A Project Report on Comprehensive Strategic Analysis of

Asian Paints Ltd

Submitted in partial fulfillment of the requirements for the award of the degree of

Bachelor of Commerce B.COM(H)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Mr. Rohit Kaushik Submitted by: RONAK

Roll No.: 35124488823

Institute of Innovation in Technology & Management,

New Delhi – 110058
Batch (2023-2026)

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 Certificate

I, Ms. Ronak, Roll No. 35124488823 certify that the Project Report (Bcom-112)
entitled “A project report on comprehensive strategic analysis of Asian Paints Ltd”
is done by me and it is an authentic work carried out by me at Institute of
Innovation in Technology & Management. The matter embodied in this project
work has not been submitted earlier for the award of any degree or diploma to the
best of my knowledge and belief.

Signature of the Student:

Date:

Certified that the Project Report (B.com 112) entitled “A project report on
comprehensive strategic analysis of Asian Paints Ltd” done by Ms. Ronak Roll
No.35124488823 completed under my guidance.

Signature of the Guide:

Name of the Guide:
Designation:
Date:

Countersigned
(Director/Project Coordinator)

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 CONTENTS
S.No Topic Page No
1 Certificate -
2 Chapter-1: COMPANY PROFILE
3 Chapter-2: STRATEGIC ANALYSIS
4 Chapter-3: FUNCTIONAL ANALYSIS
5 Chapter-4: CSR INITIATIVES & UNIQUE PRACTICES
6 Chapter5: CONCLUSIONS & SUGGESTIONS
7 REFERENCES
8 APPENDICES

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 CHAPTER-1
COMPANY PROFILE

1.1 - Nature of the organizations and its business

The company has come a long way since its small beginnings in 1942. It was
set up as a partnership firm by four friends who were willing to take on the
world's biggest, most famous paint companies operating in India at that time.
Over the course of 25 years, Asian Paints became a corporate force and
India's leading paints company, adhesives and services under its portfolio.
The company is also present in the Home Improvement and Decor segment
and offers bath and kitchen products. The company. Driven by its strong
consumer-focus and innovative spirit, the company has been the market
leader in paints since 1967. Asian Paints manufactures a wide range of paints
for decorative and industrial use and also offers Wall Coverings, water
proofing also introduced lightings, furnishings and furniture in its portfolio.
Recently the company entered into a definite agreement with Weatherseal
Fenestration for acquiring 51% stake. Weatherseal incorporated in Mar 2022
would be engaged in the business of interior decoration/furnishing, including
manufacturing uPVC windows and door systems. Asian Paints also entered
into a definite agreement for acquiring 49% stake in Obgenix Software,
commonly known as White Teak, which is engaged in the business of
decorative lighting products and fans.
Asian Paints is India’s leading paint and decor company and ranked among
the top ten Decorative coatings companies in the world with a consolidated
turnover of ₹ 345 billion. The company is ranked 2nd in Asia and 8th
amongst the top coating’s companies in the world. The Asian Paints group
has an enviable reputation in the corporate world for professionalism, fast
track growth, and building shareholder equity. Asian Paints operates in 15
countries and has 27 paint manufacturing facilities in the world servicing
consumers in over 60 countries. Besides Asian Paints, the group operates
around the world through its subsidiaries - Asian Paints Berger, Apco

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Coatings, SCIB Paints, Taubmans, Asian Paints Causeway and Kadisco
Asian Paints .

A) Type of business in which the Asian Paints is operating

Asian Paints manufactures a wide range of paints for decorative and industrial use
an also offers wall coverings water proofing, adhesives and services under its
portfolio. The company is also present in the home improvement and décor
segment and offers bath and kitchen products.
Vertical integration has seen Asian Paints diversify into chemical products
such as Phthalic Anhydride and Pentaerythritol, which are used in the paint
manufacturing process. The company has discontinued production of Phthalic
Anhydride from end of July 2017. In October 2022, the company has approved the
setting up of a manufacturing facility for VAE (Vinyl Acetate Ethylene Emulsion)
and VAM (Vinyl Acetate Monomer) in India for a proposed investment of
approximately Rs. 2,100 crores over a period of 3 years. The installed capacity of
the said manufacturing facility would be 100,000 tons p.a. for VAM and 150,000
tons p.a. for VAE.
In the Home Improvement and Décor category, the company is present in the
Kitchen and Bath fittings space and offers various products under Sleek and
Ess Ess brand respectively.

