INTRODUCTION

Asian Paints is India's largest paint company and the third largest paint company
in Asia today, with a turnover of Rs 30.2 billion. The company has an enviable
reputation in the corporate world for professionalism, fast track growth, and
building shareholder equity. Asian Paints operates in 22 countries and has 30 paint
manufacturing facilities in the world servicing consumers in over 65 countries.
Besides Asian Paints, the group operates around the world through its subsidiaries
Berger International Limited, Apco Coatings, SCIB Paints.

The Company's paint business in India consists of Decorative, Industrial and

Automotive coatings. During the fiscal year ended March 31, 2006, paints
accounted for 79.1% of the Company's sales. Decorative paints include wall
finishes for interior and exterior use, enamels, wood finishes and ancillary
products, such as primers and putties. Industrial Coatings comprise high
performance coatings, powder coatings and auto refinish coatings. The automotive
coating segments are catered to by the joint venture Asian PPG Industries Ltd.
The Company also has chemicals businesses consisting of phthalic anhydride and
pentaerythritol manufactured at Ankleshwar, Gujarat and Cuddalore, Tamil Nadu,
respectively.

The Indian paint market is highly saturated with many paint companies with
varieties of product. Kansai Nerolac paints Ltd. Berger paints India Ltd. ICI India
Ltd. Shalimar Paint Ltd, Snowcem India Ltd are the main competitors of Asian
Paints. Among them Nerolac Paints have a very good market share in the
Industrial Paint segment? Asian Paints adopted some marketing objectives and
strategies. Asian paint is ready to achieve its corporate objective by taking care of
the Customers, Employees, Brand image, Dealer Vendor relationship and
technology. Company’s three divisions are not equally performing well. So, it has
different objective and planning to gain the top most position in the Indian paint
market. Asian Paints has different marketing strategy for the urban as well as the
rural market in India.

The company always maintaining some alternate strategy and keeping in track
with the strategy maintaining by its competitor. In decorative sector company is

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strong enough, but it needs to take care of the Industrial sector so as to increase
the overall sales.

INDUSTRY PROFILE

Colour has fascinated culture throughout history, every age and every region has
produced dyes and pigment depending on the available resources. Colour has been
with us for more than 20,000 years. The evidence can be found in the cave
paintings. The tradition of painting in Indian subcontinent grew and developed
overtime, resulting in a hilly developed and finest style, incorporating the culture
and faith of the region and religion. The history of Indian Paint Industry is as old
as the history of the Indian people. Indian paints always embrace rich colours and
clear symbolism, using specific iconography to make religious figures clearly
recognizable. The Indian paint industry has recently completed l00 years of
manufacturing. Manufacturing of Indian paints started around 1902. The Indian
paint industry has seen a gradual shift in the preferences of people from the
traditional whitewash to higher quality paints like emulsions and enamel paints.
Growing popularity of new variants providing improved finishing and textures,
increasing per capita income of people and efforts on the part of manufacturers to
introduce improved versions like eco-friendly, odour free and dust and water-
resistant paints, have propelled the growth of the paint market in India. Efforts on
the part of the manufacturers to introduce innovative technologies in the paint
market have led to a growth in demand for paints in India. Paint manufacturers are
giving due attention to consumer’s colour preferences. The market is witnessing
introduction of breakthrough technologies to improve the paint quality. Paint
companies are also increasingly investing in their R&D, to carve out a
differentiated product in the market. For instance, paints, which use water in place
of solvent, have been introduced in the market. They are better in performance
and not harmful for health as it emits little or no Volatile Organic Compounds
(VOC). The industry has also seen the introduction of solar reflective coating,
which is a roof surface coating that lowers the surface temperatures of the roof
resulting into greater comfort inside the building. New technologies in the paint
market would lead to better performance, cost reduction and wider applications of
paints in India.

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The Indian Paint Industry is only segment of the Indian chemical industry that has
been sharing a consistent double digit growth rate in the last five years. The
growth rates recorded over the last few years have been extremely encountered
with upward trend in paint demand and consumption. The large-scale sector is
dominated by four players, namely Asian Paints, Nerolac Paints, Berger Paint and
Dulux India Paints. The small-scale sector consists of over 5000 players. This
growth has been closely linked with the business and industrial development of
modem India. Performance is anchored today in a wide variety of decorative and
industrial paints. An ISO 9001company has come a long way in the highly
competitive Indian paints industry and has its own R&D developing,
standardizing, and ensuring quality assurance of its products. It is global company
in a real sense. Indian housing sectors are booming and increasing urbanization
has made easy availability of housing loans. This has been resulted into a shift
from semi-permanent to permanent housing structures. Growth in the decorative
paints segment accounts for nearly 65-70% of the Indian paint industry. Seasons
are also involved in the demand for decorative paints, where consumption peaks
around festive time. Over the past few years, the Indian Paint market has
substantially grown and caught the attention of many international players. The
growth in the market is driven by emergence of the middle class in India, growing
infrastructure, increase in the tendency to spend and growing young population
inclined towards lavish lifestyle.

The country continues to enjoy a healthy growth rate compared to other

economics, backed by the increasing level of disposable income, and demand
from infrastructure, industrial and automotive sectors. Indian paint industry had
two types: Decorative &Industrial Paints. Decorative paint market has been
further segmented into emulsions, enamel, distemper, and cement paints.
Similarly, Industrial paint market is also segmented into automotive coatings, high
performance coating, powder coating and coil coating. The major boost to the
growth in the Indian Paint market has been provided by the decorative paint
segment, which is anticipated to grow at a Compounded Annual Growth Rate
(CAGR) of more than 16% during the period2013-14 to 2015-16. Under the
decorative segment, the emulsion paint market has witnessed a massive demand
over the past few years and is expected to drive the market in the coming years
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too. There is a phenomenal growth on the housing sector front with rapid
urbanization and availability of easy to secure housing loans, which have become
the prime drivers of growth in the decorative paint segment, which comprises 70%
of the $2 billion Indian Paint Industry. An average increase of growth of about
10% in the automobile sector contributes to 50% of the revenues in the industrial
paints segment.

Today manufacturers in India hardly face any threat from the foreign players.
Most of them have deals with global players in terms of latest technology and
market accessibility. Many Paint outlet or shops have automated/manual dealer
tinting systems. Today India has more than 20,000 outlets in operation, probably
the highest for any country. There are only approximately 7,000 tinting systems in
China for a market two and half times of India’s size. 30% to the paint industry
revenue in India is accumulated from Industrial Paints. The size of the Indian
Paint Industry is around 940 million litres and is valued at approximately $2
billion. The organized sector comprises 54% of the total volume and 65% of the
value. In the last ten years, the Indian Paint Industry has grown at a compounded
annual growth rate (CAGR) of 12-13%. Today India is booming in the field of
infrastructure and industrial development. Rapid industrialization and
improvements in the infrastructure such as transport, energy, and communication
during the last decade gave a further fillip to the growth of the paint industry. So,
the demand of paint industry is relatively more. Aided by Government’s liberal
policy of technology import, the automotive and consumer durable segments
expanded phenomenally, with a flurry of foreign collaboration. Increased demand
for decorative, protective, and functional coatings was a natural fall out, which
brought, in its stride, a host of indigenous development as well as the injection of
new technology. Indian Paint Industry makes great changes in the rapid industrial
development as well as country development. Therefore, paint industry is of
crucial importance to India.

