Analysis of PAint industry (SWOT) SWOT of decorative paint and industrial paint segment SWOT of Asian Paints Recommendations/ future strategy for asian paints

1. Akanksha Gohil 201812059
Amey Dahad 201812063
Pooja Bisht 201812080
Yash Patodia 201812106
Section B - Group 10
Asian Paints –
Strategy Management

2. Industry Overview
Paint industry in India is estimated at 50,000 Cr.
It has has been growing at a rate of near about 15%
Currently the organized players account for 65% of the
market, while the remaining belonging to the unorganized
firms.
Top Five players are estimated to control > 80% of the
organized market.
India’s share in the world paint market is 0.6%.
 Per capita consumption of paint in India is 1.2kg/annum.

4. MA
Company Industrial Market Decorative Market
Asian Paints 14.5% 37.5%
Kansai Nerolac 42.5% 10%
Berger 14.2% 11.2%
Akzo Nobel 7.8% 7.8%
Shalimar Paints 8.1% 5.5%
Others 12.9% 28%
Market share of Asian Paints and its competitors – By
Revenue

5. Problem Statement:
To become a market leader in the
industrial paint industry.
To maintain the market leader
position in decorative paint industry.

6. Market structure : Decorative
Market structure of the decorative paint
industry is an oligopoly
This segment is price sensitive and is a
higher margin business as compared to
industrial segment.
The demand for decorative paints has
been increasing tremendously

7. SWOT of Decorative Segment
Strength :
• Market share is 70%
• Switching cost is low
• Growing industry – CAGR : 12.7%
Weakness :
• Raw material scarcity and
volatility in prices
Opportunity :
• Can focus on rural market of
decorative paint industry
• Can invest heavily to build strong
distribution network
• More & more advertisement can
be done
Threat :
• Customer’s tastes change very
rapidly with change in trends
and fashion hence production
planning and inventory problem
• Entry barrier is high with giant
companies having covered wide
range of products.

8. Market structure : Industrial
The market remains to be dominated by
foreign firms
Industrial paints require higher
investments and technological expertise
compared to decorative paints.
Investing in R&D is imperative in this
segment as the clients require highly
specialized products.

9. SWOT of Industrial Segment
Strength :
•The distribution network
requirements are relatively much
smaller
•Lesser need for branding-since the
industrial paints are largely sold to
businesses
Weakness :
• Comparatively smaller market
share, hence smaller revenue
generation
• More technology intensive
Opportunity :
•Can tie up with different businesses
to retain the market share
•Can tap a niche market in this sector
Threat :
• Volatility in raw material prices
• Stringent Government rules and
regulations regarding the
quality

10. Strengths:
•Indian Paint Market has very strong potential in terms of market share in the organized sector.
•Widest product range in terms of products, shades, pack sizes - different decorative, some in 150
shades, 20 different pack sizes; are available.
•country wide distribution network and transportation facility is available
•In-house production, no outsourcing required
Weakness:
•Ever expanding product mix throws some strain on inventory management.
•Seasonal demand and hence in off seasons it can lead to cash flow problems.
Opportunities:
•The Indian paint and coatings industry is riding high on the growth in the Indian
automobile industry, new construction in the housing segment is happening.
Threats:
•Domination of few foreign companies in Industrial paints, it is possible that in the
future, it may capture the entire industrial paint market.
•Competition is catching up fast, hi-tech facilities gives abundant choices.
SWOT of Indian Paint Industry

12. POLITICAL:
•Industrial users of paint often faced strict environmental regulation on their
operations because of the large volumes of solvents released in the surface coating
process which are harmful for the health and environment.
ECONOMICAL:
•Paint market has strong co-relation with economic indicators and industry growth. For
arriving at the future market estimates factors such as GDP, IIP, Auto Sector Growth,
GCF (Gross capital formation), Realty and Construction sector growth will taken into
consideration.
SOCIAL:
•With the young demographics (60%) and rise in disposable income and Urbanization is
leading to a shift from temporary houses to permanent houses. This calls for more
houses being painted using medium and premium paints.
•Similarly, number of people buying a vehicle is also increasing
TECHNOLOGICAL:
•Cleaner technologies and innovative systems that have minimum impact on our already
severely compromised environment are desirable
PEST - Indian Paint Industry

13. Comparative Advantage for Asian
Paints
The Leading Brand in the sector
Superior supply chain management
The Best management team in the
sector

14. Comparative Disadvantage for Asian
Paints
Lagging in Technological equipment
required for industrial segment

15. Recommendations
 In industrial segment, they should tie up with
automobile giants such as Toyota, Hyundai etc.
 Defense sector in India, an untapped market
can be tapped.
Technological advancement should be done
in industrial segment by making alliance with
foreign companies.

16. THANK YOU!