B) GLOBAL PRESENCE:

Today, the Asian Paints group operates in 15 countries across the world across four
regions viz. Asia, Middle East, South Pacific and Africa through the eight
corporate brands viz. Asian Paints, Asian Paints Berger, SCIB Paints, Apco
Coatings, Taubmans, Asian Paints Causeway and Kadisco Asian Paints.
Asian Paints in India, Bangladesh, Nepal and Indonesia (Asia)
Asian Paints Causeway in Sri Lanka (Asia)
SCIB Paints in Egypt (Africa)
Asian Paints Berger in UAE, Bahrain , Oman and Qatar (Middle East);

Apco Coatings in Fiji, Solomon Islands and Vanuatu (South Pacific)

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Kadisco Asian Paints in Ethiopia (Africa)

Taubmans in Fiji and Samoa (South Pacific)

Economic value creation* (₹ in Crores) FY 2022-23 FY 2021-22

Direct Economic Value Generated# 30,596.4 25,640.4

Revenues 30,078.4 25,188.5

Other Income 518.0 451.9

Economic Value Distributed 28,991.5 24,339.9 Operating Costs 23,515.8 20,011.6

Employee Wages and Benefits 1,513.9 1,310.1 Payments to Providers of Capital
2,460.3 1,836.9 Payments to Government^ 1,424.3 1,110.5 Community
Investments 77.2 70.8 Economic Value Retained 1,604.9 1,300.5 ^ It does not
include the amount paid by the Company towards Goods and Services Tax (₹
2,016.9 Crores for FY 2022-23 and ₹ 1,366.4 Crores for FY 2021-22) # Direct

C) Financial performance:

During the year, the global economy faced challenges by the war situation in
Ukraine resulting in increased inflation due to its aftermath. The tightening of
monetary policy across the globe had its impact on India as well, but the economy
exhibited resilience supported by robust domestic consumption and the
Government push on infrastructure.

 Creating long-term investor value :

Over the past two decades, we have achieved a CAGR of 27.3% in market
capitalization, reaching ₹ 264,897 Crores as on 31st March 2023 from ₹ 2,119
Crores as on 31st March 2003. We are proud of the unwavering faith our
shareholders and investors have placed in us, in our growth story by entrusting us
with their wealth. We have remained committed to delivering sustained value to
our stakeholders. Over the last 5 years, we have consistently increased our
dividend payout-ratio taking it to 60%, a testament to our commitment to sharing
our success with our shareholders. We believe in providing sustainable returns to
our shareholders by pursuing consistent growth Effective working capital
management Effective management of working capital is critical to achieving our
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goal of maximizing returns. We are committed to achieving our cash flow goals,
maintaining targeted inventory levels, efficient debtors' management, and
optimizing payables. By focusing on these key areas, we successfully manage our
working capital. We ensure adequate inventory levels that allow for timely
deliveries while also optimizing inventory to avoid excess stock and stock outs.
We continuously invest in and upgrade our forecasting models to meet customer
demand and ensure on-time deliveries and at the same time optimize inventory
levels in the system. and practicing responsible financial management.

 Financial capital:

Effective working capital management - Effective management of working capital

is critical to achieving our goal of maximizing returns. We are committed to
achieving our cash flow goals, maintaining targeted inventory levels, efficient
debtors' management, and optimizing payables. By focusing on these key areas, we
successfully manage our working capital. We ensure adequate inventory levels that
allow for timely deliveries while also optimizing inventory to avoid excess stock
and stock out. We continuously invest in and upgrade our forecasting models to
meet customer demand and ensure on-time deliveries and at the same time
optimize inventory levels in the system.

D) Vision & Mission:

 VISION- Asian paints ltd wants to be an innovative, agile, and responsive

world class research and technology organization that’s aligned to future
customer needs and catalyzes the growth of the company across existing and
future businesses.

It aims to become one of the top five decorative coatings companies

worldwide by leveraging its expertise in the higher growth emerging
markets.

Simultaneously, the company intent to build long term value in the

industrial coatings business through alliances with established global
partners.

 MISSION -To provide paints as per market demand ensuring

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 the desired result and the quality of the customers(dealers) service,
continued availability of the right product mix of right quality at right
time.

PRODUCT PORTFOLIO

 VALUES:

o Quality: We do not compromise – we have a passion for the best quality.

o Innovation: We are innovative and wish to enthuse our clients.

o Ambition: We set high objectives and push to achieve the best results.

o Honesty: We are honest towards our clients, also when it may be unpleasant to
hear our true advice.

o Integrity: We keep our word, guard confidentiality, and maintain a high level of
integrity.
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 E) Geographical & functional areas of operation of Asian Paints Limited:
Down the global business has extended across globe, South Asia, South Asia
Pacific, Middle east and African continent. Currently AP global R&T center is
present in Nepal, Bangladesh, Sri Lanka, Indonesia, Fiji, Egypt, Ethiopia, UAE,
Oman, Bahrain and Qatar.