The paint is defined as a coating material in liquid or solid which when spread on
a surface adheres and hardens forming a film that protect, decorated, or add a
specific feature to the surface on which it is deposited. It is most used to protect,

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preserve, decorate or add functionality to an object or surface by covering it with a
pigmented coating.

Paint is a fluid that dries to form a continuous solid film when spread over a
surface or substrate. Depending on its type and properties, paint can perform
mainly two types of functions. They are as follow:

• Protection against oxidation, corrosion, and degradation of materials.

• Decoration and embellishment of materials and surfaces. Protection One major

function of the paint is to protect the material or the substrate on which has been
applied, due that once dried and cured, the paint forms an insulating layer between
the external environmental and the material that wants to protect, preventing the
action of external agents such as humidity, salty air, ultraviolet radiation,
chemicals agents, etc. that can induce and cause into the material phenomena such
as oxidation, corrosion, or degradation. Depending on the type of protection that it
will use a specific type of paint or other, protective paints are made with the
corrosion inhibiting additives, paints that protect against sunlight are made with a
few amounts of additives that absorb ultraviolet light, etc. Decoration Another
major function of paint is to decorate and beautify the material, thanks to the
pigments and additives that include paintings; it is now possible to get a wide
range of colours and decorative effects (chameleon effect, mercury effect) which
are enhanced and do more beautiful the surfaces. Besides these two main
functions, the paint can be designed to have specific functions, such as non-stick
paint to facilitate cleaning of the surfaces, antibacterial paints to prevent the
growth of bacteria, and tide legates’ paints to extinguish and prevent the action
office, soundproof paint to absorb noise, dirt repellent paints, luminescent paint
for night signalling, anti-fouling paints for ships, etc.

In short, the main functions of paint are as follows:

 To protect the surface from weathering effects of the atmosphere and actions by
other liquids, fumes, moisture, temperature, bacteria, fungi, gases etc.

 To provide pleasing, colourful, and decorative appearance to the surfaces.

 To prevent decay of wooden members.

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 To prevent corrosion of metallic surfaces.

 To provide a smooth surface for easy cleaning.

 Aesthetic appearance provided by the paint colour and sheen (eggshell, satin or
gloss).

 Providing a desired ability of reflection-absorption of heat and light.

 Changing the surface properties: ant-friction, hardness, electrical conductivity

Identification of products according to the colour of the paint.

MACRO SCENARIO

As against the global paints and coatings industry, which generates revenue of
~US$160bn, the Indian paint industry is valued at ~US$7.1bn as on FY20. Asia
Pacific (APAC), the world’s largest coatings market with 45% market share and
valued at US$71bn+ in 2019, has been growing faster than the global and matured
markets on account of relatively higher growth in the economy, especially in
China and India. China is the largest part of the APAC market, comprising nearly
60% of volume and value. Including the next two largest markets, India and
Japan, the top three markets account for over 80% of the volume and value of the
APAC region.

Exhibit 1: Global: APAC shares 45% of market share ,exhibit 2: APAC: Top 3
countries demand 80% of market share Asia Pacific 45% EMEA 30% US and
Canada 18% Latin America 7% China 60% India 12% Japan 8% Korea 6%
Others 14% Source: PPG investor presentation, Nirmal Bang Institutional Equities
Research Source: Industry, Nirmal Bang Institutional Equities Research India,
APAC’s second largest coatings market, is dominated by the decorative segment
with ~75% market share. This is unlike the global and APAC markets’ structure
where decorative segment (architectural) contributes less than 40%. Industrial
paint’s lower contribution in India’s overall paint market is probably attributable
to lower industrial and infrastructure development compared to other matured
countries and developing countries like China, and higher technical know-how
required in the industrial paint segment, which in turn leads to negligible
involvement of unorganized players and thus a lower market size. Globally, the
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top 10 companies dominate the market with more than 50% market share.
However, APAC and China remain fragmented with regional and international
players co-existing in these markets. The Indian paint market, unlike APAC and
China, is an oligopolistic market with the top 4 players controlling a little less than
70% market share of the overall domestic paint industry.

Till some time ago, the bete-noire of the Indian paint industry was the high excise
duty. When the government was finally convinced that paints were a necessity and
not a luxury, excise duty was slashed across the board from high of 60% excise
duty reduced to around 20%of the benefits were passed on to the customers and
there was a temporary surge in demand. But all this stopped when raw material
prices took an upward sprint. Phthalic anhydride (PAN) prices all over the world
started increasing. This has resulted in high input cost. The other raw material in
short supply in titanium dioxide. This has prompted many large players to
integrate backward to hedge uncertainty of raw material costs.

The number of shades is very large, and a sufficient stock of every shades must
be attained at all levels of the distribution channel, the working capital cycle is
very high. The extent can be gauged from the fact that has a 12000 stronger dealer
network selling more than 1500 shades through ‘Dealer Tinting Systems’. Also,
the number of raw materials required can stretch up to 300, as majority of these
raw material are either imported or sourced from small chemical manufacturers. A
large stockpile needs to be maintained.

Huge investments are required for capacity creation and to maintain the strong
distribution network which is a critical success factor. With the reduction in excise
duties, the price advantage of unorganized sector is being eroded. This has meant
the reduction in the market share of unorganized sector.

The reputed paint companies have invariably collaborated with foreign companies
for technology support. For example, Asian Paints with Devo marine (USA) and
Nippon (JAPAN) Berger paints with Valspan Corporation (USA), Goodlass
Nerolac with Kansai paints (JAPAN).

Critical Success Factors in the Industry:

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The paint industry costs and prices are driven by raw material costs which
constitutes about 57% of the costs of sales, and government levies which
constitutes 38% of the cost of paints. There are more than 300 inputs going into
the manufacturing of paints and about 70% of them are based on petroleum. The
petroleum prices are therefore one of the most important cost drivers. The paint
industry includes the extent of concentration in the paint industry which is very
high. This led to very low margin at each level with the final retailer as little as 4-
5%.

The industry has high raw material content; the number of finished products is
also large with varying pack sizes. Sales in decorative paint are seasonal with
more than half of sales coming in September – November festival season. Debtor
levels also tend to be high in this industry.

