Asian Paints – Challenges and Solutions in the Current Scenario Background
Asian Paints is one of the top ranking paint companies of India and it is among the top decorative coatings companies in the world. With an annual turnover of USD 1.1 bn, Asian Paints provides services in 20 countries and has 28 paint manufacturing units in the world, providing services to consumers in over 65 countries. It has received a large number of national and international awards. It works through six subsidiaries which have been merged with it. Current Challenges to Asian Paints
Paint Quality and Costs- Higher costs means improved quality Marketing Network –Good distribution network
Product Portfolio – To cater to all levels of consumers
Managing Inventories – Higher inventories lead to higher costs Low Capacity Utilisation -Poor capacity utilisation means less production Technology – Strong and better R&D to improve quality and reduced costs Strong Brands – Efficient print and media advertisements in the whole country Strategic Review of Asian Paints
Fakes and Dumping
Raw Material Price Issues
Use of Technology to Serve End Use Customers, Dealers and Employees to Increase and improve Productivity Major Challenge – Painting solutions so that customer gets value for money and can recall the brand. The aim is to provide quality solutions for painting so that customer loyalty is ensured. Implementation Plan – Major challenge is to retain top position in the Indian paints market. Conclusion
Asian Paints is one of the top ranking paint companies of India and it is among the top decorative coatings companies in the world. The Indian paint industry is characterized by the Industrial Paints segment (25%) and the Decorative Paints segment (75%) -Appendix A. With an annual turnover of USD 1.1 bn, Asian Paints provides services in 20 countries and has 28 paint manufacturing units in the world, providing services to consumers in over 65 countries. It has received a large number of national and international awards. It works through six subsidiaries which have been merged with it.
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 provide paint to the powder coatings market and is one of the fastest growing sectors in the industrial coatings market.
Berger India Ltd became a part of the Asian Paints Group in November 2002. Today, the name Berger means quality and innovation. BIL is present across three regions viz. Middle East, Caribbean and South East Asia.
SCIB Paints which started in 1979 is a respectable name and ranks amongst the top paint companies in Egypt. SCIB Paints became a part of the Asian Paints group in August 2002.
Established in March 1997, Asian PPG Industries Limited, a joint venture between Asian Paints (India) Limited and PPG Industries, Inc. USA with 50:50 equity sharing. Its objective is to provide paint solutions to the Indian Automobile industry. The joint collaboration brought together two leading companies together.
Taubmans Paints Fiji, the fourth largest paint company in Fiji, became a part of the Asian Paints family in September 2003 – Appendix B.
Paint Quality and Costs
It is very difficult to satisfy highly thinking consumers who demand for superior paints. To satisfy various consumer segments, more technical development work needs to be undertaken in the following areas - 1Highly durable finishes at much lower costs.
2Paint which can easily be used on poorly prepared surfaces. 3Preparation of good quality paint inspite of reduction in number of ingredients. 4Improving the quality of decorative finishes.