UNIVERSITY BUSINESS SCHOOL,

PANJAB UNIVERSITY, CHANDIGARH

ASSIGNMENT
(BUSINESS ECNOMICS)

SUBMITTED TO: SUBMITTED BY:

DR. MANOJ KUMAR SHARMA VIPUL MUTNEJA

(Professor, UBS) MBA Gen B
HISTORY
75 years of innovation in paint
Since its foundation in 1942, Asian Paints has come a long way to become India’s leading and
Asia’s third largest paint company, with a turnover of Rs 168.43 billion. We operate in 16
countries and have 25 paint manufacturing facilities in the world, servicing consumers in over 65
countries.

The company has come a long way since its small beginnings in 1942. It was set up as a
partnership firm by four friends who were willing to take on the world's biggest, most famous
paint companies operating in India at that time. Over the course of 25 years, Asian Paints
became 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 1967.
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.

Asian Paints Limited was established way back on February 1,1942 and today stands as India’s
largest and Asia’s third largest paint company. Asian Paints operates in 17 countries and has 25
paint manufacturing facilities in the world servicing consumers in over 65 countries.

The company manufactures paints in the category of Decorative, Automotive and Industrial
segment. Apart from these the company also manufactures various Accessories like, Wall
Primar, Wood Primer, Putty and Strainers etc. Driven by its strong consumer–focus and
innovative spirit, the company has been the market leader in paints since 1967.

Besides Asian Paints, the group operates around the world through its subsidiaries Berger
International, Apco Coatings, SCIB Paints and Taubmans, Berger International, SCIB Paints–
Egypt, Asian Paints, Apco Coatings and Taubmans. Asian Paints operates in 5 regions across
the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region
through the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco
Coatings and Taubmans. In 10 markets, it operates through its subsidiary, Berger International
Limited; in Egypt through SCIB Paints; in 5 markets in the South Pacific it operates through
Apco Coatings and in Fiji and Samoa it also operates through Taubmans.

The company is having its strategically located Indian plants at Bhandup (Maharashtra), Kasna
(Uttar Pradesh) and Sriperumbudur (Tamil Nadu), Ankleshwar (Gujarat), Patancheru (Andhra
Pradesh) and the newly built plant at Rohtak (Haryana). Asian Paints operates in 17 countries
and has 25 paint manufacturing facilities in the world servicing consumers in over 65 countries.
The company is having state–of–the–art supply chain system using cutting edge technology to
integrate all its plants, regional distribution centers, outside processing centers and branches in
India. All the company’s paints plants in India, two chemical plants, 18 processing centers, 350
raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional
distribution centers, 72 depots are integrated.
 The company is having a big and experienced R&D team which has successfully managed to
develop High–end exterior finished and wood finishes in–house, which was earlier imported into
the country. These products are currently marketed under Asian Paints Elastomeric Hi–Stretch
Exterior paint and Asian Paints PU wood finish respectively.

The company is having three subsidiaries viz, Apco Coatings – it is a subsidiary of Asian Paints
in the South Pacific islands. The company operates in Australia, Fiji, Tonga, Solomon Islands
and Vanuatu under the brand name of Apco Coatings.

The other subsidiary of the company is Asian Paints Industrial Coatings Limited which has been
set up to cater to the powder coatings market which is one of the fastest growing segments in
the industrial coatings market.

Berger International Limited in November 2002, became a part of the Asian Paints Group.
Today, the name of Berger is synonymous with quality and innovation. BIL has presence across
three regions viz. Middle East, Caribbean and South East Asia. Asian Paints participates in the
Industrial Coatings segment directly, through a 50:50 JV with PPG Inc. of US as well as through
a 100% subsidiary

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

VISION
We want to be an innovative, agile, and responsive world class research and
technology organization that’s aligned to future customer needs and catalyze the growth
of the company across existing and future businesses.