Paint is highly raw material intensive commodity, which have protective functions
in addition to decorative one. An average range of trade sale, industrial,
automotive and maintenance coating employs well over 900 raw materials. This
possesses a constant challenge for research and development efforts in
formulating and reformulating products for better performance, cost reduction,
new application, shade development and exploitation of new materials. As the
environment in which paint is used, keeps on changing with expanding problem of
industrialization and attendant pollution, the expectation of paint performance
keeps on changing , demanding evolution in paint technology.

At a time, the Indian paint industry was dominated by foreign paint companies of
mostly British origin, Asian paint started operation as a wholly Indian company in
small way with its own in-house technology. Over the years, based upon its R&D
efforts, the company has made tremendous progress and achieved leadership
position in the country, which it has consistently maintained for over the years.

Asian paint has one of India’s largest paint research laboratories, recognized by
the department of science &technology, Government of India. The R&D group is
structured to provide separate focus to industrial paint technology and decorative
paint technology. Our ‘firsts’ in the paint industry include specialized chemical

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resistant coating, computerized colour matching, thermosetting acrylic finishes
and economic plastic emulsion paint.

Naturally, the company has always placed very high emphasis on its in-house
R&D and built both, manpower resources and facilities commensurate with its
requirements. The dependence on his R&D efforts has paid rich dividends, as the
company was able to meet the market challenges with expansion of available
market and penetration of new markets segments with the new products.

MICRO SCENARIO

The Indian paint industry is over 100 years old. Its beginning can be traced back
to the setting up of a factory by Shalimar Paints in Calcutta (now Kolkata) in
1902. Until World War II, the industry consisted of small producers and two
foreign companies. After the war, the imports stopped, which led to the setting up
of manufacturing facilities by local entrepreneurs. Still, the foreign companies
continued to dominate the market. Initially British paint companies such as
Goodlass Walls (now Goodlass Nerolac), ICI, British Paints (now Berger Paints),
Jenson & Nicholson and Blundell & Eomite dominated the market.

There are now twelve players in the organized sector of India's paint and coatings
market and over 2,000 in the unorganized sector. In 2003-04, the organized sector
held 70% share of the approximately $1.5 billion (Rs 6,800 crore) industry, while
the balance was made up of the unorganized units.

The Indian paint industry was the second largest in the world in 2019. The sector
witnessed significant growth over the past few years. In 2019, the Wholesale Price
Index of paints and varnishes stood at 112.7, its highest value compared to the last
five years.

A paint system is basically composed of primer/sealer, undercoat and topcoat as

shown in Figure. Depending on the design requirement, texture coating may be
provided. Due to volume constraint, this guidebook will focus on paints that are
commonly used in the local market.

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ASIAN PAINTS LTD:

Asian paints are the largest player in India, and the market leader in decorative
paint, with a 41%market share. It has a domestic installed capacity of 1, 62,700
tpa for paint. With the government planning thrust in the housing sector, players
like Asian paints stand for the benefit, as the demand for decorative paints will
grow.

Taking advantage of the increase in the automatic approval of overseas

investment, Asian paints recently acquired the entire paint business pf pacific
paints company pvt.ltd. Australia for Aus $ 375000. Last year Asian paints had
acquired the largest paint company in Sri-lanka. Asian paints vision is to be
among the top five decorative paint companies in the world by 2007.

COMPANY PROFILE

Asian Paints

Company Overview

Asian Paints is the largest paint company in India and positioned amongst the ten
leading decorative coatings companies in the world. Asian Paints
manufactures a wide product portfolio which encompasses paints for both
decorative and industrial use. The company has the strongest distribution network
of more than 21,000 dealers and 43 'Colour Idea' outlets, its signature stores.
Asian Paints has 24 manufacturing facilities across the world, with six of
them located in India at Mumbai (Maharashtra), Ankleshwar (Gujarat),
Kasna (Uttar Pradesh), Patancheru (Andhra Pradesh), Rohtak (Haryana) and
Sriperumbudur (Tamil Nadu). The company is also setting up a plant at
Kesurdi (Khandala) in Maharashtra. Over the years, the company has
created a unique brand value and presence in the paint market. The
company’s offerings in the decorative segment include exterior and interior
emulsions, metals and wood paints. Asian Paints offers a wide range of
products with varied prices, catering to the consumers of different income groups.
It provides excellent customer service through its dedicated outlets named “Colour

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Stores” which have tinting machines that provide the unique facility of
helping the customers visualize and choose their wall shades before
purchase. Asian Paints operates globally through its subsidiary companies
which include Berger International Limited, Apco Coatings, SCIB (Study
Construction and Industrial Buildings) Paints and Taubman’s. It also operates
in the industrial paints segment. Recently, Asian Paints entered a second joint
venture with PPG Industries of the US, a leading name in the automotive paint
manufacturers in the world to service the automotive and non-automotive
industrial paints segment. Asian PPG Industries Ltd (APPG) currently caters
to the Indian transportation coatings market. The second collaboration has
expanded its scope of operations to the industrial liquid, marine and
consumer markets. Additionally, it will cater to the protective, industrial power,
industrial containers and light industrial coating markets as well. Asian
Paints Industrial Coatings Ltd. is present in the industrial coatings
market which manufactures powder coating. It has collaborated with Protech
Chemicals, one of the leading manufacturers of powder coatings in the world.
The strong distribution network of the company is supported by the
increasing use of information technology. In FY‟2012, Asian Paints
introduced a third-generation mobile application for the front-line sales force
which enabled the territory officers to administer the dealer network
proficiently by providing a holistic view of dealers.

INCEPTION AND BACKGROUND

Asian Paints Limited was established in 1942 as a partnership firm by four friends
Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and
Arvind R.Vakil to manufacture paints in a garage in Mumbai (Bombay). From its
humble beginnings, the company has moved on to become the largest paints
company in India with a market share of 30 per cent. The company with a
turnover of US$ 535 million on standalone basis and US$ 640 million on
consolidated basis (including turnover of all its subsidiaries) is one of the top ten
decorative paints companies in the world. Its reach and dominance in the Indian
market can be gauged from the fact that it is more than twice the size of its nearest
competitor in India and it has been the market leader in paints industry in India

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since 1968.The company operates in 22 countries and has 29 paint
manufacturing plants in the world which service consumers in over 65
countries. The company operates around the world on its own and through its
three subsidiaries Berger International Limited, Apocopating’s and SCIB
Chemicals. The company aims to become one of the top five decorative paint
companies in the world and has embarked on an aggressive strategy of
expanding its global operations. The promoters hold the majority stake in
the company (46.8 per cent of the equity stake).The next largest
shareholders are the foreign institutional investors (19.5per cent stake), followed
by Indian public (16.5 per cent stake). Domestic banks, financial Institutions,
mutual funds, and insurance companies hold 13.4 per cent stake. Corporate bodies
and non-resident Indians hold the remaining stake.

