides financial information and analysis of Asian Paints and compares it to 5 peers. It includes details on the company profile, products, market share, global presence, financial ratios, and performance over time. Asian Paints has the largest market share in India's paint industry at around 50% and has a global presence in 17 countries. Financial analysis shows Asian Paints has strong liquidity, debt, and profitability ratios compared to peers.
Asian Paints is India's largest paint company and one of the top ten decorative coatings companies worldwide. It has grown from a turnover of INR 0.35 million in 1945 to INR 54.3 billion in 2009. Asian Paints' overall corporate strategy involves discovering new market opportunities, developing complementary competencies, defending its position in existing markets, and deepening its presence in segments where it is currently weak, such as the industrial paint industry. For the urban market, Asian Paints' strategy is to use intermediaries to initiate demand, occupy part of the intermediary space, and reduce intermediary power by increasing customer pull. In rural markets, Asian Paints' product-focused strategy is to achieve basic penetration and then upgrade
This report analyzes the internal controls and accounting system of Chic Paints Ltd. It examines the company's history, current accounting systems, and compliance with external standards and regulations. The report also identifies key internal stakeholders and evaluates the accounting department, record keeping, training, and ethical practices. Recommendations are provided to improve internal controls, minimize fraud risk, and invest in a more sophisticated accounting software package and staff training. Implementing the recommendations would enhance reporting, working capital management, staff morale, and reduce fraud while ensuring compliance.
This document provides information about Asian Paints, including its vision, history, current status, future plans, product profiles, and manufacturing plants. Some key points:
- Asian Paints is India's largest paint company and one of the top ten decorative coatings companies worldwide.
- Founded in 1942, it has grown to have operations in 17 countries with 23 manufacturing facilities serving customers in 65 countries.
- Its vision is to become one of the top five decorative coatings companies globally by leveraging expertise in emerging markets.
- It has a wide range of paint brands for various applications like distempers, enamels, primers, and also serves industries and automotive segments.
- Asian Paints has manufacturing
1. Asian Paints is the largest paint company in India and third largest in Asia, with over 50% market share in decorative paints.
2. Founded in 1942 in Mumbai, it has grown to operate in 17 countries with 24 manufacturing facilities serving 65 countries.
3. In fiscal year 2011, Asian Paints recorded revenues of INR77,888.7 million with net profits of INR8,432.4 million, increases of 14.2% and 0.9% respectively over the previous year.
Asian Paints Bangladesh Ltd began operations in Bangladesh in 2002 as a joint venture. It initially imported paints but then established its own plant in Gazipur with an annual production capacity of over 12,000 kiloliters. The company now manufactures a wide variety of paint products and has become the second largest paint company in Bangladesh, serving customers across 64 districts through a network of dealers and depots. The company aims to provide high quality products for both decorative and industrial segments. It has introduced innovative concepts and initiatives that have advanced the Bangladesh paint market. An expansion of factory capacity is planned to double current production levels by early 2013.
This award winning campaign for Aisan Paints has indeed proved to be effective to reach out to painters in Kerala & Punjab. It is essential for a brand like Asian Paints to have a top of mind appeal for painters (influencers).
MR KBS Anand is the Managing Director and CEO of Asian Paints. Asian Paints was established in 1942 in India and is now India's largest paint company with 26 manufacturing facilities worldwide serving over 65 countries. It has a turnover of Rs. 158.5 billion and over 6,000 employees. Asian Paints focuses on sales promotion, brand proliferation, achieving short-term targets, and withstanding competition. The company is focused on social responsibility in education, skills development, healthcare, hygiene, and water management.
Asian Paints is India's largest paint company with over 40% market share. It aims to become one of the top five decorative coatings companies worldwide through global expansion and alliances. Asian Paints has harnessed cutting edge technology, implementing an integrated supply chain system using an SCM solution from i2 Technologies and ERP from SAP. This allows it to integrate all its plants, distribution centers, and branches in India. Going forward, it plans further global forays to achieve its goal of being a top five company.
Asian Paints is a major Indian paint company headquartered in Mumbai. It manufactures and sells paints and coatings and has a majority share of the Indian paint market. The company was founded in 1942 and became a public limited company listed on the Indian stock exchanges in 1973. It has extensive operations across India and internationally through subsidiaries and joint ventures.
Asian Paints is India's largest paint company and operates in 21 countries with 29 manufacturing facilities worldwide serving over 65 countries. It has been the market leader in India since 1968 and is double the size of any other Indian paint company. The company began in 1942 as a small partnership firm and has grown to become a major corporation through its consumer focus and innovation.
1) India has a federal republic government system and stable political situation. The economy is growing continuously with a market-based system and high foreign investment.
2) Asian Paints is India's largest paint company and one of the top ten globally. It has operations in 17 countries and 23 manufacturing facilities serving 65 countries.
3) The company focuses on expanding internationally in emerging markets through regional hubs and acquisitions, while pursuing margin growth and a customer-centric approach in India.
The document discusses a study on dealers' perceptions of Asian Paints in India. It finds that 45% of dealers have a direct dealership with Asian Paints. When asked what attracts them to a paint company, 25% said market profitability. The study also found that 35% of customers prefer Asian Paints, while 30% prefer Berger Paints. Most dealers are aware of Asian Paints' product categories and brand. The document recommends that Asian Paints promote advertising, gather customer feedback, and focus on after-sales service.
