SWOT ANALYSIS

Strength
1) comprehensive nationwide coverage of the market -urban,
semi-urban and rural areas.
2)country wide distribution network and transport facility is
available within the industry.
3)price strategy is oriented to middle/lower end consumers,
In house production, no outsourcing, superior quality assured
4)Leader in profit and operating margins, ROI of PI is 22%
5)Widest product range in terms of products, shades and pack
sizes.
Opportunities
1)AP has always encashed all the opportunities. It has
maintained a product profile keeping the market trends in
picture. They are shifting their predominace in industrial
paints than in decorative paint .
2)Automobile industry accounts for 50% of industrial paint
market.
Weakness
1)In industrial segment, AP has only 14% market
share that is very less than market leader. Since
this is most growing sector in the future.
2)innovation in developing new product is
inadequate, it has major weakness on technology
font in industrial paints.
3)Ever expanding product mix throws some strain
on inventory management.
4)Seasonal demand may lead to cash flow
Threats
1) Domination of few foreign players.
2) Competitors have gone in for hi-tech with
instacolour spot mixing. J&N's instacolour offers
626 shades.
3) Competition is catching up fast , hi-tech facilities
gives abudant choices.

PORTER’S FIVE FORCE ANALYSIS

Substitutes
White cement
Whitewash
Tiles
Special stones

Buyers Suppliers
Few suppliers,
Decorative -
Rivals Availability of
Fragmented
market. LOW Berger, substitutes of
Raw material
POWER GN, ICI, MEDIUM
Industrial-Low
switching cost.
JNPL BARGAINING
POWER
HIGH POWER

Threat of new entrants

Growth rate high so global
players are interested.
High potential to increase per
capita consumption.
 Medium to high

For housing requirements, the buyers are customer (building contractors who buyin bulk) and end
consumer (people who paint/repaint their house). Customers have higher bargain power as they buy in
bulk and are more price sensitive. For the end consumer, a number of options are available and decisions
are made on the basis of quality, price and differentiating factor (like weather protection, environment
Bargaining power of
friendly paints etc). The unorganised market also has a large chunk of the market share providing many
Buyers
options to the lower income segments.
The industrial segment is a low margin high revenue business and the buyers of these segents are very
knowledgeabe about their needs. Price coomparison is done effectively by the consumer, as this is a
regular expenditure for ths segment. However, the leading industrial paint suppliers with their expertise
gets things in their favour, which limits the bargaining power of the buyers

Medium

The paint industry is a raw material intensive indsutry with more than 300 products going into the
manufacture of the final product. The raw material can be divided into different categories like pigments,
Bargaining power additives, solvents, binders etc. Of this pigment constitute one third of total raw material costs. titanium
of suppliers dioxide (Tio2) is one of the key pigment is used in the production of paint and is facing a global supply
shortage. Thus suppliers of titanium dioxide have higher bargaining power. the other raw material used are
crude derivatives and hence their price is subject to fluctuations which affects the industry profits

Low to medium

About 80% of the organized marketed is catered by the top four players of the industry. The current
market growth rate may provide ample room for all the players of the industry to flourish . However,
Competitive rivalry
competition may increase as the market gets saturated , albeit this will takesome time to happen . Also,
the presence of the unorganised market does provide room for competition.

Low to medium
The availability of substitutes for paint is very minimal. In the rural areas, lime wash(chunna) is a
conventionally used substitute of paints. In the decorative paints segment, an alternative option for
Availability of
decorating walls available today is wallpaper. Wallpapers tend to be a more convinient option and also
substitutes
prove to be visually more attractive for certain setups like small commercial establishments. Tiles are also
becoming popular now a days because of their one time investment option.
Medium

The paint market in india is dominted by fewplayers , making it difficult for anyone new entering the
Threat of new industry to compete. However, established foreign players may pose a threat by virtue of the knowledge
entrants and expertise of their established business in other countries. They also have new technologically
advanced products which may pose threat in the near future.
Strong product portfolio of Asian paints and key peers
Asian Paints Berger Nerolac
Royal metallics Silk illusion Design
Royal safari mettalica
Premium Apcolite rust 700-1200 900-1100 No offerings
Woodtech polyster Imperia water based
Woodtech emporio luxury PU
Woodtech polyster

Royal Aspira Easy clean Impressions 24 carat

Health shield Silk marbel finish Impression eco clean
Semi -Premium Royal shyne 350-700 Silk mettalica 300-700 Impression glitter gold 400-600
Apex ultima Silk non metallica Pearl luster Finish
Luxury emulsion Silk Luxury emulsion Excel total illusion
Breatheeasy

Premium emulsion Bison distemper Pearl emulsion

Woodtech touchwood Bison acrylic Wall putty acrylic
Economy Tractor emulsion 80-300 Bison wall putty 30-200 Excel alkali prime 40-300
Tractor enamel Bison Glow Acrylic Beauty smooth
Ace emulsion Bison ext Putty Beauty acrylic
Exhibit 12: market share segment wise
Asian paints strategy to obtain more market share in
both segments

The company has launched many new products in the

bottom most segment(economy) which are attaining good
attraction. The company launched Tractor emulsion Sparc
and Ace Sparc, which gained a good response within the
economy range of products. In the past 3-4 years, the
company launched products such as Tractor Uno and
Tractor Aqua lock - low-priced distemper brands, which
will attract lower strata of consumers especially in tier-III
towns and rural markets to shift from un-organized products
to organized products. Asian paints led to a revival in
domestic distemper category, which has a size of Rs.
12,000- 15,000 crore in India. Another segment which
Asian paint is focusing on is Putty, which is worth around
Rs. 5,000- 6,000 crore.
The company had also launched Royale
Health Shield Luxury Emulsion, an indoor
anti-microbial paint equipped with silver Exhibit 13: Asian paint sales wise segment
ion technology which kills 99% of
infection-causing bacteria on the painted
surface, thus, providing a more hygienic
environment at home. This product will
help the company leverage the health and
wellness trend in the current pandemic
situation.