Asian Paints, today, is India's largest paint company and Asia’s third largest paint company, with a turnover of Rs 96.32 billion. The Asian paints company originally named as Asian Oil Company was formed in 1973. Today it operates in 17 countries with 24 manufacturing facilities servicing consumers in over 65 countries. Forbes global magazine, US, ranked Asian paints among the best 200 small companies for 2002-03 and presented the ‘Best under a billion’ award. It is the only paints company to receive such recognition .It was also included in Asia’s Fab 50 list by Forbes Asia magazine. It deals in a wide range of decorative and industrial use paints and its net profits are up by 39.5% in the financial year of 2012 showing a quantum leap in its operations.
The company has come a long way from its humble beginnings in 1942 under the partnership effort of Champak Lal H Choksey,ChimanLal N Choksey, Suryakant C. Dani and Arvind R Vakil. It started as ‘The Asian Oil and Paint Company’ with the vision of building a successful and efficient enterprise in the oil sector. It began with manufacturing linseed oil, castor oil and some varnishes mainly for industrial purposes. At the time, the raw materials and technology was imported and the focus was only on trading activities. Both household and the industrial market primarily used limewash for the purpose of white wash and only one toner in colour blue was available for any variations. Thus in 1940’s, The Asian Oil Company focused on providing an alternative to white wash and came out with the oil bound tractor distemper which provided longer life and durability as compared to the limewash technique. In 1968, it was already the leader in the Indian markets with the largest market share ahead of any international firm. Commendably it has maintained that position till date through its open minded schemes in line with the environment and circumstances with its core values and principles remaining the same which are fairness, accountability, disclosure and transparency in its corporate governance. Core Values:
* Commitment and Integrity in dealing with internal and external customers * A strong belief in individual ability and creating an environment in which entrepreneurial spirit is encouraged * Ownership and Responsibility
* To continuously rejuvenate every living and working space of people and bring joy to their lives A company’s core values and principles always hold their initial ground and its objectives change in line with environmental changes. The current corporate objective of this company is as follows: 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.
Indian paint industry is a low involvement industry. Till 1990s people will just tell their budget for painting their house to their contractors and few customers will also mention the colour they needed. During that period Asian Paints analyzed the customer market and found that people were not brand conscious but their concern was only the price of the paint. In 1956-57 the family owned business made the shift to a professionally managed organization. This required an efficient and fully equipped manufacturing facility, an intricate chain of suppliers of raw materials and technology and a well defined distribution network in order to reach the masses.
In 1959, Mr. J.M Nadkarni joined Asian Paints and developed laboratories there to start manufacturing resins and entered the area of apcolite enamels on a large scale. These engineers were given operating freedom within well-defined objectives and easy accessibility to all resources for the development of innovative techniques. With this view the company started hiring management...
Please join StudyMode to read the full document