QUALITY POLICY
 We shall provide products and services that meet stated standards on time, every time
 We shall continually improve our processes to understand changing customer needs and
preferences
 We accept Zero Defect as a quality absolute, and shall design and operate our quality system
accordingly
 We shall organize our work practices to do a job right the first time, every time
 We are committed to continual improvement in quality in all business processes and shall track
such improvement through measurable indicators
MARKETING AND ADVERTISEMENT
In 1950s the company launched a "washable distemper", which was a balance between the
cheap dry distemper that peeled easily and the more expensive plastic emulsions. Promoting
their brand Tractor Distemper, the company used "Don't lose your temper, use Tractor
Distemper" in their advertisings. In 1954, "Gattu" – a mischievous boy with a paint bucket in his
hand – was launched as mascot. Created by R. K. Laxman, the mascot found appeal with the
middle-classes. He was used only in print advertisements and packaging till 1970s and by
1990s was also seen on television advertisements. Gattu helped in bringing the commodity-led
business of painters to the actual end users of home-owners. Ogilvy & Mather, the advertising
agency associated with Asian Paints, launched marketing strategy by focusing on festive
occasions in 1980s with their tag line "Har Ghar Kuch Kehta Hain" (Every home says something
about its owner). Relating with festivals and important life events like marriages and child birth,
the company advertised it as an occasion to paint homes by connecting on emotional level. In
1990s, the advertisements focused on the home exteriors focusing on how the paints could
keep the exteriors timeless. The company revamped its corporate identity in 2000s and axed
Gattu as their mascot and later changed its "Asian Paint" logo to a shorter "AP".

CORPORATE SOCIAL
RESPONSIBILITY

We are inclusive of our communities through a range of social interventions, enhancing

skills and building social infrastructure to improve their quality of life.

While our CSR approach focuses on the development of communities around the vicinity of our
plants, we have also developed innovative programs that leverage our capabilities as a paint
manufacturer and home improvement service provider to enhance livelihoods of underserved
communities through vocational training and skills development.
 CSR Focus Areas and Initiatives
Our CSR Policy focuses on four thrust areas

 Education
 Skills Development
 Healthcare/Hygiene and
 Water Management

EDUCATION
Education is the key to unlock a better life. It is a powerful tool to access opportunities.

At Asian Paints, we are committed to encourage education for communities around us. We are
helping strengthen infrastructure for education to motivate children by implementing various
programs through our project partners. Our ambition is to enrich the ‘school-going’ experience
for children. We support every stage of a child’s education through these projects, helping
him/her to transition smoothly from being a student to an adult with the right means of livelihood.

 Revamping educational infrastructure

 Assisting India’s digital literacy agenda
 Driving science education

These are some Projects in progress under education policy.

SKILLS DEVELOPMENT
Skill building is a powerful tool to empower individuals and drive financial growth and
community development of a nation.

At Asian Paints, our objective is to enhance employable skills and knowledge of an individual to
assist him/her in contributing to India’s economic growth. The Asian Paints Colour Academy
helps us remain steadfast in our support to the National Skill Development Mission and assist in
up skilling of the unorganized workforce. The Academy functions with the objective to enhance
employability opportunities for people in our industry through vocational trainings that expand
skills of painters, applicators, carpenters and workers. At the Academy, we provide technical
know-how, prepare content and deliver training modules. The institutes are equipped with
modern training facilities for providing hands-on experience. All the courses delivered are
certified by the Government of India.

 Association with National Skill Development Corporation (NSDC) - The Academy

further partners with NSDC to enhance delivery of our skill development program.
 Helping jail inmates reclaim life - We connected with inmates at Belgaum Prison to
provide Basic Painting Course (BPC) training to them. Four of the convicts who had
 attended the very first batch were able to start a life of dignity by beginning work as
painters upon their release.
 Partnering with Industrial Training Institute (ITI) - We joined Karnataka Vocational
Training and Skill Development Corporation to launch Color Academy in ITI Peenya,
Bengaluru for training their students.

These are some projects running under skill development policy.

HEALTHCARE AND HYGIENE

Health and hygiene are two of the fundamental pillars of a developed society.

At Asian Paints, our objective is to make affordable healthcare facilities available to

communities around us. Thus, we are working towards implementing strategic partnerships to
promote better access to quality healthcare and sanitation facilities.

 Offering specialized medicalcare in rural region - healthcare support for rural

communities residing near the manufacturing units, through localized medical camps
 Enhancing access to sanitation - In line with India’s Swachh Bharat campaign, we are
helping build toilets and improve sanitary conditions for communities residing near our
facilities.
 Making affordable healthcare accessible - Our healthcare program ‘Swasth’ is for
urban slum populations. The program provides affordable healthcare facilities that
include consultation with general physicians, dental care and pathology tests.
 Supporting healthcare for truck drivers - We established ‘Safar’, a healthcare
program to improve health awareness and facilities among truck drivers.

