LETTER OF TRANSMITTAL

Farin Doulah (FnD)

Course Instructor

Introduction to Business (BUS 101.8)

School Of Business

North South University

Subject: Submission of report on “ASIAN PAINTS”

Dear Miss,

It is a great pleasure for us to submit this report on “ASIAN PAINTS” .

We are pleased to inform you that we have thoroughly enjoyed working through this term paper

and all of our representatives have contributed efficiently and moreover effectively to finish this

significant report. This has enabled us to gain valuable knowledge and experience that is

essential in our career development.

Therefore, we would like to take this opportunity to convey our deep regard for your valuable

guidance and sincere inspiration. We hope you will enjoy reading this paper.

Yours sincerely,

Acknowledgement

We are solemnly grateful to Almighty Allah who has given us this opportunity to

carry out such an interesting assignment and enabled us to finish it for BUS 101.

We would like to add a few hearty words to the people who helped us in numerous

ways.

Special thanks go to Ms. Farin Doulah (FnD), Course Instructor, School Of

Business, North South University; for giving us the opportunity to prepare this

term paper and help us gain new practical knowledge in the process. Her valuable

advice, guidelines and continuous monitoring has made this task possible.

We have thoroughly enjoyed our term paper and hope it will be appreciated.

CONTENT PAGE

INTRODUCTION 1

THE FORM OF BUSINESS 1-2

BRIEF HISTORY ABOUT THE COMPANY 2-4

MAZOR PRODUCTS AND SERVICES 4-5

THE COMPANY’S MANAGEMENT STYLE 5

CSR PRACTICES 6-8

MARKETING TECHNIQUES AND ITS OUTCOMES 9-10

CURRENT FINANCIAL SITUATION 10

TECHNOLOGY USED TO MANAGE THE BUSINESS 11

THEIR POSITION IN THE GLOBAL MARKET 11-12

CONCLUSION AND VALUATION 13

BIBLIOGRAPHY

INTRODUCTION

Asian Paints is an Indian paint company headquartered in Mumbai, India. Asian Paints is India’s largest paint company and Asia’s third largest paint company, with a turnover of Rs 77.06 billion. The group

has an enviable reputation in the corporate world for professionalism, fast

track growth, and building shareholder equity. It is one of the largest paint corporation that operates in 17 countries and has 23 paint manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, this group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

THE FORM OF BUSINESS

Over the course of 25 years Asian Paints has become a corporate force and India's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India. Asian Paints manufactures a wide range of paints for Decorative and Industrial use.

Asian Paints along with PPG Inc, USA, one of the largest automotive coatings manufacturer in the world has begun a 50:50 joint venture, Asian PPG Industries to service the increasing requirements of the Indian automotive coatings market. Another wholly owned subsidiary, 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. This wholly owned subsidiary of Asian Paints has entered into a tie-up with Canada-based Protech Chemicals which is one of the top ten powder coatings companies in the world for technological know-how in the area of powder coatings.

VISION OF THE COMPANY

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.

THE BRIEF HISTORY OF THE COMPANY

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. They name their company 'The Asian Oil & Paint Company', a name that they picked randomly from a

telephone directory.

In 1945

Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing strategy "to reach consumers in the remotest corners of the country with small packs."

From 1957 - 66

The family-owned company makes the transition to a professionally managed organisation. British company Balmer Lawrie rejects the products of a giant British paint company in favour of Asian Paints. Asian Paints embarks on an ambitious grassroots marketing campaign, partnering with thousands of dealers in small towns all over India.

In 1967

Asian Paints emerges as India's leading paint company ahead of any international competition. And become a corporate force company

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

Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu Business Line; Most admired company to work for by ET-BT survey, 2000

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

Major Products and Services

Products:

Asian Paints manufactures a wide range of paints for Decorative and Industrial use. In Decorative Paints, Asian Paints is present in all the four segments v.i.z Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative concepts in the Indian paint industry like Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting solutions for kid’s room.

Services:The Asian Paints group operates in 17 countries across the world. It has manufacturing facilities in each of these countries and is the largest paint company in eleven countries. The group operates in five regions across the world which are South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate brands such as Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. The Group operates as Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka), SCIB Paints in Egypt, Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman), Caribbean (Jamaica, Barbados, Trinidad & Tobago) Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu), Taubmans in South Pacific (Fiji and Samoa).

