STRATEGIC MANAGEMENT

ASSIGNMENT # 1

SUBMITTED TO-
Dr DEEPAK SINGH

SUBMITTED BY-
ASHUTOSH SHARMA(PGFB1915)
SAGAR CHAUDHARY(PGFB1941)
SHIVAM GUPTA(PGFB1946)
SHREYA AHUJA(PGFB1949)
VASU BHARDWAJ(PGFB1959)
 INDUSTRIAL OVERVIEW

According to IBEF, the manufacturing sector of India is one of the high growth sectors of India. The
gross value added (GVA) grew at a CAGR of 4.2 percent between FY12-FY19. The GVA for FY19 at a
basic price based on current prices is estimated to be US$ 403.47 billion. The government of India wants
to improve the contribution of the manufacturing sector under total “GDP from 16 percent to 25 percent
by 2022 and”to generate hundred million jobs by 2022.
Under the manufacturing industry, one of the major contributors is the Chemical sector.
The Chemical industry in India is well-diversified covering over 80000 commercial products which were
further classified under different chemicals such as Bulk chemicals, speciality chemicals etc. the chemical
industry of India is expected to reach $ 304 bn by the year2025. The India rank 14 th in the export of
chemicals and 8th in the import of the chemicals ( excluding pharmaceutical products) Globally. The
estimated increase in demand for the chemical product is 9% per year for the next 5 year. The market size
of the Chemical sector in India in 2017-18 is stand out to be $163 bn. The total production of major
chemicals and petrochemicals is 27847 MT in 2018-19 with a growth of 4.15 percent over 2017-18. The
chemical industry of India employee more than 2 million people. The 100% FDI is allowed under the
chemical sector through automatic route except in some cases of hazardous chemicals.

COMPANY OVERVIEW

ASIAN PAINTS

 Asian Paints, head quartered at Mumbai(Maharashtra) is an Mulinational Indian Paint firm.

 It has established itself in manufacturing, sales & distribution of Paints, coatings, home
decoration, bathroom fittings.
 The largest Paint company in India, third largest in Asia.

CORPORATE PROFILE-
 The organization has made some amazing strides since its beginning in 1942.
 It was set up by 4 friends- “ChampakLal” Chowksi, ChinmanLal Chowsi, “SuryaKant Dani”,
Arvind Vakil.
 It has operations in 15 countries and twenty six production units serving customers in over 60
countries.
 It’s also available in kitchen and bathroom fittings and offers lot of items under the name Sleek
and Essess
VISION-
“To be the forerunner of inspiring décor and to actively empower customers to create their dream
homes”

TURNOVER- Rs 193.50 billion

SUBSIDIARIES-
 Apco
 Asian Paints Berger
 Taubmans
 Sleek
 Scib Paints
 Essess
 Kadisco
 PPG

LEADERSHIP-
 KBS Anand- CEO & MD
 Ashwani Dani- “Non Executive Chairman”
 Abhay Vakil- “Non Executive Director”
 Deepak Satwalekar- “Independent Director”

“PRODUCTS-“
Asian Paints offers products in 4 segments.
 “Interior Walls-“
 “ Plain Finshes”
 “”Textures”’’
 “ Wall Coverings”
 “ Kids’ World”
 “ Stencils”
 “ Undercoats”

 “Exterior Walls-“
 “ Plain Finishes”
 “ Textures”
 “Wall Art”
 “ Tile Guard”
 “ Undercoats”
  Water Proofing
 Metal “Finishes”
 Wood “Finishes”
 “Adhesives”

MANUFACTURING LOCATIONS IN INDIA-

 Decorative Paint Plants
 Rohtak(Haryana)
 Kasna(Uttar Pradesh)
 Ankaleshwar(Gujarat)
 Khandala(Maharashtra)
 Patancheru(Telangana)
 Visakhapatnam(Andhra Pradesh)
 Mysuru(Karnataka)
 Sriperumbudur(Tamil Nadu)

 Chemical Plant
 Cuddalore(Tamil Nadu)

 Industrial Paint Plants

 Sarigam(Gujarat)
 Taloja(Maharashtra)

MARKET SHARE- 54.1%

STANDALONE FINANCIAL PERFORMANCE: FY2018-19
 Revenue from Operations- 15.8%(FY2018-19: Rs 16391.8 crores)
(FY2017-18: Rs 14,153.7 crores)

