Asian Paints

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Asian Paints

Type

Public

Traded as

BSE: 500820 NSE: ASIANPAINT

Industry

Paint

Founded

1942

Headquarters

Mumbai, India

Key people

P M Murty (MD & CEO)[1]

Products

Ancillaries Automotive Decorative paints Industrial Paint selector

Revenue

7,788.87 crore (US$1.74 billion)(2011) 6,680.94 crore (US$1.49 billion)(2009-10)[2]

Profit

1,256.09 crore (US$280.11 million)(2009-10)

Employees

4,382 (2009-10)

Website

www.asianpaints.com

Asian Paints (BSE: 500820, NSE: ASIANPAINT) is an Indian paint company headquartered in Mumbai, India.
[3]

Asian Paints is Indias largest paint company and Asias third largest paint company, with a turnover of Rs

77.06 billion.It is one of the largest paint corporation that operates in 17 countries and has 23 paint manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

Contents
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1 History

o o o o o o o

1.1 Origins 1.2 1st February, 1942 1.3 1945 1.4 1954 1.5 1957 - 66 1.6 1967 1.7 Today

2 Major Products and Services 3 Forbes listing 4 Financial Deals 5 Sales 6 Revenue 7 International operations 8 Group Subsidiaries 9 Campaigns

o o

9.1 Late Nineties 9.2 Logo Change

10 Activities 11 References

[edit]History [edit]Origins

Over the course of 25 years Asian Paints has become a corporate force and India's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India. Asian Paints manufactures a wide range of paints for Decorative and Industrial use. Vertical integration has seen it diversify into products such as Phthalic Anhydride and Pentaerythritol, which are used in the paint manufacturing process. Asian Paints along with PPG Inc, USA, one of the largest automotive coatings manufacturer in the world has begun a 50:50 joint venture, Asian PPG Industries to service the increasing requirements of the Indian automotive coatings market. Another wholly owned subsidiary, 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. This wholly owned subsidiary of Asian Paints has entered into a tie-up with Canada-based Protech Chemicals which is one of the top ten powder coatings companies in the world for technological know-how in the area of powder coatings. [edit]1st

February, 1942

Armed with little knowledge and great determination, Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to manufacture paint in a garage on Foras Road, Bombay. They name their company 'The Asian Oil & Paint Company', a name that they picked randomly from a telephone directory. [edit]1945 Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing strategy "to reach consumers in the remotest corners of the country with small packs." [edit]1954 Asian Paints mascot, Gattu, the mischievous kid, is born. [edit]1957

- 66

The family-owned company makes the transition to a professionally managed organisation. British company Balmer Lawrie rejects the products of a giant British paint company in favour of Asian Paints. Asian Paints embarks on an ambitious grassroots marketing campaign, partnering with thousands of dealers in small towns all over India. [edit]1967 Asian Paints emerges as India's leading paint company ahead of any international competition. [edit]Today Asian Paints becomes the 10th largest decorative paint company in the world Asian Paints is more than twice the size of its nearest competitor It is one of the most admired companies in India Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution Rated Best Employer by BTHewitt survey, 2000 Bluest of the blue chips by Hindu Business Line; Most admired company to work for by ET-BT

survey, 2000 On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and International business units and adopted SCM and ERP technology Asian Paints aims to become the 5th largest decorative paint company in the world [edit]Major

Products and Services

Asian Paints manufactures and markets industrial and decorative coatings. The company's key products and brands include the following: Products: Decorative paints: Interior wall paints Exterior wall paints Wood surface paints Metals surface paints Industrial coatings: Protective coatings Floor coatings Road markings Automotive: Body coatings Plastic coatings Ancillaries: Brands: Ace & Apex Apcolite Apex Apex Ultima Asian Paints Colour Next Premium Gloss Enamel Royale Royale Play Touchwood Tractor Emulsion Utsav [edit]Forbes

listing

Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company. Asian Paints is the only paint company in the world to receive this recognition. One of the country's leading business magazine "Business Today" in Feb 2001 ranked Asian Paints as the Ninth Best Employer.It has been recognized by "Economic Times" as well. Forbes has also ranked Asian Paints among the Best under a Billion companies in Asia In 2005, 06 and 07. [edit]Financial

Deals

Asian Paints has acquired 30% stake in Dutch Boy Philippines from Berger International Limited (BIL), an indirect subsidiary of Asian Paints. Asian Paints executed a conditional stock purchase agreement relating to the sale of 427,000 shares of Dutch Boy Philippines, which ceases to be an associated company of BIL. Asian Paints, Ltd. (APL) has entered into a 50:50 new joint venture agreement with PPG Industries, Inc. (PPG), a US-based provider of paints, coatings and specialty products, to accelerate the growth of non-decorative coatings business in India.

