Nitin Joshi’s Post

Hello Connections, Asian Paints, established in 1942 by Champaklal Choksey, Chimanlal Choksi, Suryakant Dani, and Arvind Vakil under the name Asian Oil and Paint Company, has emerged as a significant player in the paint industry, distinguishing itself through innovative strategies and market penetration. Positioned between affordable yet low-quality dry distemper and high-quality, expensive plastic emulsion, their flagship product, Washable Distemper, offers both affordability and quality. Asian Paints strategically targeted the rural market by providing paints in small, affordable tins, allowing farmers to paint the horns of their bulls during the Pongal festival, showcasing their understanding of local customs and needs. Anticipating the future, Asian Paints invested significantly in technology, purchasing supercomputers before ISRO in 1970, demonstrating their commitment to data optimization for business efficiency and analytics-driven insights. Moreover, their adeptness in supply chain management is evident through practices like providing discounts to dealers for early credit payments, direct distribution without intermediaries, and employing supercomputers for inventory management. Furthermore, Asian Paints facilitated dealers with tinting machines, enabling them to produce multiple colors by mixing base colors, thereby reducing the need for storing a vast variety of paints. With a revenue 92% higher than its competitors, Nerolac and Berger, combined, and a net income soaring 209% above the same competitors, Asian Paints has solidified its position as a market leader, marking its journey with foresight, innovation, and customer-centric strategies. Asian Paints #asianpaints #hiring #job #jobalert #businessinsights #research #fmcgcompanies #fmcgjobs #india #successstories #business #innovation #industryanalysis #strategies #marketing #leadership #entrepreneurship #management #digitalmarketing #technology #creativity #startup #fmcg #fmcgindustry #legacyofexcellence #strategicplanning #casestudy #humanresources #future #socialmedia #motivation #mbajourney

Why did Asian Paints start using a SUPERCOMPUTER in 1974? 👇 It was 1942 when the Government had temporarily banned the import of Paint in India. 4 friends saw this as an opportunity and launched Asian Paints in the same year. They neither sold it B2B or B2C but sold it to villages to paint bull horns. They saw massive acceptance and by 1952, they hit 23 Cr in revenue. But they understood that they couldn't become a big player by just painting bull horns. So they studied the market closely and came up with "Washable Distemper". It was a better product than "Dry Distemper" and less expensive than "Plastic Emulsion". They tasted success. Their CAGR was 21% and margins grew from 2% to 13% by 1962 and by 1967 they became the largest paint company in India and still hold this position. So how did Asian Paints manage to be the No.1 player? 1️⃣ Working Capital Management: The credit cycle can sometimes become an issue for a brand because your cash gets stuck. Asian Paints came up with Regular Payment Performance Discount which incentivized dealers for early payback. As this industry works on thin margins, this strategy worked for Asian Paints. 2️⃣ Investment In Technology: Asian Paints bought a supercomputer, first in India, in 1974 for 8 Cr. This investment helped them forecast demand and improve operational efficiency. 3️⃣ New-Age Approach: As labour cost keeps increasing, the dream of giving a new look to the home becomes a bit difficult. Asian Paints now plans to empower users with a DIY model to eliminate labour costs if it doesn't involve specialized work. Now that Aditya Birla plans to disrupt the paint industry, do you think they will be able to do what Reliance Jio did to Airtel? . . . #casestudy #asianpaints #paintindustry #junoschoolofbusiness

Business case study - Asian Paints Asian Paints: A Story of Color and Success Asian Paints, established in 1942, is not just India's largest paint company but also ranks fourth globally in decorative coatings. a leading paint company, has strategically positioned itself as an industry leader through a combination of innovative practices and a robust business strategy. In terms of business strategy, Asian Paints has adopted an expansive distribution network, ensuring widespread availability of its products. This strategic move enables the company to tap into diverse markets, both urban and rural, establishing a strong market presence. In conclusion, Asian Paints' business strategy revolves around innovation, extensive market reach, brand building, and diversification of services. This multifaceted approach has not only solidified its position as a market leader but also contributed to the company's sustained growth and success in the dynamic paint industry. Results: Market leader in India with nearly 50% Strong global presence with operations in 19 countries and serving over 65 countries. Revenue of ₹158.5 billion in FY2023. Learning from Asian Paints: Building a strong distribution network is crucial. Innovation and customer focus are key drivers of success. Effective marketing and branding create a lasting impact. Adapting to changing market dynamics is essential for long-term growth. #asianpaints #casestudy #businessbranding #india #consistency