GEOGRAPHICAL AREAS OF OPERATIONS

I)INDIA-

It has a significant presence in its home country, India, where it conducts the
majority of its business operations across multiple states and regions. This includes
decorative, and industrial use an also offers wall coverings water proofing,
adhesives and services under its portfolio and other operational sites spread across
the country.
II)INTERNATIONAL-
 The major focus of the technology AP global has been to create unprecedented
value for the customer… Customer first !! below are the key focus areas in light of
creating value for the customers.

 Addressing the complaints: We encourage the customers to raise the customers if

any and go deeper into the technical aspects of the complaints and have due plans
to address from the root.

 Following are the major initiative for creating product enhancement

 Strengthen Exterior portfolio with warranty performance across all impacting

properties.

 Creating health conscious interior performance products which can provide a

whole new hygiene environment for the required.

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 Giving total painting solution by adding the smart care range of products to address
waterproofing needs and the issue related to seepage and leakage in consumer
houses

 Following the Green and sustainability principles in product design to take care of
all the chain members across the product life cycle.

Product excellence
AP Global has raised the bar of technology by developing new products using
path-breaking technology. Newly developed products are suitable across all the
geography varying in weather condition and application practices. Various
application practices are getting captured through robust U&A (Usage and Attitude
study of painter and consumer) market study. This includes high humid tropical
region like Indonesia, Sri Lanka, and Bangladesh to regions having high UV index
like Indonesia, Oman, UAE to region having extremely low temperature like
Nepal. The application practices are diverse owing to local market practices and
preference of painters/ contractors.

F) PRDUCT/SERVICES PROFILE:

Asian Paints offers a wide spectrum of services in the following areas

- Decorative – under this segment it offers Painting Guide, Painting Solution,

Paint Calculator and paint selector as value added service.

Industrial – Asian Paints offers 4 types of industrial coatings such as –

Protective Coatings – protects steel and concrete structures from the corrosive
action of harsh climates, pollution, sea spray, acids, oils and solvents.

Road Markings – are used as road markers for lane as indicator of lane separation
and also as safety markers. They include ordinary road marking paint, hot applied
retro-reflective thermoplastic material and retro-reflective water borne paints.

Powder Coatings – is used to enhance the performance of Industrial paints.

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 Floor Coatings – such paints protect the floor surface and prevents crack
formation, insect nest formation, water seepage etc.

Automotive – It includes wide range of motor bikes and car paints.

Synthetic/Acrylic Washable Distempers: Tractors

Acrylic emulsion: echo lite (Quality I,) Royale (premium division)

Plastic emulsion paint (insides/outside): decoplast (Quality II),

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Synthetic Enamel: Echocolite , Gattu

Packet Distemper: Utsav

OWNERSHIP PATTERN

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 The company has 12 institutional owners and shareholders that investing
through Securities Exchange Commission (SEC). Largest stakeholders include
Bridge Builder International Equity Fund, and Touchstone Sands Capital
Emerging Markets Growth Fund.

Board of Directors /Promoters

ACHIEVEMENTS/AWARDS

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• Asian Paints was ranked 9th amongst the Top paint companies in the world by
Coatings World - Top Companies Report 2019 (July 2019 Issue).
• Included in the Forbes List of World’s Best Regarded Companies (Sept 2019).
Second Consecutive appearance for Asian Paints in the coveted list
• Included in Forbes Asia’s list of BEST OVER A BILLION companies in Asia
Pacific (September 2019).

FUTURE GROWTH ASPECTS

Asian Paints Limited ("Asian Paints") is transforming itself to become a major
world player in the decorative paints business with particular focus on emerging
markets following its acquisitions of controlling stakes in Berger International
Limited ("Berger International") of Singapore and SCIB Chemical S.A.E.
("SCIB") of Egypt. The total investment made by the company in both these
acquisitions amount to around US$ 16.8 million (S$29.6 million).
Asian Paints announced that it would focus on emerging markets of the world for
growth and also that Berger International will be the main growth driver for Asian
Paints' international operations.
On the international front, the company has made forays in 13 countries in the last
four months through Berger International (11 countries), SCIB Chemical, Egypt
and Bangladesh (greenfield venture).
The immediate focus will be to turn around the operations of under-performing
units of Berger International and add value from Asian Paints by improving
efficiencies in operations, manufacturing, distribution and introduction of new
products.

