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Asian Paints is one of the first companies in India to extensively computerize its operations. www.asianpaints.com GLORIOUS PAST : GLORIOUS PAST Started in 1942 by four entrepreneurs: Champaklal choksey, Chimanlal choksey, Suryakant Dani and Arvind Vakil as “ASIAN OIL & PAINTS COMPANY.” Started With a strategy “ Going to where Consumer is”. In 1945, the firm was turned into a company. In 1957, a plant was set up at Bhandup, Mumbai. In 1973, AP became a public ltd company. In 2002. AP was a market leader of Indian Decorative Paints with market share of 44%. ASIAN PAINTS TODAY : ASIAN PAINTS TODAY one of the most admired companies in India. More than twice the size of its nearest competitor. 10th largest decorative paint company in the world. Aims to become the 5th largest decorative paint company in the world. Present in 22 countries with 27 manufacturing locations Planning to set up a plant in Rohtak . MANUFACTURING UNITS : MANUFACTURING UNITS at Mumbai [Maharashtra] (1950) at Ankleshwar [Gujarat] (1981) at Patancheru [Andhra Pradesh] (1985) at Kasna [Uttar Pradesh] (1990) at Sriperambadur Kasna Bhandup Slide 6: Organisational structure Slide 7: Mr. Ashwin ChoksiNon-Executive Chairman Mr. Ashwin DaniNon-Executive Vice Chairman Mr. P M MurtyM D & CEO Directors Slide 8: Mr. S RamadoraiAdditional Director Ms. Tarjani VakilChairperson of Audit Committe Directors Segmentation : Segmentation The paint market has two a broad segment Decorative paints & industrial paints Decorative paints were further classified as premium medium and distemper segments. Premium paints were acrylic emulsion used in mostly in metros and big cities. The medium range consisted of enamels, which were popular in smaller cities & towns. Distemper were economy products popular in suburban & rural markets. Slide 10: WOOD & MATEL PAINTS EXTERIOR WALL FINISHES INTERIOR WALL FINISHES WOOD FINISHES Product portfolio The mascot “gattu” : The mascot “gattu” In the mid of 1940’s company created its “gattu” which gerw into one of india’s most visible advertising symbols Gattu rapidly created a strong brand identity for asian paints Since the late 1990’s asian paints has been trying to changes with the times. As in 2002, AP decided to demarket gattu. Because they felt that the mascot represent the common man and had exemplified AP’s values when the company was a mass marketing company. Backward integration : Backward integration In order to keep its production cost low, AP decided to integrate backwards. The company formed a joint venture with Pentasia chemicals ltd. in 1987 to manufacture pentaerythritol and sodium formate, two important raw materials for mfg. paints. The first acquisition of company in india was in november 2001, acquired the powder coating business of Hawcoplast Chemicals Ltd. Restructuring : Restructuring In 1998 guided by the management consultants,Booz Alen &Hamilton, AP embarked on a major restructuring programe. The basic aim behind it was to sharpen the business focus, improve effeciency, control costs, and strengthen its leadership position. Based on the recommendations AP structured in three SBU’s Decorative india ( to introduce new product in order to upgrade the market) Decorative international (to exploit opportunities in emerging markets) Industrial & chemical (to manage alliance with global majors) Marketing, Sales & Distribution : Marketing, Sales & Distribution Rural Marketing Initiatives since 1960. Advertising & Promotional Expenditure started in 1980s. Advertising Methods- Radio, Print, Internet, Retail Outlets,Seminars, Workshops. Market leader -38% share in organized sector. Asian Paints bypassed the bulk buyer segment and went to individual consumers of paints Widest product range -product shades, wide colours ,pack sizes 40 different decorative paints -1200 shades, 8 different sizes in packing no. of brands -all segments. Strong in inventory control (18 processing centres, 350 raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional distribution centres, 72 depots are integrated) Total water management : Total water management Asian Paints has built a Total Water Management (TWM) Centre, at its Bhandup manufacturing facility, which is the first of its kind in the entire country. Age care : Age care Various health camps for the aged has started by asian paints in Kasna, Patancheru and Ahmedabad to help the needy and various camps on the eye care, dental care. Driving blood donation : Driving blood donation It partnered the National Blood Bank transfusion service to facilitate a Blood Collection Drive Environment safety : Environment safety Adopt the principle of green safety Bulk storage facility which reduces wastage Use of natural gas Certified by ISO 14001 Improving infrastructure and healthcare at local schools : Improving infrastructure and healthcare at local schools In Ankleshwar - Gujarat the company support the "Shree Gattu Vidyalaya" school by providing infrastructure support Presented the Pondur primary school with desks, tables, and even school bags for the students. Competitive analysis : Competitive analysis RECOMENDATIONS : RECOMENDATIONS Slide 22: It should increase share from the industrial paint segment. Should collaborate with leading manufacturing companies. Should advertise in non festive days also. Should advertise for wood finish also. Rural markets have considerable potential. Companies that can establish a dealer network in these markets are likely to get the edge in positing above par growth rates over the next few years. Potential in overseas markets. Should advertise for waterproof paint during Monsoon seasons. Slide 23: Thank you You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.