AP Asianpaints

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By Group: 1

Kartikey Goyal (B017)


Shantanu Manohar (B036)
Farah Dadi (B010)
Aniket Goswami (B016)
Shubham Gupta (B023)
Smeet Shah (B050)
Gaurav Kelkar (B030)
About The Company
Area of Operations

Products Services
Interior walls, exterior walls, Nilaya, wood Home painting services, décor solutions,
finishes, metal finishes, waterproofing experience retail stores, colour consultancy
solutions, adhesives online

Region-wise revenue from Financials Trans-national Presence


International operations
6%

24%
• Revenue: INR 14,153 Cr
49%
• EBITDA: INR 3,198 Cr
21%
• PAT: INR 1,895 Cr
Asia Africa
Middle East South Pacific
Present in 16 countries spread over four regions
2
Historical Background
Objectives of Research

Choice of expansion - Focus on decorative Geographic focus – how they


organic growth vs. inorganic segment only select markets
growth
Approach

Secondary Research on
• Company
• Value system
Understanding • Strategic Objectives
• Product Portfolio • Business Rationale
• Business Logic
• Related Diversification

Formulating
• Research Hypothesis
• Primary research
Mapping
• Insights with hypothesis
• Fulfilled key objectives
Findings from Interview Report

Organic Vs Inorganic Why Decoratives only Geographic Focus

• Organic in domestic • Industrial paint market is • Focused towards emerging


markets/core segment small markets that offers
• International - inorganic • Low margins revenue and growth
through acquisitions in past • Cut-throat competition potential
15 years • Lack of pricing power • Have retraced from
• Inorganic only when market • Lack of shareholder value markets with flattish
presence too low and growth eg. Caribbean
competitors have gained
mass
• Inorganic – Less Expertise
Conclusion
Asian Paints Strategy can be defined using the key factors described below

Profit focus
• Focus on consolidating its position in one sector
having maximum market potential

Choice of markets
• Focus on markets having opportunities for rapid
growth
• Never focused on having a global presence

Expansion rationale
• Take inorganic growth where they lacked
expertise or had opportunity of rapid growth
• In other conditions, they grew organically
Recommendations
Customer Awareness One stop solution
• Focus on creating more • Create a one stop shop for both
awareness of their range products and services
of products among the • Communicate to consumers as a
consumers home décor company

1 2 3 4
Related diversification Product Range Expansion
• Should focus on its own brand • Get in the domain of PVC
of furniture, tiles, lighting pipes to play a role in
arrangements etc. instead of people's life right from the
selling other companies' home construction phase
products through AP homes.
THANK YOU

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