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 CHAPTER 2
STRATEGIC ANALYSIS

SWOT ANALYSIS
SWOT stands for strengths, weakness, opportunities, and threats, and so a SWOT
analysis is a technique for assessing these four aspects of your business. SWOT
analysis is a tool that can help you to analyze what your company does best now,
and to devise a successful strategy for the future.

Strengths
• The biggest paint group in India and third biggest organization in Asia They have
a piece of the overall industry of half and clear pioneers are solid candidates for
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enhancing works of art and concine rolac paints as modern hues and covering
pioneers.
• They work in 17 nations and have 24 manufacturing workplaces that serve 65
nations round the globe
• Asian hues have a solid global nearness with its 4 backups; Burger International
Limited, Apco Coatings, SCIB Paints and Tubman's.
The Indian Paint Industry and its solid client base and the fresh out of the plastic
new brand imaginative brand has made the market head since1968.
• For example Better advances are alloted than deal with an aggressive edge eg.
Plants, Regional Distribution Centers, Supply Chain Management System, which
incorporates outside preparing focuses. Therefore, they have a solid inventory
network frame work.

Weaknesses
• Limitedpiece of the overall industry in the Industrial Colors division with Kai Sai
Nerolak and Aczonobel gives a wild challenge.
• The taste and view of the business buyer in extravagant artistic creations
fluctuates quickly and the items might be old with the adjustment in patterns.

Opportunities
Big International Standard Paint Company needs to search for more open doors
abroad
• There is a decent scope of development particularly in the Industrial Colors
division.
• The Industrial Colors division should concentrate more on the car business
• Asian hues can vie for cutting edge with innovative handling and better financial
and scholarly capital.

Threats
• Growth for the impacts of the accident

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 • Strong government guidelines and guidelines with respect to the quality and
efficiency of items, for example, natural arrangements are underlined
• Crude material and instability in costs.

CHAPTER-3
FUNCTIONAL ANALYSIS

Functions:
For Functional Analysis Marketing
 Product Range Certainly! Let's delve a bit deeper into some of the key
categories within Asian Paints' product range:
 Interior Paints:
1) Royale Luxury Emulsion: A premium quality emulsion paint known for its
smooth finish and durability. It is often used for interior walls in high-end
residential and commercial spaces.
2) Tractor Emulsion: A cost-effective emulsion paint designed for interior walls. It
provides a smooth matte finish and is suitable for a wide range of surfaces.
3) Apcolite Premium Gloss Enamel: This is a high-gloss enamel paint suitable for
interior and exterior metal and wood surfaces. It offers a shiny finish and is often
used for doors, windows, and metal furniture.
 Exterior Paints:
1) Apex Ultima: A weatherproof exterior emulsion with advanced film protection.
It is known for its long-lasting color and resistance to harsh weather conditions.

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 2) Apex Dura cast: A premium exterior texture coating that not only protects
against weather but also adds a decorative textured finish to the exterior walls.
3) Wood Finishes: Wood tech Touchwood Interior: An interior wood finish that
enhances the natural beauty of wood. It is often used on furniture and wooden
surfaces.
4) Wood tech Insignia: A range of interior and exterior wood finishes that includes
varnishes and stains. These products provide protection and enhance the aesthetics
of wooden surfaces.
 Metal Finishes:
1) Apcolite Premium Satin Enamel: A satin-finish enamel paint suitable for metal
surfaces. It provides a smooth and elegant look while protecting against rust.
2)Apcolite Rust Shield: Specifically designed to prevent rust on metal surfaces,
providing long-lasting protection.
 Special Effects Paints:
1) Royale Play: A series of special effects paints that allow homeowners to create
unique and textured wall finishes. It includes various techniques such as ragging,
sponging, and combing.
2) Royale Play Antico: Offers an antique, weathered look to walls, adding a touch
of sophistication.

Structure & framework

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1)Structure
• It is way in which the organization is built/structure and also who reports to
whom. The structure of the organization represents hierarchy of the company. Thus
the organization structure is the pattern of relations among various divisions of the
company. The basic structural forms are;
• Functional form
• Divisional structure
• Matrix structure
• Network structure
• line structure
• staff structure.
• The modification of organizational structure to support digital business.
The key issues are:
• Integration of digital marketing or e-commerce teams with other management,
marketing (corporate communications, brand marketing, direct marketing) and IT
staff.
• Use of cross-functional teams and steering groups.
• Insourcing v/s outsourcing.

