Final Report(Asian Paints)

Dipanway Bahbuk

Worldwide Sectorial Information

Agriculture

6%

Industry

31%

Services

63%

Contribution

Agriculture

Industry

Services

Contribution to Indian Economy

Agriculture

17%

Industry

26%Services

57%

Contribution

Agriculture

Industry

Services

Chemical sector Contribution to the Indian Economy (GDP)

COMPETITOR ANALYSIS Burger Paints

Kansai Nerolac

ICI Paints

Shalimar Paints

Dulux Paints

Akzo Nobel

Jotun Paints

Local Brands and others

Exterior Paints

COMPANY INFORMATIONListing Details

Sector Chemicals

Industry Paints

Sub-

Industry

House Asian Paints

BSE Code 500820

NSE

SymbolASIANPAINT

ISIN NO INE021A01026

Face

Value1

Listing BSE,NSE,MCX

BSE Group A

Indices BSE100, BSE200, BSE500, SHA50, CARBONEX ,

NIFTY, CNX500, CNX100, CNXCONSUMP,

CNX200, CNXLOWVOL, NI15

Other Details

Incorporation Year 24-10 1945

Chairman Ashwin Choksi

Managing Director K B S Anand

Company Secretary Jayesh Merchant

AuditorBSR & Associates LLP, BSR & Co

LLP

No of Employees 4260

Latest Fin.Year End Mar 2014

AGM Date 26-Jun-2014

Reuters Code ASPN.BO

Bloomberg Code APNT IN

NIC ActivityManufacture Of Paints And

Varnishes, Enamels Or Lacquers

NIC Code 20221

Largestpaint

company

in India

3rd Largest

Paint Company In

the World

Brand present

in 65+ countries

Forbes has

ranked "Best under

a Billion companies"

in Asia

Revenue from operation

2013-14

Profit after Tax

2013-14

Group Net Profit

2013-14

1942-1965

•Company stated its business

•Name was Asian Paints

1967-1985

•India's leading paint company

•Converted into a public limited company

•Entered into a collaboration agreement

1990- Present

•Spreads it boundary

•Completed 70 years

•5th largest decorative paint company in the world

•Admired companies in India

•Market leader of paint industry

Market Share

Company Industrial Market Decorative Market

APIL 14.50% 37.50%

GNPL 42.50% 10%

Berger Paints 14.20% 11.20%

ICI 7.80% 7.80%

Jenson &

Nicholson 8.10% 5.50%

Others 12.90% 38%

14%

43%14%

8%

8%13%

Industrial Market

APIL GNPL Berger Paints ICI Jenson & Nicholson Others

34%

9%10%7%

5%

35%

Decorative Market

APIL GNPL Berger Paints ICI Jenson & Nicholson Others

Major Products Asian Paints manufactures and markets industrial and

decorative coatings. Along with that the company also

provides home painting services and solutions. The

company's key products and brands include the following:

Decorative paints: Interior wall paints, Exterior wall paints,

Wood surface paints, Metals surface paints.

Industrial coatings: Protective coatings, Floor coatings,

Road markings.

Ancillaries: Wall primer, Acrylic Wall Putty, Exterior Wall

Putty, Wood Primer

INTERNATIONAL PRESENCE

GROUP SUBSIDARIES APCO 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

Founded 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

PEST ANALYSISPOLITICAL ECONOMIC SOCIAL TECHNOLOGICAL

India, the largest democracy in the world

Market based economy India is the second largest populated economy in the world

Emerging of IT sector

The government is central republic

Second fastest growing economy in the world

Rise in price of raw material Modernization of paint

The political situation is more or less stable in nature

India is the third largest in term of purchasing power

Import of raw material Lead free paints

Export oriented Economy Introduction of FDI in few sectors

SWOT Analysis Market leader

Capacity expansion plans

Pricing power

Wide distribution network

Industrial business performing below average

Hiccups in international business

International presence restricted to small pockets

Fast growing Indian economy

Shorter repainting cycles

Growth in the tier II and III towns

Steady growth in industry volumes

Decrease in the use of distemper

Competition from the world majors & unorganized sector

Rising cost of raw materials

STP of Asian Paints Being a market leader the

company have to penetrate

in all market from rural to unban, and they have to

target all the class from upper

class to lower class for this

they have a very wide range

of product.

Segmentation

•Satisfies all segments its Royal aimed at upper segment and rest all at mass market

Targeting

•House-Owner, Industries-Hotels, Education, Healthcare, Manufacturing equipment's and automobiles

Positioning

•A complete collection of products to caters to everyone

BCG MATRIX

Promotional and Advertisement

Social Media Marketing

Dealer Network & Reach

Over 15000 direct dealers as opposed to 7000 to its nearest

competitor

Over 35% of the dealers do

business only with APIL

67 sales locations situated all

across the Country

APIL GNP Berger ICI

15

00

0

70

00

45

00

37

00

Retail outlets

Gross Profit37.96% 36.66%

31.43%

32.80% 34.95%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2013-14 2012-13 2011-12 2010-11 2009-08

