Asian Paints Ltd

Asian Paints Limited
Public
Traded as BSE: 500820
NSE: ASIANPAINT
Industry Chemicals
Founded 1942
Founders Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil
Headquarters Mumbai, Maharashtra, India
Area served
 Worldwide
Key people
 Ashwin Choksi (Non Executive Chairman)
Ashwin Dani (Non Executive Vice Chairman)
K. B. S. Anand (CEO & MD)
Abhay Vakil (Non Executive Director)
Products Basic and industrial chemicals, decorative paints, industrial (re)finishing products, coatings
Revenue ₹15,852 crore (US$2.2 billion) (2016)[1]
₹2,808 crore (US$390 million) (2016)[1]
₹1,779 crore (US$250 million) (2016)[1]
Total assets ₹6,205 crore (US$860 million) (2016)[1]
Number of employees
 6,067 (2016)[1]
Website www.asianpaints.com

Asian Paints Limited (BSE: 500820, NSE: ASIANPAINT) is an Indian multinational paint company headquartered in Mumbai, Maharashtra.[2] The Company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services. Asian Paints is India's largest and Asia's second largest paints corporation.[3][4][5] As of 2015, it has the largest market share with 54.1% in the Indian paint industry.[6] Asian Paints is the holding company of Berger International.[7]

History

The company was started in a garage in Mumbai by four friends Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil in February 1945. During World War II and the Quit India Movement of 1942, a temporary ban on paint imports left only foreign companies and Shalimar Paints in the market. Asian Paints took up the market and reported annual turn over of ₹ 23 crore in 1952 but with only 2% PBT margin. By 1967 it became the leading paints manufacturer in the country.[8][9]

The four families together held the majority shares of the company. But disputes started over the global rights in 1990s when the company expanded beyond India. The disputes resulted in Choksey selling their 13.7% shares and exiting in 1997. Champaklal died in July 1997 and his son Atul took over. After failed collaboration talks with the British company Imperial Chemical Industries, Choksey's shares were mutually bought by the remainder three family and Unit Trust of India. As of 2008, the Choksi, Dani and Vakil families hold a share of 47.81%.[9]

Marketing and advertising

In 1950s the company launched a "washable distemper", which was a balance between the cheap dry distemper that peeled easily and the more expensive plastic emulsions. Promoting their brand Tractor Distemper, the company used "Don't lose your temper, use Tractor Distemper" in their advertisings.[8] In 1954, "Gattu" – a mischievous boy with a paint bucket in his hand – was launched as mascot. Created by R. K. Laxman, the mascot found appeal with the middle-classes.[10] He was used only in print advertisements and packaging till 1970s and by 1990s was also seen on television advertisements. Gattu helped in bringing the commodity-led business of painters to the actual end users of home-owners.[10] Ogilvy & Mather, the advertising agency associated with Asian Paints, launched marketing strategy by focusing on festive occasions in 1980s with their tag line "Har Ghar Kuch Kehta Hain" (Every home says something about its owner). Relating with festivals and important life events like marriages and child birth, the company advertised it as an occasion to paint homes by connecting on emotional level. In 1990s, the advertisements focused on the home exteriors focusing on how the paints could keep the exteriors timeless.[10] The company revamped its corporate identity in 2000s and axed Gattu as their mascot and later changed its "Asian Paint" logo to a shorter "AP".[10] 123

References

  1. 1 2 3 4 5 "Asian Paints Limited Financial Statements". MoneyControl.com. Retrieved 23 February 2016.
  2. ↑ "Started by four Mumbaikers, how Asian Paints is today one of India's most valued companies". Businessinsider.in. Retrieved November 18, 2016.
  3. ↑ "Asian Paints, Hindustan Unilever top innovative Indian firms on Forbes' list". Ibtimes.co.in. Retrieved November 18, 2016.
  4. ↑ "Shares of Asian Paints jump 7% on good Q1 results". Economictimes.indiatimes.com. Retrieved November 18, 2016.
  5. ↑ "Local people demand jobs in Asian Paints' proposed plant". Thehindu.com. Retrieved November 18, 2016.
  6. ↑ "CMR's India Paints Report 2016 - CyberMedia Research - CMR" (PDF). cmrindia.com. Retrieved November 18, 2016.
  7. ↑ "Asian Paints acquires 96.48% stake in Berger; open offer ends". Economictimes.indiatimes.com. Retrieved November 18, 2016.
  8. 1 2 Saurabh Mukherjea, (2016). The Unusual Billionaires. Penguin UK. ISBN 9789386057679.
  9. 1 2 Geoff Hiscock (2008). India's Global Wealth Club: The Stunning Rise of Its Billionaires and Their Secrets of Success. John Wiley & Sons. p. 211. ISBN 9780470822388.
  10. 1 2 3 4 Pinto, Viveat (12 February 2015). "40 years ago...And now: Gattu's antics coloured Asian Paints' future". Business Standard. Retrieved 19 November 2016.
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