NATURE OF BUSINESS

Asian Paints is engaged in manufacturing of paints. The company offers interior

and exterior wall paints, automotive paints, powder coatings, auto refinish
paints, and wood finishes. It operates in 22 countries and has 29 paint
manufacturing facilities in the world servicing consumers in over 65
countries. It is headquartered in Mumbai, India and employs 3,924 people.

Interior Wall Paints

Exterior Wall Paints

Wood & Metal Paints

Wood Finishes

Ancillaries

Area of Operation

Today, the Asian Paints group operates in 15 countries across the world across

four regions viz. Asia, Middle East, South Pacific, and Africa through the eight
corporate brands viz. Asian Paints, Asian Paints Berger, SCIB Paints, Apco
Coatings, Taubmans, Asian Paints Causeway and Kadisco Asian Paints.

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VISION & MISSION

VISION

“Asian Paints aims to become one of the top five Decorative coatings companies
world-wide by leveraging its expertise in the higher growth emerging
markets. Simultaneously, the company intends to build long term value in
the Industrial coatings business through alliances with established global
partners . “

MISSION

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

INFRASTRUCTURAL FACILITIES

PPG Asian Paints has made a substantial difference in the paints industry with its
state-of-the-art OEM automotive coatings manufacturing facility in the SIPCOT
Industrial Park, Sriperumbudur, Tamil Nadu.Founded on a colossal 10.4-acre plot,
the plant’s location has been strategically chosen so that it is close to major PPG
Asian Paints OEM customers – Hyundai, Ford, and its ancillaries. The key
principles of the facility are seamlessly smooth operations and impeccable
manufacturing processes. The major attributes of this plant are:

Ambient and air-conditioned RM storages Bulk storage tanks Petroleum Class

Storage Manufacturing Block housing the QA Lab Engineering Block Utilities
section

We, at PPG Asian Paints believe in constant evolution with contemporary times.
With a mass production of up to 500 KL per annum, we are the leading
manufacturers of OEM Automotive Base Coats and Clearcoats. The plant is
specifically designed in collaboration with PPG, keeping in mind the present
requirements and an additional space for future capacity expansion plans of up to
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10400kl pr annum,We have meticulously invested in requirements for smooth
operations and effective problem solving in a manufacturing facility. As a result,
PPG Asian Paints has developed a distinctive feature in this facility – the
Electrostatic Bell Applicator. It enables prompt simulation of application
conditions on the customer. Also, the plant is enabled with a zero-discharge
facility. PPG Asian Paints continues to manufacture through OPC and Asian
Paints Manufacturing facilities.
1942Champaklal H Choksey, Chimanlal N Choksi, Suryakant C Dani and Arvind
R Vakil establish a paint manufacturing unit in a garage on Foras Road,
Bombay. They name the company The Asian Oil & Paint Company

1945Asian Paints uses an innovative marketing strategy of using small packs.

1957The family-owned company becomes a professionally managed organisation.

1967Asian Paints emerges as India's leading paint company.

2002Asian Paints restructures and adopts enterprise resource planning technology.

2005Asian Paints becomes the tenth largest decorative paint company in the
world.

The company is adding a polymer plant at Sriperumbudur which is expected to be

commissioned in the first quarter of 2007-08. The plant at Ankleshwar has
received environmental and other clearances to produce up to 1,00,000 KL, per
annum. Some additional facilities, especially storage and handling, need to
be installed at Ankleshwar as well as Patancheru and Kasna plant so as to
produce at the rated capacity on consistent basis.

Research

The company has reported the EPS of Rs 28.10 for the FY06-07 in comparison to
FY05-06 EPS of Rs 23.10 with the growth rate of 22%. This has been followed by
rising return on net worth .of the company. The company has reported the 36%
return on net worth for the FY06-07 in comparison to FY05-06 return of 34% on
the net worth. Therefore, company has been consistently generating good
return for its shareholders and in future it is likely to add more to the wealth.

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KEY COMPETITORS PROFILE

1.KANSAI NEROLAC PAINTS

Kansai Nerolac Paints Limited is the largest industrial paint and third largest
decorative paint company of India based in Mumbai. It is a subsidiary of Kansai
Paint of Japan. As of 2015, it has the third largest market share with 15.4% in the
Indian paint industry.

Kansai Nerolac Paints has 6 paint manufacturing plants and about 6–7 contract
manufacturers. The Nerolac owned plants are at 1. Jaipur, Kanpur Dehat (Uttar
Pradesh) 2. Bawal (Haryana) 3. Lote, Chiplun (Maharashtra) 4. Hosur (Tamil
Nadu) 5. Sayakha (Gujarat) 6. Goindwal (Punjab) 7. Visakhapatnam (Andhra
Pradesh) (Upcoming ])

Kansai Nerolac Paints Ltd. has entered many technical collaborations with other
industry leaders such as E.I. Du-products.

The Mumbai-based company is the leader in the industrial paints segment with a

market share of over 40%. It is the third-largest player in the decorative paints
segment with a modest market share of 13%. Nearly 75% of the Indian paints
industry consists of the decorative segment.

2. BERGER PAINTS

Berger Paints India Ltd is an Indian paint company based in India. The company
is headquartered at Kolkata and has 14 manufacturing units in India, 2 in Nepal, 1
each in Poland and Russia.

In 1770, Louis Steigenberger shifted from Frankfurt to London to sell a Prussian

blue colour, which was made using his own formula. He then changed his name to
Lewis Berger. By 1870, Berger Paints was selling 19 different pigments such as
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black lead, sulphur, sealing wax and mustard. After his demise, his sons took over
the business.[citation needed] In the 1900s, Sherwin-Williams, an American
company took control of the company. On 17 December 1923, Mr. Hadfield set
up Hadfield's (India) Ltd., a small paint company in Calcutta. Towards the end of
1947, British Paints acquired Hadfield's (India) Ltd and thus British Paints (India)
Ltd was incorporated in the State of West Bengal. In 1951, sales offices were
opened in Delhi and Mumbai and a depot was started in Guwahati. In 1969,
Berger Jenson Nicholson Limited, UK bought British Paints (India) Ltd. This
marked the beginning of Lewis Berger’s legacy in India. In the year 1973, D.
Madhukar took over as the Managing Director. Sales figures reached over Rs. 160
million by 1978. The 80s and the 90s saw the launch of many new products such
as emulsions and distempers. In 1991, UB group sold the company to Kuldip
Singh Dhingra (Chairman) and Gurbachan Singh Dhingra (Vice Chairman). Subir
Bose took over as Managing Director on 1 July 1994. Bose retired on 30 June
2012, handing over the company to Abhijit Roy, the current managing director.