This is the second joint venture between APL and PPG. They currently have a 50-50 joint venture named Asian PPG Industries Ltd (APPG). APL and PPG have agreed that APL will take lead in the second venture, while PPG will take lead in APPG in order to utilize their respective strengths to best capture the growth in infrastructure development and globally driven markets in India. APPG currently services the Indian transportation coatings market and this change will expand its scope to additionally service the industrial liquid, marine and consumer markets. The second joint venture will service the protective, industrial power, industrial containers and light industrial coating markets. The transaction is subject to regulatory approvals and is expected to be completed during 2011. [edit]Sales Most of its revenue from outside India come from the Middle East. [edit]Revenue The company recorded revenues of INR77,888.7 million (approximately $1,708.1 million) in the fiscal year ended March 2011, an increase of 14.2% over 2010. The company's operating profit was INR13,956 million (approximately $306.1 million) in fiscal 2011, an increase of 2% over 2010. Its net profit was INR8,432.4 million (approximately $184.9 million) in fiscal 2011, an increase of 0.9% over 2010. [edit]International
[4]

operations

Asian Paints operates in 17 countries across the world. It has manufacturing facilities in each of these countries and is the largest paint company in eleven of these markets. Asian Paints operates in five regions across the world viz. South Asia, Southeast Asia, South Pacific, Middle East and Caribbean region through the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. The countries that Asian Paints has presence are as follows: Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka) SCIB Paints in Egypt Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman), Caribbean (Jamaica, Barbados, Trinidad & Tobago) Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu) Taubmans in South Pacific (Fiji and Samoa) The company has a dedicated Group R&D Centre in India and has been one of the pioneering companies in India for effectively harnessing Information Technology solutions to maximize efficiency in operations. [edit]Group

Subsidiaries

1) 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.APCO COATINGS

2) 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.ASIAN PAINTS INDUSTRIAL COATINGS 3) In 1994, Berger units were brought under the single umbrella of the holding company 'Berger International Limited (BIL)' with headquarters in Singapore, which was also listed on the Singapore stock exchange. In November 2002, BIL became a part of the Asian Paints Group. Incidentally, Berger Paints Jamaica Limited, which is listed on the Jamaican stock exchange, is amongst the top ten companies in the country in terms of market capitalisation. In the Middle East too Berger is a well-respected brand. It is the largest paint company in Bahrain. Using its state-of-the-art manufacturing facilities there, and in United Arab Emirates, it exports to countries in the Commonwealth of Independent States, Gulf Cooperation Council and Africa. In South East Asia Berger enjoys a fine reputation and has operations in Singapore and Thailand.BERGER 4) SCIB Paints ranks amongst the top five paint companies in Egypt. SCIBPAINTS [edit]Campaigns [edit]Late

Nineties

During the late nineties the brand had to be reinvented. Because no longer festivities formed an important part in ones life. Since many brands went after festival seasons,the positioning platform has become cluttered.More over the consumer buying behavior has changed. The category was becoming less seasonal. People started associating more importance to home decor and interiors. The choice of color became a high involvement decision. From a low involvement category, paint was increasingly becoming a high involvement category. [edit]Logo

Change

The brand also went in a brand overhaul. The logo was changed to a contemporary upmarket one designed by Entreprise IG based in Singapore.The logo/design was to convey self expression, sophistication and Technology.Thus came the birth of a wonderful positioning strategy created by O&M. The insight was that the brand is about people and homes and homes reflect the people living in it. Hence " Har Ghar Kuch Kehta Hai" translated to " Every Home has a story to tell". This campaign is a perfect example of a brand laddering up and connecting to a higher level in the mind of the customer. The campaigns reinforced the brand as a premium emotional brand. Along with the campaign Asian Paints also ran parallel ads for its subbrands. Saif Ali Khan endorsed the premium brand Royale .For Apex Ultima, the campaign was highly localized and was different in different market. [edit]Activities Asian Paints sponsors the award Asian Paints Sharad Shamman for the best decorated Durga Puja Pandal in Kolkata during the festival in October.