Pe

rce

nta

ge

Financial Year

Particulars 2013-14 2012-13 2011-12 2010-11 2009-08

Net Sales10925.22 9394.03 8335.32 6336.08 5125.08

(-)Raw Materials

Consumed 5106.88 4528.83 4162.21 3187.48 2454.08

(-)Power & Fuel Cost125.6 107.65 76.96 68.61 47.03

(-)Employee Cost482.43 404.59 341.63 300.45 257.41

(-)Other Manufacturing

Expenses1063.03 909.08 1134.96 701.22 575.47

Gross Profit 4147.28 3443.88 2619.56 2078.32 1791.09

Gross Profit Ratio 37.96% 36.66% 31.43% 32.80% 34.95%

All Figures in Rs. Crore

Net ProfitParticulars 2013-14 2012-13 2011-12 2010-11 2009-08

Net Sales 10925.22 9394.03 8335.32 6336.08 5125.08

(-)Gross Profit 4147.28 3443.88 2619.56 2078.32 1791.09

(-)General and Administration

Expenses 356.72 283.82 211.45 159.92 142.93

(-)Selling and Distribution

Expenses 2014.81 1693.4 1078.78 843.39 692.55

(-)Miscellaneous Expenses 71.47 52.16 93.66 57.56 47.29

PBDIT 1704.28 1414.50 1235.67 1017.45 908.32

(+)Exceptional Income 9.6 0 0 0 25.46

(+)Other Income 174.2 126.12 142.99 75.09 143.85

Operating Profit 1888.08 1540.62 1378.66 1092.54 1077.63

(-)Interest 28.97 33.93 31.31 16.34 19.1

PBDT 1859.11 1506.69 1347.35 1076.20 1058.53

(-)Depreciation 212.32 126.98 99.49 94.48 60.74

PBT 1646.79 1379.71 1247.86 981.72 997.79

(-)Provision for Tax 533.51 465.88 404.54 347.18 330.17

PAT/Net Profit 1113.28 913.83 843.32 634.54 667.62

Net Profit Ratio 10.19% 9.73% 10.12% 10.01% 13.03%

10.19%9.73%

10.12% 10.01%

13.03%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2013-14 2012-13 2011-12 2010-11 2009-08

Pe

rce

nta

ge

Finacial Year

All Figures in Rs. Crore

Direct & Indirect CostParticulars 2013-14 2012-13 2011-12 2010-11 2009-08

Raw Materials

Consumed 5106.88 4528.83 4162.21 3187.48 2454.08

Power & Fuel Cost 125.6 107.65 76.96 68.61 47.03

Employee Cost 482.43 404.59 341.63 300.45 257.41

Other Manufacturing

Expenses 1063.03 909.08 1134.96 701.22 575.47

Direct Cost 6777.94 5950.15 5715.76 4257.76 3333.99

Percentage Change 13.91% 4.10% 34.24% 27.71%

13.91%

4.10%

34.24%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2013-14 2012-13 2011-12

Pe

rce

nta

ge

Ch

an

ge

d

Financial Year

Particulars 2013-14 2012-13 2011-12 2010-11 2009-08

General and

Administration Expenses 356.72 283.82 211.45 159.92 142.93

Selling and Distribution

Expenses 2014.81 1693.4 1078.78 843.39 692.55

Miscellaneous Expenses 71.47 52.16 93.66 57.56 47.29

Indirect Cost 2443.00 2029.38 1383.89 1060.87 882.77

Percentage Changed 20.38% 46.64% 30.45% 20.18%

20.38%

46.64%

30.45%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

2013-14 2012-13 2011-12

Pe

rce

nta

ge

Ch

an

ge

d

Financial Year

All Figures in Rs. Crore

Debt-Equity Ratio

Particulars 2013-14 2012-13 2011-12

Share Capital 95.92 95.92 95.92

Reserve and

surplus 3505.01 2926.34 2391.86

Share holders

Fund 3600.93 3022.26 2487.78

Secured 6.65 9.28 12.37

Unsecured 113.22 114.06 108.52

Long term

Borrowings 119.87 123.34 120.89

Debt Equity Ratio 0.03 0.04 0.05

0.03

0.04

0.05

0.00

0.01

0.02

0.03

0.04

0.05

0.06

2013-14 2012-13 2011-12

Financial Year

All Figures in Rs. Crore

RECRUITMENT PROCESSThe process of Recruitment & Selection that is followed in Asian Pints in the two categories of recruitment:

Lateral Level Recruitment

Efforts are made to recruit & fill up Senior Level positions with in-house talent available. The eventual

destination of a career path is the culmination of the aspiration & enthusiasm of each of their employee

by giving them opportunities to grow within the organization. However, in case of non – availability of

internal talents they explore with in industry and eventually outside industry, whenever required.

Entry Level Recruitment

At Asian Paints fresh candidates at entry level such as Engineers (BE / B.Tech) & Management

Graduates (MBAs) are recruited as "Campus Recruits" straight from the Campus as Management

Trainees (MTs) or Graduate Engineer Trainees (GETs).

TRAINING AND DEVELOPMENT A career at Asian offers a chance to touch someone's life. There are extensive training and

development programs to enhance and update the skills and knowledge of its human

resources. Their commitment to training and development is a core value. They believe in

polishing the skills and knowledge of an individual.

It is the Company's policy to provide appropriate learning opportunities to assist employees in

gaining job- related skills and knowledge that will contribute to improved performance and

career development.

CONCLUSION In the recent years, due to inflation and competitors Asian Paints has faced many problems.

The transformation has resulted in a new Asian Paints which has successfully faced this challenge and reversed this trend. It has done so by substantially strengthening their brands and building capabilities. This has already begun to yield benefits and they are returning to growth. Volume growth is being followed by value growth, which in turn is bringing profit growth .India is one of the most exciting markets offering great potential market.

The great strategy undertook by Asian paints is the Master Painter Scheme which helped to increase in sales and also benefitted the master painters who are lifting emulsions from the dealers. From this scheme both the companies as well as the master painters are benefitted.

Asian paints also came with different marketing as well as promotional strategies.

Over the next 10 years the per capita income of the Indians will increase resulting in the increase of Paint sector.

The Company needs to focus on Automobile sector, the automobile industry is in a growing stage and automobile is the major consumption of paint.

Bibliography

www.aceanalyser.com

www.ifrc.gov.in

www.socialsamosa.com

www.asianpaints.com

www.paintsector.in