3.SHERWIN WILLIAMS

Sherwin-Williams Company is an American Fortune 500 company in the paint

and coating manufacturing industry. The company, with headquarters
in Cleveland, Ohio, primarily engages in the manufacture, distribution, and sale
of paints, coatings, floorcoverings, and related products to professional, industrial,
commercial, and retail customers primarily in North and South America and
Europe. At the end of 2019, Sherwin-Williams had operations in over 120
countries. The company is mostly known through its Sherwin-Williams
Paints line.

4.RPM INTERNATIONAL INC

RPM International Inc. is an American multinational company with subsidiaries

that manufacture and market high-performance
specialty coatings, sealants and building materials. Industrial brands include,
Tremco, Illbruck, Flowcrete, Carboline, Universal Sealants, Stonhard,
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RPM/Belgium, Euco, Vandex, Day-Glo and Dryvit. RPM's consumer products are
used by professionals and do-it-yourselves for home maintenance and
improvement and by hobbyists. Consumer brands include Zinsser, Rust-
Oleum, DAP, Varathane and Testors.

The company has nearly 15,000 employees worldwide who work in 156
manufacturing facilities in 26 countries. Its products are sold in 170 countries and
territories. It is the fifth largest paint and coating company in the world.

RPM is publicly traded on the New York Stock Exchange under the symbol RPM.
Its shares are owned by 693 institutions and 139,431 individual investors. It ranks
among the top 200 in total shares held by Better Investing investment clubs. RPM
has increased its cash dividend paid to stockholders for 46 consecutive
years. Only 41 other companies, besides RPM, have consecutively paid an
increasing annual dividend for this period or longer, according to the summer
2019 edition of the Mergent Handbook of Dividend Achievers.

Research and Development:

The company is a separate R&D department. Research and Development

department plays an important role in developing new products and
innovation and reducing costs by value re-engineering. It has 140 members in the
R&D team, out of them 7 are doctorates, 115 qualified scientists and others
are associates. Right from company's inception all decorative products have
been developed in-house. R&D department has focused on developing new
exterior finishes, economy emulsions and distempers. Company is committed to
develop decorative paints and industrial paints. Decorative paints constitute
75% of overall paints business in the country and Asian Paints is the market
leader in the business.

MARKET SHARE:

Asian Paints is the leading Paint manufacturing company in India with a

market share of over 54 percent.

17
Marketing Factors

 Market leader -38% share in organized sector.

 Asian Paints is more than twice the size of its nearest

competitor.

 >50 yrs. -leader

 Widest product range -product shades, wide colours ,pack sizes

 40 different decorative paints -1000 shades, 8 different sizes in

packing, no. of brands -all segments

 Brands -quite powerful

 high quality MR & MIS , 90% accuracy in forecasting, 100

fastest moving Stock Keeping Units, monitored daily.

 Countrywide distribution (29 plants in 22 countries) .

 Physical distribution far superior to competitors

 strong in inventory control (18 processing centres, 350 raw

material and intermediate goods suppliers, 140 packing material
vendors, 6 regional distribution centres, 72 depots are
integrated)

The stock of Asian Paints appears to be a good addition to the portfolio

for conservative investors. Strong growth prospects for decorative paints arising
from the higher pace of construction activity and a ramp-up in revenues from
international operations could aid sales growth over the next couple of years.

18
Profit margins may receive help from moderating input prices and an appreciation
in the rupee. At the current market price of Rs 872, the stock trades at a price
earnings multiple of about 25 times expected FY08 earnings. Therefore, we
recommend the stock for the long-term investment with price target of Rs 1,150.

Disclaimer: This document is prepared based on publicly available information

and other sources believed to be reliable. Whilst we are not soliciting any
action based on this information, all care has been taken to ensure that the facts
are accurate, and opinions given fair and reasonable. This information is not
intended as an offer or solicitation for the purchase or sell of any financial
instrument. Hem Securities Limited, Hem Fin lease Private Limited, Hem Multi
Commodities Pvt. Limited and any of its employees shall not be responsible for
the content. The companies and its affiliates, officers, directors, and employees,
including persons involved in the preparation or issuance of this material may
from time to time, have long or short positions in, and buy or sell the securities
there of, company (ies) mentioned here in and the same have acted upon or
used the information prior to, or immediately following the publication.

AWARDS AND ACHIEVEMENTS

 Awarded the "Sword of Honour" by the British Safety Council for

all the paint plants in India. This award is considered as the pinnacle
of achievement in safety across the world.

 Forbes Global magazine, USA ranked Asian Paints amongst the

200 'Best Small Companies of the world' in 2002 and 2003 and
amongst the top 200 'Under a Billion Firms' of Asia in 2005.

 Ranked 24th amongst the top paint companies in the world by

Coatings World - Top Companies Report 2006.

19
  The Asset - one of Asia's leading financial magazine ranked Asian
Paints amongst the leading Indian companies in Corporate
Governance in 2002 and 2005.

 Received the Ernst & Young "Entrepreneur of the Year -

Manufacturing" award in 2003.

CSR VISION
It includes supporting the basic infrastructure ecosystem to enable quality
education. We provide scholarships for students who require financial support in
completing their education and we also renovate school buildings. Our
programmes include coaching for competitive examinations and sponsoring
school buses. We conduct awareness sessions on sexual health, hygiene and water
literacy and are helping drop-outs from schools to return via the incentive of
experiential learning and academic camps.
 Gyan Shakti programme for school adoption
• Remedial education in Mathematics, other Science subjects and English
• Technology-oriented learning experiences
• 21st century skills focusing on communication, creativity, collaboration, critical
thinking, and digital literacy
 Naya Savera
Academic failure and unavailability of resources are some of the principal reasons
for students dropping out of schools in India. The six-month-long programme is
aimed at transforming the lives of school dropouts by educating them and creating
job ready candidates. There is also an assurance of job placements. The students
are provided with context-based learning, life skills training, career guidance,
counselling, and hands-on training. The programme is conducted in locations such
as Kasna (Uttar Pradesh), Rohtak (Haryana), Visakhapatnam (Andhra Pradesh),
Patancheru (Telangana), Ankleshwar (Gujarat), Cuddalore (Tamil Nadu),
Khandala (Maharashtra), Mysuru (Karnataka), Mumbai, Delhi, Kolkata, among
others.