WATER CONSERVATION
Water is among the most precious natural resources that supports life.

The growth in population, increased industrialization and urbanization, and depleting water
sources are making water scarcity a real threat. To manage future water scarcity challenges, it
is imperative to promote judicious use of water. At Asian Paints, we are holistically addressing
the challenges in water scarcity by actively developing water management systems.

We provide infrastructural support at each stage of water conservation and preservation to

communities around us. Further, at our manufacturing units, we practice water recycling and
waste water treatments to enhance water conservation.

 Stimulating water management systems - rainwater harvesting systems for

communities nearby to collect, store and consume rainwater for landscape irrigation and
other uses.
 Counting every drop - Water ATM project to provide potable water to more than
thousands of people daily in Thiruvallur district of Tamil Nadu.
 GLOBAL PRESENCE
Today, the Asian Paints group operates in 16 countries across the world across four regions viz.
Asia, Middle East, South Pacific and Africa through the seven corporate brands viz. Asian
Paints, Berger, SCIB Paints, Apco Coatings, Taubmans, Causeway Paints and Kadisco. The
company exited its Caribbean Operations (Jamaica, Barbados and Trinidad & Tobago) in July
2017.

 Asian Paints in India, Bangladesh, Nepal, Sri Lanka and Indonesia (Asia)
 Causeway Paints in Sri Lanka (Asia)
 SCIB Paints in Egypt (Africa)
 Berger in Singapore (Asia)
 UAE, Bahrain and Oman (Middle East)
 Apco Coatings in Fiji, Tonga, Solomon Islands and Vanuatu (South Pacific)
 Kadisco in Ethiopia (Africa)
 Taubmans in Fiji and Samoa (South Pacific)
5 Year Report Asian Paints

Source: Annual Report Asian Paints

 Continue……

Source: Annual Report Asian Paints

 MILESTONES

Take a look at some of the key achievements by

our research and technology teams over the years.

2016-17

 Protek Duralife with warranty of 15 years: A first in the category of exterior wall finishes.
 Asian Paints enters into adhesives with its super adhesive, TruGrip Ultra.

2015-16

 Launched ‘Genie’, an innovative water-based French polish.

 ‘Great Leveller’ was launched as a smooth undercoat against traditional plaster.
 Launched ‘Apex Floor Guard’ for pavements.

2014-15

 Created the Technology Council with esteemed members to drive strategic innovation.
 Asian Paints forayed into the Wallpaper category with ‘Nilaya’.
 SmartCare Waterproofing extended its product range to include tile care.
 Royale Matt was introduced in the premium interior segment.

2013-14

 Achieved an all-time high of 16 new products, the key one being ‘Ultima Protek’.
 Launched 'Marvelloplast', an innovative wall leveller against the traditional gypsum plaster and
wall putty.
 Launched Apcolite Advanced – an interior mid-segment emulsion paint with excellent stain
cleaning abilities and burnish resistance.
 Launched high performance anticorrosive primers for window grills and shutters.
 Launched products in the waterproofing segment.
 Commenced work on new technology domains of micro-encapsulation and nano-processing

2012-13

 Adopted Green Seal’s GS-11 standard for environment compliance for premium interior and
exterior coatings.
 Royale Aspira was launched in the high end interior space with low VOC and low odor.
 The research division was conferred with the Roon Award, the highest in technical achievement
representing original scientific and innovative research.
 2010-11

 Focused on developing environmentally compliant technology such as Waterborne Acrylic

Emulsion, Waterborne Alkyds, High Solids Coatings, and Low VOC Solvent-Borne Coatings.
 Exploited new emulsion platforms to allow development of eco-friendly binders.

2009-10

 Integrated overseas technical groups with added focus on leveraging organization capabilities.
 Lead and heavy metals removed from products sold overseas.
 The research division was recognized with the Gordon Award for their work on Self-Cleaning
Paints.

2008-09

 Technology function productivity was mapped and improved by redirecting resources towards
core R&T activities.
 Lead and other heavy metals were removed from decorative paints.
 Developed low volatile organic compounds (VOC) water-based and solvent-based products in
decorative and industrial sectors.
 Set up a state-of-the-art R&T Centre in Turbhe, Navi Mumbai and moved all technology
personnel there.