THE COMPANY’S MANAGEMENT STYLE/HUMAN RESOURCE

Company believes that people are its strongest assets, for a company can go only as high as its people aim. It is people who innovate and invent, and who engineer the efficiencies that make a business succeed. It is they who drive growth and lead to greater heights. At Asian Paints, their management or human resources systems are designed to create a focused, performance oriented and agile company. A talent pool of over 4700 employees employed across 23 countries bring in a unique blend of mindsets and skills.

An open and interactive work culture brings out the best in our people. A sense of ownership and freedom to experiment at their workplace brings out creativity and innovation in every individual. Excellent training is provided to develop leaders and re-strengthen competencies from within the organisation. Besides encouraging achievers from within the organisation, we absorb the best talent from some of the best management and technology institutes in the country.

They hire people who are best suited to the job and whose personal goals are in alignment with our corporate purpose. Thus, the task is cut out for every individual within the framework of result-orientation, market insight, customer perspective, trust, respect and problem solving.

The commitment of our people and their sense of discipline and ownership continues to drive growth for our company.

CSR PRACTICES

As we are aware, there is demand forincreased CSR and environmental accountability on part of the corporates worldwide. Companies are being calledupon to actively take responsibility for and positively engage with their communities, the global society and the environment. It is important for corporates to recognise that their progress comes from society and they must give back to the society its fair due.

As an organization Asian Paints has understood and implemented these 'Business Basics' from the beginning. It has produced cost-effective goods in a manner that is ethically, socially and environmentally responsible, and has always been sensitive about the impact of its business on all its stakeholders. Today, when the Group is at a juncture where it is aspiring to become a global leader, it is all the more imperative that it approaches the practice of CSR in a more focused manner.

CSR activities:

Water management

Fresh water is a limited and scarce resource that’s often taken for granted. They built a Total Water Management (TWM) Centre, at its Bhandup manufacturing facility, which is a first of its kind in the entire country.

The TWM centre showcases live working models on water conservation and rainwater harvesting. Asian Paints provides expertise to citizens free of charge to implement Rainwater harvesting and total water management concepts.

Age Care is another focus area by Asian Paints in its CSR activities.

The company had conducted various health camps for the aged. In India, the focus of such health camps has always been around the plants where the employees reside. Taking this into consideration, Asian Paints has started MMU

(Mobile Medicare Unit) in Kasna, Patancheru & Ahmedabad. MMU has made it possible to reach the doorsteps of the needy and provide treatment for various diseases like hypertension, arthritis, diabetes etc. Also, the company had conducted camps on eye care, dental care, blood checkup among others.

Environment and safety

Asian Paints approaches the environment issue from the perspective of waste minimisation and conservation of resources. Thus, the continued attempt is to reuse, recycle and eliminate waste, which results in less and less waste being generated. Accordingly, our material losses in manufacturing have been reduced substantially over the last few years.

The company's four paint plants and the two chemical plants have the ISO 14001 certification for environment management standards. All paint plants have achieved 'zero industrial discharge' capability.

Some of our innovative schemes which enhance green productivity are dealer tinting systems which has resulted in large batch sizes ; bulk storage facility for monomers which reduces wastage; Use of natural gas which is a cleaner fuel ; solvent recovery plants have been set up which has resulted in zero reduction of solvent disposal ; Improved incinerating systems and reverse osmosis.

Tsunami relief: Helping community in need of time

When the massive disaster Tsunami hit the coastal areas of South India and South East Asia on Dec 26, 2004 and left behind a trail of devastation. As a socially responsible company, Asian Paints rose to the occasion and decided to play its rightful role in extending support and relief to the affected. All the employees contributed in cash and kind to the best of their capacity. These contributions were supplemented with a contribution from the company. A total amount of Rs.

4.7 million was generated as relief aid and handed over to the Tsunami victims. Besides India, all the units across the world also contributed to the best of their capacities towards Tsunami relief.

CSR achievements :

• Till date Asian Paints has influenced citizens to harvest over

100 million litres of rain water.

• We have now impacted over 100,000 needy senior citizens in just two years through our initiatives in age care providing them with medical care at their door steps through Mobile Medicare units.

• Most of our international units continued with their efforts of

Making a difference to the community.

MARKETING TECHNIQUES AND ITS OUTCOMES

Marketing, sales and customer care have always been essentials in any business or company. There is always a very thin line between the marketing and sales function in any business. Sales are a part of the marketing field which has a broader scope. And today, both these fields are becoming more customer oriented.

No business can succeed without sales and bringing in customers is the most essential facet for the survival of a company. And today Asian Paints marketing leadership over competitors.

