DECLARATION

I HYDER ALI hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.

place: Date:

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Acknowledgement

It gives me immense pleasure to present this project report on Organizational Study on Asian Paints Ltd in partial fulfillment of the Degree of Masters of Business Administration. No work can be carried out without the help and guidance of various persons. I am happy to take this opportunity to express my gratitude to those who have been helpful to me in completing this project report. At the outset I would like to thank PADMA.C for her immense support and guidance. Lastly I would like to thank my parents, friends and well wishers who encouraged me to do this research work and all those who contributed directly or indirectly in completing this project successfully.

PLACE: DATE:

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Table Of Content
CHAPTER-1: 1.1 1.2 1.3 CHAPTER-2: 2.1 2.2 2.3 2.4 CHAPTER-3: 3.1 3.2 3.3 3.4 CHAPTER-4: 4.1 CHAPTER-5: 5.1 5.2 5.3 5.4 Findings Recommendation & suggestion Conclusion Bibliography SWOT Analysis Introduction Objectives of study Industrial Profile Company Profile VISSION MISSION Product Profile Functional Area Production & operation department Marketing department Finance department Human Resource department

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INTRODUCTION
Asian Paints Ltd. is Indias largest and Asias third largest paint company. This company, established in 1942 has been a market leader in the paints industry in India since 1968. It is ,now, almost triple the size of its nearest rival in India. Asian Paints manufactures a wide range of paints for decorative and industrial (including automotive) use. The fully integrated company is ranked among the top ten decorative coatings companies in the world. Apart from these the company also manufactures various accessories like wall primer, wood primer, putty etc. Asian Paints had acquired Berger International in order to expand its reach in the overseas market. The current report highlights the key functional activities performed by the organization such as production and operations department, marketing, financial performance and so on. The report aims at performing a general study of the organization and appreciate the way in which Asian Paints has maintained its position for a long time. Although the economic condition of the country as well as the global financial health are adversely affecting the business, yet the Chairman Mr. Ashwini Choksi reported in the Annual report of 2011-12 that the consolidated sales of the company grew by 24.7% and profits registered a growth of 17.3%. One of the strength that has helped to achieve such performance, for Asian Paints, remains sustained direction and working as a team at all levels. This itself is a hallmark of a great organization with sound and strong fundamentals.co

OBJECTIVES OF STUDY
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1:- The objective for the industry analysis is to determine the opportunity and threats that exists for firms within a competitive environment. 2:- The objective for the firm analysis is to determine the strengths and weaknesses of a firm and to determine the core competence that can be built on to establish a competitive advantage. 3:- The final step is to develop a sound business plan to ensure the survival of their chosen firm within its competitive environment.

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Chapter 1: Industry Profile

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Industry Profile: Indian Paint Industry

Paint has been in use for time immemorial. The evidence can be found in the cave paintings. The Chinese are considered to be the pioneers of manufacturing paints thousands of years ago. In modern times paint is made artificially and is used in many different ways. It is a mixture of four elements, namely-solvents, binders, pigments and additives. Solvents give the paint a liquid flow while the binder binds it to the surface. Pigments impart colour and opacity to the paint and the additives give it special resistance properties. The Indian paint industry is over a century old. Its beginning can be traced back to the setting up of a factory by Shalimar Paints in Calcutta in 1902. Until World War II, the industry consisted of small producers and two foreign companies. After the war, the imports stopped, which led to the setting up of manufacturing facilities by local entrepreneurs, however, the foreign companies continued to dominate the market. Initially British Paint companies such as Goodlass Walls (now Goodlass Nerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and Blundell & Eomite dominated the market. The Indian paint market consists of both organized and unorganized sectors, where the former is majorly observed. The industry consists of two segments, namely Decorative segment caters to the housing sector ,and Industrial segment - consists of powder coatings, floor coatings and other protective coatings catering to the automobile, marine and other industries. In the domestic market, Decorative segment accounts for 60% of the total demand for paints whereas the industrial segment accounts for the remaining 40%. Decorative paints
can further be classified into premium, medium and distemper segments. Premium decorative paints are acrylic emulsions used mostly in the metros. The medium range consists of enamels, popular in smaller cities and towns. Distempers are economy products demanded in the suburban and rural market. Nearly 20 per cent of all decorative paints sold in India are distempers and it is here that the unorganized sector has dominance.

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Globally, the demand for paints is almost equally distributed, where both the segments account for close to 50% of demand. Following is its diagrammatic representation: The raw materials used in manufacturing paints ,roughly, constitute approximately 56% of the total expenditure in paint companies. Titanium dioxide is one of the major raw materials and price fluctuations in its cost have direct and substantial impact on the cost of production. Crude oil derivatives are the other major raw materials and have similar impact. Apart from these a large number of other raw materials are used for adding or providing specific properties to the wide product range offered by the industry players. The working of the paint industry can be better understood as under:

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Industry Participants The market share of the organized sector is continuously improving as consumer preference is shifting towards better products offered by the leading brands. Established Foreign companies have entered the Indian market by acquiring existing Indian companies. Kansai Paints, Japan entered the Indian Market by acquiring Nerolac, Akzo Nobel, the worlds largest Paint company, entered the Indian market by acquiring ICI Paints (now Akzo Nobel India). Off late, the competition in the paint industry has also heated more intensely with the entry of foreign players like Jotun, Nippon & Sherwin Williams. The following top 5 companies make up more than 80% sales of the organized market: Asian Paints is the market leader in the Indian Paint Industry and gets the major portion of its revenue from the Decorative segment. Over the years, it has outperformed its peers in every aspect by wide margins. This is mainly due to its strong competitive advantage which lies in its strong Brand Equity and an extensive Distribution Network.