Asian Paints is a public limited company founded in 1942 in Mumbai, India. It is a leading paint company with a market share of 44% in the Indian decorative paint industry. The company has expanded to 22 countries with 27 manufacturing plants globally. Mr. P.M.Murti is the CEO and MD who leads over 4,700 employees. The company aims to become the fifth largest decorative paint company in the world through its marketing, financial, HR and CSR strategies.
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.
The document provides information about the paint industry in India and Asian Paints. It states that the paint industry in India is estimated at INR 135 billion with 35% of the market being unorganized. Asian Paints started in 1942 and has since become a market leader in India with over 35% market share. It has operations in 17 countries and 23 manufacturing facilities. While it faces threats from competition and raw material price fluctuations, it can leverage opportunities in the rural market and automotive industry.
Asian Paints is the market leader in the Indian paint industry with a 30% overall market share. It has a presence in 21 countries and saw 27% revenue growth in 2009-2010. The company focuses on decorative paints but is looking to expand in industrial paints. Asian Paints implemented a distribution strategy of focusing on rural and semi-urban areas, having many retail dealers through an open-door policy, and building a nationwide distribution network. This helped the company succeed where other paint companies focused only on urban areas and bulk buyers.
The paint industry is classified into decorative and industrial segments. Asian Paints is the domestic leader in decorative paints in India with a 25% ROCE. Key factors for competitive advantage include product innovation, IT usage, large size, R&D investments, strong dealer relationships, and brand equity. Asian Paints focuses on emerging markets for global expansion through joint ventures, acquisitions, and greenfield ventures. The company categorizes markets into leadership, growth, and turnaround markets to focus investments and strategy.
The document provides an overview of the paint industry in India and Asian Paints company. It discusses that the Indian paint industry is estimated at Rs. 135 billion with 35% coming from the unorganized sector. Asian Paints is India's largest and Asia's third largest paint company with a turnover of Rs. 54.63 billion. The summary provides details about Asian Paints' growth, subsidiaries, vision, and market leadership position in the Indian paint industry.
Asian Paints is the largest paint company in India and third largest in Asia. It has over 50% market share in the Indian decorative paint market and operates in 19 countries with 26 manufacturing facilities serving 65 countries worldwide. The company aims to become one of the top five decorative coatings companies globally by leveraging its expertise in emerging markets, while building long-term value in industrial coatings through global partnerships. Asian Paints conducts all research and development in India and has 23 manufacturing facilities worldwide managed from its corporate office.
25112127 operational-analysis-of-asian-paintsArun Schumacher
Asian Paints is India's largest paint company with a turnover of Rs.54.63 billion. It has 28 manufacturing facilities worldwide serving over 65 countries. The company's main product lines are decorative, industrial, and automotive paints. Capacity utilization across its 6 decorative paint plants in India is 75-80%. The company focuses on quality and has received several awards for its manufacturing standards. It sources many raw materials internally but also relies on an extensive supplier base. Asian Paints maintains low inventory levels of 28 days sales through efficient management, while providing high customer service.
Asian Paints Royale Luxury Emulsion is analyzed using the 4 P's of marketing framework. The product is an interior wall paint that provides a luxurious finish with high stain resistance. It is priced as a luxury product using value-based pricing. The paint has an extensive distribution network of manufacturing units, distribution centers, depots, dealers and sub-dealers as well as Asian Paints stores. Promotional strategies include advertising, public relations events, and in-store displays to create and sustain demand for the product.
- The document provides financial information and analysis of Asian Paints and compares it to 5 peers. It includes details on the company profile, products, market share, global presence, financial ratios, and performance over time. Asian Paints has the largest market share in India's paint industry at around 50% and has a global presence in 17 countries. Financial analysis shows Asian Paints has strong liquidity, debt, and profitability ratios compared to peers.
Asian Paints is India's largest paint company and one of the top ten decorative coatings companies worldwide. It has grown from a turnover of INR 0.35 million in 1945 to INR 54.3 billion in 2009. Asian Paints' overall corporate strategy involves discovering new market opportunities, developing complementary competencies, defending its position in existing markets, and deepening its presence in segments where it is currently weak, such as the industrial paint industry. For the urban market, Asian Paints' strategy is to use intermediaries to initiate demand, occupy part of the intermediary space, and reduce intermediary power by increasing customer pull. In rural markets, Asian Paints' product-focused strategy is to achieve basic penetration and then upgrade
This report analyzes the internal controls and accounting system of Chic Paints Ltd. It examines the company's history, current accounting systems, and compliance with external standards and regulations. The report also identifies key internal stakeholders and evaluates the accounting department, record keeping, training, and ethical practices. Recommendations are provided to improve internal controls, minimize fraud risk, and invest in a more sophisticated accounting software package and staff training. Implementing the recommendations would enhance reporting, working capital management, staff morale, and reduce fraud while ensuring compliance.
This document provides information about Asian Paints, including its vision, history, current status, future plans, product profiles, and manufacturing plants. Some key points:
- Asian Paints is India's largest paint company and one of the top ten decorative coatings companies worldwide.
- Founded in 1942, it has grown to have operations in 17 countries with 23 manufacturing facilities serving customers in 65 countries.
- Its vision is to become one of the top five decorative coatings companies globally by leveraging expertise in emerging markets.
- It has a wide range of paint brands for various applications like distempers, enamels, primers, and also serves industries and automotive segments.
