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Pestel Analysis India
Pestel Analysis India
Presented By
Akshata Acharekar Nilofer Khan Deepavali Vankalu
Political Factors
India is the biggest democracy in the World. The government type is federal republic. The political Situation in the country is more or less stable. State politics have been dominated by several national parties including the INC, BJP, the Communist Party of India (CPI), and various regional parties. Export oriented Economy
Economic Factors
Market based economy Second fastest growing major economy in the world. Strong domestic market There is a continuous growth in per capita income. India has the third highest GDP in terms of purchasing power. Foreign direct investment rose in the fiscal year. Inflation rate is on a higher side
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Social Factors
India is the second most populous nation in the world with an approximate population of over 1.1billion people.
An increase in the purchasing power the Indian consumer which preferred local brand which is far cheaper is now able to get a taste of the
Technology
India is Known as a emerging leaders in the IT sector. State of art R & D facility, Manpower is available. Minimum efficient production level and influence outsourcing decisions
Environmental factors
Legal factors
Include
Discrimination law
Consumer law
Antitrust law
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INTRODUCTION
Asian Paints is India's largest paint company Ranked among the top ten Decorative coatings companies in the world Turnover of INR 7750 crore ($1.73 Bn) Asian Paints along with its subsidiaries have operations in 17 countries across the world Consist of 23 paint manufacturing facilities Servicing consumers in 65 countries through Berger International, SCIB Paints Egypt, Asian Paints, Apco Coatings and Taubmans
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TAG LINE
EVERY
HISTORY
1st
February, 1942: Armed with little knowledge and great determination, Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to manufacture paint in a garage on Foras Road, Bombay. Asian Paints touches a turnover of Rs. 3,50,000.
1945:
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Cont .
1954
1967
Asian Paints emerges as India's leading paint company ahead of any international competition.
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Asian Paints has won many awards & recognitions which include
Forbes rated it under 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia in 2005, Best small company in India by Asia Money in 2002.
Golden peacock environment management award national quality award by union labour ministry.
Awarded the "Sword of Honour" by the British Safety Council for all the paintplants in India. This award is considered as the pinnacle of achievement in safety across the world.
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Cont
Ranked 24th amongst the top paint companies in the world by Coatings World Top Companies Report 2006. 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.
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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.
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INTERNATIONAL PRESENCE
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I N T E R N AT I O N A L M A R K E T S
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GROUP SUBSIDARIES
Apco Coatings is a subsidiary of Asian Paints in the South Pacific islands. Asian Paints operates in Australia, Fiji, Tonga, Solomon Islands and Vanuatu under the brand name of Apco Coatings.
Asian Paints Industrial Coatings Limited has been set up to cater to the powder coatings market which is one of the fastest growing segments in the industrial coatings market.
. In November 2002, BIL became a part of the Asian Paints Group. BIL has presence across three regions viz. Middle East, Caribbean and South East Asia.
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Cont
..
Founded in 1979, SCIB Paints today is a reputed name and ranks amongst the top five paint companies in Egypt. SCIB Paints became a part of the Asian Paints group in August 2002
Asian PPG Industries Limited, a joint venture between Asian Paints (India) Limited and PPG Industries, Inc. USA with 50:50 equity sharing was established in March 1997
Taubmans Paints Fiji, the fourth largest paint company in Fiji, became a part of the Asian Paints family in September 2003.
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Business Profile
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MARGINS STRATEGY
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Apply the emerging market business model: Introduce new products suited to local needs Introduce new technology, accordingly Focus to improve all areas of operations, especially supply chain
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Paints believes there is plenty of scope to achieve significant presence in targeted countries
Vast potential exists for Asian Paints, as most paint companies in these markets operate sub-optimally viz., in Supply chain, manufacturing, technology & marketing
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CORPORATE GOVERNANCE
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The Corporate Governance philosophy of the Company is based on the following principles:
Satisfaction
conduct Transparency and a high degree of disclosure levels Truthful communication about how the company is run internally A simple and transparent corporate structure driven solely by the business needs Strict compliance with Clause 49 of the Listing Agreement as amended from time to time Establishment of an efficient corporate structure for the management of the Company's affairs Management is the trustee of the shareholders' capital and not the owner
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COMPETITIVE ADVANTAGE
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RETAIL INITIATIVES
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Consumer-centric initiatives
- Offers a painted surface vs. just paint Aimed at controlling the quality of end product Overcomes major barriers to purchase/consumption Good response from the market; present in six cities Asian Paints Helpline Toll free access to the Helpline High conversion rate into actual sales
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Cont.
Colour World
machines 3175 machines installed till February 1, 2003 827 machines installed under arrangement with Citibank Colour World dealers make more than 50% of sales of colour trends in India
Prediction
The
Royale
Do-It-Yourself
CSR
Environment
and safety. Improving infrastructure and healthcare at local schools; adopting school education. Total water management. Age care.
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SUCCESS STORY
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Information Technology
Asian
Paints is the first company in India to have integrated Supply Chain Management (SCM) Solution from i2 Technologies, and Enterprise Resource Planning (ERP) solution from SAP. Paints has launched a supplier portal that includes an automated digital document exchange facility employee portal Relations Management (CRM)
Asian An
Customer
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Investment in I.T.
Benefits:
RM & FG inventory reduction Revenue Increase by avoiding retail shorts Reduction in dead & slow moving stock Plant through-put improvement
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FAILURE STORY
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Asian
Already Study
sold stakes in two loss making units in Hong kong and Malaysia. conducted by the CSEs Pollution monitoring laboratory found the Apcolite (Asian paint) sample with lead much higher than the standard.
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R&D efforts have been focused on developing new exterior finishes, economy emulsions and distempers.
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development of the water based wood polish which is odourless and is of same quality as of solvent based polish. company is also in the process of setting up a new R&D centre near Mumbai (India)
The
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TODAY
Asian Paints becomes the 10th largest decorative paint company in the world. Asian Paints is more than twice the size of its nearest competitor. It is one of the most admired companies in India. Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution. On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and International business units and adopted SCM and ERP technology. Asian Paints aims to become the 5th largest decorative paint company in the world.
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FUTURE OUTLOOK
To
Plans
to launch new products in line as: - Introducing Water based Paints - Repositioning of existing Brands in Rural Market - Broadening of Distribution Network - Adding more choices for shades and effects - Enhancing Better Quality - Demand will be generated through the new constructions coming in housing and industries
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THANK YOU
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