Promotional and Regulatory Bodies CAPEXIL (Formerly Chemicals and Allied Products Exports Promotion Council) a nonprofit making organization, was set up in March 1958 by the Ministry of Commerce and Industry, Government of India over the years has been playing an important role to promote exports of paints from the country. The Indian Paint Association is the apex body of the Indian paint industry, which represents both the organized sector and the small scale sector in the paint industry. It is a voluntary non-political and non-profit organization which promotes the interest of the paint industry and the society. The IPA is a unique forum ,established in 1960, in which even the very small scale manufacturers are members beside the major producers in India. The representative character of the association is amply demonstrated by the fact that more than 80 per cent of the total paint production in the T.JOHN COLLEGE, BANGALORE Page 9

country is accounted for by members of IPA.

Industry future trends The Indian paint industry has progressed well and moving ahead is likely to be influenced by several factors including new technologies, new innovative products, new associations, consolidation of industry and poor performers getting out of the market. Ultimately, in the years ahead there will be only four or five key players operating in the Indian paint market. The Indian paint industry historically grew by 1.5 to 2 times of Indias real GDP growth on a year-on-year basis. The Decorative segment shows a seasonal trend with sales peaking during the festive seasons in the months of September to November, whereas the demand is low in the monsoons. Unfortunately, the industry might witness a slowdown both in volume and value growth in the current year (2012) due to decline in demand and rising cost of production. The industry was worth an estimated amount of Rs 29,000 crore in 2011-12. However, with the Finance Minister announcing his vision of achieving 10 per cent economic growth it only augurs well for paint sector.

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Chapter 2: Company Profile

Asian Paints is India's largest paint company and ranks among the top ten decorative coatings companies in the world today, with a turnover of Rs 20.67 billion (USD 435 million) and an enviable reputation in the Indian corporate world for Professionalism, Fast Track Growth, and Building Shareholder Equity. The October' 2002 issue of Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and presented the 'Best under a Billion' award, to the company. One of the country's leading business magazines "Business Today" in Feb 2001 ranked Asian Paints as the Ninth Best Employer in India. A survey carried out by 'Economic Times' in January 2000, ranked Asian Paints as the Fourth most admired company across industries in India. Among its various other achievements, Asian Paints is the only company in India to have won the prestigious Economic Times - Harvard Business School Association of India award on two separate occasions, once in the category of "Mini-Giants" and the other in "Private sector Giants" The company has come a long way since its small beginnings in 1942. Four friends who were willing to take on one of the world's biggest, most famous paint companies operating in India at that time set it up as a partnership firm. Over the course of 25 years Asian Paints became a corporate force and India's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India.

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Asian Paints manufactures a wide range of paints for Decorative and Industrial use. Vertical integration has seen it diversify into Specialty products such as Phthalic Anhydride and Pentaerythritol. Not only does Asian Paints offer customers a wide range of Decorative and Industrial paints, it even Custom-creates products to meet specific requirements. To keep abreast of world technology and to protect its competitive edge, Asian Paints has from time to time entered into technology alliances with world leaders in the paint industry. It has a 50:50 joint venture with Pittsburgh Paints & Glass Industries (PPG) of USA, the world leader in Automotive coatings, to meet the increasing demand of the Indian automotive industry. It has also drawn on the world's latest technology for its manufacturing capabilities in areas like powder coatings and high-tech resins - thus ensuring that its product quality lives up to exacting international standards, even in the most sophisticated product categories. The company places strong emphasis on its own in-house R&D, creating new opportunities by effectively harnessing indigenous creativity. The Asian Paints Research & Development Center in Mumbai has acquired the reputation of being one of the finest in South Asia. With its team of over 125 qualified scientists, it has been responsible for pioneering a number of new products and creating new categories of paints. The R&D team has developed the entire decorative range of the company. The company boasts of state-of-the-art manufacturing plants at Banda in the state of Maharashtra; at Ankleshwar in the state of Gujarat; at Patancheru in the state of Andhra Pradesh; and at Kasna in the state of Uttar Pradesh. All the company's plants have been certified for ISO 9001 - the quality accreditation. All the company's plants have also received the ISO 14001 certificate for Environment Management Standard. The Phthalic Anhydride plant has been certified for ISO 9002 and ISO 14001 whereas the Penta plant has been certified for ISO 14001. The Penta plant will shortly receive its ISO 9002 certification.