20
  Project Udaan
This project is focused on providing career and skill courses for school dropouts
between tenth and twelfth grades. The curriculum includes digital and financial
literacy programmes and other courses, such as basic Information Technology
(IT), advanced MS Word and MS Excel familiarisation alongside spoken English
and personality development. The project is now being implemented in Kasna
(Uttar Pradesh)
Our CSR vision is based on embedded tenets of trust, fairness and care and shall
be based the below keystones.
- to actively initiate projects and/ or participate in projects to improve the life of
people living near its manufacturing facilities –
- Company will strive to provide vocational training to improve skills of people in
the primarily unorganised sector.
- Company commits to creating social value and allow individual employees to
contribute to the various programs.
- Company shall manage its operations using principles of Sustainable
development to minimize impact on environment and protect health & safety of
our employees, service providers, neighbouring communities, and customers.
PRODUCT PROFILE

PRODUCTS LINE A product line is a group of related products under a single

brand sold by the same company. Companies sell multiple product lines under
their various brands:

1. Interior walls

2. Exterior walls

3. Nilaya

4. Wood finishes

5. Metal finishes

6. Waterproofing solutions

21
7. Professional range

8. Adhesives

9. Painting tools and implements

ORGANISATIONAL CHART

Like all other manufacturing organizations, Asian paints has a conventional

organization structure. Generally, six board meeting are called in Asian paints
during a year where chairman of the board of Directors presided over the
meeting .In Asian paints several committees like the Audit committee, Risk
committee, Remuneration committee, Executive committee and the Purchase
committee are formed along with Managing Director (MD) and other Executive &
non-Executive Directors. These committees sit at least once a month to approve
various proposals brought by the management prior to implementation. All the
proposals are initiated by the mid-level managers and then forwarded to the
Managing Director (MD) through the head of the divisions or departments. The
company has also a legal problem faced by the company and external auditors to
conduct audit activities of Asian paints .

There are four Non-Executive Directors, two Executive Director and ten
Managers work under the Managing Director (MD) of the company. Among the
ten managers three directly report to the Executive directors and other report to
the Managing Director. The Managers of each department monitor the work
activities of subordinates, convey top management decisions, and provide
necessary feedback to reach organizational goals and objectives. In response the
bottom level managers perform their responsibilities sincerely and report regularly
to their immediate superiors.

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KEY FUNCTIONAL AREAS

PURCHASE DEPARTMENT

Purchase refers to the act of buying an item at a regular price. Such a narrow
concept of purchasing become gradually winded as time passed by purchasing is a
managerial activity which goes beyond the simple act of buying, but also includes
planning and policy activities covering a wide range of related and
complementary activities such as research and development strategies : ensure
proper delivery and methods to be followed.

The purchasing activities include:

• Purchasing action for the raw materials is triggered by the raw

materials requirement for 6 months.

• Other inputs include stock in hand, stock in order, consumption

pattern and stock policy.

• Procurement action on consumables made by indirect requirement

statement prepared by the stores for an annual period covering and
based on establishes stock level.

• In the case of capital requirement, an approval capital expenditure

request shall be routed through store with material indent from the
indenting department which will form the bases for triggering
purchasing again.

• Central purchasing department is to place purchase order on format

items covered under the scope for the procedure only on the approved
vendor.
23
In the case of emergencies like unexpected breakdown of machines and stoppage
of production purchase orders shall be made without material indent from the
concerned departments on oral request. Such purchase orders will be identified on
the system as “EMERGENCY PROCUREMENT”.

FINANCE AND ACCOUNT DEPARTMENT

An Accounting Department Provides Accounting Services and Financial Support

to The Organization It Belongs To. The Department Records, Accounts Payable
and Receivable, Inventory, Payroll, Fixed Assets, and all other Financial
Elements. The Department’s Accountants Review the Records of Each
Departments to Determine the Company’s Financial Position and any
changes required to run. The Organization cost effectively .An accounting
department is a department is a department within a company that handles the
financial aspects of the business. This department keeps updated records of money
paid, received, owed and borrowed. The part of an organization that manages their
money. The business functions of Finance Department typically include Planning,
Organizing, Auditing, Accounting for and Controlling its company’s Finances.
The Finance Department also usually produces the company’s financial
statements. The Accounting Department is responsible for recording and
reporting. The cash flow transactions of a company. This department has some
key roles and responsibilities, including accounts receivable, accounts payable,
payroll, financial reporting and maintaining financial controls.

Accounts Receivable – Another critical duty of the accounting department is to

account for and track receivables, including outstanding invoices and any required
collection actions. Accounts receivable is responsible for creating and tracking
invoices. The responsibility here includes assuring that customers pay those
invoices on time, so a system of friendly reminders is crucial.
24
Financial Controls- Financial controls include reconciliations, dividing the
responsibilities and following the GAAP standards of accounting principles, all of
which are implemented with view toward compliance, fraud, and theft prevention.
The role of the controller is to ensure procedures are set up properly to manage
that process without errors.

MARKETING DEPARTMENT

Today’s successful companies share along focus and a hearty commitment to

marketing. Modern marketing seeks to attract new customers by promoting
superior value and to keep current customers by delivering satisfaction. Sound
marketing is critical to the successes of all organization. But marketing combines
many achieve market research, product, department, distribution, pricing,
advertisement, Personal selling, marketing strategy and other designed to sense,
serve and satisfy customer needs while meeting the organization goals. The
marketing concept was born out of the awareness that a business to start with the
determinations of consumer wants and ends with the satisfaction of those wants.
Marketing can be defined as the ‘performance of business activities that direct the
flow of goods and services from product to consumer or to the user’.

Marketing means the performance of business activities that direct the flow of
goods and services from producer to customer. The primary function of marketing
is to create and maintain a satisfied customer. Marketing management is an
ongoing process under dynamic marketing environment. Responsibilities of
Marketing Manager

• Develop marketing plans.

• Setting targets

25
 • Help finance departments to analysis profit earned through
different product line.

• Effective marketing.

Marketing activities: It include following steps.

• Contact according to necessaries.

• Follow up.

• Getting the approval to the business

• Get the number of quantities to be produced.

• Get the materials needed.

HUMAN RESOURCES DEPARTMENTS

 Asian Paints believes that people are its strongest assets.

 HIGH calibre

 A talent pool of over 4700 employees employed across 23

countries bring in a unique blend of mindsets and skills.

 Excellent training is provided to develop leaders and re-

strengthen competencies from within the organisation.

26
  HR- Recruitment Section Activities:

 Consolidation of total manpower vacancies across company on a

weekly basis.

 Study of job profile required and sourcing of profiles again

respective vacancies.

 Scrutiny of profiles, Short listing, and schedule interviews.

 Selection, Medical Fitness Conformation, Salary Negotiation

and offer release to candidates.

RESEARCH AND DEVELOPMENT:

The company is a separate R&D department. Research and Development

department plays an important role in developing new products and innovation
and reducing costs by value re-engineering. It has 140 members in the R&D team,
out of them 7 are doctorates, 115 qualified scientists and others are associates.
Right from company's inception all decorative products have been developed in-
house. R&D department has focused on developing new exterior finishes,
economy emulsions and distempers. Company is committed to develop decorative
paints and industrial paints. Decorative paints constitute 75% of overall paints
business in the country and Asian Paints is the market leader in the business.