2006-07

 Created an integrated technology strategy and mapped the right organisation structure to meet
marketplace challenges.

2005-06

 Reengineered formulations to reduce cost and upgraded key products and manufacturing
processes to meet environmental and safety concerns.
 A loan of INR 100 million was granted to Technical Instruments Manufacturers (India) Ltd. set
up a dedicated R&T facility.

2004-05

 Developed new exterior finishes, economy emulsions, distempers, and wood finishes.

2003-04

 Apcolite Premium Satin Enamel and Apex Textured Exterior Emulsion was launched.
 Technology integrated with the international business units of Nepal, Bangladesh, Sri Lanka,
Mauritius and Oman
PRODUCTS RANGE
INTERIOR PAINT

EXTERIOR PAINTS

METAL FINISHES (ENAMELS)

WOOD FINISHES RANGE

SERVICES AND SOLUTIONS
Asian Paints has been constantly expanding its manufacturing capabilities and creating
a base to service the aspirations of a rapidly growing India.

At Asian Paints, we are partnering growth by strengthening our manufacturing capabilities and
building greater efficiencies into the existing network. We are preparing for the future by setting
up state of-the-art plants and supply chains using cutting-edge technology for efficient
management and execution. With the focus on effective manufacturing and logistics, we have
built world-class, large manufacturing facilities with latest automation technologies.

This manufacturing prowess is supported by a strong distribution and logistics network, across
geographies, using modern material storage and handling technologies. A dedicated in-house
IT team adds value to business processes, leading to higher productivity and lower costs, by
building speed, consistency and standardization into them.

Focus on sustainability

This planet is our home, and as a home décor company, we are committed to keeping it
beautiful. The proactive investments we make across our sourcing, manufacturing and
distribution value chain helps keep our operations sustainable.
These included various waste reduction initiatives at plants, implementation of new wash-water
reuse schemes, non-stick coatings on select equipment, reduction in cooling tower blow-down,
a number of measures on reduction in water consumption, etc.

Energy management

Effective energy management has twin drivers for us – ecological preservation and economic
benefits. The energy consumed by us has a direct impact on our carbon emissions. And we
strive to manage our energy demand by improving operational efficiency and adding alternate
sources in the mix.

We have defined targets on reducing electricity consumption and increasing the share of
renewable energy as a proportion of the total consumption. Our energy conservation initiatives
can be categorized under process optimization and automation and optimization of electrical
equipment and lighting.
As we go forward, we will continue to develop sustainable products in an effort to reduce our
carbon footprint, increase product service life and improve the hygiene standards for our
products.

Project NEW

We have initiated Project NEW (Natural resource conservation; Energy and emissions
reduction; Waste reduction) at six paint manufacturing facilities that addresses the following key
themes:
  Reduction in specific electricity consumption.
 Reduction in non-product fresh water consumption.
 Water replenishment.
 Reduction in specific hazardous waste disposal.
 Reduction in specific industrial effluent generation.
 Electricity from renewable sources as a proportion of total electricity consumption.

R&D AND TECHNOLOGY

Home décor is constantly evolving to reflect the changing attitude and preferences of
customers.

At Asian Paints, we are leading this change by continuously researching and innovating to
develop world-class products year after year. We aim to be innovative, agile, responsive and
world- class in the R&D space to align to future customer needs and catalyze the growth of the
Company across businesses. This vision is being realized through building our business
strategy and initiatives around five pillars.

RESEARCH AND TECHNOLOGY EXCELLENCE

We are constantly reinventing our offerings to stay ahead of the curve and offer well researched
decor solutions to our customers.
Our Research and Technology (R&T) division at Asian Paints – comprises of over 200 qualified
scientists who are spread across multiple locations around the world where most of our paint
development and testing for architectural and industrial application takes place. The entire
architectural product portfolio is based on in-house technology developed by internal scientists.

INNOVATION SOLUTION

Our R&T team has also been successful in developing a number of safe products and
implementing energy saving processes, such as:

 Cycle time reduction.