- Asian Paints has manufacturing
This document is the annual report for JAT Holdings (Pvt) Ltd for the 2014/15 financial year. It includes the chairman's message, which notes that JAT has built a strong reputation in the furniture and finishing industry as a dynamic, diverse, customer-oriented company that delivers high quality and innovation. The chairman states that the past year was very successful, with the company recording impressive revenue growth and steady financial performance. Key highlights from the year included revenue increasing to over 3.5 billion Sri Lankan rupees and net profit growth of 38.56%.
This document provides information about the history and strategic analysis of Harley-Davidson. It lists the group members conducting the analysis and outlines the topics that will be discussed, including Harley-Davidson's products, vision, mission, strategies, competitors, financial analysis, opportunities, threats, and recommendations. Harley-Davidson was established in 1903 and has since grown to be the largest motorcycle manufacturer in the U.S., licensing various branded merchandise as well. A strategic overview of the company is then provided analyzing its mission, strategies, market position, and strengths.
Asian Paints Limited is one of the largest paint companies in India. The project report provides an overview of Asian Paints, including acknowledging those who helped guide the project. It was submitted to the Dean of IBAT School of Management in Bhubaneswar by four MBA students - Diana Sahu, Puspanjali Kar, Saswato Bhattacharjee, and Sibasis Mohanty - as part of their coursework. The students express gratitude to Professor N. Rajkumar for his guidance and for giving them the opportunity to present their findings.
Asian Paints - Strategies, Entry Mode, StructureTony Sebastian
This PDF file include the Strategies followed by Asian Paints world wide. It also includes the structure of their organisation and how they enter into other countries in a global perspective
The document discusses internal control systems and the COSO framework. It provides details on the following:
1. There are three main categories of internal controls - financial, operational, and compliance controls. The COSO framework defines internal control and its objectives.
2. The COSO framework has five main elements - control environment, risk assessment, control activities, information and communication, and monitoring. These elements work together to help ensure objectives are met.
3. Internal audit is an independent function that examines and evaluates internal controls to provide assurance on their effectiveness and efficiency. Internal auditors may review various areas including financial and operational controls, compliance, risk management, and value for money.
The paint industry in India has significantly outperformed market indices and grown over 10,000% in the last 18 years. Major players like Asian Paints, Berger Paints, and Kansai Nerolac have grown between 7,000% to 12,000% in this period. To meet growing demand, the paint industry is now undertaking its most ambitious capital expenditure cycle by massively increasing manufacturing capacity. The four major players - Asian Paints, Kansai Nerolac, Berger Paints, and Akzo Nobel India - control around 75-80% of the market and are each investing over 150 crores of rupees to build new plants. While short term profitability may be impacted, expanded
Asian Paints is India's largest paint company with a market share of over 30%. It has a presence in 17 countries. The paint industry in India has been growing at over 15% annually, driven by increasing income levels, urbanization, and growth in real estate, automobiles and infrastructure. Asian Paints has leveraged information technology like ERP and SCM solutions to improve efficiency. It has a talented workforce of over 4,700 employees across its global operations. In the financial year 2011-2012, Asian Paints' net revenue increased 25.7% to Rs. 7,964 crores and net profit grew 23.6% to Rs. 958 crores.
Ticker: ASIANPAINT
Sector: Paints & Varnishes
Recommendation: BUY
Current price: Rs. 1,960
Target price: Rs. 2,894.84
The document provides an analysis of Asian Paints including its business overview, performance, industry overview, valuation, forensic checks, financial analysis, revenue mix, governance and risks. It recommends Asian Paints as a buy with a target price of Rs. 2,894.84 based on a free cash flow valuation.
Presentation on Industrial analysis of Paint IndustryJaya Saxena
The paint industry in India has over 20,000 outlets, the highest of any country. Major cities with paint outlets include Mumbai, Delhi, Bangalore, and Kolkata. Annual output of low-cost distempers in India is approximately 200,000 tonnes. The market for paints in India is expected to grow 1.5-2 times the GDP growth rate in the next five years.
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.
This document provides an overview of a study on the relationship between Berger Paints and their dealers in South Tamil Nadu, India. The objectives are to analyze the potential of the dealers, provide a SWOT analysis of Berger Paints, and identify problems in Berger's dealer network to help them regain lost market share. It also provides background on Berger Paints as a company, founded in India in 1923, and currently the second largest paint company. Finally, it reviews the Indian paint industry structure and key drivers of growth.
This document provides an overview of the paint industry in India. It discusses that while the global paint market is 20 times larger than India's, India's paint market is growing 3 times faster at 15% annually. The top 5 players in the organized Indian paint sector control 61% of the market. Asian Paints leads in sales volume and profits. Decorative paints account for 73% of demand in India, compared to 50% globally. The paper concludes that the Indian paint market is both highly competitive and offers opportunities for further growth.
The paint industry in India is expected to grow at 12-13% annually over the next few years, driven by increasing per capita paint consumption which is currently low compared to other countries. Demand for paints comes from the decorative and industrial segments, with decorative paints accounting for over 70% of the market. Key players have expanded production capacity recently which will help meet the projected growth in demand. The industry faces challenges from raw material price volatility and currency fluctuations, but continued economic growth and investment in infrastructure and housing should support double-digit revenue growth for major paint companies in the coming years.
The Indian paint industry has grown substantially in recent years and is now the 7th largest in the world, valued at $6 billion. It is expected to continue growing at a double-digit rate of 12-13% over the next 4-5 years to reach $10 billion by 2020. The market is dominated by decorative paints at 70% and led by Asian Paints, Kansai Nerolac, Berger Paints, and AkzoNobel. Key drivers of growth are increased infrastructure development, industrialization, and urbanization. While GST has been neutral for the industry, increased competition and higher manufacturing costs pose challenges.