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2.Systems
• The development of specific processes, procedures or information systems to
support digital business. The key issues are:
• Campaign planning approach-integration.
• Managing or sharing customer information.
• Managing customer experience, service and content quality.
• Unified reporting of digital marketing effectiveness and
• In-house v/s external best-of-breed v/s external integrated technology solutions.
• Based on the latest guidance from the FDA, an effective pharmaceutical quality
system should help ensure compliance with cGMPs by focusing on:
• Quality management
• Quality assurance
• Evaluation analysis and quality risk management tools
• Preventive action

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• Risk management
• Continuous improvement
• This latest guidance does not replace previous FDA regulations, which require
every pharmaceutical quality system to include Standard Operating Practices
(SOPs), adequate personnel and training systems, and an adequate system for
recordkeeping. The new guidance is simply aimed at addressing advances in
manufacturing technologies, quality systems and risk management approaches that
have been developed since 1978. The latest guidance is also aimed at harmonizing
the CGMPs with other widely used quality management systems.

3. Style
• Includes both the way in which key managers behave in achieving the
organization’s goals and the cultural style of the organization as a whole. The key
issues are:
• Defining a long-term vision for transformation.
• Relates to role of the digital marketing or e-commerce teams in influencing
strategy – is it dynamic and influential or a service which is conservative and
looking for a voice.
• The organizational shall demonstrate leadership style of the organization with
respect to management system…
• Taking accountability for the effectiveness of the management system.
• Ensuring that the quality policy and quality objectives are established for the
management system and compatible with the context and strategic direction of the
directions.
• Supporting other relevant management roles to demonstrate their leadership as it
applies to their areas of responsibility.
• Promoting improvement
• Communicating the importance of effective quality management and of
conforming to the quality management system requirements.
4. Staff

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 • The breakdown of staff in terms of their background, age and sex and
characteristics such as IT v/s marketing, use of contractors/ consultants. The key
issues are:
• Insourcing v/s outsourcing.
• Achieving senior management buy-in/involvement with digital marketing.
• Staff recruitment and retention, and virtual working.
• Staff development and training.
• NUMBER OF EMPLOYEES (Chintamani unit)

The company satisfies its staff by providing proper facilities like

• Transportation for staff
• Training
• Healthy and safety measures
• Motivation
• Respect
• Compensation
• Every company has to satisfy their staff because without them it is not possible
to achieve the targets, so all needs to be taken care of.

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5. Skills
Distinctive capabilities of key staff, but can be interpreted as specific skill-sets of
team members. The key issues are: staff skills in specific areas such as supplier
selection, project management, content management and specific e-marketing
media channels. Skills required would differ from one division to another but apart
from the core competencies to manage job duties, another major quality pharma
companies seek in candidates is strong ethics, as it is vital to keep data and
sensitive information secured. Some key competencies required for different
profiles are:
Division- R&D
Position– Chemist
Job Requirement- To set up and conduct experiments designed by scientists
related to new drug/new process/drug effects etc. Appropriately record and report
all data.
Competencies and Skills required-
• Strong analytical skills
• Ability to interact effectively with peers and leaders as part of a multi-
disciplinary team.

• Ability to work in a challenging and fast-paced environment and multitask

effectively.
• Strong attention to detail, organizational skills
Division- Production
Position– Pharmaceutical Manufacturing Technician
Job Requirement- To manufacture pharmaceutical components and products using
appropriate equipment and following regulations and procedures. Appropriately
document all actions
Competencies and Skills required-
• Strong attention to detail
• Quality oriented
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• Strong oral and written communication skill
Division- Distribution
Position– Medical Representative (MR)
Job Requirement- Marketing company’s products to doctors, institutions etc and
keeping them abreast of new products and initiatives by the company.
Competencies and Skills required-
• Good interpersonal and communication skills
• Product and industry knowledge
• Basic computer literacy
• Diligent, reliable and goal oriented
• Ability to handle pressure

6. Strategy
The business strategy of AP has been on the basis of acquiring a series of short-
term competitive advantages by adopting measures that raised the Cost of doing
business for those its competitors by raising the hygiene element in the business.
So far, Asian Paints has been using its distribution power and logistical efficiency
to realize this advantage. The benefit obtained by leveraging on circulation
durability is short-lived and ultimately imitable. The company follows a three-
pronged growth strategy - market growth, acquisition and outsourcing. As part of
market expansion and brand-building programs, the business has produced a
consumer services section. A possible customer can call the division's helpline and
check out all about paints and even get a quotation to color his house or shop - an
innovative way to lessen the impact of painters on the customers' selection of
brands.