CORPORATE SOCIAL RESPONSIBILITY-

 Social Responibility: FY2018-19
 CSR Spend: Rs 52.70 Crores
 Asian Paints CSR Policy mainly focuses on 4 areas-
 Education
 Skill Development
 Healthcare/Hyegiene
  Water Management

AWARDS & RECOGNITIONS-

 Forbes World’s Best Regarded Companies(Sep 2019)
 Forbes Asia ‘BEST OVER A BILLION’ Company in Asia Pacific(Sep 2019)

“MISSION STATEMENT OF ASIAN PAINTS”

“To provide paints as per market demand ensuring desired level and quality customer(dealer service),
continued availability of right product mix of right quality at right time”

MISSION ELEMENTS-
There are Nine Mission Elements that a company’s “mission statement” should include.
These are-
 “Customers”
 “Products & Services”
 Market
 “Technology”
 “Survival/Growth”
 Philisophy
 “Self Concept”
 “Public Image”
 “Employees”

MISSION STATEMENT OF COMPETITOR- NEROLAC PAINTS

“We Leverage on superior technology to contribute to our Customers and Society, in a sustainable
manner, with innovative products and services, through a competitve workforce, built on a culture of
Customer focus, Integrity and Respect to our Stakeholders”

MISSION STATEMENT EVALUATION-

We evaluate the mission statements generally by a Mission Evaluation Matrix as shown above. If we
compare the Mission Statements of both the companies,ie, Asain Paints and Kansai Nerolac Paints, we
observe that in case of Asian Paints, its Mission statement covers only 3 elements- Customers, Products
and Philosophy whereas its Competitor Nerolac Paints covers 7 elements-Customers, Products,
Technology, Survival, Philosophy, Public Image and Employees. We can infer that Nerolac Paints
Mission Statement is more robust than Asian Paints Mission Statement.

REFRAMING THE MISSION STATEMENT-

We have reframed the “mission statement of Asian Paints” so that it looks more robust and it should have
more mission elements,
“To provide paints as per global market demand by using advanced technology, ensuring desired level
and quality of customer service, in a sustainable manner with continued availability of right product mix
of right quality at right time”

REVISED MISSION STATEMENT’s EVALUATION

If we look at above Matrix, we observe that the revised mission statement of Asian covers more elements
than the previous mission statement, though it doesn’t cover all the elements but still it looks much better
and robost.

Internal Analysis- IFE Matrix

Strengths Weight Rating Weighed
 Score
1. India’s largest paint company and Asia’s 0.15 3 0.45
3rd company
2. Leaders in decorative paints and having 0.15 4 0.6
market share over 50%.
3. Strong international presence with 4 0.1 3 0.3
subsidiaries.
4. Operations spread across 19 countries 0.1 2 0.2

5. Superior technology provides competitive 0.1 4 0.4

advantage.
6. Ways of advertising 0.15 4 0.6

Weakness
1. Limited focus on automotive segment 0.1 2 0.2
2. Slow International Business in some 0.15 2 0.3
countries

1 3.05
Thus, the score of the company is 3.05, so the company has a strong
internal position.”

VRIN Indicators

Tangible Assets V R I N
Physical Resources
1. × × ×
Financial Resources
2. × ×
Technological Resources
3. ×
Orgl. Resources
4. × × ×

Intangible Assets V R I N
“1.” “Human Assets & Intellectual capital” “ ×” “ ×”
“2.” “Brand, Co Image, Reputational assets” “×”
“Relationships with customers,
“3.”
Particulars
employees, suppliers,Amount
distributors”
×
(in crores)
Land “Company Culture &327.95
“4.” Incentive System”
× ×
Buildings 1333.73
Plant and equipment 3,599.20
Furniture & fixtures 62.71 PHYSICAL RESOURCES
Vehicles 1.61 FINANCIAL RESOURCES
Office equipment 55.03
(AS PER BALANCESHEET)
IT Hardware 161.48
Particulars Amount
(in crores)
Equity 95.92
Other Equity 8791.64
Debt 10.89

(AS PER BALANCESHEET)

TECHNOLOGICAL RESOURCES
(AS PER BALANCESHEET)

Particulars Amount
(in crores)
Human Assets: 6067 employees IT Hardware 161.48
Computer
Relationships: 3,752 dealers
Softwares 157.15

Reputational assets:
Particulars Amount
(in crores)
Goodwill 35.36
trademark 0.94