SWOT Analysis Of Asian Paints
Asian paint was founded in 1942 by four friends as a partnership and engaged in the business of selling and distribution of paints. It is the largest paint company in India and third largest company in Asia which crossed the turnover of 15000 cr in 2016. This company provides the services over the 70 countries. It is the leading paint manufacturing company in India with a market share of over 50%. The strong competitors of Asian paint are Nerolac Paints.
Asian Paints Strength
- The Asian Paints shown a growth of 10-12 % in the past 5 to 6 years. This is double the size of any paint company in India.
- It has good operating and distribution network operating in 17 countries with 13000 dealers in its network.
- Asian Paints has 26 manufacturing units around the world.
- It has 20th rank in top 20 best brands of economic times and also featured in world top 20 most innovative companies.
- Superior technologies deployed to maintain and achieve the competitive edge like ( SCM ) supply chain management.
- It maintains their brand name by running a good marketing campaign by Saif Ali Khan over the years. Recently Deepika Padukone was chosen as a brand ambassador of Asian Paints Royale Play.
- The company has strong financial conditions. The Royale play is introduced to an amazing concept which is launched in the market by Asian Paints where the painters from the Asian Paints will paint your houses using unique design and colours. All of the painters are professionally trained.
- Asian paints won so many awards like 1995 Corporate Excellence Award from ET and HBSA.
- It has dedicated research and technology facilities with over 200 scientists.
Asian Paints Weakness
- It has a limited market share in auto(about 25 %) & industrial paints segment(about 20% ) when compared to other paint companies like Nerolac paints which has a market share of 43% giving stiff competition.
- Asian paints have low international business except for Bangladesh, Nepal etc. performance is down in overseas countries.
- In decorative paints, the customer taste and varieties change quickly so products become obsolete with a change in varieties hence inventory control and production planning occur.
- Widening products mix puts a strain on administration, production and distribution.
- Developing New projects innovation is adequate.
- No tie up with foreign manufacturing countries.
Asian Paints Opportunities
- There is a good scope for growth, especially in industrial sectors.
- It has many chances to acquire market share in the automobiles as well as industrial sectors as well considering the current market situations.
- Need to focus on automobiles industry in industrial paints segment.
- Asian paints have growth in the Indian economy and developing infrastructure. It has so many chances to increase the revenue in smaller cities.
- Asian paints have good financial and intellectual capital can go for hi-technology.
- The vision of Asian paints is to become one of the top decorative paint companies in the world.
- Asian Paints lead the market due to Royal play.
- Developing market in automobiles industries which accounts for 50% of industrial paint market. Industrial output numbers at 3 years high.
Asian Paints Threats
- Weak monsoon which will reduce rural spending on paints.
- Many economic slowdowns have a direct negative impact on the construction of industrial & paint industries also affected.
- Most of the raw materials required in the paint industries control the pricing of paints and scarcity may cause a rise in prices which can be a threat to a paint industry.
- Nerolac has the higher market share than Asian Paints in future it may capture the entire industrial paint market.
Asian paint is the leading paint company and its turnover of 66.80 billion. The Asian paints are one of the undisputed market’s leaders in the decorative paints industries in India. The aim of the Asian paints is to become a top five decorative paint coating companies in the world. It provides a variety of products in industrial and decorative paints segment of paints.