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PORTER’S FIVE FORCES

Porter five forces analysis is a framework that attempts to analyze the level of
competition within an industry and business strategy development. Attractiveness
in this context refers to the overall industry profitability. An “unattractive” industry
is one in which the combination of these five forces acts to drive down overall
profitability. A very unattractive industry would be one approaching “pure
competition”, in which available profits for all firms are driven to normal profit.
This analysis is associated with its principal innovator Michael E. Porter of
Harvard University. Porter referred to these forces as the micro environment, to
contrast it with the more general term macro environment. They consist of those
forces close to a company that affect its ability to serve its customers and make a
profit. A clear example of this is the airline industry. Porter’s five forces include -

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three forces from 'horizontal' competition: the threat of substitute products or
services, the threat of established rivals, and the threat of new entrants; and two
forces from 'vertical' competition: the bargaining power of suppliers and the
bargaining power of customers. Porter developed his Five Forces analysis in
reaction to the then-popular SWOT analysis, which he found rigorous and ad hoc.
Porter’s five forces is based on the Structure-Conduct-Performance paradigm in
industrial organizational economics. It has been applied to a diverse range of
problems, from helping businesses become more profitable to helping governments
stabilize industries. Other Porter strategic frameworks include the value chain and
the generic strategies.

Five forces
1.Threat of new entrants
Profitable markets that yield high returns will attract new firms. This results in
many new entrants, which eventually will decrease profitability for all firms in the
industry. Unless the entry of new firms can be blocked by incumbents (which in
business refers to the largest company in a certain industry, for instance, in
telecommunications, the traditional phone company, typically called the
“incumbent operator”), the abnormal profit rate will trend towards zero (perfect
competition). The following factors can have an effect on how much of a threat
new entrants may pose:
• The existence of barriers to entry (patents, rights, etc.). The most attractive
segment is one in which entry barriers are high and exit barriers are low. Few new
firms can enter and non-performing firms can exit easily.
• Government policy
• Capital requirements
• Absolute cost
• Cost disadvantages independent of size
• Economies of scale
• Economies of product differences
• Product differentiation

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• Brand equity
• Switching costs or sunk costs

2.Threat of substitute products or services

The existence of products outside of the realm of the common product boundaries
increases the propensity of customers to switch to alternatives. For example, tap
water might be considered a substitute for Coke, whereas Pepsi is a competitor’s
similar product. Increased marketing for drinking tap water might “shrink the pie”
for both Coke and Pepsi, whereas increased Pepsi advertising would likely “grow
the pie” (increase consumption of all soft drinks), albeit while giving Pepsi a larger
slice at Coke’s expense. Another example is the substitute of traditional phone with
a smart phone. Potential factors:
• Buyer propensity to substitute
• Relative price performance of substitute
• Buyer switching costs
• Perceived level of product differentiation
• Number of substitute products available in the market
• Ease of substitution
• Quality depreciation
• Availability of close substitute
• Substandard product

3.Bargaining power of customers (buyers)

The bargaining power of customers is also described as the market of outputs: the
ability of customers to put the firm under pressure, which also affects the
customer’s sensitivity to price changes. Firms can take measures to reduce buyer
power, such as implementing a loyalty program. The buyer power is high if the
buyer has many alternatives. The buyer power is low if they act independently e.g.
If a large number of customers will act with each other and ask to make prices low

27
the company will have no other choice because of large number of customer
pressure. Potential factors:
• Buyer concentration to firm concentration ratio
• Degree of dependency upon existing channels of distribution
• Bargaining leverage, particularly in industries with high fixed costs
• Buyer switching costs relative to firm switching costs
• Buyer information availability
• Force down prices
• Availability of existing substitute products
• Buyer price sensitivity
• Differential advantage (uniqueness) of industry products
• RFM (customer value) Analysis
• The total amount of trading

4.Bargaining power of suppliers

The bargaining power of suppliers is also described as the market of inputs.
Suppliers of raw materials, components, labor, and services (such as expertise) to
the firm can be a source of power over the firm when there are few substitutes. If
you are making biscuits and there is only one person who sells flour, you have no
alternative but to buy it from them. Suppliers may refuse to work with the firm or
charge excessively high prices for unique resources. Potential factors are:
• Supplier switching costs relative to firm switching costs
• Degree of differentiation of inputs
• Impact of inputs on cost or differentiation
• Presence of substitute inputs
• Strength of distribution channel
• Supplier concentration to firm concentration ratio
• Employee solidarity (e.g. labor unions)

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 • Supplier competition: the ability to forward vertically integrate and cut out the
buyer.

