Asian Paints is the leading multinational company of India focusing on manufacturing, selling, and distribution of paints, coatings, and other products related to home decor, bath fittings, and providing of related services.
It ranks as the largest paints corporation in India and third-largest in Asia, headquartered in Mumbai, Maharashtra. With a group turnover of Rs 202.1 billion, Asian Paints operates in 15 countries, maintaining a reputation for professionalism, fast track growth, and building shareholder equity.
History of Asian Paints
Asian Paints started its journey in 1942 with four entrepreneurs Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C.Dani, and Arvind R. Vakil, setting up their company initially in a garage in Bombay, rented for Rs75 per month. They named their company ‘The Asian Oil & Paint Company', a name randomly picked up that time from a telephone directory.
In 1945, the partnership firm turned itself into a private limited company following a turnover of Rs 0.35 million that very year.
During World War II and the Quit India Movement of 1942, due to a temporary ban on paint imports, the market's responsibility went to foreign companies and Shalimar Paints. Asian Paints took up the market and reported an annual turnover of Rs23 crores in 1952.
In 1957, Asian Paints achieved a breakthrough when its R&D department developed a process for producing international quality phenolic and maleic acid resins in its simple coal-furnace, with a hand-stirring process. In the same year, the company set up a plant at Bhandup, Mumbai to cater to the rising demand in urban areas.
By 1967, it became the leading paints manufacturer in the country.
Dropping The Mascot
In September 2012, Asian Paints unveiled a new brand identity and logo by Soha Ali Khan, dropping its iconic mascot-Gattu the impish boy, made by famous Indian cartoonist R.K Laxman in 1954. The new identity was born after the company took an extensive consumer survey in some major cities across India.
Vision And Goals of Asian Paints
- Asian Paints aims to be one of the top five companies in the decorative coatings companies in the world by enlarging its expertise in the higher growth emerging markets.
- The company is also working to assure environmental compliance and sustainability by focusing on waste minimization and water conservation at all of its plants across India.
- Its mission is to provide paints as per market demand, ensuring the desired level and quality of customers, continued availability of the right product mix of the right quality at the right time.
- Simultaneously, the company intends to take over the Industrial coatings business by forming alliances with established global partners.
Global Analysis of Asian Paints
Asian Paints runs its business in 15 countries across the world and has 26 paint manufacturing facilities worldwide. Besides Asian Paints, the group operates around the world through its subsidiaries: Asian Paints Berger, Apco Coatings, SCIB Paints, Taubmans, Causeway Paints, and Kadisco Asian Paints.
The countries in which Asian Paints has set up business are as follows:
- 1)Asian Paints in South Asia (India, Bangladesh, Nepal, and Sri Lanka).
- 2)SCIB Paints in Egypt.
- 3)Berger in South East Asia (Singapore), Middle East (UAE, Bahrain, and Oman), Caribbean (Jamaica, Barbados, Trinidad & Tobago).
- 4)Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands, and Vanuatu).
- 5)Taubmans in South Pacific (Fiji and Samoa).
Marketing Strategies and Successes Of Asian Paints
- Unlike its competitors who concentrate only in urban areas, Asian Paints has a countrywide distribution with a widespread network of 13,000 dealers. For this, they have a large network of regional offices and company depots and sales personnel to service the nationwide dealer network.
- Along with taking initiative to build customer's trust, Asian Paints also focused on its communication and brand strategy. in 2000, AP appointed the Bangalore-based "Momentum" as consultants for a new advertising strategy for the company in order to create an attractive public image.
- Asian paints reduced the cost of the raw material to reduce the cost of the paints. It established an advertising strategy that created an emotional touch among the customers. All these strategies helped in creating a brand image for the company's products among its customers.
- Asian Paints is quite strong in production-marketing coordination. Their policy of offering tailor-made products to suit customer need has resulted in an ever-increasing product range.
- Corporate reputation has been a major plus point for Asian Paints. The image is that of a successful, well-managed and trustworthy company. They have won many accolades and awards.
- Asian Paints emphasized technology and marketing in its drive. It implemented Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) solutions for rationalizing its processes and supply chain.
- By extending a partnership hand to USA’s PPG Inc which is a leading manufacturer of automotive coatings, Asian Paints seeks to meet the ever-growing requirement of automotive coating, industrial powder, protective coating, industrial light coating, and industrial container markets of India.
Weaknesses of Asian Paints
- Asian Paints owns only a 15% market share in industrial paints. It is far behind Goodlass Nerolac, which has a market share of 43%. Since this is going to be the major growth segment in the future, a fall back in this segment can end up as a major weakness for the company.
- Widening product mix puts a strain on production distribution, accounting and administration; and innovation in developing new products is inadequate.
Asian Paints Campaigns
1)“Don’t lose your temper, use Tractor Distemper”- The very first campaign launched by Asian Paints, it showed the popular mascot Gattu with a paint bucket in his hand.
2)"Har Ghar Kuch Kehta Hai“ - This campaign established Asian Paints as a premium emotional brand. The insight of this campaign is that each color has a story to tell. Asian Paints tried to convey the idea of painting homes in any festive occasion inculcating an emotional value like Diwali, marriage, childbirth, etc.
3)“Where The Heart Is”- This campaign proved to be a great business strategy for Asian Paints. It features celebrities like Sushant Singh Rajput, Saurav Ganguly, Radhika Apte, Mandira Bedi, and many more describing how color and home décor from Asian Paints played a significant role in their lifestyle.
4)#PeopleAddColour- This recent campaign created a heart-warming depiction of how paying guests can be made close as families when they come to reside in the house refurbished with Asian Paints decals on walls.
Asian Paints brought a revolution in India with its 1800 unique color shades, themes, refreshing patterns, and made home decor a luxury possible for the middle-class people.