Perception and buying behavior of paint dealer towards berger paintApurv Deshmukh
This document provides an overview of the Indian paint industry and market. It discusses key points such as:
- The Indian paint industry is valued at around Rs. 21,000 crore and is growing at over 15% annually. Decorative paints account for 70% of demand.
- Major players in the organized sector include Asian Paints, Berger Paints, ICI, and Goodlass Nerolac which have a combined market share of around 70%. The unorganized sector makes up the remaining 30% of the market.
- Drivers of growth for the industry include rising incomes, increasing urbanization, expansion of the organized sector, and development of related sectors like real estate and automotive.
Asian Paints Limited ("APL") is the largest paint company in India that has maintained its leadership position for over five decades. APL is investing over ₹40 billion to double its decorative paint manufacturing capacity and expand into home improvement and decor segments. While APL sees this as necessary for future growth, some analysts criticize these moves as "empire building" that could distract from the core business. The Indian paint industry is dominated by four major players and has experienced strong growth due to rising incomes and consumer aspirations in India. APL's early focus on innovative products, vibrant colors, small packaging, and rural/semi-urban markets helped it become the market leader by 1967.
Asian Paints Limited ("APL") is the largest paint company in India, a position it has maintained for over five decades through focusing on customer needs, constant innovation, and building strong brands. APL is investing over ₹40 billion to double its decorative paint manufacturing capacity and expand into home improvement and decor segments. While APL sees this as necessary for future growth, some analysts criticize the moves as "empire building" and a distraction from the core business. The Indian paint industry is dominated by four major players and has experienced strong growth, but still has significant potential for further growth given lower per capita consumption compared to other countries. APL's early focus on rural markets, innovative products and promotions helped it become the
G 4 global scenario in paint industry -amit jainGn Tewari
This document summarizes trends in the global and Indian paint industries. It notes that the Asia Pacific region is the largest consumer of paint and that countries like China, India, and Southeast Asian nations are driving strong growth due to construction, infrastructure development, and a growing automotive sector. It also discusses challenges facing the Indian paint industry like increases in raw material costs and the need to address sustainability and environmental issues to meet growing customer demand.
Asian Paints and Berger Paints are the two largest players in the Indian decorative paint segment, with over 80% of revenues coming from decorative paints. Kansai Nerolac is the leader in the industrial paints segment, with around 45% of revenues from industrial paints. Asian Paints has the largest market share in the Indian paint industry at 39%, followed by Berger Paints at 12% and Kansai Nerolac at 11%. The report provides an overview of the key players in the Indian paint industry and discusses factors driving growth in the decorative and industrial paint segments.
The document provides information on the paint industry in India. It states that India has over 20,000 paint outlets, the highest of any country. The decorative paint market in India was worth Rs. 30,385 crore in 2016-17 and is expected to grow at a CAGR of 12.2%. Asian Paints has the largest market share of around 53% of the Indian paint market. The document also discusses Porter's five forces analysis of the industry and concludes that competitive rivalry is low to medium and entry barriers are low.
The India Paints industry to reach USD 12,430 million by 2017: Ken ResearchAnkur Gupta
According to the research report “India Paints Industry Outlook to 2017 - Rising Urbanization and Advent of Environment Friendly Paints” by Ken Research, the India Paints market would grow at a considerable CAGR rate thus exceeding USD 12,430 million by 2017 due to the major thrust from rising urbanization and growing disposable incomes.
“The increasing population in both rural and urban areas coupled with the increasing disposable incomes, will facilitate the growth of the industry as the demand for paints will augment from both the new constructions of the residential units as well from the repainting segment as aesthetic tastes improve”, according to the Research Analyst, Ken Research.
The report provides detailed overview on the paints market in India and aids readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, paint companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.
For more information on the industry research report please refer to the below mentioned link:
http://www.kenresearch.com/consumer-products--retail/specialty-retail-products/357-95/India_Paint_Industry.html
Asian Paints Analysis by Sagar FaujdarSagarFaujdar
It is a detailed description of the presentation on the Asian Paints Operational and financial analysis which includes the competitive view as well for a better understanding of the company's perspective and market understanding.
Team: The Chromus 3, Asian Paints Canvas 2012, IIM KozhikodeAnshul Kumar
The document discusses a strategy proposed by Team Chromus 3 of IIM Kozhikode for Asian Paints. It outlines problems Asian Paints faces like declining retailer loyalty and poor customer service. The proposed strategy is to establish "Studios" - exclusive Asian Paints stores run by top retailers. The Studios would provide end-to-end painting solutions and appoint painters from their network. This would increase retailer loyalty and customer involvement while providing a green solution by recycling leftover paint. The strategy aims to make customers' painting experience with Asian Paints exceptional through professional service and differentiate Asian Paints in the industry.
Team: The Chromus 3, Asian Paints Canvas 2012, IIM Kozhikode
Asian paints 20110405_1302845884
1. Stock Idea – Asian Paints Ltd.
Vol. 1 / 11-12 April 5, 2011
Buy CMP: 2529.65 Target: 3014.0
ASIAN PAINTS LTD. Upside: 19.2 % Horizon: 9-12 M
Analyst: Atul Kanwar
Phone: +91 11 66272300 Ext: 651 About the Company
Email: atulkanwar@bajajcapital.com
Asian Paints Ltd. is India’s largest and Asia’s third largest paint company. This company,
Head of Research: Alok Agarwala established in 1942 has been a market leader in the paints industry in India since 1968. Today it is
E-mail: aloka@bajajcapital.com almost triple the size of its nearest rival in India. Asian Paints manufactures a wide range of paints
for decorative and industrial (including automotive) use. The fully integrated company is ranked
Key Data (Consolidated) among the top ten decorative coatings companies in the world. Apart from these the company also
Sector Paint manufactures various accessories like wall primer, wood primer, putty etc. Asian Paints had
Face value (Rs.) 10.0 acquired Berger International in order to expand its reach in the overseas market.
