Good Morning

Ballari Institute Of Technology And

Management
Case
Analysis On

Presented By:

Bhavana.H
Himanshi.Goel
Jagadish.YJ
Basan Gowd
 Introduction
Asian paints started in 1942.

Asian Paints is India’s largest company and

ranked among the top ten Decorative in the
world with a turnover of INR 66.80 billion.

Asian Paints along with its subsidiaries have

operations in17 countries across the world with 23
manufacturing facilities.

Servicing consumers in 65 countries through Berger

International, SCIB Paints – Egypt,
Asian Paints, Apco
paintings and Taubmans.
 CASE FACTS:
Asian Paints (India) Limited has a value of Rs.560
crore.

In March 1994, the company notched up a gross

sales turnover of 10.8 percent over previous year.

A growth of 31.5 percent over previous year in net

profit.

Some of the future plans of the company are

diversification, expansion of its product ranges, line
extensions, collaborations and joint ventures.
Cont….

The paint industry comprises both of organized and

unorganized players.

Asian Paints has a market share of 19 percent.

The nearest competitors for Asian Paints are

Goodlass Nerolac, Berger Paints and Jenson
and Nicholson.
Cont….
The comparison of net sale and net profit of nearest
competitors are:
(Figures in Rs. Crore for 1993-94)
COMPANY Net Sales Net Profit NET
PROFIT/SALES
(%)
Asian Paints 401.96 25.62 6.36

Goodlass 205.88 8.05 3.91

Nerolac
Berger Paints 174.95 3.24 1.85

Jenson & 110.33 1.97 1.72

Nicholson
Garware Paints 106 2.57 2.33

Shalimar Paints 102.59 1.60 1.56

Bombay Paints 37.81 0.03 0.08

 SWOT ANALYSIS:

STRENGTHS:

Extensive Distribution Network .

Wider Segment Coverage .
Willingness of the company to go for expansion of
operations, product range and also the technology.
Proper planning and comprehensive approach.
Differential Pricing Strategies.
Cont….

WEAKNESS:
Uneven prices have helped the unorganized
competitors grab a significant chunk of the market.
Dependences on foreign firms for import of
technology.

OPPORTUNITIES:
Government regulation -Budget Concessions.
Demand for industrial paint applications is latent.
Establish a foothold in the International markets.
Cont…

THREATS:

Unorganized sector is eating away the market share

of the company
Competition from other organized players and also
threat from imports
Meet the growing demand of the organization in
terms of the workforce, the technology and also the
assets.
Meet the growing demand for the product and has to
create greater awareness for their newer products.
 CASE ISSUES:
What corporate goal has the company adopted for
the next few years and with what strategies does
the company propose to realize the above goal?

 The corporate goal of the company is to achieve the

growth rate that is higher than 9 to 10 percent that
the industry is averaging.
1. Expansion of the product range.
2. Introduction of niche products in industrial paints
area.
3. Line extensions.
4. Expansion of production capacity and continuous
modernization of technology.
5. Diversification into unrelated area of ceramics.
6. Increasing its presence in overseas market with its
various subsidiaries.
Cont…

What threats is the company facing or/and might

face in the future? What has it done and/or what
could it further do to safeguard itself from
threat(s)?

a) Threats the company may face in future:

 Company is facing major threat from the

unorganized sector.
 Growing demand of the products .
 Awareness for newer products.
 The growing demand of the organization in terms
of the workforce, technology and also the assets.
Cont…

b) The ways the company is trying to safeguard its

interest from threat are:

 Collaborations with foreign firms for

modernization and up gradation of technology and
assets .
 Entry into lower end segments in order to grab
large market share.
 Company is focusing at increasing its market share,
and working hard in order to retain it.
 Company has entered into the industrial paint
applications, where demand for product is still
latent.
Cont…

Evaluate the new strategies of Asian Paints (India)

Limited, particularly its proposed foray into
ceramics?

 Utilization of existing distribution network .

 Serve an existing customer base.
 Paints and ceramics are quite related products.
 Foreign collaborators for the technology.
 Rs. 70 crore investment in the first phase
 Plant location near Gujarat and Rajasthan.
 Collaborations with foreign players.
Cont…
What action plans has the company proposed to
strengthen its product base?

The action plans proposed by the company to

strengthen its product base are :

 Line extensions.
 Expansion of the product range
 Expansion and modernization of production
capacity.
 Diversification.
Cont…

Classify all the strategic plans or proposed strategic

actions of the company for achieving growth
against suitable headings, example diversification,
joint ventures, etc.,
Classification of the strategic plans is as follows:
 Diversification into the area of ceramics.
 Foreign collaborations for technology.
 Joint Venture unit in Townsville (Australia) has
helped the company to establish its foothold in
international markets.
 Subsidiaries in overseas market .
 Product range and line extensions where new
brands such as ‘Utsav’.
 CONCLUSION

Asian Paints has been able to sustain the stiff

competition.
The impact of recession was also not huge on the
company.
Against all the odds, the company is able to maintain
its leadership position in the market.
All these facts prove that the strategies followed by
the company are helping the company to achieve its
goals and objectives efficiently and effectively.