Asian Paints is a multinational conglomerate instrumental in selling, manufacturing, and distribution of paints. The company has headquarters in Mumbai and is a very familiar name in India. At present, the company exists in more than 15 countries and has been transforming the innovation and sales of the company.
In this blog, we will study and analyze the SWOT analysis of Asian Paints in particular.
About Asian Paints
The four founders of Asian Paints where Champaklal Choksi, Chimanlal Choksi, Suryakant Dani, and Arvind Vakil – founded the company in 1942. It was the period near the independence of India due to which the company could grow in the country with no competition. In 25 years, the company became the leading paint manufacturer in India and showed its strong position in the paint industry.
The company is mostly owned by 3 Jain families. The company shared a very close association with India’s freedom time. The company has always been famous for its out-of-the-box marketing efforts.
‘Tractor emulsion’ paint was the first product of the company that showed the company’s outwardness and excellence. This type of paint was high-quality plastic paint. After this introduction of paint type, the company geared its success formula and became the giant of industries with its unprecedented market position.
Asian Paints at a Glance
| Key Persons | Manish Choksi – Vice Chairman
Amit Syngle – CEO |
| Year of Establishment | 1 February 1942 |
| Annual Revenue (as of FY24) | US$4.3 billion |
| Net Profit (as of FY24) | US$670 million |
| Origin | Mumbai, Maharashtra, India |
| Type of Company | Public |
| Total no. of employees | 7,160 |
| Total assets (as of FY24) | US$3.6 billion |
Types of Asian Paints Products
The company offers a wide array of products including –
- Coating
- Chemicals
- Decorative Paints
- Home Decor
- Fixtures
- Industrial Finishing Products
SWOT Analysis of Asian Paints
SWOT analysis is such a tool that helps the company to rectify the hazards, opportunities, drawbacks, as well as, plus points of the company. It is a very essential tool for marketing, corporate planning, as well as, building strategies for the company’s growth. Let us now see the factors one by one.
Strengths of Asian paints
Below are the strengths of the company –
Strong global presence
Asian Paints has a great presence across the globe having operations in more than 15 countries. The company also has approximately 30 manufacturing units. These units offer products in approximately 70 countries throughout the world. This has made the company as one of the top 5 paint organizations in the Asia Pacific region.
Great market share
The company has more than 50% market share in the industry which is greater than the rest print manufacturers in India. The company has kept its top position in the paint industry by steadily growing by 10 to 12% in the last few years.
Leveraging latest technology
The company has been hugely investing in technical advancements for more than 30 years which is one main reason the company has been able to lead the paint industry. In 1970 the company had a big supercomputer that most people couldn’t even afford. With this device, the company could collect 3X data as compared to their competitors.
Strong supply chain management
The company has a very powerful supply chain network that uses the latest technology integrating regional plants, distribution, supply chain management integration with ERP, etc.
Weaknesses of Asian Paints
Weaknesses are those areas of a company that need to be focused for future growth.
Minimal industrial and auto paint market share
Asian Paints has a very minimal market share of about 10 to 15% in the industrial paint sector. It has approximately 20 to 25% market share in the auto sector which is white less than its competitors.
Reduced global business
Being one of the best paint companies in the Asia Pacific region, the company has minimal global Business as expected in different markets.
Inventory issues
The decorative paints industry requires frequent changes to customer preferences. Also, the latest trends are becoming bygone in a very short period of time. This can be one of the weaknesses for Asian Paints as no other paint company can be ready for the changing tastes of the customers. Hence, inventory and production strategies are among the measure issues the company confronts regularly.
Opportunities for Asian Paints
Opportunities are those sections of the market that need to be grabbed for company profitability.
Developing Indian economy
Asian Paints has a great opportunity in India as the economy of the countries constantly growing. With his infrastructure in the process, the company has got a chance to level up its revenue based in India. It can also focus on smaller regions to enhance their sales.
Developing Nations
The company may also achieve huge success by focusing more on developing countries across the globe. These countries can definitely help the company enhance its revenue and concrete its base for future endeavors. This way the company can remain competitive in the cut-throat competition.
Government regulations
Various government regulations and policies including easy accessibility of home loans rapid development as well as CLSS extension naturally improve the demand for paint. Asian Paints is a very strong network dealer offering cutting-edge products.
Industrial market share
As per the present market situation, the company has a huge opportunity to augment its market stake in not just auto print but also in industrial sectors. The reason behind this is that these industries species require the latest and upgraded technology that the company can easily afford.
Threats to Asian Paints
Below are the threats to the company that need to be resolved.
Shortage of raw materials
Every industry requires great demand for raw materials that control product pricing. The shortage of raw materials as per the demands of the paint industry results in an increase in the price as well as the value of the paint. This sudden search in the paint may prove a huge hazard to the industry.
Economic slowdown
Economic as well as other types of slowdown can have a negative impact on the revenue of the company. It also affects the construction as well as the paint industry. Most of the raw materials mandated to produce paints have to be imported. Hence, in national tensions or in case of natural disasters the company may face loss due to the manpower and loss of materials as well.
Top Competitors of Asian Paints
Here are the top 5 competitors of Asian Paints –
- Shalimar Paints Ltd – It is also one of the oldest companies in India and offers various industrial paint products and decorative paints as well.
- Akzo Nobel India – It is a Dutch multinational company having its operational brand ‘Dulux’ in India. It offers a wide range of decorative paints as well as coatings for different applications.
- Nippon Paints India Pvt. Ltd- It’s a Japanese company with a huge presence in India and has been instrumental in automotive, decorative, industrial paintings, etc.
- Kansai Nerolac Paints Ltd- It is another major player in the paint industry and competes directly with Asian Paints in the industrial, automotive, and decorative coatings space.
- Berger Paints India- It is also one of the largest paint firms in India that offers industrial coatings, protective paints, etc.
Conclusion
Asian Paints is a very established company and leading market leader in the paint industry. The company has been constantly performing well and has a very huge growth. It implements promotional as well as marketing strategies that are very creative and grasp customer attention.
However, constant changes in customer references have been a big issue for the industry that caused inventory loss and supply chain issues as well. The company is performing truly excellent in the industry and has placed itself as a leader in the market.