52-week high/low (Rs.) 3027.3 / 2008.0
The Indian paint market
Market cap (Rs. cr.) 24264.4
Book value (Rs.) 250.3
Price / book value 10.1 Decorative Industrial (including automotive)
PE ratio (TTM) 26.8
Market cap / sales 3.2
Dividend (%) 85
Average daily volume (1 Y) 96950
Beta 0.14
1 year return (%) 25.2 25%
Shareholding Pattern
Promoter FII DII Others
75%
21..7%
11.4% 52.3%
14.6%
Source: BSE. As on Dec 31, 2010
Investment Rationale
Stock Performance
160 Robust demand in the Indian market
140 As India is the second fastest growing economy in the world, with a GDP growth of about 8.5%
120
100
expected in FY2011, the outlook for the paint industry remains good. The Indian paint demand
80 that was excellent till July 2010, faltered in August and September of that year due to the
60 continuing rains. But it has again revived since October 2010. The rural and small town demand is
40 significantly better than that of the large towns. Volumes in the paint industry are expected to grow
20
0
at a CAGR of 16% in FY2012 and Asian Paints is expected to exceed the industry growth rate.
Underlying demand conditions in decorative paints continues to be robust across markets driven
by economic recovery, shorter repainting cycles and continuing strong demand in tier-II and III
cities. Expansion in the housing and construction sectors would drive the demand for the paint
Asian Paints NSE industry going forward.
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Bajaj Capital Centre for Investment Research
2. Stock Idea – Asian Paints Ltd.
The Indian paint industry has grown at an India paint industry: growth in volumes
average of 15.3% from FY05 to FY10.
18% 18%
16% 16%
14% 13% 14%
13%
FY05 FY06 FY07 FY08 FY09 FY10 FY11E FY12E
Source: Company
Asian Paints is a giant of the Indian paint industry
Asian Paints is the clear market leader in the Indian paints industry with about 32.4% market
share. The top four players that include Berger, Kansai & ICI (Akzo Nobel) apart from Asian
Paints, have cornered around 60% of the total market share. Other players in the organized sector
account for only 5% of the industry market share. The unorganized sector is a large one but is very
fragmented, constituting 35% of the total paints market. The organized section of the industry is
growing faster than the unorganized sector.
The competition in the paint industry is India’s paint industry: market share of major players
becoming more intense with the entry of
foreign players like Jotun, Nippon & Sherwin Asian Paints Berger Kansai ICI (Akzo Nobel) Others Unorganized sector
Williams.
35.0% 32.4%
5.0% 10.8%
6.0% 10.8%
Source: Company, BCCIR
Huge capacity addition plans
Strong volume visibility has resulted in Asian Paints continuing its streak of capacity addition. The
commercial production at its new paint manufacturing facility at Rohtak, Haryana has started. The
plant has an initial capacity of 1.5 lakh kl per annum. The project cost for setting up this capacity
was Rs ~500 cr. The plant capacity can be scaled up to 4 lakh kl per annum in future expansions.
The company is also planning to set up a manufacturing plant in northeastern parts of Andhra
Pradesh with a capacity of 1 lakhs tonnes per annum. The company is considering this location
because it is well connected with all parts of the country. Though the investment in the proposed
plant was not disclosed but the management has said that they would like to set up one of the
largest plants in India, if the Andhra Pradesh government provides them with land. The proposed
Asian Paints bought land in Maharashtra for project will be classified under mega projects category. This decision was taken by the company
a greenfield mega project with a capacity of 4 after the state government denied permission, due to environmental concerns, to set up the plant at
lakh tonnes per annum. An amount of Rs 735 Patancheru on the outskirts of Hyderabad where the company has a manufacturing facility and
cr would be spent on the project in 5 years. wanted to go in for brownfield expansion.
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Bajaj Capital Centre for Investment Research
3. Stock Idea – Asian Paints Ltd.
Asian Paints may look at further hike in prices Price hike
if raw material prices continue to move up. To pass on the rise in raw material costs, Asian Paints has gone in for multiple price increase. The
company has affected four price hikes in FY2011 i.e. 4.15% on May 1, 2.6% on July 1, 1.2% on
August 1, and 2.9% in December 2010. The price hike has been the highest in the past 10 years,
Asian Paints is the price leader and other players in the industry follow with a lag. Broadly, price
hikes by all players have been similar. The paint industry in the past has been able to raise prices in
line with the rise in inflation without having a significant impact on volumes.
