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COMPANY REPORT ON ASIAN
PAINTS LTD

 

BY

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RICHA GUPTA

A3104615412

B.COM (HONS) 2015- 2018

 

Under supervision of Dr. VINOD KUMAR

In partial fulfillment of the requirements for the        degree of

Bachelor of commerce (honors) at AMITY COLLEGE OF COMMERCE AND
FINANCEAMITY UNIVERSITY, UTTAR PRADESH

TABLE OF CONTENTS

TITLE

DECLARATION

CERTIFICATE

CHAPTER 1

INTRODUCTION AND HISTORY

MAJOR PLAYERS AND PRODUCTS

CHAPTER 2

FMCG  INDUSTRY
ANALYSIS

PESTEL ANALYSIS

CHAPTER 3

PORTER`S 5 FORCES

SWOT ANALYSIS

BCG MATRIX

CHAPTER 4

CONCLUSION

REFERENCES

 

DECLARATION

 

Title of NTCC:
Company report on Asian Paints Ltd.

I declare

(a)        
That the work presented for assessment in this ntcc report is my own,
that it has not previously been presented for any other assessment and that my debts
( for word, data , arguments and ideas) have been appropriately acknowledged.

 

(b)       
That the work conforms to the guidelines for presentation and style set
out in the relevant documentation.

 

 

 

 

Richa Gupta

A3104615412

B.COM (HONS) 2014- 2017

 

 

 

CERTIFICATE

 

 

This
is to certify that The Company Report on “ASIAN
PAINTS LTD.” by Richa Gupta was conducted under
my supervision and it constitutes her work.

 

 

HOI:                                      
Supervisor:

Prof (Dr.) Sujata Khandai        Mr. Vinod Kumar

 

 

 

 

 

 

        

 

CHAPTER 1

INTRODUCTION

 

Asian Paints is
India’s largest paint company and Asia’s third largest paint company, with a
turnover of Rs 141.83 billion. The cluster has AN desirable name within the
company world for expertise, way growth, and building shareowner equity. Asian
Paints operates in nineteen countries and has twenty six paint producing
facilities within the world mating shoppers in over sixty five countries.
Besides Asian Paints, the cluster operates round the world through its
subsidiaries Berger International restricted, Apco Coatings, SCIB Paints,
Taubmans and Kadisco.

Asian Paints was
enclosed in Forbes Asia’s ‘Fab 50’ list of corporations in Asia Pacific in
2011, 2012, 2013 and 2014. Forbes world magazine USA stratified Asian Paints
among the ‘200 Best tiny corporations within the World’ for 2002 and 2003 and
conferred the ‘Best underneath a Billion’ award, to the corporate. Asian Paints
is that the solely paint company within the world to receive this recognition. Forbes
has conjointly stratified Asian Paints among the ‘Best underneath a Billion
corporations in Asia’ in 2005, 2006 and 2007.

In ornamental paints,
Asian Paints is gift altogether the four segments v.i.z Interior Wall Finishes,
Exterior Wall Finishes, Enamels and Wood Finishes. It conjointly introduced
several innovative ideas within the Indian paint trade like color Worlds
(Dealer coloring Systems), Home Solutions (painting solutions Service),
youngsters World (painting solutions for kid’s room), color Next (Prediction of
color Trends through in-depth research) and Royale Play effect Paints, simply
to call a number of.

Asian Paints has
continually been ahead once it involves providing client expertise. it’s
started a Signature Store in metropolis, urban center and metropolis in Asian
country, wherever shoppers ar educated on colors and the way it will
modification their homes.

Vertical integration
has seen it diversify into product like anhydride and Peritrate, that ar
employed in the paint producing method. Asian Paints conjointly operates
through ‘PPG Asian Paints Pvt Ltd’ (50:50 team between Asian Paints and PPG
Iraqi National Congress, USA, one in every of the most important automotive
coatings manufacturer within the world) to service the increasing necessities
of the Indian automotive coatings market. Asian Paints has fashioned another
50:50 team with PPG named ‘Asian Paints PPG Pvt Ltd’ to service the protecting,
industrial powder, industrial containers and light-weight industrial coatings
markets.

 

 

INTERNATIONAL
PRESENCE

Today the Asian
Paints cluster operates in nineteen countries across the globe and is that the
largest paint company in eleven countries. The cluster operates in 5 regions
across the globe viz. South Asia, South East Asia, Pacific, geographic area and
Caribbean region through the 5 company brands viz. Asian Paints, Berger
International, SCIB Paints, Apco Coatings, Taubmans and Kadisco. The cluster
operates as:

•        Asian Paints in South Asia (India,
Bangladesh, Asian nation and Sri Lanka)

•        SCIB Paints in Egypt

•        Berger in Asia (Singapore ;
Indonesia), geographic area (UAE, Bahrain and Oman), Caribbean (Jamaica,
Barbados, island ; Tobago)

•        Apco Coatings Pacific (Fiji, Tonga, king
Islands and Vanuatu)

•        Kadisco in Abyssinia

•        Taubmans in Pacific (Fiji and Samoa)

The company includes
a dedicated cluster R;D Centre in {india|India|Republic of Asian
country|Bharat|Asian country|Asian nation} for paints and has been one in every
of the pioneering corporations in India for effectively

harnessing info
Technology solutions to maximise potency in operations.

