Name: Gaurav Gunaji gore

Subject: Capital Market

Enrollment No: 2102069
Standard: M.com Part 2
Semester: Fourth semester
 Asian paints
Asian Paints Ltd is an Indian multinational paints company,
headquartered in Mumbai, Maharashtra, India. The
company is engaged in the business of manufacturing,
selling and distribution of paints, coatings, products
related to home décor, bath fittings and providing of
related services. Asian Paints is India's largest and Asia's
second largest paints corporation. Asian Paints is the
holding company of Berger International. The company's
manufacturing operations encompass 15 countries of the
world including India, with considerable presence in
the Indian subcontinent and the Middle East.

The company was started in a garage in

Gaiwadi, Girgaon, Mumbai by four friends Champaklal
Choksey, Chimanlal Choksi, Suryakant Dani and Arvind
Vakil. They all belong to Jain families, and founded the
company in February 1942. During World War II and
the Quit India Movement of 1942, a temporary ban on
paint imports left only foreign companies and Shalimar
Paints in the market. Asian Paints took up the market and
reported an annual turnover of ₹23 crore in 1952 but with
only 2% PBT margin. By 1967, it became the leading paints
manufacturer in the country.
The four families together held the majority shares of the
company. But disputes started over the global rights in
1990s when the company expanded beyond India. The
disputes resulted in Choksey selling their 13.7% shares and
exiting in 1997. Champaklal died in July 1997 and his son
Atul took over. After failed collaboration talks with the
British company Imperial Chemical Industries, Choksey's
shares were mutually bought by the remaining three
families and Unit Trust of India. As of 2008, the Choksi,
Dani and Vakil families hold a share of 47.81%.

Promoters of the Company

• Ashwin Dani (Chairman)

• Manish Choksi (Vice Chairman)
• Amit Syngle (CEO)
• Abhay Vakil (Non Executive Director)

Board of directors (BOD)

NAME DESIGNATION
Amit Syngle Managing Director & CEO
Amrita Vakil Non Executive Director
Ashwin Dani Non Executive Director
Deepak Satwalekar Chairman & Ind. Director
Jigish Choksi Non Executive Director
Malav Dani Non Executive Director
 Manish Choksi Vice Chairman & Non Exe. Dire
Milind Sarwate Independent Director
Nehal Vakil Non Executive Director
Pallavi Shroff Independent Director
R J Jeyamurugan CFO & Company Secretary
R Seshasayee Independent Director
Suresh Narayanan Independent Director
Vibha Paul Rishi Independent Director

Business Type
Asian Paints is India's leading paint and decor company and
ranked among the top ten Decorative coatings companies in the
world with a consolidated turnover of ₹ 291 billion.

Industry Type
Asian Paints manufactures a wide range of paints for decorative
and industrial use and also offers Wall Coverings, water
proofing, adhesives and services under its portfolio. The
company is also present in the Home Improvement and Decor
segment and offers bath and kitchen products.
Balance Sheet of Year 2020/2021/2022
 Capital Structure and Number of Shares

Face value

Dividend paid
Last dividend date: 20/10/2022. Current Dividend Yield: 0.83%
Annual dividend payment: ₹23.55.
Bonus Shares Given

Market Price of Share

Market capitalization of shares investment
2.71 trillionINR

Statically information

BUSINESS PROFITS
DIVIDENT DECLARED
SHARE PRICE (5years)

Observation
Rising of funds through debt is relatively cheaper than equity in
terms of cost of issue and interest cost. The company could still
mobilize the debt funds. It means that the company could raise
the external funds to bring the optimum capital structure i.e.,
minimize the cost of capital and maximize the share value of
the firm. It is due to the tax deductibility of the interest paid on
debt. So, these benefits of financial leverage shall be reaped for
improving the financial performance of the company. The
interest charges are fully covered by the earnings before
interest and taxes. A higher interest coverage ratio is desirable,
but too high ratio is some of the years of the study indicate that
the Asian paint Company Ltd is very conservative in using debt,
and it is not using debt to the best advantage of the
shareholders. Hence, it is suggested that Asian paint Company
Ltd shall tap the debt funds optimally to maintain the balanced
capital structure.