Asian Paints: price hikes over the years
4.2%
2.5% 2.6% 2.9%
1.4% 1.2%
-1.8% -2.0% -2.3%
-5.1%
Source: Company
In-house manufacturing of raw material
Most paint companies are hit by the fact that they do not make raw materials themselves. For
example, Phthalic Anhydride (PAN) is manufactured from orthoxylene, which goes into the
Asian Paints benefits by selling Phthalic production of paints along with titanium dioxide. Asian Paints is the only paint company in India
Anhydride (PAN) in the open market. that manufactures PAN. The other industry players have to import this stock. Since PAN prices
generally outpace international orthoxylene prices by ~50%, paint companies end up paying a
fortune when prices rise
Shift to enamels & emulsion would lead to significant growth
Growth is expected in future, in the paints industry through an increase in enamels and emulsion
use. At present 19% of the revenue in the industry is realized through the distemper segment. But
going ahead, the share of distemper is expected to come down, while that of enamels and emulsion
is expected to go up. This would lead to better realizations and higher margins for the company.
Revenue breakdown of Indian paint industry (FY10)
Enamels Distemper Interior Emulsion Exterior Emulsion Wood Finish
2%
12%
17%
50%
19%
Source: Company
Extensive distribution network
Almost half of the revenues earned by the Asian Paints has a very large distribution network in India. It boasts of 90 depots across the
Indian paint industry are through enamels. country. It has over 27,000 retailers as compared to 6,500 of Kansai Nerolac.
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Bajaj Capital Centre for Investment Research
4. Stock Idea – Asian Paints Ltd.
Industrial coating accounts for ~25% of the Second JV with PPG industries
~Rs 17,000 cr paints segment and has a high Asian Paints approved plans to enhance its fourteen year relationship with PPG Industries Inc,
presence of unorganized players. Major USA, to accelerate growth of the non-decorative coatings businesses in India. As part of this
organized players in this segment include arrangement, Asian Paints and PPG will enhance their existing non-decorative coatings presence
Kansai Nerolac, ICI and Jotun Paints apart in India by expanding their current 50-50 joint venture relationship - Asian PPG Industries Ltd
from Asian Paints Industrial Coating Ltd. (APPG) and also establish a second 50-50 joint venture. The modalities are being worked on. The
(APICL), a 100% subsidiary of Asian Paints. arrangement is subject to regulatory approval and is expected to be completed during CY2011.
APPG currently services the Indian transportation coatings markets and this change will expand its
scope to additionally service the marine and consumer packaging markets. The second joint
venture will service the industrial containers and light industrial coatings markets. The two joint
ventures together will serve all customers for non-decorative products in the Indian market. The
JV's would leverage PPG's technology and global customer relationships while continuing to build
on Asian Paints' customer base, manufacturing footprint, distribution channels and local
relationships. Asian Paints and PPG have agreed that Asian Paints will take the lead in the second
venture and PPG will take the lead in APPG in order to utilize their respective strengths to best
capture the growth in infrastructure development and the economic boom in India.
Geographically diversified
The Asian Paints group operates in five regions across the world i.e. South Asia, South East Asia,
South Pacific, Middle East & Caribbean through its five corporate brands viz. Asian Paints, Berger
International, SCIB Paints, Apco Coatings and Taubmans. The company along with its
subsidiaries has operations in 17 countries across the world with 23 paint manufacturing facilities,
servicing consumers in 65 countries. It is the largest paint company in eleven countries.
International operations: regional sales contribution (FY2010)
Middle East Caribbean South Asia South East Asia South Pacific
Middle East accounts for the majority of
Asian Paints’ international sales
7.0%
7.9%
15.4%
53.6%
16.1%
Source: Company
International operations: countries
Region Countries
Middle East Egypt, Oman, Bahrain & UAE
Caribbean Barbados, Jamaica, Trinidad & Tobago
South Asia Bangladesh, Nepal & Sri Lanka
In 9MFY11, International operations
accounted for Rs 756.7 cr or ~13% of Asian South East Asia Singapore
Paints’ sales.
South Pacific Fiji, Solomon Islands, Samoa, Tonga & Vanuatu
Source: Company
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Bajaj Capital Centre for Investment Research
5. Stock Idea – Asian Paints Ltd.
For 9MFY11, net sales of the company Financial Performance
jumped by 19.5% to Rs 5740.6 cr, compared
to Rs 4804.2 cr in 9MFY10. Decent Q3FY11 results
On a standalone basis, the company posted a growth of 15.6% in its APAT for the quarter ended
December 31, 2010 at Rs 206.6 cr as compared to Rs 178.7 cr for the corresponding quarter of the
previous year. Its net sales surged by 37.3% at Rs 1754.2 cr, compared to Rs 1277.7 cr for the
similar quarter of the previous year due to a robust decorative paints segment. On consolidated
basis, the group has posted a APAT attributable to shareholders of Rs 220.3 cr for the quarter
ended December 31, 2010 as compared to Rs 198.6 cr for the quarter ended December 31, 2009,
rising by 11.0%. Its consolidated net sales has increased 29.6% to Rs 2099.6 cr for the quarter
ended December 31, 2010 from Rs 1620.0 cr for the December quarter of 2009.
