Asian Paints

First Preliminary Report

Asian Paints Limited

Submitted on 11th August, 2014

Section: MBA3

Background- The Indian paint industry

The paint industry in India is Rs 49 billion sector. There is demand for paints due to industrial and economic growth and is somewhat relatively price-elastic. The global average per capita consumption is 15 kg. The per capita consumption of paints in India is very low at 0.5 kg per annum if compared with 4 kg in the South East Asian nations and 22 kg in developed countries. In India the organized sector controls 70 percent of the total market with the remaining 30 percent being in the hands of nearly 2000 small-scale units. In India the industrial paint segment accounts for 30 percent of the paint market while the decorative paint segment accounts for 70 per cent of paints sold in India. Asian paints enjoys a strong hold over Indian paint industry with an overall market share of 33per cent in the organized paint market. The main reason that contributes to this fact is their strong and largest distribution network among the players and its aggressive marketing has earned it strong brand equity. It also has a strong focus on becoming a global brand. It was ranked 13th amongst the top paint companies in the world by Coatings World - Top Companies Report 2013. Also it is double the size of any other paint company in India.

Asian Paints

Asian Paints is India’s biggest and Asia’s third biggest paint company today, with a turnover of USD 1.1 billion. The company has an enviable reputation in the corporate world for professionalism, fast track growth and building shareholder equity. Asian Paints operates in 20 countries and has 28 paint manufacturing facilities in the world functioning in over 65 countries. The group operates around the world through its subsidiaries Berger International Limited, Apco coatings, SCIB paints and Taubman. The company has come a long way since its small beginnings in 1942. Four friends who were...