Asian paints was founded in 1942 and is engaged in the business of manufacturing, selling and distribution of paints, coatings etc. Asian Paints clocked a turnover of Rs 15,852 crores in 2016 and are the largest paint company in India. The company has operations in over 19 countries with services available in over 65 countries. Asian Paints is a holding company of Berger International. Indian Paints Industry is estimated to be at Rs 406 bn of which organised sector accounts for about 65 % i.e. Rs 264 bn.
Asian Paints is the leading Paint manufacturing company in India with a market share of over 54 percent.
Strengths in the SWOT Analysis of Asian paints :
Strong Growth: Asian Paints has shown a healthy growth of around 8 – 12 % in the past 5 financial years. This has made sure that the company maintains the top spot as far as market share is concerned. It is double the size of any other paint company in India.
Strong Global Presence: Asian Paints has a wide footprint on a globe operating in 19 countries and have 26 manufacturing units around the world. Asian Paints serves in over 65 countries and is the fourth largest paints company in Asia.
A wide range of Products: The Product portfolio of Asian Paints allows them to cater to different segments and industries, they are present in the Industrial coatings, Decorative paints, Ancillaries, Asian Paints Royale etc. This allows them to penetrate different segments of business and sections of society which helps them maintain market share.
Strong Supply Chain Management: Asian Paints has is a superior technology driven company which has focused on integrating Supply Chain Management (SCM) and Enterprise Resource Planning (ERP) solution from SAP.
Marketing campaigns – Asian paints has always had good marketing campaigns. It has continued its association with Saif Ali khan over the years and had also roped in Soha ali khan for a beautiful campaign. From time to time it has roped in other personalities for ads but Saif Ali khan has been a constant. Recently, Deepika padukone has been chosen as their brand ambassador for Asian paints Royale play. Their brand mascot – GATTU is very famous too and is one of the most popular brand mascots of India.
Asian paints royale play – The Royale play was an amazing and breakthrough concept launched in the market by Asian paints wherein painters from the company themselves will paint your house using unique designs and colours. These painters were specially trained and consumers relied on them because they came from the house of Asian paints. Deepika Padukone is the brand Ambassador for the sub brand.
Weaknesses in the SWOT Analysis of Asian paints :
Low Market Share in Industrial and Auto Paint: Asian paints has a low market share in the industrial paint (about 15 percent) and auto sector (about 20 percent) when compared to Kansai Nerolac and AkzoNobel.
Slow International Business: Except for Bangladesh, Nepal and UAE, Asian Paints have been performing below par in other overseas countries.
Opportunities in the SWOT Analysis of Asian paints :
Growth in Industrial Sector: It has a chance to acquire market share in the Industrial as well as automobile sector as well considering the current market situations.
Growing Indian Economy: With growth in Indian Economy and developing infrastructure, Asian Paints has a chance to increase revenue base and venture into smaller cities, to increase sales.
Emerging Nations: Asian Paints’ vision is to become one of the top five decorative coatings companies in the world. This can be achieved by focusing on the emerging economies of the world.
Adapting to consumer psyche – Change is always constant. So although Asian paints is leading the market due to Royale play, there are other factors which it can bring in to dazzle its customers and therefore keep the majority market share. Off course, easier said then done.
Threats in the SWOT Analysis of Asian paints :
The threat of Slowdown: Any Economic slowdown will have a direct negative impact on the construction industry and consequently paint industry will also get affected.
Unorganised sector: The unorganised sector still has about 35 percent of the market share and this can prove out to be a deterrent to the growth of the industry.
The scarcity of Raw materials: The raw materials required in the Paint industry control the pricing of paint and scarcity can cause a jump in the prices, which can be a threat for the Paint Industry.