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In June 2002, Asian Paints plant in Patancheru was conferred "The Golden Peacock" award by the World Environment Foundation and the award for 'Excellence in Environment Management' by the Government of Andhra Pradesh. Asian Paints was one of the first companies in India to extensively computerize its operations. In addition to computerized manufacturing, computers are used widely in the areas of distribution, inventory control and sophisticated MIS to derive benefits of faster market analysis for better decision-making. It is a continuously evolving company deriving its cutting edge from the use of innovative IT solutions. BOARD OF DIRECTORS 1.Mr.Ashwin Choksi 2.Mr.Ashwin Dani 3.Mr.Abhay Vakil 4.Mr.P M Murty 5.Mr.Mahindra Choksi 6.Mr.Amar Vakil 7.Mr.Hasit Dani 8.Ms.Tarjani Vakil 9.Mr.Dipankar Basu 10.Mr.Mahendra Shah T.JOHN COLLEGE, BANGALORE Non Executive Chairman Non Executive Vice Chairman Director Managing Director & CEO Director Director Director Chairperson of Audit Committee Director Director Page 13

11.Mr.Deepak Satwalekar 12.Mr.Rajendra Shah 13.Dr.S Sivaram 14.Mr.S Ramadorai

Director Director Director Additional Director

MAJOR COMPETITTORS 1. KANSAI NEROLAC 2. ICI INDIA 3. SHALIMAR PAINTS 4. BERGER PAINTS

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Asian paints plant in Jammu

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PRODUCT PROFILE

Product range of Asian paints:

Interior wall paints Exterior wall paints Doors and window paints Furniture paints Ancillary paints Metal paints.

Interior wall paints : Royale: Royale is a premium acrylic emulsion made with the best acrylic copolymers, for walls that stay new for years to come. Royale has a large range of super pastel shades that provide the perfect backdrop for a luxurious room. It is easy to clean and to maintain. The highlight of Royale is it's luxurious smooth finish with a silky sheen.

Premium Emulsion:

Premium Emulsion is the best choice for great looking walls. It gives a smooth finish to the walls and is completely washable. The paint looks freshly painted for years. It resists dust pick-up and provides long lasting protection.

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Tractor Emulsion Smooth Wall Finish:

Tractor Emulsion Smooth Wall Finish is a good choice for people who are looking for a value for money. It is washable and gives a smooth finish. Tractor Emulsion Smooth Wall Finish is available in a range of 1000 shades. It will give your walls the legendary quality of Tractor and the premiumness of an emulsion. Super Decoplast Plastic Emulsion: Super Decoplast is a good choice for people who are looking for a value for money. It is washable and gives a smooth finish. Super decoplast comes in a wide range of over 1000 shades. Interior Wall Finish Lustre: Interior Wall Finish Lustre gives a gloss like finish. It is best suited for kitchens and toilets where there is a lot of moisture and dirt. It is easy to clean and comes in a vast range of shades to suit every colour scheme. It can also be used on regular walls to get a shine on the walls. Interior Wall Finish Matt: Interior Wall Finish Matt gives a dead matt look to your walls. It has practically no sheen and can be used to create the right contrast to your room. It is an oil-based paint and comes in a vast range of shades. Tractor Acrylic Distemper Washable: Tractor Acrylic Distemper Washable is the best distemper in the market today. It gives a smooth finish very close to more expensive emulsions and also comes in a range of over 400 shades. The ideal choice if one wants good-looking walls but does not have the budget to go in for emulsions. Tractor Synthetic Distemper Washable: Tractor Synthetic Distemper Washable is India's largest selling distemper. Trusted by millions of satisfied customers, Tractor Synthetic Distemper Washable is the generic T.JOHN COLLEGE, BANGALORE Page 17

name for distemper. One will get a good wall finish that comes in beautiful shades and is washable. Utsav Acrylic Distemper : Utsav Acrylic Distemper is a very economical wall finish. If you want to get a good performance from your paint at a nominal cost, this is the paint for you. Utsav Synthetic Distemper: In case you wish to use choona, lime wash or local thaili distempers, consider Utsav Synthetic Distemper. It comes in 1 Kg pouch packs and will provide a far better finish to your walls than cheap alternatives at a slightly higher cost. The finish gives a bright look to the room and does not come off on clothes like choona.

Exterior wall paints:

Elastomeric: Asian Paints Elastomeric is a high performance, long lasting exterior paint designed to withstand fluctuations in tropical climatic conditions. Its dry paint film has an in-built elasticity coupled with excellent anti-algal and anti-fungal properties. Moreover, it offers twin benefits of "Crack Bridging" and "Rain Guard". But it is available in selected cities. Life: 8-10 years Premiumness: * * * * * Specialty: Excellent Crack bridging, Very long life Apex Weather Proof Exterior Emulsion: Apex Weather Proof Exterior Emulsion premium emulsion helps create beautiful exteriors that last for years. It can withstand extreme tropical conditions of high rainfall, humidity and heat. Apex Weather Proof Exterior Emulsion protects against UV degradation, fungus and algae. It forms a tough bond with the exterior surface and prevents peeling or cracking of the paint for years. T.JOHN COLLEGE, BANGALORE Page 18

Life: 5-8 years Premiumness: * * * * * Specialty: Anti-algal, Anti-fungal And Anti-fading