PRODUCTION PROCESS

Producing an artists' paint of very high quality is a labour-intensive and

specialized process. The production staff of Asian Paints receive internal training
for this by laboratory specialists and refine their knowledge of the trade under the
supervision of the experienced paint makers. By combining the modern
developments in the paint technology optimally with the best from its past, the

quality of the Asian Paints products is now recognised throughout the world.

27
 1. Laboratory

Before production starts each separate paint has a unique formula developed for it
in the laboratory. During this development stage the paint's quality aspects are
comprehensively tested. The laboratory is also responsible for inspecting the raw
materials before they go into the product and monitoring the quality during the
production process. In addition to the above activities, particular attention is also
given to research into new raw materials and paint systems.

2. Weighing the raw materials

The central warehouse stores all the dry raw materials. This includes pigments and
extenders, as well as binders such as dextrine and Gum arabic which is later made
liquid through dilution. At the start of the production process the dry raw materials
are weighed here accurately to the gram and prepared for transport to the next
department, the pre-mixing department. The pre-mixing department stores the
liquid binders and additives. The correct amount is tapped off, after which the
weighed dry raw materials are added. As small amounts of dry raw materials are
left behind in the sacks during this process, the paint must be checked at each
subsequent production step against standards for the relevant product according to
colour and viscosity and is adjusted if necessary.

3. Dispersion

Pigments are insoluble in the binder. They have to be regularly dispersed in the
binder, that is to say finely distributed. This dispersal occurs in two steps: first
through pre-mixing with a mixer and then the final fineness is determined with a
triple roll mill.

4. Pre-mixing

28
The pigments are supplied in dry powder form, with the pigment components held
together in clusters. During the pre-mixing these are turned to smaller clusters and
homogenously distributed throughout the binder. The tinting strength of the paint
is now relatively low, but this will increase as the pigment is ground finer in the
next production phase.

5. Grinding the pigments

In the triple roll mill the pigment clusters are ground further to the desired
fineness. During this process, the pigment particles must not get damaged as this
may result in a change of colour. The three rollers rotate in opposite directions
with different speeds. The first roller turns relatively slowly, the second 3 times as
fast and the third 9 or 12 times as fast, depending on the type of mill. The
difference in speed helps to grind the pigment lumps and the paint goes from one
roller to the other. The paint is finally removed using a scraper.

6. Fineness inspection

The distance between the rollers determines the fineness of the grind. This process
is run through for a maximum of five times. The finer the grind, the greater the
tinting strength of the paint. The rollers are hollow and are cooled on the inside
with water, as the pigments would otherwise burn through the heat of the friction.
Depending on the nature of the pigment and the purpose of the paint or ink, the
pigments are ground to between 2 and 55 microns (1 micron = 1/1000 mm). After
the last grinding the paint finally has the required viscosity.

After the grinding the fineness is checked using the Hegman bar. The depth of the
groove in the bar gradually increases, indicated in microns. The paint is thinned to
a certain viscosity and then applied to the groove and levelled off. At the point
where the pigment particles are larger than the thickness of the paint layer, they

29
stick up above the surface of the paint film. At this point, visible to the human eye
under skimming light, the fineness is read off.

7. Colour inspection

The new colour is now compared against the standard colour. Both are applied
thick as well as thin so that both the mass tone and the undertone of the colour can
be seen. There must not be a difference between the new colour and the standard
colour.

8. Stability inspection

To ensure that only quality products are sold, each batch is left to stand for a
certain time in order to check the stability. After this period, another laboratory
check is carried out, and after approval the paint is filled into containers.

9. Filling

Tubes are filled from the underside, with the top already in place. Plastic tubes are
closed by melting the material, while the aluminium tubes are folded step-by-step
and squeezed shut. Bottles are filled, closed, and then labelled. The final step is to
check that the packaging contains the right amount of paint.

CHALLENGES FACED DURING COVID PANDAMIC IN THE

PRODUCTION PROCESS

 Sudden lock down problems

30
Corona virus impact: Asian Paints suspend operations over 24 hours, duration
of the shutdown was depending upon the directives from the government.
Besides employee safety, the move is also aimed at ensuring compliance with
government orders . The move is also aimed at ensuring compliance with
various directives issued by Centre and state governments, the company said.
"In view of the lockdown in many of states across the country, operations in
most of their locations are disrupted. The operations in all the manufacturing
and most of the sales locations, including Home Improvement and Industrial
business, will be shut down in the next twenty-four (24) hours. All the
employees in their offices have been instructed to work from home," the
company said in a filing to the stock exchanges.
Production has been hit at the Asian Paints factory near Nanjangud which
has been shut down from the last two days owing to an agitation by local farmers
demanding that they be employed at the unit in lieu of the land sold for
establishing the plant.

 Lack of raw materials

COVID-19 has been the most disruptive force for the global paint and coating
industry in recent memory .The Indian paint and coatings industry has seen
demand nose-dive in the last 6 months in an unprecedented manner.

The ongoing COVID-19 situation has made it very difficult for Asian paint . On
July 22, India had nearly 1.24 million cases of COVID-19. Currently, ranked third
globally in the number of cases, India’s situation is deteriorating with each
passing day. The uncertainty about COVID-19’s spread in India has made
businesses and consumers anxious and unsure. There seems to be neither capacity
nor appetite for consumption – and in the absence of demand, Asian paint have
little incentive to ramp up production to pre-COVID-19 levels.

Lack of raw materials mad the production process still . Even if the company was
willing to start the production and the factory was not in the containment zone
they were not able to start their production because of the non-availability of raw
materials

 Insufficient employees for production

31
 Additional facility had been created at a cost of ₹14 crore to accommodate the
land-losers as the existing paint facility was highly automated. “Given the
qualification of the land-losers, they cannot work in the plant where there are
automated systems which require qualified engineers,” The farmers were trained
and paid stipend during their training period from June 2019 to August 2020, but
the situation changed suddenly in the last four to six months wherein the farmers
are not ready to take the on-roll permanent jobs, according to Asian Paints.

 Shifting of employees in every alternative day.

At the time of the pandemic Asian paint decided to start the production by giving
shifts to the employees . When the production was started the company needed
more employees for shifting process . And the production was slow they were
only able to produce the half that they have been producing before lockdown .In
every alternative day’s employees changed and the company must give full day
salary to all the employees .

 Social distancing of employees

Social distancing is deliberately increasing the physical space between people to

avoid spreading illness by reducing groups of people and crowded spaces. Staying
at least six feet away from other people reduces your chance of catching COVID-
19.

Because of social distancing the employees and the machinery has been
rearranged . And needed more space for the employees to work in safety .Because
of this they expanded and rearranged the machineries . Around 50L where used
for the expanding process .