 

 

 

 

 

 

 

HISTORY

The company has come
back in a protracted manner since its little beginnings in 1942. It absolutely
was originated as a partnership firm by four friends WHO were willing to
require on the world’s biggest, most notable paint corporations operational in
India at that point. Over the course of twenty five years, Asian Paints became
a company force and India’s leading paints company. Driven by its robust
consumer-focus and innovative spirit, the corporate has been the market leader
in paints since 1967. Today, it’s double the dimensions of the other paint
company in India. Asian Paints manufactures a large vary of paints for
ornamental and industrial use.

 

 

 

 

VISION 
Clear goals for a clear future

 

Asian Paints aims to
become one among the highest 5 ornamental coatings firms world-wide by
investment its experience within the higher growth rising markets. at the same
time, the corporate intends to make long run worth within the industrial
coatings business through alliances with established world partners.

 

CHAPTER 2

FMCG
INDUSTRY ANALYSIS

The fast paced trade
goods (FMCG) phase is that the fourth largest sector within the Indian economy.
The market size of FMCG in India is calculable to grow from US$ thirty billion
in 2011 to US$ seventy four billion in 2018.

 Food product is that the leading phase,
accounting for forty three per cent of the market. tending (22 per cent) and
material care (12 per cent) return next in terms of market share.

 Growing awareness, easier access, and
dynamical lifestyles are the key growth drivers for the arena.

 

What square measure FMCG
goods?

FMCG merchandise square
measure popularly called client grocery. things during this class embody all
consumables (other than groceries/pulses) folks patronise regular intervals.
the foremost common within the list square measure bathroom soaps, detergents,
shampoos, toothpaste, shaving product, blacking, prepackaged foodstuff, and
house accessories and extends to bound electronic merchandise. these things
square measure meant for daily of frequent consumption and have a high come.

 

Rural – set to rise

Rural areas expected to
be the most important driver for FMCG, as growth continues to be high in these
regions. Rural areas saw a sixteen per cent, as against twelve per cent rise in
urban areas. Most firms rush to capitalise on this, as they quickly went
concerning increasing direct distribution and providing higher infrastructure.
firms also are operating towards making specific product specially targeted for
the agricultural market.

 the govt of India has conjointly been
supporting the agricultural population with higher minimum support costs
(MSPs), loan waivers, and disbursements through the National Rural Employment
Guarantee Act (NREGA) programme. These measures have helped in reducing
financial condition in rural India and given a lift to rural buying power.

 thence rural demand is about to rise with
rising incomes and bigger awareness of brands.

 

Urban trends

 With rise in disposable incomes, mid- and
high-income customers in urban areas have shifted their buying trend from
essential to premium product. In response, corporations have started enhancing
their premium product portfolio. Indian and transnational FMCG players square
measure leverage India as a strategic sourcing hub for cost-competitive
development and producing to cater to international markets.

IMPACT OF FMCG SECTOR IN INDIA:

Employment

-Direct employment is estimated at approximately 6% of turnover,
i.e. US$ 1.5 billion4 (Rs. 7,000 crores)

-Approximately 12-13 million retail stores in India, out of which
9 million are FMCG kirana stores. Thus the sector is responsible for the
livelihood of almost 13 million people

 

Fiscal Contribution

-Cascading Multiple Taxes by the FMCG sector(Import duty, service
tax, CST, income tax). 30%  revenue of the sector goes into both direct
and indirect taxes. estimated size of $25 billion (Rs. 120,000 crores), that
would constitute a contribution to the exchequer of approximately US$ 6.5
billion (Rs. 31,000 crores).

 

Social Contribution

-Create employment for people with lower educational
qualifications. FMCG firms have also undertaken  some specific projects to
integrate with upcountry and rural areas for both inputs and for distribution
as well as to fulfil CSR.

 

 

 

TOP COMPANIES

 Fifteen companies own these 62 brands, and 27
of these are owned by Hindustan UniLever.

 

The
top ten India FMCG brands are:

1.Hindustan
Unilever Ltd.

2.
ITC (Indian Tobacco Company)

3.
Nestlé India

4.
GCMMF (AMUL)

5.
Dabur India

6.
Asian Paints (India)

7.
Cadbury India

8.
Britannia Industries

9.
Procter & Gamble Hygiene and Health Care

10.
Marico Industries

 Future Growth

FMCG brands would
wish to specialize in R&D and innovation as a method of growth. firms
that still act would be those that have a culture that promotes exploitation
client insights to form either consecutive generation of product or in some
cases, new product classes.

 One space that we tend to see world and native
FMCG brands investment additional in is health and eudaimonia. Health and
eudaimonia may be a mega trend shaping client preferences and looking habits
and FMCG brands ar listening. Leading world and Indian food and food brands
have embraced this trend and ar centered on making new rising brands in health
and eudaimonia.