Consensus EPS forecast
Financial Year Consensus Forecast
FY 2011 94.4
FY 2012 113.9
Net sales performance (consolidated)
2500.0 2099.6 40.0%
1876.8 1830.2 1810.8
2000.0 1723.9 1620.0 30.0%
1422.6 1460.2
1500.0 31.9%
25.2% 25.3% 20.0%
1000.0 22.5% 29.6%
17.5% 16.8% 5.0%
500.0 10.0%
The net sales performance of Asian Paints 0.0 0.0%
dipped YoY in Q2FY11 due to prolonged Q4FY10 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11
monsoon and delayed festival season, but the
sales staged a smart recovery in Q3FY11. Net sales (Rs cr) % increase (YoY)
Operating profit performance (consolidated)
500.0 410.2 25.0%
20.0% 334.9 365.5 356.4 364.3
400.0 23.8% 332.5 20.0%
291.4 20.0%
300.0 20.7% 17.7% 19.7% 17.3% 15.0%
188.9
200.0 10.0%
13.3%
100.0 5.0%
0.0 0.0%
Q4FY10 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11
Operating profit (Rs cr) Operating margins
APAT performance (consolidated)
300.0 268.4 20.0%
250.0 222.2 214.7 220.3
198.4 192.0 15.0%
200.0 176.1 15.6%
150.0 102.2 12.1% 11.9% 10.0%
12.1% 12.2% 10.2% 10.5%
100.0
7.2% 5.0%
50.0
0.0 0.0%
Asian Paints is expected to sustain operating
Q4FY10 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11
margins at 16-18% levels going forward,
aided by strong pricing power and superior
APAT (Rs cr) APAT margins
product mix (higher proportion of emulsions).
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Bajaj Capital Centre for Investment Research
6. Stock Idea – Asian Paints Ltd.
Though the APAT has remained steady for the Paints products: volume growth
past few quarters, the APAT margins have
shown a dip due to high raw material costs and 500000 20.0%
17.7% 16.8% 411369
higher depreciation.
400000 354370
316871 15.0%
12.1% 241903 282602 16.1%
300000
220284 11.8% 10.0%
187221 12.1%
200000 184622 9.8%
5.0%
100000 1.4%
0 0.0%
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
Production (million tonnes) Growth (YoY)
Paints products: sales realization growth
120000 12.0%
98972 97963
100000 84512 87240 90147 10.0%
75771 78946 80634
80000 8.0%
9.8%
4.8% 6.0%
60000 4.2% 3.2% 3.3%
2.1% 4.0%
40000 2.0%
20000 -0.1% 0.0%
-1.0%
0 -2.0%
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
Robust performance was seen in the
Decorative paint business though the Sales realization/kilo litre (Rs) Growth (YoY)
Industrial paint business did not match that
performance.
Review of Business Segments (Q3FY11)
Decorative Business
In Q3FY11 the performance was mostly good in all parts of the country.
The demand for interior and exterior emulsions was particularly good.
The demand for Enamel was higher than anticipated.
Industrial business
Demand condition for Industrial paints was challenging.
Automotive business grew in line with the market.
International operations
Demand conditions for International business was challenging in some areas. However,
South Asia has shown a decent growth.
Net Sales & operating income growth was flat in the period April – Dec 2010 compared
to 9 months of the previous year.
International operations: net sales (Rs cr)
Region 9MFY11 9MFY10 Growth
Caribbean 123.9 129.7 -4.4%
South Asia outperformed. There was growth Middle East 401.7 409.6 -1.9%
in South Pacific too. But the Caribbean and
Asia 174.8 142.9 22.3%
Middle East business was sluggish.
South Pacific 56.3 52.4 7.3%
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Bajaj Capital Centre for Investment Research
7. Stock Idea – Asian Paints Ltd.
Asian Paints has better margins than its Peer Analysis
peers. It also scores over the other paint
companies in terms of a high RONW%. Major paint companies: strengths
Company Strengths
Asian Paints Market leader in the paints industry
ICI (Akzo Nobel) Strong in premium end paints/emulsion
Berger Paints Focused on enamels and lower end paints
Kansai Nerolac Leader in Industrial paints, with half the sales coming from auto industry
Nippon Largest paint manufacturer in the world with premium technology. No. 1 in China.
Paint industry majors - comparison (standalone financials in Rs cr)
Net PBIDTM APATM RONW Mkt
Company Sales PAT (%) (%) D/E (%) P/E P/BV Cap
Akzo Nobel 1041.7 159.3 12.6 8.6 0.0 16.2 19.4 2.4 2676.2
Berger Paints 1686.5 120.1 11.0 6.6 0.1 22.9 20.9 4.0 2912.0
Kansai Nerolac 1822.0 165.5 14.4 8.4 0.1 23.2 23.4 4.6 4232.0
Asian Paints 5372.7 774.5 20.5 13.4 0.1 58.4 31.0 11.7 24260.6
P/E, P/BV & Mkt Cap figures are for March 25, 2011. Net Sales, PAT, PBIDTM (%), APATM (%) & RONW% statistics are for FY10.
On an average, raw materials account for
60% of net sales in the paints industry.
Key Concerns
Rising price of raw material
The paint industry is raw material intensive. These raw materials are of a wide variety. Rising cost
and erratic availability of raw material mark the Indian paint industry. Crude derivatives account
for about 30-35% of Asian Paint’s raw material costs.
Brent crude prices (US$)
115.6
104.0
96.3
91.8
82.9 85.7
76.7 77.8
Crude prices have been in an upswing and
this is raising the cost burden of the industry Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11
players.
Note: March 2011 figures are for the closing on the 25th day of that month.
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Bajaj Capital Centre for Investment Research
8. Stock Idea – Asian Paints Ltd.
There is a demand supply gap in case of The input costs have shown a northward trend since Q1FY10 but the surge has been particularly
Titanium Dioxide. There is no greenfield harsh in CY2010. Prices of raw materials like titanium dioxide, solvent and crude related inputs
capacity on the anvil and it would almost take have increased sharply.
a couple of years before a brownfield
additional capacity starts operating. Titanium Input cost index
dioxide accounts for 20-25% of the total input
cost.