This Indian company stands alone globally, achieving over 20% revenue growth every year for 60 straight years. It's Asian Paints Four entrepreneurs started Asian Paints in 1942, operating out of a garage in Bombay. And now it operates in over 15 countries, with more than 26 manufacturing plants! Here's what set them apart and made them a market leader with 50% share in the Indian market: > Countrywide distribution through 13,000 dealers and a large network of regional offices and sales personnel across India. > Focus on communication and brand strategy, creating an emotional connection with customers through advertising. > Reduced raw material costs to bring down paint prices. > Offering tailor-made products to fulfil customer needs, resulting in an ever-increasing product range. > Strong corporate reputation as a successful, well-managed, and trustworthy company. > Emphasis on technology and marketing, implementing ERP and SCM solutions. > Partnership with PPG Inc. for automotive, industrial, and protective coatings. 🏆 The results are mind-blowing: - Group turnover of $289 billion. - Present in 15+ countries with 26+ paint manufacturing facilities - Services consumers from over 60 countries globally - Enjoys over 50% market share in India. - Consolidated sales saw a 20% rise from Q4 FY2021 to Rs 7890 crore. Asian Paints brought 'home decor' within reach of the Indian middle class through unique color shades, themes, and refreshing patterns With an imposing market share, resilience, and a unique business model, the company continues to grow substantially. Have you used Asian Paints?  #asianpaints #casestudy

As one of the leading paint companies in India, Asian Paints has carved out a strong position in the market. Here's a quick look at its SWOT analysis to better understand its strengths, weaknesses, opportunities, and threats: Strengths: 🔹 Market Leader: Asian Paints holds a dominant market share in India, known for its vast distribution network and trusted brand name. 🔹 Innovation in Products: They consistently innovate from textured paints to eco-friendly solutions, keeping them ahead of competitors. Weaknesses: ⚠️ High Dependency on the Indian Market: A significant chunk of its revenue comes from India, making it vulnerable to local economic slowdowns. ⚠️ Price Sensitivity: The brand faces competition from low-cost regional players, especially in the price-sensitive segments. Opportunities: 🚀 Growing Housing Sector: As urbanisation rises, there's an increasing demand for decorative paints in new residential projects. 🚀 International Expansion: Expanding in high-potential international markets could increase revenue streams. Threats: ⚠️ Rising Raw Material Costs: Fluctuations in the cost of raw materials like crude oil can squeeze margins. ⚠️ Intense Competition: Both domestic and international competitors are rapidly growing, making the market more competitive. #SWOTAnalysis #AsianPaints #MarketStrategy #BusinessGrowth #Leadership #BrandEquity

ASIAN PAINTS Q2FY25: QUICK THOUGHTS Poor Performance by the Industry Leader in a Challenging Environment! Why Weak? - Domestic Volumes fall 0.5% vs expected 6-8% growth - Revenue at 8027.5 Cr vs Poll at 8538 Cr - EBITDA at 1239.5 Cr vs Poll at 1561 Cr - Margins at 15.4% vs Poll at 18.3% - PAT at 693.6 Cr vs Poll at 1091 Cr YoY Performance - Revenue -5.3% - EBITDA -27.8% - Margins -480 Bps - Gross Margins -260 Bps - Net Profit -43.7% Revenue Vs Peers in Q2 Asian Paints    -5.3% Kansai               -0.3% Berger             +0.3% Akzo Nobel    +3% Indigo Paints +7.4% What Led To The Miss? - Weak consumer sentiment,  persistent rains and floods in some parts of the country - Revenue affected by price cuts taken last year, shift in mix and increased rebates - Operating margins impacted by higher material prices and increased sales expenses - Home Décor Biz performed at a lower clip than expectations - International Biz impacted by challenges in Ethiopia and Bangladesh PAT Further Impacted By One-Offs - 124 Cr impairment of investment value in White Teak Co - 56 Cr ForEx Loss in Ethiopia BIRLA IMPACT? - Co has alluded to "increased rebates" and "increased sales expenses" in commentary - Employee expenses +13.5% YoY, +140 Bps as % of Sales WHAT NOW? Co Says: - Demand conditions remain challenging - Margins to recover due to expected softening in material prices & price increases taken Stock Positioning - Asian Paints -19% from 52W High - Co Trades at 49X FY26e Key To Track - Recovery in Q3 - Impact of Birla Competition - Action on M&A if any #FMCGisLife #Equity #FinancialResults #Analysis #StockMarket Asian Paints #QuickThoughts #Consumption #India #Competition #Paints #HomeDecor #AsianPaints #BirlaOpus #Berger #Nerolac #AkzoNobel