 

 

 

 

 

 

 

 

 

 

 

 

 

PESTEL
ANALYSIS

Political
environment:

 • Tax
exclusion in sales & excise duty for small scale industries

 •
Transportation & infrastructure development in rural areas helps in
distribution network

• Restrictions in import policies

 • Help for
agricultural sector

 

Economic:

• The GDP rate of Indian economy is increasing every
year & is expected to get better in comparison to other countries

• New policies are being adopted by the government
& RBI to control inflation rate

• There is an increase in disposable income due to increased
GDP rate which has resulted in an increase in per capita income allowing
consumers to spend more

 

Social:

• Distribution of income

 • Changes in
lifestyle

 • Consumerism

• Education levels

 • Law affect
social behavior

• In 2003 46
million household achiever, whereas 124 million household are in position to
spent on FMCG in 2013

 

Technology:

• Technology has been made available in India &
is also imported from foreign countries • With research & development
facilities available developments have been possible in technology field with
the help of some foreign players

                                      

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 3

ANALYSIS OF THE SECTOR

PORTER’S 5 FORCE MODEL
ANALYSIS OF THE SECTOR

    

·      
Threat Of New Entrants: MODERATE –
presence of low regulatory barriers – high competitive industries require large
investments, so small players create less impact

·      
Threat Of Substitutes: HIGH – multiple
brands with low product differentiation – new companies compete at prices which
increase product substitution

·      
Bargaining Power Of Suppliers: MODERATE –
due to long term relations with 
suppliers

·      
Rivalry Among Competitors: HIGH – as more
MNC’s are entering the country

·      
Bargaining Power Of Customers: LOW – due
to high brand loyalty & low switching costs.

 

 

 

 

 

 

 

 

 

SWOT ANALYSIS OF ASIAN PAINTS LTD.

 

STRENGTH

1. The largest paint company in India and third largest company in
Asia

2. They have over 50% of market share and are clear leaders
decorative paints and are strong competitors to Kansai Nerolac to be leaders in
Industrial paints and coatings.

3. They operate in 17 countries and have 24 manufacturing
facilities providing service to 65 countries all over the world.

4. Asian paints has strong international presence with its four 4
subsidiaries; Berger International Limited, Apco Coatings, SCIB Paints and
Taubmans.
5. Most renowned brand in Indian Paint Industry & its strong customer focus
and innovative-spirit has made it market leader since 1968.
6. Superior technologies deployed to achieve maintain the competitive edge for
eg. Supply chain management system that integrates plants, regional
distribution centers, outside processing centers etc. hence they have strongest
supply chain system with

7. They have maintained their brand name and increased awareness
by unique ways of advertising and roping in celebrities like Saif Ali Khan.

8. The company has strong financials.

 

 

WEAKNESS

1. Limited market share
in industrial paints segment with Kansai Nerolac and Akzonobel giving stiff
competition.
2.In decorative paints Industry Customer tastes
and perceptions change very fast and products may become obsolete with change
in trends, hence production planning and inventory problem.

 

OPPORTUNITIES

1. Big an international standard paint company it should look for
more opportunities abroad
2. There is a good scope for growth especially in industrial paints category
3. Needs to have more focus on Automobile industry in industrial paints segment

4. Competitors are going for Hi-tech process and Asian paints with
good financial and intellectual capital can go for hi-tech.

 

 

THREATS

1. Growth prone to
slowdown effects
2.Stringent Government rules and regulations
regarding the quality of products and manufacturing facilities as Environment
policies are given more emphasis
3.Raw material scarcity and volatlility in
prices.

 

 

BCG Matrix of ASIAN PAINTS LTD.

 

DEFINITION of ‘BCG Growth Share Matrix’

A planning tool that uses graphical representations
of a company’s products and services in an effort to help the company decide
what it should keep, sell or invest more in. The BCG growth share matrix plots
a company’s offerings in a four square matrix, with the y-axis representing
rate of market growth and the x-axis representing market share. The BCG growth
share matrix was developed by the Boston Consulting Group (BCG) in the 1970s.

The BCG growth share matrix breaks down products
into four categories: dogs, cows, stars and “unknown”. If a company’s product
has low market share and is in a low rate of growth market, it is considered a
“dog” and should be sold off. Products that are in low growth areas but which
the company has a large market share are considered “cows”, meaning that the
company should “milk” the “cash cow” for as long as it can. Products that are
both in high growth markets and make up a sizeable portion of that market are
considered “stars”, and should be invested in more. Questionable opportunities
are those in high growth rate markets, but in which the company doesn’t
maintain a large market share. Products in this quadrant are to be analyzed
more.

 

 

 

 

BCG
MATRIX OF ASIAN PAINTS LTD.

 

 

 

 

 

 

 

 

CHAPTER 4

CONCLUSION

 

Asian Paints planning
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. At current market price,
stock is trading at 22.74 P/E multiple of its FY2013 estimated EPS. We
recommend investors to buy “Asian Paints Ltd” at every correction for medium to
long term investment horizon.

 

 

 

 

 

 

 

 

REFRENCES

 

1.   
www.asianpaints.com

2.   
www.wikipedia.com

3.   
www.moneycontrol.com

4.   
www.economictimes.com

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