103.9 104.5
100.0
98.5
94.4
91.7 92.7
91.4
FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11
Source: Company
Slowdown in the economy
The well being of the paint industry is dependent on the growth of the economy. 75% of the
decorative paints demand comes from repainting and repainting demand depends on how well the
Indian economy is doing. Any slowdown in the real estate and the industrial growth impacts the
volumes of the paints industry negatively.
The crisis in Egypt and Bahrain would impact
Asian Paints’ business marginally. Egypt has Advertisement and promotion spends expected to rise going forward
two manufacturing facilities and accounts for The competition in the paint industry has intensified with new players entering the Indian market
50-53% of the company’s middle-east This has resulted in an increase in advertisement spend of some companies in this sector. For
revenues. Bahrain has one manufacturing unit Asian paints, the advertising and promotion spend has been ~4.5% of its net sales. But on account
and contributes 10-12% of the company’s of higher competition and advertisement rate inflation, it may rise in the future.
middle-east sales. These two countries
together contribute ~4.5% to the net sales of
Asian Paints.
Valuation
Asian Paints is by far the largest paint company in India, with almost one-third of the total market
share. It also ranks among the top ten decorative coating companies in the world. With the Indian
economy expanding at a fast rate and the housing & infrastructure sectors expected to attract big
investments, the paint industry volumes are expected to grow at a healthy 16% in FY12.This bodes
well for Asian Paints, the market leader of the industry. The company also has huge expansion
plans. After commencing operations at its new facility in Haryana recently, it plans to set up mega
projects in Maharashtra and Andhra Pradesh. Asian Paints boasts of an extensive distribution
network comprising of 27,000 retailers. The company is fully capable of negating the increase in
price of raw materials, by increasing the price of its products. This was amply demonstrated when
it raised prices four times in CY2010. Asian Paints is also planning to start its second joint venture
with PPG Industries of USA in CY2011. These two JV’s would provide the entire spectrum of
paints for the industrial sector. A is also geographically well diversified servicing customers in 65
countries across the globe.
. Asian Paints has a market capitalization of Rs 24264.4 cr. and is trading at a share price of Rs.
2529.65. The consolidated TTM EPS is Rs. 94.4 translating into a TTM PE of 26.8. The price to
book value stands at 10.1. The stock is an attractive buy considering the growth prospects of the
industry as well as the company. We expect the company to register an EPS of Rs 115.9 for FY12
on the basis of strong volume growth and pricing power. This makes the stock currently trade at
The demand in the paint industry is seasonal
21.8x FY12.
to some extent. While the demand dips in the
monsoon season, it is the maximum in the
festive season We recommend a “BUY” on the stock with an investment horizon of 9-12 months and target
price of Rs. 3014.
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Bajaj Capital Centre for Investment Research
9. Stock Idea – Asian Paints Ltd.
SWOT Analysis
Strengths Weaknesses
• Market leader: Asian Paints is the largest paint • Industrial business performing below par: The
company in India with a market share of 32.4%. It is industrial business of the company has performed below
also the 3rd largest in Asia and among the top 10 expectations, though the decorative business has done
decorative paint companies in the world. very well. The automotive business has performed in
• Capacity expansion plans: The company has already line with expectations. Subject to regulatory approvals,
commenced its Rohtak operations recently that has a Asian Paints is planning to have a second joint venture
capacity of 1.5 lakh kl per annum. In addition to this it with PPG industries. Both the joint ventures would
has plans for greenfield expansion of 4 lakh tonnes in cover the entire gamut of the non-decorative paint
Maharashtra and 1 lakh tonnes per annum in AP. business. Asian Paints would leverage PPG's technology
• Pricing power: Asian paints has had four price hikes in and customer relationships around the globe.
CY2010. It intends to raise product prices again if the • Hiccups in international business: The middle east
raw material prices keep going northwards. business is being hampered by strife in Egypt &
• Manufactures PAN: The company manufactures Bahrain.The Caribbean sales also dipped in Q3FY11.
Phthalic Anhydride (PAN), a key raw material. But Asia & South Pacific business has been doing well.
• Wide distribution network: Comprising of 90 depots • International presence restricted to small pockets:
and 27,000 retailers. Asian Paints need to spread its business to big centres
worldwide, to become a true multinational.
Opportunities Threats
• Fast growing Indian economy: The fast growing • Competition from the world majors: Major world
Indian economy and a growth in the realty and players like Jotun, Nippon and Sherwin Williams are
construction industries presents a big opportunity for now competiting with Asian Paints in the domestic
Asian Paints. Indian markets.
• Shorter repainting cycles: The growing affluence of • Competition from the unorganized sector: The
the Indian people is resulting in shorter repainting cycles unorganized sector, though fragmented holds a ~35%
benefiting the paint industry. share of the Indian paint industry and gives tough
• Growth in the tier II and III towns: The paint demand competition to established players.
in these towns is growing at a faster rate than the tier I • Rising cost of raw materials: The input costs for Asian
cities. Paints and the other players in the industry are rising.
• Steady growth in industry volumes: The paint industry The price of crude derivatives and titanium dioxide, two
has shown an average volume growth of 15.3% in the key inputs has seen a sharp upswing.
past six years and the growth is expected to be 16% in • Slowdown in the economic growth: The paint industry
FY12. fortunes are positively co-related to the growth of the
• Expected decrease in the use of distemper in future: economy.
Increase in enamels & emulsion use would have a • Unstable political situation in middle east: This region
positive impact on company's margins. accounts for over 50% of company's international sales.
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Bajaj Capital Centre for Investment Research