Hello LinkedIn community! I'm excited to be back after a long break and eager to start sharing some inspiring business case studies. Starting with - THE LARGEST PAINT CO. IN INDIA Few of you might have already guessed it! #1 in India, #2 in Asia & #7 in the World! Meet the powerhouse in the paint industry - Asian Paints Ltd. ▶️ Founded in 1942, Asian Paints began its journey when India was struggling for independence. The British had banned all the paints coming into India. There was a lot of demand for paint in our country, but the supply was not meeting it. ▶️ Seeing this opportunity, Champaklal Choksi and his 3 friends started their own paint company in a small garage named Asian Oil and Paint Company. ▶️ Today, with a commanding 53% market share in India, this company has not only shaped the nation's color choices but also established itself as the leader in the South Asia market, valued at an impressive $35.55 billion. 💡 What sets Asian Paints apart? 1. Smart Distribution: In the 1950s, Asian Paints changed how they sold paint. Instead of using middlemen, they teamed up directly with shops. It not only saved money but also helped them understand what customers liked. 2. High-Tech Inventory: In the 1970s, Asian Paints spent INR 8 crores & bought the first-ever supercomputer in India, even before ISRO. They used it to predict what customers would want, making their supply chain faster and more efficient. 3. Customer Service Excellence: Asian Paints always cared about keeping customers happy. The early adoption of computers, setting up a helpline in 1990, and working with global leaders in areas like automotive coatings showed their commitment to delivering top-notch quality to customers. ▶️ Asian Paints became the leader in the Indian paint market by 1967. But even today, they are consistently innovating, satisfying retailers, investing in technology. No company has been able to beat this company, and it still sits as the market leader. ▶️ The transformation from a small oil paint company in a garage to a paint giant today diversified into waterproofing, adhesives, wall finishes, home decor, and much more, boasting over 70,000 dealers and 6 lakh retailers, makes Asian Paints an inspiring business case study. Disclaimer: Content provided is for informational purpose only #AsianPaints #Business #Casestudy #Linkedin #investing

Asian Paints: A Supply Chain Success Story  Let’s learn from the leaders In a market as challenging and dynamic as the paint industry, Asian Paints has carved out a niche for itself as a “supply chain trailblazer”. The company’s ability to adapt and thrive in the face of market fluctuations and natural disasters is a testament to the power of a well-crafted supply chain strategy. Logistics Excellence One of the key differentiators for Asian Paints is its logistics excellence. By directly supplying 75,000 mom-and-pop hardware stores in India within 24 hours, the company has set a new standard for efficiency and quality control. With a vast network of 8 factories, 143 warehouses, and 2,000 trucks, Asian Paints has been able to reduce costs and ensure timely delivery. Value-Added Partnerships: Beyond just delivering products, Asian Paints has established value-added partnerships with its store partners. By providing training, merchandising support, and loyalty programs, the company has fostered loyalty, innovation, and a deep understanding of the Indian paint market among its partners. Results: The impact of Asian Paints’ supply chain strategy speaks for itself. The company has been able to reduce inventory by 30%, improve service levels by 15%, and increase profitability by 20%. Even in the face of major disruptions like the COVID-19 pandemic, Asian Paints has maintained customer satisfaction and market share, earning recognition as one of Asia’s best-managed companies by Forbes. Learning from the Best: Asian Paints’ supply chain success story offers valuable lessons for businesses looking to enhance their own supply chain strategies. By embracing agile processes, and fostering a culture of innovation, companies can navigate complex markets with confidence and resilience. In summary, Asian Paints’ supply chain success serves as a testament to the power of innovation and adaptability in today’s business landscape. By learning from their best practices, businesses can position themselves for success on a global scale. And in my view - this can be made applicable in any industry. #SupplyChainExcellence #InnovationInLogistics #GlobalSuccessStories #AsianPaints #LogisticsInnovation #BusinessResilience

Barbarians at the gate  Asian paints is the market leader in Paints industry with 42% market share, but it is about to face some major challenges in coming months    Asian Paints: 42%   Berger Paints: 12%  Kansai Nerolac Paints: 7%  AkzoNobel (Dulux): 5%  Others: 35% Total Paints industry is valued at USD 9.60 billion in 2024: (Mordor Intelligence), and estimated to reach USD 15.04 billion by 2029: (CAGR 9.38%) The decorative paints segment (what we typically use at home) account for 75% while the remaining 25% is comprised of the industrial paints segment. But the industry is about to go through a period of upheaval.    Just look at the list of new entrants and the CAPEX investments into the category  1) Pidilite has launched HaiSha Paints (throwback to Jor laga ke Hai Sha)  2) JSW is looking to double its turnover to 2000cr at further investments of Rs 750cr  3) Aditya Birla just launched Opus with an estimated investment of Rs 10000cr  4) MG Motor is collaborating with Jio to launch co-branded paints  5) JK Cement has acquired 60% stake in Acro paints & further 600cr Capex  6) Astral has invested in Gem Paints and plans to rebrand and relaunch    One element that unites new entrants is Distribution. These players reach the hardware outlets with their current brands/products and are trying to leverage this reach.    This can give them a quick start, but if they do not offer something differentiated, they will end up competing only on price and dealer incentives. In my opinion, it's the smaller players who will lose in these battles.  Look at what happened when Patanjali attacked Colgate. Colgate's market share increased, while smaller players like Vicco, Anchor were hurt.    Interesting times to watch when the elephants fight!

Game will change for all in next 10 years.