Ace Exterior Emulsion: Ace Exterior Emulsion provides protection from the elements of nature. It is suitable for non-coastal areas and places with a dry to moderate climates. It has excellent resistance to chalking, cracking and weathering. It has superior surface adhesion and is anti-fungal and anti-algal. Life: 3-5 years Premiumness: * * * * * Specialty: Low dirt pick-up, Resistant to fungus

Gattucem Cement Paint: It is an economical exterior wall finish. It is a decorative coating that should only be used in dry and arid areas. It is also available in selected cities. Life: 1-3 years Premiumness: * * * * *

Ancillary Product Name: Asian Paints Metal Prime Asian Paints Metal Primer is the most economical primer available in the ranges of primers. This primer has good adhesion & gives fair corrosion resistance to metal .Where the cost factor is of prime consideration, this is the ideal primer. It can be easily brushed sprayed to form a hard & tough adherent coating. It finds use of priming as low cost shop primer in the steel furniture industry etc.

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Product Name: Asian Paints Knifing Paste Filler Asian Paints Knifing Paste Filler is used on metallic or wooden surfaces for filling of dents & other surface imperfections. It has butter like consistency & is easy in application. It is supplied at ready to use consistency but can be thinned easily to any desired consistency by using recommended thinner. On air drying or stoving, it dries hard. Cutting is easy & involves no strain. Product Name: Asian Paints Red oxide Oil Primer (Rust Protector) Asian Paints Red oxide Oil Primer is based on synthetic resins & contains corrosion resistance hence serves as a good quality metal primer. It can be easily applied by brush or spray & dries hard to form a good adherent coating & is economical in use. Product Name: Asian Paints Wood Stains Asian Paints Wood Stains have been formulated specifically to impart color to wood. They offer4 uniform penetration along with a depth & clarity of tones that emphasizes the natural pattern & character of wood grain. They can be used on all kinds of veneers & MDF surfaces.

Product Name: Asian Paints N.C. Sanding Sealer Asian Paints N.C. Sanding Sealer is high quality product. Nitrocellulose based, quick drying clear lacquer. It is recommended for interior wooden furniture.

Product Name: Asian Paints Royale Play Tools Asian Paints Royale Play is a water-based special effects paint designed to create a variety of special effects on interior walls. This product has been specially formulated such that it is easy to apply. It has a soft sheen that lends elegance & style to a surface. Product Name: Asian Paints N.C. Wood Filler T.JOHN COLLEGE, BANGALORE Page 20

Asian Paints N.C. Wood Filler is a quick drying wood filler which renders very fine sanding properties shortly after application of top coats such as N.C sanding sealer / N.C. lacquers. It is a grain filler for natural wood. Product Name: Asian Paints Apcolite Synthetic Primer Surfaced & Brushing Filler Product Name: Asian Paints Exterior Sealer Asian Paints Exterior Sealer is an acrylic copolymer-based surface conditioner for exterior surfaces. It is designed to penetrate into the exterior substrate & also improves adhesion of the Exterior Emulsion Paint topcoats. Product Name: Asian Paints Utsav Floor Colour Asian Paints Utsav Floor Colour is a high quality oxide powder, which keeps your concentrate flooring looking attractive for years. It has high colouring strength & mixes easily with cement. It is manufactured using genuine Oxide imported from Persian Gulf. Its brilliance & gloss keeps increasing with time. Also, it is UV light resistant & does not fade when exposed to sunlight. Product Name: Asian Paints Decoprime Wall Primer WT Asian Paints Deco-Prime Wall Primer (WT) can be used as primer for painting of waterbased wall finishes such as distempers & plastic emulsion paints. Its special features are easy brushing, excellent covering, alkali resistance, quick drying & good sealing properties. It is specially fortified with fungicides. Product Name: Asian Paints Decoprime Wall Primer ST Asian Paints Deco-Prime Wall Primer (ST) is suitable for use as primer for masonry topcoats like distempers, emulsions, luster & matt wall finishes. It helps in providing a suitable surface for application of subsequent coats of putty & finish paint. It sets fast, has good sealing properties, good resistance to wall alkalinity, moisture & fungus. Product Name: Asian Paints Acrylic Wall Putty

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Asian Paints Acrylic Wall Putty is water-based putty. It is one of the best product of its kind available in the market. It provides a very strong durable foundation & brings out the best performance from the finish paints. both in looks & durability. Product Name: Asian Paints Exterior Wall Putty Asian Paints Exterior Wall putty is a specially designed product based on white cement, redispersible polymer & functional additives for application on exterior rough plasters to give a smooth finish. Product Name: Asian Paints Wood Primer Asian Paints Wood Primer is specially formulated to protect wood. It has an excellent sealing & filling properties which protects wood from swelling due to absorption moisture. Wood Primer penetrates wood fiber & gives excellent adhesion to substrates & also serves as a sound base for application of undercoats & finishing coats. It also protects the finish coat from exudation of resinous matter oozing out from wood. Product Name: Asian Paints Exterior Wall Primer Asian Paints Exterior Primer is water-based wall coating suitable for application on exteriors as an undercoat to exterior emulsions. It has a good opacity & whiteness, which helps improve the appearance of the emulsion top coat. Exterior Wall Primers does not chalk & can be applied on freshly plastered surfaces that are adequately cured. It does not require any water curing.

