ASIANPAIN

T
500820

THE PAINT
INDUSTRY

PORTERS 5 FORCES
MODEL
BARGAINING POWER OF
BUYERS
The contractors : Higher
bargaining power & more price
sensitive
The end customer : Number of
options are available Decisions
are made based many factors

BARGAINING POWER OF
SUPPLIERS
- Raw material intensive industry
-More than 300 products required
to manufacture of the final
products
-Many Categories

AVAILABILITY OF
SUBSTITUTES
Lime wash is conventionally
used substitute for paints.
In decorative paints segments
an alternative option is
wallpapers

COMPETITIVE RIVALRY
About 80% of the organized
market is catered by the top four
players of the industry.
The current market growth rate
provide ample room for all the
players of the industry to flourish.

THREAT OF NEW ENTRANTS

The paint industry in India is
dominated by few players making
difficult for anyone new entering
the industry
Establish foreign players may
pose a threat by virtue of the
knowledge and expertise

Oligopoly Market

GDP Growth to Revive Fortunes of Paint

Industry

Urban demand revival to boost paint demand

Shorter Repainting Cycle

Oligopoly market

Market Share Gains To

Continue

Robust Pricing
Power
Effective
Advertising

GDP Growth to Revive Fortunes of Paint Industry

Increased
GDP

Increase in
income
level

Housing
sector
boom

Expansion
of
Industrial
Segment

Increased
investment
in
Infrastruct
ure

Growth in
the Paint
Industry

Oligopoly Market

GDP Growth to Revive Fortunes of Paint

Industry

Urban Demand Revival To Boost

Paint Demand
Shorter Repainting Cycle

Oligopoly Market

GDP Growth to Revive Fortunes of Paint

Industry

Urban Demand Revival To Boost Paint Demand

Shorter Repainting
Cycle

THE
COMPANY

KEY
FINANCIALS

NET SALES

EBITDA, PAT and

PBT

SWOT ANALYSIS
STRENGTHS
ThelargestpaintcompanyinIndiaandthirdlargest
companyinAsia
Theyhaveover50%ofmarketshareandareclear
leadersdecorativepaints
Asianpaintshasstronginternationalpresencewith
itsfour4subsidiaries;BergerInternationalLimited,
ApcoCoatings,SCIBPaintsandTaubmans.

OPPORTUNITY
Thereisagoodscopeforgrowthinindustrialpaints
categoryespeciallyintierIIandIIIcities
Beinganinternationalstandardpaintcompanyit
shouldlookformoreopportunitiesabroad
CompetitorsaregoingforHitechprocessandAsian
paintswithgoodfinancialandintellectualcapitalcango
forhitech.

WEAKNESS
Industrialbusinessperformingbelowpar
IndecorativepaintsIndustryCustomertastesand
perceptionschangeveryfastandproductsmay
becomeobsoletewithchangeintrends,hence
productionplanningandinventoryproblem.

THREATS
Growthpronetoslowdowneffects
StringentGovernmentrulesandregulations
regardingthequalityofproductsandmanufacturing
facilitiesasEnvironmentpoliciesaregivenmore
emphasis
Rawmaterialscarcityandvolatilityinprices.

COMPETITIVE ADVANTAGE

Lack of any threatening competition

nearest

competitor half size

Balanced portfolio of products

products are positioned across all price points (economy - mid range
- premium)

Closeness to customers & keen market understanding

completely redefined the Exterior Coatings market

products perceived as positive value propositions by customers

FUTURE
STRATEGY

Decorative

Coatings

Continue the effort to move closer to the consumer to identify & fill needs

Tap vast potential of Wood Finish segment

Exterior Coatings segment will help increase value sales

Continue to invest in brand building

Industrial

Coatings

To explore alliances with worldwide paint majors to tap vast potential of the
segment

Leverage the recent acquisition to be a strong player in the industrial

coatings business

International

To expand and become the leading player in emerging markets

The company plans to set up a greenfield manufacturing

facility at Visakhapatnam with an investment of
approximately about Rs 1,750 crore. The installed capacity of
this plant will be 400,000 KLPA of paint per annum.

The company is also planning to set up a fully automated

paint manufacturing plant at Nanjangud in the Mysore
District of Karnataka at Rs 2,400 crore. The plant, to come up
on 175 acre, will be set up in two phases, with the first phase
having a capacity of 300,000 KLPA and the second phase
200,000 KLPA.

RECOMMENDATI
ON

SEL
L

THANK YOU !
Davda Janmang
2014081
Parul Sharma
2014193
Smriti Aggarwal
2014282
Himanshu Dawra
2014344