 Lack of customer’s

At the begging of the pandemic the company face lot of problems the first one
was, lack of customers : they lost many customers because of the pandemics . As
the production was closed for 40 to 50 days, they were not able to recapture their
32
customers . Because of lack of production and lack of customers they had loss in
their profit margin to 7%.

 Maintenance charges

All the companies have maintenance charges , but at the time of the pandemics
they had some extra charges . The extra charges are for :

Gate Management

Anyone entering in and out of the site will be thoroughly checked and
given entry only post the set conditions are met.  In every 20days the
equipment is changed .

Material Management

Strict measures will be taken to ensure that any material or equipment going
into the site is entered only post implementing the set material safety
measures.

Disinfection & Sanitization

The complete site will be regularly sanitized and fumigated to ensure safety.
The workers will also ensure the personal hygiene using the sanitization
procedures.

Social Distancing

To ensure the workers and the site is safe, we would be strictly following
government directive & implement social distancing at the site.

Prevention and Awareness

Due care will be taken to strictly and stringently ensure that masks provided
by us are used by everyone entering the site. PPE kits will be provided by
us to selected staff.

Vigilance

33
Everyone on the site will be taken through safety trainings and the
supervisors would ensure that the set rules are strictly followed.

For the above activities extra maintains charge was needed:

Sanitizing charges :

It is one of the most expensive maintains, because every day a certain

amount will be spend for sanitizing charges . . They have been spending more
than 5L every day for the sanitizing . And they started Asian Paints San Assure
service. So that can reduce the maintains charge up to a limit .

 Lack of transportation facilities

At the begging, the transportation charges were high and due to the lockdown, the
products were not able to send for the retailers . Transportation process within the
country and outside was a difficult one . The products where stuck in many place
due to the lockdown and was not able to give the product at the correct time. But it
does not last for long they have found some solution immediately for this problem
.

PRECAUTIONS TAKEN TO FACE THE PANDEMIC

SITUATIONS

 Incentives given to the employees.

Asian Paints is swimming against the tide. Instead of slashing pay and jobs -
standard industry responses to the current demand destruction - India's biggest
paints maker is raising salaries to boost staff morale.

Its scope of assistance to the sales channel includes hospitalisation and insurance,
full sanitisation facilities for partner stores, and direct cash support. Asian Paints
NSE 0.71 % also transferred Rs 40 crore into the accounts of its contractors.

 Given effective support to the employees.

34
The company provide transportation facility to the employees like picking up and
dropping them from home to factory.

They provide mask , sanitizer, Hospital facility , canteen and medic kit to the
employees and retailers .

 Found new vendors to supply raw materials.

Due to lack of raw materials the company where suffering of production so they
found new vendors to supply their raw materials to the factory door at regular
intervals.

 Mechanics have been rearranged to keep the social distance.

To keep he employees safe from the virus the mechanics have been re arranged
and for that company have spent 50L for the expanding process.

 Offers have been given to the loyal customers.

The company provide30% to 40% off to the regular and loyal customers and
provide sanitization to all the Asian paints retailers.

 Delivering the product at correct time

All purchase above 10L will be given free delivery to their pickup point but at the
time of coved pandemic the product worth 1L was delivered to all the customers
by the help of the retailer and that help to improve the sales and over come the
sales problems and production problems .Asian paints where able to increase their
profit level to 20% at the time of the pandemic.

FINDINGS

 In the study it says that the farmers were trained and paid stipend during
their training period from June 2019 to August 2020 as new employees,
but due to outbreak of COVID 19 situation, wherein the farmers are not
ready to take the on-roll permanent jobs.
 According to the study Maintenance charges were high during the
COVID-19 pandemic.

35
  The study shows that Asian paints have given all safety precautions to all
the retailers (e.g. :sanitizing the shop in regular intervals)
 In this study it shows that Asian paints had find new vendors for supplying
of raw materials during the COVID-19 pandemics.
 The study says that they have expanded the factory for rearranging the
machinery.
 According to the study it says that Asian Paints NSE 0.71 % also
transferred Rs 40 crore into the accounts of its contractors.
 The study shows that extra delivering facilities have been given to
customers.
 Asian Paints has a good return on equity (ROE) track record with 3 years
ROE of 25.49%. It has been maintaining a healthy dividend pay-out of
over 46%. However, the paint major has delivered a low sales growth of
9.62% CAGR and profits growth of 12% CAGR over the past five years.

SUGGESTIONS

 The trained farmers can be given part time jobs or stopgap work in the
factory .
 The company face lack of employees, they can take this trained farmer as
the  resource employees.
 The company can increase their production by increasing the sifting time .
 Increases the sales by reducing the price of the product and giving extra
offers to the customers and by helping the retailers by giving the product
for a reduction price .
 Ensuring that all the employees have no health issues and if any, take
measures to protect as employees are integral part of the company.
 Ensure the extended support to the family of employees as part of
motivation.
 Awareness camps should be organized to educate the civil engineers,
painting contractor or retail dealers about the techniques of tapping
customers at every level and segment.

36
LEARNING EXPERIENCE

The study is about the challenges in production process of Asian paints during
COVID-19 pandemic at Bangalore .The study have helped me to understand more
about the production process and different challenges they have faced during the
COVID-19 pandemics. It helped me to understand that every challenge that the
company face as how to take effective precautions and makes a good
management in an organisation. And Asian paints shown that if it practices an
effective strategy, any challenges can be faced with a competitive edge to become
more sustainable in the market and contribution to the economy of the country.
Scope has been extended towards expansion of the industry with new
opportunities by meeting all kind of uncertainties by handling the Pandemic
situation effectively.

CONCLUSION

The study says that Asian paints have faced immense problems during the
COVID-19 pandemic, and they were losing their markets .And also the precaution
that they have taken for overcoming these COVID-19 pandemics .

Asian Paints is keeping a watch on cash flows, deferring expenses where it can.
“they have been debt free for years and are quite comfortably placed even if the
uncertainty goes on beyond. The company had announced a huge dividend pay-
out in December 2020 and shareholder return is their top priority.

Asian Paints is likely to report a sharp decline in net profit in the quarter ended
June, hurt by aversion to allow labourers and outsiders inside homes considering
social distancing norms amid the Covid-19 pandemic. Labour shortage also added
to the woes.

They have overcome all the problems faced in the COVID-19 pandemic by taking
good and effective decision in the organisation . During the COVID-19 when the
37
production was stopped, they were able to solve all the production troubles by
applying new strategies and that strategies helped the organisation to build their
position as a profit earing company during COVID-19 pandemics.

And the study concludes with that the Covid issues that Asian paints have faced
helped the organisation to get new vendors and effective market growth. So Asian
paints have shown that even every problem can be solved with a good
management and effective strategy .

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39