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Company vision and mission

A TOUCH OF QUALITY IN RELATIONS

Vision
To be a leader in ceramic industry. To uphold quality at every stage and maintain consistency to win the Trust of our Valued Customers Worldwide. To Remain as Innovative Global Leader.

Our mission
Quality in everything we do. Exceed customers expectations. Trust, respect and integrity are the essence in all of our relationships. Continuous improvements, innovations and embrace change Team work and open communication. To foster an environment; enabling the staff to exhibit excellence in work. To create a safe, productive and rewarding work environment. To build a high performing, diverse work force. To promote the responsible consumption of our NATURAL RESOURCES To Preserve and protect the environment and Support communities where we do business.

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Chapter 3: ORGANIZATIONAL STRUCTURE

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Chapter 4: FUNCTIONAL AREA

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1.

Productions and Operations department

Manufacturing Facility Asian Paints along with its subsidiaries has operations in 17 countries across the world and 24 paint manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans. Asian Paints operates in 5 regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. In 7 markets, it operates through its subsidiary, Berger International Limited; in Egypt through SCIB Paints; in 5 markets in the South Pacific it operates through Apco Coatings and in Fiji and Samoa it also operates through Taubmans.

Country No. Countries South Asia 1 India

Manufacturing Plants

Company Location

Bhandup, Kasna,

Ankleshwar, Sriperumbudur,

Patancheru, Rohtak,

Sarigam, Baddi, Taloja 2 3 4 SriLanka Nepal Bangladesh 1 1 1 Asian Paints Asian Paints Asian Paints

South East Asia 5 Singapore 1 Berger International

South Pacific 6 7 8 9 Tonga Fiji Samoa Islands Vanuatu 1 1 1 Asian Paints Asian Paints & Taubmans Taubmans Asian Paints

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10 Middle East 11 12 13 14 Caribbean 15 16 17 Total

Solomon Islands

Asian Paints

Oman Bahrain Dubai Egypt

1 1 1 2

Berger International Berger International Berger International SCIB Paints

Jamaica Barbados Trinidad Tobago

1 1 &1 24

Berger International Berger International Berger International

Supply Chain Asian Paints has harnessed the powers of state-of-the-art supply chain system using cutting edge technology to integrate all its plants, regional distribution centres, outside processing centres and branches in India. All the company's paints plants in India, two chemical plants, 18 processing centres, 350 raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional distribution centres, 72 depots are integrated.

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The supply chain runs through a wide spectrum of functions right from materials planning to procurement to primary distribution. It has played a pivotal role in improving operational efficiencies and creating agile procurement, production and delivery systems. It has also enhanced the flexibility of operations, lowered output time and reduced delivery costs, while improving customer-servicing levels and profitability. The Supply Chain Management is backed by IT efforts that help the company in demand forecasting, deriving optimal plant, depot and SKU combinations, streamlining vendor relationships, reducing procurement costs and scheduling production processes for individual factories.

Decor Ideas Set the mood, live healthy and feel good. Colours give the essential character to any space. Be it the living room or kitchen, bedroom or lounge. In this section, we'll help you achieve striking effects using the right colour combinations. We'll help you understand colours and how you can use them to create a home that resonates with your personality. Glam Decor Timeless, eternal shades that infuse glamour. Traditionally, they have been a part of our culture in fabrics, jewelry, furnishings and accessories. Make a statement of elegance and sophistication in a bold, luxurious ambience. Cool Dcor Tranquil, open and full of optimism, cool is nurturing and soothing. Curtains and bedspreads create an ambience of wide spaces that comforts the senses. In this life of constant stress, such a dcor offers a much-needed retreat. Vibrant Dcor

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Refined or lively, hot and trendy, vibrant dcor adds a dash of spice to everyday life. It can be a radical statement or a classical symphony. Either way a vibrant outlook adds a spirit of youth, revelry and fun! Neutral Dcor Neutral is elegance. It's the modernity of steel and the calmness of winter. Sombre and placid and yet a dignified presence in your home, neutral colours offer a balance to every excess.

Colour Shoppe Colour Next 2009 the latest colour trends for 2009. Colour Next 09 is a celebration of colours born out of imagination and research. It's the outcome of a comprehensive trend mapping exercise conducted by Asian Paints across India, taking into account a variety of factors like international trends, consumer insights and expert opinions. Information from all these sources are then analysed to forecast design themes & colour palettes for the year ahead. The Colour Next 2009 Trend Book gives you all the information you need about Colour Next 2009 with actual colour swatches. Start your day with a dash of colour with the Colour Next 2009 Planner.

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Home Book Colour Next 09 Colour Next 2009 the latest colour trends for 2009. Colour Next 09 is a celebration of colours born out of imagination and research. It's the outcome of a comprehensive trend mapping exercise conducted by Asian Paints across India, taking into account a variety of factors like international trends, consumer insights and expert opinions. Information from all these sources are then analysed to forecast design themes & colour palettes for the year ahead. The Colour Next 2009 Homebook depicts actual roomshots, suggested colour combinations and theme walls for each trend.