5.Intensity of competitive rivalry

For most industries the intensity of competitive rivalry is the major determinant of
the competitiveness of the industry. Potential factors:
• Sustainable competitive advantage through innovation
• Competition between online and offline companies
• Level of advertising expense
• Powerful competitive strategy

CHAPTER 4
CSR INITIATIVES & UNIQUE PRACTICES

Asian Paints' Sustainability Initiatives:

1. Green Manufacturing Practices:
 Asian Paints has been a pioneer in adopting green manufacturing practices within
the paint industry. This involves the implementation of sustainable processes that
minimize the environmental impact of production.
 The company focuses on optimizing resource usage, including reducing water
consumption, energy efficiency, and waste reduction initiatives.
 Investments in state-of-the-art manufacturing technologies and practices that
align with international sustainability standards.
2. Product Innovation for Sustainability:
 Asian Paints has demonstrated a commitment to sustainability through product
innovation. The company is known for developing eco-friendly paint formulations

29
with a focus on reducing Volatile Organic Compounds (VOCs) and eliminating
harmful substances like lead.
 Continuous research and development efforts to create paints that are not only
highquality but also environmentally responsible.
 The introduction of low-VOC and low-odor paints aligns with global trends
towards healthier and more sustainable living environments.
3. Waste Management:
 Asian Paints places a significant emphasis on effective waste management
practices. This includes the implementation of robust recycling systems and
responsible disposal methods.
 The company has established waste reduction programs that aim to minimize the
generation of waste throughout the manufacturing and distribution processes.
 Strategic partnerships with waste management organizations and initiatives to
promote circular economy practices within the industry.
4. Renewable Energy Integration:
 Asian Paints has made strides in adopting renewable energy sources to power its
operations. This involves investments in solar and wind energy solutions to reduce
reliance on non-renewable resources.
 Integration of solar panels and other renewable energy infrastructure in
manufacturing facilities and corporate offices.
 Commitment to carbon neutrality through a combination of energy efficiency
measures and the use of renewable energy sources.
Unique Practices of Asian Paints:
1)Employee Well-being:
 Asian Paints places a strong emphasis on the well-being of its employees. The
company implements unique employee welfare programs, including health and
wellness initiatives, flexible work arrangements, and professional development
opportunities.
 Commitment to creating a positive work environment that fosters employee
satisfaction and productivity.
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  Investments in employee training and skill development programs to enhance
career growth and job satisfaction.
2. Circular Economy Practices:
 The company actively explores circular economy models, where products and
materials are reused, refurbished, or recycled. This involves initiatives to minimize
waste and promote sustainable product life cycles.
 Asian Paints is involved in programs that encourage the return and recycling of
paint containers, contributing to the reduction of plastic waste in the environment.
 Commitment to the responsible disposal of products and materials, taking into
consideration the entire life cycle of its products.

3. Technology Adoption:
 Asian Paints has embraced innovative technologies to improve overall
operational efficiency. This involves the use of digital platforms for supply chain
management, inventory optimization, and customer relationship management.
 Implementation of advanced technologies such as Artificial Intelligence (AI) and
data analytics to enhance decision-making processes and optimize resource
utilization
 The integration of technology not only improves internal processes but also
contributes to reducing the environmental footprint through efficient resource
management.
4. Collaborations and Partnerships:
 Asian Paints collaborates with various stakeholders, including non-governmental
organizations (NGOs), government bodies, and other companies, to address
broader sustainability challenges.
 Participation in industry-wide initiatives and partnerships that contribute to
sustainable practices and address shared environmental concerns.
5. Community Engagement:

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 Asian Paints actively engages with local communities through various initiatives.
This includes educational programs, skill development workshops, and support for
community-driven projects.
 The company's community engagement goes beyond philanthropy, focusing on
building sustainable relationships and contributing to the overall development of
the communities in which it operates.
6. Transparency and Reporting:
 Asian Paints demonstrates a commitment to transparency through regular
reporting on sustainability efforts. The company releases sustainability reports that
detail its environmental impact, progress towards specific goals, and ongoing
initiatives.
 Open communication channels with stakeholders, including investors, customers,
and the general public, to share information on sustainability practices and
performance.