 Wash water reuse.
 Sustainable product solutions for interior and exterior applications with restricted
amounts of volatile organic compounds (VOC).
 Creation of energy saving, heat-management coatings.
 Successful removal of lead and heavy toxic materials from decorative products.
 Formulation of Green Assure labeled products without toxic substances like CMR,
HAPs, heavy metals, APEO, HAPs, VACs, formaldehyde, phthalates, etc.
COLOURIDEAS STORES
End-to-end home décor solutions

The Colourideas stores provide a differentiated customer experience with end-to-end home
décor solutions, from colour personalization to painting execution and furnishings. The
Colourideas stores are crafted by internationally acclaimed retail design firms and offer
customer the right mix of inspiration and detail, with dedicated panels for special effects, latest
finishes and trendy colour combinations. Being our largest offering, footprint of Colourideas
stores have expanded to 380 stores across hundreds of towns.

AP HOMES

Multi-category décor stores

The AP Homes stores offer décor inspiration and an engaging in-store experience, along with
personalization consultations and holistic execution across multiple categories like paints,
waterproofing, wallpaper, kitchens, bath and light fittings and soft furnishing among others. The
response to the stores, currently located in New Delhi, Kochi and Coimbatore, has been
encouraging in terms of footfall, customer feedback and sale of décor products.

COLOUR BY ASIANPAINTS

Colour consultancy made accessible

At Colour by asianpaints stores, customers can walk in and experience colour in ways they
never imagined. They can find inspiration while browsing through our exclusive range of finishes
and see their dream home come to life with our state-of-the-art technology. Located in Mumbai,
Delhi and Kolkata, the Colour by asianpaints stores give customers the option of expert
assistance through a free one-to-one session with our colour consultants.
GROUP SUBSIDIARIES

BERGER –

Over the years Berger expanded its operations across oceans, to cover numerous geographies.
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.
Today, the name of Berger is synonymous with quality and innovation. BIL has presence across
two regions viz. Middle East and South East Asia. Considering that the company celebrated 50
successful years in the region recently, this is not surprising.

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 is present in Singapore.

APCO-

APCO is a subsidiary of Asian Paints in the South Pacific islands. Asian Paints operates in Fiji,
Tonga, Solomon Islands and Vanuatu under the brand name of ApcoCoatings.

SCIB PAINTS-

Founded in 1979, SCIB Paints is today 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.
PPG ASIAN PAINTS-

PPG Asian Paints, (earlier known as Asian PPG Industries Pvt Ltd.), established in March 1997,
is a 50:50 joint venture between Asian Paints Limited and PPG Industries, Inc., USA. It was
formed with the objective of providing solutions to the paint requirements of Indian automobile
manufacturers. The joint venture brought together two leading companies with strengths in
technology, manufacturing and customer insight.

ASIAN PAINTS PPG-

Asian Paints PPG (AP PPG), the second 50:50 joint venture with PPG Industries, Inc., USA was
formed in 2012. This joint venture caters to the market for protective coatings, floor coatings,
road marking paints and powder coatings.

TAUBMANS PAINTS-

Taubmans Paints Fiji, the fourth largest paint company in Fiji, became a part of the Asian Paints
family in September, 2003. Taubmans Paints is the dominant player in the project sales
segment in the country and is a leader in the neighboring Samoa Islands. It has two
manufacturing facilities, one in Suva (Fiji) and the other in Samoa.

SLEEK-

As part of strategic initiative in the direction of home improvement and décor, Asian Paints
identified the modern kitchen space as a key opportunity to be explored in synergy with its
existing line of decorative paints business in India. In August 2013, Asian Paints acquired a 51%
stake in the Sleek Group, which is a major player in the organized modern kitchen space with a
pan-India presence. The company is engaged in manufacturing, selling and distributing modular
kitchens as well as kitchen components including wire baskets, cabinets, appliances,
accessories, etc.

ESS ESS BATH FITTINGS-

As part of our continued efforts to partner people in creating beautiful homes, we present Ess
Ess Bath Fittings and Accessories by Asian Paints - a smart and intriguing world of ergonomic
and innovative bath concepts. Expect nothing but the best because Ess Ess, the bath fittings
and accessories expert, is now a part of the Asian Paints family. From delicately crafted faucets
to luxurious showers, and engineered-to-perfection accessories - every product in the range has
been designed to impress.

KADISO-

In February 2015, Kadisco, one of the leading paint companies in Ethiopia became part of the
Asian Paints group. Kadisco is engaged in the manufacture and sales of decorative paints,
industrial paints, automotive paints, other coatings and adhesives in Ethiopia.