Imagine Wall Fashion Imagine Wall Fashion dramatic, stylish wall themes that transform your home, even if you alter nothing else in it. A string of bells turn a room Indian, abstract patterns make it modern, a spray of flowers make it dreamy, and ornate designs give it a sophisticated feel. Along with the themes, our designers have picked accessories and chosen the kind of lighting that would create the perfect ambience.

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Interior Colour Guide & Exterior Colour Guide Combo Colours give the essential character to any space. Choosing colours for your home and making the right combination without the right guides can be a long confusing process. Here is a great combination of guides from Asian Paints, for interiors and exteriors of your house. The Interior Colour Guide helps you zero in on the right colours through an easy-tonavigate structure based on basic colour families. Here's where you'll find 7 unique combinations for each colour family to choose from. You can compare and see how the same room setting looks distinctly different with deeper, medium or lighter tones of the same colour family. A total of 77 colour combinations are waiting to be discovered, in this book. The Exterior Colour Guide: Imagine Exteriors book showcases a number of new and exciting colour combinations that you can use for your home. Just pick your favourite colour combination and flip to that section to see the different possible combinations. These have been carefully selected by architects and designers to ensure that they suit different architectural styles of homes across the country.

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2.

Marketing department

While Asian Paints has grown from a relatively small, decorative paint company to a large business that has a vast consumer customer base, the company's methods of distribution and marketing have only changed slightly over the years. The basic distribution and marketing strategies are still similar to the initial strategies used when the company first opened its doors. Some of these are as follows: Wide Range of Products Page 33

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Asian Paints used the strategy of offering a wide range of products to push competitors to the side and become the leading Indian company in decorative paint. Companies that have a larger selection available for clients or customers are more likely to retain those clients and customers than companies which are limited and do not have the color choices. By offering a wide range of products, Asian Paints has been able to broaden its customer base. Automated Machines at Distributors Technology is a large part of Asian Paints' distribution success. According to a distribution strategy case study of Asian Paints, the company provided automated machines that mixed paint colors at the distributors to allow customers and consumers more range in color and more options. These machines use technology to produce colors that otherwise are unavailable, resulting in a wider range of selection Distribute to Rural Areas A big problem with paint companies in India was a competitive market in the large cities, where distribution was relatively easy and the risks were low. Asian Paints started by working from the rural areas, where distribution was a challenge and where the other companies had overlooked. Instead of focusing in cities and urban areas, Asian Paints focused on a national level and worked in until reaching the cities. Focus on Emerging Markets Expanding from India, Asian Paints started working on distributing decorative paints to emerging economies. It is a similar strategy to the initial strategy used in India, but it is now expanding to countries and locations outside of India. Rather than distribute to economies like the U.S., Asian Paints has turned its focus to customers in places like Singapore and Egypt. Retail Initiatives In the early 90s, for the first time in the paint industry Asian Paints offered the consumer over 150 shades. The concept was extended to the dealer shops through Colour World in the mid-90s, where Asian Paints began offering over 1000 shades. The introduction of Colour World provided a new direction for the paint industry into the age of retailing by T.JOHN COLLEGE, BANGALORE Page 34

providing the consumer - a service interface. With only a limited set of bases and colourants, manufactured and transported throughout the supply chain, Asian Paints provided a choice of innumerable shades to the customer through a technology of tinting at the last retail store. It has been our endeavour to reach out to our customers not only with our products but also with value-added services and initiatives. The Asian Paints Helpline introduced few years ago is a toll free service where consumers call and ask queries related to painting. The company has now extended this service to ASIAN PAINTS HOME SOLUTIONS, which offers painting services in addition to the paint. This service is available in 10 cities viz - Hyderabad, Bangalore, Kolkata, Delhi, Chennai, Ahmedabad, Mumbai, Pune, Coimbatore & Cochin. The company entered into a new foray of prediction of colour trends in India. Intensive research is carried out with interior designers, architects and the fashion community to arrive at trend movements in colour each year. The study being done for the second year is termed ColourNEXT 2006, which is a collection of 15 shades predicted to be the trendiest and most happening colours which helped consumers get an insight into the latest trends along with deciding their colour combinations for a range of products ranging from furnishings, floorings to home accessories. Another important area was the offer of painting solutions for children with the launch of Kids World. A foray into Kids' World marks yet another milestone wherein the company offers painting designs for Kids Rooms as well as Kids Corners. For the first time, an attempt has been made to invite the customer to get into a Do-It-Yourself mode with these designs. Royale Play is another innovative concept introduced by the company. It is a collection of innovative and ready-to-use special effect finishes for interior walls, comprising a range of special effects. And each of these effects are available in a shade palette that is fitting for that effect in interesting colour combinations. The revolutionary product gives wall paint a whole new usage. Now, along with colour, you can give your walls dimension, texture and life.

