The SWOT Analysis of Asian Paints focuses on the strengths, weaknesses, opportunities, and threats of the company. Strengths and weaknesses are the internal factors and opportunities and threats are the external factors that affect Asian Paints. Let look at The Overview of the company before moving into SWOT Analysis Of Asian Paints.
Overview Of Asian Paints
Asian Paints Ltd is an Indian multinational paint company headquartered in Mumbai. The company is engaged in the manufacture, sale, and distribution of paints, coatings, home furnishing and bathroom products, and provision of related services.
Asian Paints is India’s largest and Asia’s third-largest paint company. Asian Paints is the holding company of Berger International. The company generated a turnover of Rs 17,194.1 crores and a profit of Rs 2,654 crores in the financial year 2019-20.
The Company’s manufacturing facilities span 15 countries across the world, including India, with a significant presence in the Indian subcontinent and the Middle East
Indian Paints Industry is estimated at Rs 406 billion, of which the organized sector accounts for about 65%, or Rs 264 billion.
Did You Know?
Asian Paints is India’s largest paint manufacturer with more than 54 percent market share in the paints Industry.
SWOT Analysis Of Asian Paints:
S For Strengths
As an essential component of SWOT, a company’s strength is its asset to plan its expansion. Asian Paints has several strengths that make them one of the largest Paint manufacturing companies in India:
- Largest: Asian Paints is the largest paint company in India and third-largest in Asia.
- Market Share: Asian Paints captured a 50% market share in the Indian paint industry and market leader in decorative paints and strong competitor to Kansai Nerolac Paints in Industrial Paints and Coatings segment.
- Global Presence: They are operating 24 manufacturing units in 17 countries and exporting their products to 65 countries around the world.
- Strong Sub Brands: Berger International LTD, APCO Coatings, SCIB Paints, and Taubmans are owned by Asian Paints which are major brands in Painting Industry.
- Trustable Brand: The most reputed brand in Indian Paint Industry & their strong customer focus and innovative spirit have made them the market leader since 1968.
- Brand Value: Asian Paints was ranked 20th in the top 20 best brands in the Interbrand report by Economic Times. It was also included in the top 20 most innovative companies in the world.
- Strong Supply Chain Management: Superior technologies used to maintain competitive advantage, e.g. supply chain management system that integrates plants, regional distribution centers, external processing centers, etc.,
- Marketing: They have maintained their brand name and increased awareness through unique advertising methods and the involvement of celebrities such as Saif Ali Khan, Deepika Padukone.
W For Weakness
Everyone has positive and negative sides; so does Asian Paints his weaknesses. Though Asian Paints remains a Paint Industry king in India, there are many weaknesses that can become a nightmare for Asian Paints growth.
- Industrial Segment: Limited market share in the industrial coatings segment with Kansai Nerolac and Akzonobel as tough competitors.
- Avg Performance in Global Market: With the exception of Bangladesh, Nepal, and the United Arab Emirates, Asian Paints has underperformed in other overseas countries.
- Market Trends: With the decorative colors Industry Customer, tastes and perceptions change very quickly and products can become obsolete as trends change, so there are production planning and inventory issues.
O Stands For Opportunities
- More Focus on Industrial Segment: Given the current market situation, the company has the opportunity to gain market share in both the industrial and automotive sectors.
- Grocery E-Commerce Growth: India is the sixth-largest food market in the world. E-commerce grocery is growing at a pace of 19 percent year on year.
- Market Expansion: Asian Paints ‘ Vision is to become one of the top five decorative coatings companies in the world. This can be achieved by focusing on the emerging economies of the world.
- High-Tech Manufacturing:Competitors rely on hi-tech processes and Asian paints with good financial and intellectual capital can increase their manufacturing capacity with hi-tech.
T Stands For Threats
- Prone To Slowdown: Any economic downturn has a direct negative impact on the construction industry and consequently the paint industry is also affected.
- Government Regulations: Government rules and regulations relating to the quality of products and production facilities, as environmental policy can affect the companies growth.
- Raw Materials: The raw materials needed in the paint industry control the pricing of paint, and shortages can cause prices to skyrocket, posing a threat to Paint Industry.
- Unorganized Sector: The unorganized sector still accounts for about 35 percent of the market share, which could prove to be a deterrent for the growth of the industry.
SWOT Analysis Of Asian Paints Key Takeaways
The SWOT analysis of Asian Paints highlights where the brand currently stands and its threats in this era. Following the detailed analysis of Asian Paints, Here are Few Important Key Points.
- Asian Paints is India’s largest paint manufacturing company with over 50% market share.
- Asian Paints has one of the best Supply Chain Management systems in the paint industry.
- Unique and Innovative Products and services like Asian Paints Royale Play.
Suggestions:
Following the detailed analysis of Asian Paints, we have few suggestions from Business Mavericks:
- Focus more on industrial category products.
- Increasing Manufacturing using Technology.
- Focusing on international markets.
Asian Paints Competitors
- Jenson & Nicolson India Limited: Jenson & Nicholson (India) was incorporated as a private limited company and is a pioneer in the Indian paint industry, manufacturing a wide range of coatings that include architectural, industrial, and protective varieties. In 1953, the company was converted into a public limited company.
- Kansai Nerolac Paints: Kansai Nerolac Paints Limited is the largest industrial paints and third-largest decorative paints company in India, based in Mumbai. It is a subsidiary of Kansai Paint of Japan. As of 2015, it has the third-largest market share of 15.4% in the Indian paint industry
- AkzoNobel: Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational company that manufactures paints and high-performance coatings for industry and consumers worldwide. Headquartered in Amsterdam, the company operates in more than 80 countries and employs over 32,000 people. Its turnover in 2020 was €8.5 billion.
- Sherwin-Williams: Sherwin-Williams Company is a Cleveland, Ohio-based paint and coatings company.
- Nippon Paints: Nippon Paint Holdings Co, Ltd is a Japanese company that manufactures paints and paint products. It is the fourth largest paint manufacturer in the world, based on sales in 2020
- PPG Industries: PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. Headquartered in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe. It is the largest coatings company in the world by sales, followed by AkzoNobel
