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    Asian Paints is India's largest paint company with a 19% market share. It plans to achieve higher growth than the industry average of 9-10% through strategies like expanding its product range, introducing niche industrial paints, expanding production capacity, and diversifying into ceramics. It faces threats from unorganized competitors and growing demand. To address these, it plans collaborations for technology and entering lower segments. Its proposed ceramics foray leverages distribution networks and customer base while paints and ceramics are related. Asian Paints strategies include diversification, foreign collaborations, subsidiaries, and product extensions.

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    Asian Paints is India's largest paint company with a 19% market share. It plans to achieve higher growth than the industry average of 9-10% through strategies like expanding its product range, introducing niche industrial paints, expanding production capacity, and diversifying into ceramics. It faces threats from unorganized competitors and growing demand. To address these, it plans collaborations for technology and entering lower segments. Its proposed ceramics foray leverages distribution networks and customer base while paints and ceramics are related. Asian Paints strategies include diversification, foreign collaborations, subsidiaries, and product extensions.

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    Asian Paints is India's largest paint company with a 19% market share. It plans to achieve higher growth than the industry average of 9-10% through strategies like expanding its product range, introducing niche industrial paints, expanding production capacity, and diversifying into ceramics. It faces threats from unorganized competitors and growing demand. To address these, it plans collaborations for technology and entering lower segments. Its proposed ceramics foray leverages distribution networks and customer base while paints and ceramics are related. Asian Paints strategies include diversification, foreign collaborations, subsidiaries, and product extensions.

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    205 views17 pages

    Good Morning

    Uploaded by

    payal65
    Asian Paints is India's largest paint company with a 19% market share. It plans to achieve higher growth than the industry average of 9-10% through strategies like expanding its product range, introducing niche industrial paints, expanding production capacity, and diversifying into ceramics. It faces threats from unorganized competitors and growing demand. To address these, it plans collaborations for technology and entering lower segments. Its proposed ceramics foray leverages distribution networks and customer base while paints and ceramics are related. Asian Paints strategies include diversification, foreign collaborations, subsidiaries, and product extensions.

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    of 17

    Good Morning

    Ballari Institute Of Technology And


    Management
    Case
    Analysis On

    Presented By:

    Bhavana.H
    Himanshi.Goel
    Jagadish.YJ
    Basan Gowd
    Introduction
    Asian paints started in 1942.

    Asian Paints is India’s largest company and


    ranked among the top ten Decorative in the
    world with a turnover of INR 66.80 billion.

    Asian Paints along with its subsidiaries have


    operations in17 countries across the world with 23
    manufacturing facilities.

    Servicing consumers in 65 countries through Berger


    International, SCIB Paints – Egypt,
    Asian Paints, Apco
    paintings and Taubmans.
    CASE FACTS:
    Asian Paints (India) Limited has a value of Rs.560
    crore.

    In March 1994, the company notched up a gross


    sales turnover of 10.8 percent over previous year.

    A growth of 31.5 percent over previous year in net


    profit.

    Some of the future plans of the company are


    diversification, expansion of its product ranges, line
    extensions, collaborations and joint ventures.
    Cont….

    The paint industry comprises both of organized and


    unorganized players.

    Asian Paints has a market share of 19 percent.

    The nearest competitors for Asian Paints are


    Goodlass Nerolac, Berger Paints and Jenson
    and Nicholson.
    Cont….
    The comparison of net sale and net profit of nearest
    competitors are:
    (Figures in Rs. Crore for 1993-94)
    COMPANY Net Sales Net Profit NET
    PROFIT/SALES
    (%)
    Asian Paints 401.96 25.62 6.36

    Goodlass 205.88 8.05 3.91


    Nerolac
    Berger Paints 174.95 3.24 1.85

    Jenson & 110.33 1.97 1.72


    Nicholson
    Garware Paints 106 2.57 2.33

    Shalimar Paints 102.59 1.60 1.56

    Bombay Paints 37.81 0.03 0.08


    SWOT ANALYSIS:

    STRENGTHS:

    Extensive Distribution Network .


    Wider Segment Coverage .
    Willingness of the company to go for expansion of
    operations, product range and also the technology.
    Proper planning and comprehensive approach.
    Differential Pricing Strategies.
    Cont….

    WEAKNESS:
    Uneven prices have helped the unorganized
    competitors grab a significant chunk of the market.
    Dependences on foreign firms for import of
    technology.

    OPPORTUNITIES:
    Government regulation -Budget Concessions.
    Demand for industrial paint applications is latent.
    Establish a foothold in the International markets.
    Cont…

    THREATS:

    Unorganized sector is eating away the market share


    of the company
    Competition from other organized players and also
    threat from imports
    Meet the growing demand of the organization in
    terms of the workforce, the technology and also the
    assets.
    Meet the growing demand for the product and has to
    create greater awareness for their newer products.
    CASE ISSUES:
    What corporate goal has the company adopted for
    the next few years and with what strategies does
    the company propose to realize the above goal?

     The corporate goal of the company is to achieve the


    growth rate that is higher than 9 to 10 percent that
    the industry is averaging.
    1. Expansion of the product range.
    2. Introduction of niche products in industrial paints
    area.
    3. Line extensions.
    4. Expansion of production capacity and continuous
    modernization of technology.
    5. Diversification into unrelated area of ceramics.
    6. Increasing its presence in overseas market with its
    various subsidiaries.
    Cont…

    What threats is the company facing or/and might


    face in the future? What has it done and/or what
    could it further do to safeguard itself from
    threat(s)?

    a) Threats the company may face in future:

     Company is facing major threat from the


    unorganized sector.
     Growing demand of the products .
     Awareness for newer products.
     The growing demand of the organization in terms
    of the workforce, technology and also the assets.
    Cont…

    b) The ways the company is trying to safeguard its


    interest from threat are:

     Collaborations with foreign firms for


    modernization and up gradation of technology and
    assets .
     Entry into lower end segments in order to grab
    large market share.
     Company is focusing at increasing its market share,
    and working hard in order to retain it.
     Company has entered into the industrial paint
    applications, where demand for product is still
    latent.
    Cont…

    Evaluate the new strategies of Asian Paints (India)


    Limited, particularly its proposed foray into
    ceramics?

     Utilization of existing distribution network .


     Serve an existing customer base.
     Paints and ceramics are quite related products.
     Foreign collaborators for the technology.
     Rs. 70 crore investment in the first phase
     Plant location near Gujarat and Rajasthan.
     Collaborations with foreign players.
    Cont…
    What action plans has the company proposed to
    strengthen its product base?

    The action plans proposed by the company to


    strengthen its product base are :

     Line extensions.
     Expansion of the product range
     Expansion and modernization of production
    capacity.
     Diversification.
    Cont…

    Classify all the strategic plans or proposed strategic


    actions of the company for achieving growth
    against suitable headings, example diversification,
    joint ventures, etc.,
    Classification of the strategic plans is as follows:
     Diversification into the area of ceramics.
     Foreign collaborations for technology.
     Joint Venture unit in Townsville (Australia) has
    helped the company to establish its foothold in
    international markets.
     Subsidiaries in overseas market .
     Product range and line extensions where new
    brands such as ‘Utsav’.
    CONCLUSION

    Asian Paints has been able to sustain the stiff


    competition.
    The impact of recession was also not huge on the
    company.
    Against all the odds, the company is able to maintain
    its leadership position in the market.
    All these facts prove that the strategies followed by
    the company are helping the company to achieve its
    goals and objectives efficiently and effectively.

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