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Marketing

Strategy

Lead Generation

Lead Conversion

Customer Service

Ideal Customer

Advertising Ideal Customer

Sales

Loyalty

Core Message

Core Public Message Relation

Nurturing

Community

Marketing Materials

Marketing Referrals Materials

Transaction

Referrals

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PRODUCT PORTFOLIO:

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Pricing Strategy Owing to the fact that the Indian paints industry is an oligopolistic market, Asian Paints adopted a policy of cost-plus pricing strategy. Cost-plus pricing strategy determines the price of a product or a service by adding up all direct and indirect costs which are related T.JOHN COLLEGE, BANGALORE Page 38

with the production and sale of that product (or service). In this strategy, all the costs are first taken up as unit costs per product and then a pre-determined proportion of these costs are marked as MRP. Positioning Strategy

PREMIUM PRICE ROYALE APCOMIN SYNTHETIC ENAMEL APCO POWDER DECORATIVE PAINTS INDUSTRIAL PAINTS TRACTOR EMULSION APEX APCOLITE

UTSAV LOW PRICE LOW PRICE

Promotional Activities
Asian paints is the market leader of the decorative segment in the paint market of the India. As it is not for behind in the other tow section ,that is, industrial coating and T.JOHN COLLEGE, BANGALORE Page 39

automotive coating. In order to achieve the current position, a lot things are being done by the Asian paints. The promotion strategy of Asian paints is bringing a lot of positive output to the company. The organization is using different techniques such advertising campaign, sales promotion, personal selling, direct marketing and public relation, trade shows, specialty advertising and many others. The taglines of various products have ruled the minds of the consumers and the current brand ambassador, Bollywood Actor Saif Ali Khan, has further enhanced the organizations appeal.

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3. Finance department
Asian Paints have always performed better in contrast with its competitors. The organizations net revenue from operations (standalone) increased by 25.7% in the financial year 2011-12 and net revenue from operations (group) increased by 24.7%. The EPS of the company is Rs 102.44.

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Mar '12 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

Mar '11 12 mths

Mar '10 12 mths

Mar '09 12 mths

95.92 95.92 0.00 0.00 2,391.86 0.00 2,487.78 17.01 151.21 168.22 2,656.00 Mar '12 12 mths

95.92 95.92 0.00 0.00 1,879.40 0.00 1,975.32 23.43 40.70 64.13 2,039.45 Mar '11 12 mths

95.92 95.92 0.00 0.00 1,461.30 0.00 1,557.22 25.59 40.70 66.29 1,623.51 Mar '10 12 mths

95.92 95.92 0.00 0.00 998.55 0.00 1,094.47 24.59 40.70 65.29 1,159.76 Mar '09 12 mths

Application Of Funds Gross Block 1,659.51 Less: Accum. Depreciation 650.47 Net Block 1,009.04 Capital Work in Progress 827.30 Investments 542.22 Inventories 1,264.42 Sundry Debtors 500.24 Cash and Bank Balance 450.94 Total Current Assets 2,215.60 Loans and Advances 361.22 Fixed Deposits 50.03 Total CA, Loans & Advances 2,626.85 Deffered Credit 0.00 Current Liabilities 1,929.18 Provisions 420.23 Total CL & Provisions 2,349.41 Net Current Assets 277.44 Miscellaneous Expenses 0.00 Total Assets 2,656.00 T.JOHN COLLEGE, BANGALORE Contingent Liabilities Book Value (Rs) 414.71 259.36

1,611.22 554.03 1,057.19 67.32 1,034.76 1,071.76 366.68 20.28 1,458.72 270.88 0.19 1,729.79 0.00 1,511.37 338.24 1,849.61 -119.82 0.00 2,039.45 505.87 205.93

1,194.39 486.93 707.46 380.72 703.69 763.14 331.43 28.58 1,123.15 241.68 0.02 1,364.85 0.00 1,229.04 304.17 1,533.21 -168.36 0.00 1,623.51 223.80 162.35

1,116.93 494.02 622.91 164.64 234.77 546.71 311.02 128.05 985.78 186.37 0.21 1,172.36 0.00 849.08 185.84 1,034.92 137.44 17.94 0.00 0.00 1,159.76 42 Page 356.87 114.10

4.

Human Resource department

Asian Paints believes that people are its strongest assets, for a company can go only as high as its people aim. It is people who innovate and invent, and who engineer the efficiencies that make a business succeed. It is they who drive growth and lead to greater heights. At Asian Paints, the human resources systems are designed to create a focused, performance oriented and agile company. A talent pool of over 4700 employees employed across 23 countries bring in a unique blend of mindsets and skills. Several initiatives, which began in the year 2010, started taking shape in the following years. Learnscape, People Review process and Employee Engagement are few such initiatives where noticeable consolidation over last years work were seen. In the organization, several initiatives under Voice of Employee agenda were taken up for implementation making a good beginning to responding to employee needs. T.JOHN COLLEGE, BANGALORE Page 43

A repertoire of courses available through e-learning is gaining momentum within the company which includes partnerships with reputed global organizations like Harvard Business Publishing and Skill soft. These have received encouraging feedback from employees as well. An open and interactive work culture brings out the best in the people. A sense of ownership and freedom to experiment at their workplace brings out creativity and innovation in every individual. Excellent training is provided to develop leaders and restrengthen competencies from within the organization. Besides encouraging achievers from within the organization, Asian Paints absorb the best talent from some of the best management and technology institutes in the country. The people are selected on the basis of being best suited to the job and whose personal goals are in alignment with the organizations corporate purpose. Thus, the task is cut out for every individual within the framework of result-orientation, market insight, customer perspective, trust, respect and problem solving. The commitment of the employees and their sense of discipline and ownership continues to drive growth for the company.