Asian Paints entered Indian markets almost as a late entry when companies like Goodlass Nerolac, Berger Paints and others were ruling the roost in the highly

competitive paint industry. Their marketing Policy was to sell anything from small to big but maintain the quality no matter what. They were also constantly improvising and innovating. They were and are concentrating on household markets offering a variety of shades to the buyer more than their competitors. They also appointed dealers at key places in India and some of the dealers were even given computerized mixing for the desired shades as required by the customers. And kept constant advertising in the News Paper, TV and through campaigning. They literally leapfrogged and over-look all its competitors, and offered the widest range of products. It also created the distribution outfit that was necessary for reaching the wide range of products to customers in every nook and corner of the country.

Even small purchases can make the distinction between profit and loss, survival and extinction. Asian Paints has for a long time now sold very small cans of paint which are used to color the horns of bulls during the ‘Pola’ festival in Maharashtra and the auspicious small red and yellow stripes at the bottom of the front door of Tamil Nadu homes. This might not always be remunerative, but it has given a tremendous boost to the company’s brand recall. When the market is up, everybody makes money. But when the chips are down, only good brands stay afloat.

Small efforts like this have made Asian Paints the leader in the vast Indian market for decorative paints with a market share of 50 per cent.

CURRENT FINANCIAL SITUATION

Most of its revenue from outside India come from the Middle East.

The company recorded revenues of INR 77,888.7 million (approximately $1,708.1 million) in the fiscal year ended March 2011, an increase of 14.2% over 2010. The company's operating profit was INR 13,956 million (approximately $306.1 million) in fiscal 2011, an increase of 2% over 2010. Its net profit was INR 8,432.4 million (approximately $184.9 million) in fiscal 2011, an increase of 0.9% over 2010.

TECHNOLOGY USED TO MANAGE THE BUSINESS

Information technology (IT) plays a key role in enabling the company to grow and generate profits. Asian Paints is the only company in India to have integrated Supply Chain Management (SCM) Solution from i2 Technologies, and Enterprise Resource Planning (ERP) solution from SAP.

Asian Paints has launched a supplier portal that includes an automated digital document exchange facility that will improve the efficiency and effectiveness of interaction with suppliers.

Customer Relations Management (CRM) tools are being used in Asian Paints Helpline and Home Solutions initiatives.

The successful deployment of ERP, CRM, Business Intelligence and Portal software from leading solution providers and integrated SCM systems has helped improve efficiency in the business as well as increase the transparency and accuracy of information across the company.

POSITION IN THE GLOBAL MARKET

• Ranked amongst the top ten decorative paints companies globally, with a presence in more than 75 countries

• Manufacturing facilities in 22 countries across Asia Pacific, Middle East and the Caribbean

• Historically has focussed on acquisitions for global expansion – Delmege Forsyth (Sri Lanka), Pacific Paints (Australia), Berger International, SCIB Chemical (Egypt),Taubmans Paints (Fiji)

• Company strongly driven by its global vision – “Think Global, Synergise Regional and Act Local”

Percentage sales contribution of each region to overall international opera-

tions

Middle EastCaribbeanAsiaSouth Pacific

Future Plans:

The company plans to consolidate its dominant position in India by launching new products in line with the market developments in both decorative paint and industrial coating segments. In order to realise its aim of becoming a top five decorative paints company in the world, the company plans to constantly look for both organic and inorganic growth opportunities in existing and new markets. The company shall further explore opportunities of building long term value in the Industrial coatings business through alliances

Valuation and 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.

The group has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity.

Asian Paints is the only paint company in the world to receive this recognition. Forbes has also ranked Asian Paints among the Best under a Billion companies in Asia In 2005, 06 and 07.

BIBLIOGRAPHY

http://en.wikipedia.org/wiki/Asian_Paints

http://www.asianpaints.com/corporate_information/human_resources.aspx

http://www.asianpaints.com/corporate_information/vision.aspx

http://www.asianpaints.com/corporate_information/history.aspx

http://www.karmayog.org/csr500companies/csr500companies_7311.htm#.TtVGrl2jIXY

http://www.citeman.com/16740-marketing-success-a-case-of-asian-paints.html

http://www.asianpaints.com/corporate_information/information_technology.aspx

Bus 101

Section : 8

Group : B

Member names:

1) Omar Khaled2) Asif Mahbub3) Ariful Islam4) Abeed Haider5) Moshiour Rahman6) Iftekhar Haider