CHAPTER 5
CONCLUSION AND SUGGESTIONS

Asian Paints is certainly doing well for itself in the market with apt products
segmentation and positioning, occupying a major chunk of consumer share. It’s
marketing strategies are effective, satisfying the consumers’ needs and maintaining
its brand image as undoubtedly one of the best in the industry. The company’s
marketing campaigns strike the right note with viewers and keep them interested in
what they have to offer. Their Instagram presence is quite strong and up to speed
with digital media advances. All in all, Asian Paints has evolved and maintained its
brand quality and image very well. Although they could certainly benefit from
increasing demand by differentiating and branching out their services arm but
overall they're doing fine.

Collaborations and partnerships with various stakeholders showcase Asian Paints'

acknowledgment of the interconnectedness of sustainability challenges. By

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actively participating in industry-wide initiatives, the company contributes not only
to its own success but also to the collective effort towards a more sustainable
future. Transparency in reporting, through regular sustainability disclosures,
reflects Asian Paints' commitment to accountability and open communication. This
transparency not only builds trust with stakeholders but also sets a standard for the
industry, encouraging others to follow suit in adopting responsible and sustainable
business practices.

Asian Paint is an Old and established company and a market leader in the paint
industry. The company is performing well and had significant growth over the years.
The marketing and promotional strategies of the company are very unique and creative
which has made Asian Paints a synonym for paints. Rapid changes in consumer
choices have been a problem for a long time in the industry which causes a lot of loss
of inventory for the company, delete to build a system which gives them quick supply
as per consumer needs. Overall the company is performing very well and needs to
sustain its position by staying relevant to consumer choices.

 OBJECTIVES

1. Financial Ratios:
Profitability Management: Asian Paints' profitability may be driven by factors such
as efficient supply chain management, economies of scale, and effective cost
control. The company might employ strategic pricing to maintain a balance
between competitiveness and profitability.
Liquidity Strength: The company's healthy liquidity position may be attributed to
efficient working capital management, strong cash flow, and prudent financial
planning.
Return on Equity (ROE): ROE measures how efficiently a company is utilizing
shareholders' equity to generate profits. A high ROE indicates effective
management of equity capital. It's calculated as Net Income divided by
Shareholders' Equity.

2. HRM (Human Resource Management):

• Employee Development Programs: Asian Paints likely offers training programs,
skill development workshops, and career advancement opportunities for
employees. Continuous learning initiatives may contribute to a skilled and
adaptable workforce.

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 • Inclusive HR Policies: Inclusivity may be promoted through diversity hiring,
equal opportunity practices, and initiatives that foster an inclusive workplace
culture.

3. CSR Practices:
Community Engagement:
The company's community engagement initiatives might include projects related
to education, healthcare, infrastructure, and skill development.
1.Evaluate Technology Adoption:
 Examine the extent to which Asian Paints has embraced technology in its day-
today operations.
 Assess the effectiveness of digital platforms in optimizing supply chain
processes, inventory management, and customer relations.
 Investigate how technology adoption contributes to operational efficiency and
sustainability.

2. Assess Collaborations and Partnerships:

 Explore the nature and scope of Asian Paints' collaborations with
nongovernmental organizations, government bodies, and other companies
 Assess the impact of these partnerships on the success of sustainability initiatives
and their potential for scalability.

3. Strategic Initiatives:
• Technology Adoption: Asian Paints' strategic initiatives likely involve leveraging
technology for operational efficiency. This may include the use of data analytics
for demand forecasting, automation in manufacturing processes, and the
introduction of smart coatings.

 SUGGESTIONS
Enhance Transparency in Reporting:
 Consider providing more detailed and transparent sustainability reports. This
could include a breakdown of key performance indicators, specific goals achieved,
and plans for future sustainability initiatives.
 Increase accessibility to sustainability reports for a wider audience, including
customers, investors, and the general public.

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Expand Circular Economy Initiatives:
 Explore opportunities to expand circular economy practices, such as extending
product life cycles, promoting product recycling, and using recycled materials in
manufacturing.
 Communicate these initiatives effectively to showcase the company's
commitment to sustainable and circular business practices.

Renewable Energy Utilization Increase on:

 Consider increasing the integration of renewable energy sources in
manufacturing facilities to further reduce the company's carbon footprint.
 Explore innovative ways to harness renewable energy, such as adopting
advanced solar or wind technologies.
Strengthen Community Engagement:
 Continue and expand community engagement programs, ensuring they align
with the unique needs and aspirations of local communities.
 Establish long-term partnerships with local organizations to drive sustainable
community development projects.

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 REFERENCES

http://www.asianpaints.com

http://www.moneycontrol.com

https://www.asianpaints.com.sg

https://en.m.wikipedia.org

www.paintsector.in

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.

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