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Human Resource functions

Hiring Promotions Reassignments Position classification and grading Salary determination Performance appraisal review and processing Awards review and processing Personnel data entry and records maintenance Consultation and advisory services to management and employees
o o

Conduct problems Performance problems

Policy development Technical policy interpretation Work Permitting Immigration Visa Program Benefits
o o o o o o o o o

Health care insurance Life insurance Disability insurance Retirement Voluntary accidental death and dismemberment insurance Leave Transfer Program Tuition Assistance Plan Training opportunities Combined Federal Campaign

Employee assistance referral

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Human Resources is exactly it says: resources for humans within the workplace! Its main objective is to meet the organizational needs of the company it represents and the needs of the people hired by that company. In short, it is the hub of the organization serving as a liaison between all concerned. Depending on the size of the company, the HR Department might be called Personnel with a manageable workforce that can be handled by a personnel manager and a small staff. For larger, more complex organizations with hundreds of departments and divisions, the task is much more demanding, taking on a life of its own. Some companies have more than one HR Department - Corporate and Union . For example, a food service industry might have a Corporate HR Department that oversees white collared" employees and an HR Department that oversees the blue collar" workforce with an emphasis on labor relations. The organization will, thus, institute these two HR Departments to manage the unique needs of both union and non-union employees. Organizational Development: To ensure its success, a company must establish a hierarchal reporting system. The funnel of responsibility is critical to the efficiency of a smoothly operating business entity in which there is a clearly defined understanding of who is responsible for what. They provide consultation to a company's management team to identify what the company's core business and culture is about, and proceeds to plan and map the company's organizational infrastructure to support those needs. Employee Recruitment and Selection Process: There are many steps to recruiting and selecting qualified employees. First, a department head must inform the HR manager of an opening in their department. Then the HR manager must obtain the job description to formulate a Job Description Sheet for publication either internally, publicly, or both. Then HR must field the (many) responses to that job announcement to weed out the qualified from the unqualified applicants. Once that is completed, the interview process must be coordinated. They prepare the job description, contact the newspaper, run the ad, field the calls, compile a list of potential candidates, submit that list to the department's hiring manager for approval and selection, contact the chosen candidates to set up preliminary interviews, and interview the candidates! Although most interviews are with the hiring manager or their associates, not all applicants get to meet with the department's hiring manager right away. It is not uncommon for a company to filter out those who fail to impress the HR manager first. For those select few who make it T.JOHN COLLEGE, BANGALORE Page 47 through, the HR manager schedules interviews between the department's hiring manager and potential candidates, and follows up with the hiring process to establish the new hire with the

SWOT ANALYSIS
Strengths Importance of brand image as barriers to new entrants Good technology backup Wide distribution channel Effective retail initiatives Weakness Raw materials prices being very volatile Requirement of high working capital Real estate becoming expensive day-by-day Opportunities Fiscal incentives provided by Government. Investment moving from Commodity to FMCG Rise in disposable income Threats Foreign companies entering as sole players High technology instant spot fixing colour Margin across industry is under pressure due to surging inflation Uncertain macroeconomic challenges

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Findings/Recommendations & Conclusion

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FINDINGS

1. The focus on the Human Resource Department is not adequately emphasized. 2. Majority of the respondents opinion about Asian paints price is high. 3. Marketing Department is not well organized. They are weak in distribution network. 4. The quality of Asian paint is excellent. 5. Waste management has not been given adequate emphasis. 6. Machines are not placed systematic and properly in the organization.

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Recommendation
Asian Paints started its journey in 1942 with four young men and the companys name was randomly picked from a telephone directory. The brand has travelled from that garage to become over a crore brand and has an iconic status in the minds of its stakeholders. For such a promising organization it is very important that the top management lays out appropriate strategic moves and implements it. There are some big competitors who can gain advantage in case Asian Paints does not perform well. Following are some of the recommendations that the organization may look into: The organization should try to capture the markets where its products are not widely distributed whereas its competitors have a good presence. More and more R &D activities should be encouraged so as to develop new products that may outperform the currently available ones such as no-odor releasing paints. Although the market conditions in todays scenario is volatile, yet the organization manages to successfully handle its operational issues. One such related issue is the margin that should be protected in difficult times.

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Conclusion
The present report takes a tour of some of the critical functions that Asian Paints performs. At the end of the study it can be said the organization has effectively fine tuned its strategies with changing times and volatile environment. There are some strong contenders in the Indian Paints Industry. But despite that the brand Asian Paints has successfully created a separate identity for itself through its consistent efforts to produce top quality paints and market them well. The share price and the organizations performance on the stock exchange speaks about how much the stakeholders believe in it. There are many up-coming strategies that are in Asian Paints pipeline. With the implementation of these strategies and the revival of market conditions, the organization is sure to have a profound presence and give its competitors a tough challenge.

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BIBLIOGRAPHY

Company website: o WWW. ASIAN PAINTS.COM

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