This PDF file include the Strategies followed by Asian Paints world wide. It also includes the structure of their organisation and how they enter into other countries in a global perspective

1. Table of Contents
Asian Paints Ltd ...................................................................................................................................... 1
Strategy for Globalisation ...................................................................................................................... 1
1. International Strategy ............................................................................................................ 1
2. Multi domestic/localisation strategy .................................................................................... 2
The corporate strategy of Asian Paints ................................................................................................. 2
Asian Paints as a Value Chain ................................................................................................................ 3
Primary Activities ........................................................................................................................... 3
Supporting Activities ...................................................................................................................... 4
Porter’s Five Forces Model Analysis ...................................................................................................... 5
Indian Scenario ............................................................................................................................... 5
Scenario in Middle East (Egypt, UAE, Bahrain and Oman) ........................................................... 6
Entry Strategies ...................................................................................................................................... 7
Joint Ventures ................................................................................................................................. 7
Greenfield Ventures ....................................................................................................................... 7
Acquisitions .................................................................................................................................... 8
Mergers ........................................................................................................................................... 9
Strategic Alliances .......................................................................................................................... 9
Organisation of International Business of Asian Paints ........................................................................ 9
Bibliography.......................................................................................................................................... 11

2. 1
Asian Paints Ltd
Asian Paints Limited is an Indian chemicals company headquartered in Mumbai, India. It manufactures paints for decorative and industrial use. Asian Paints is India's largest paint company and Asia's third largest paint company. Asian Paints operates in 17 countries and has 23 paint manufacturing facilities in the world servicing consumers in over 65 countries. Asian Paints manufactures a wide range of paints for Decorative and Industrial use. Along with that the company also provides home painting services and solutions. Among Asian Paints’ international businesses, while the Middle East contributes the lion’s share at 51% to revenue, the Caribbean contributes 14%. Asia and South Pacific contribute 27% and 8%, respectively.
Strategy for Globalisation
Asian Paints group operates in 17 countries across the world and is the largest paint company in eleven countries. The group operates in five regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate brands.
The strategy followed by Asian Paints for globalisation is a mix of both International strategy and Multi domestic/localisation strategy.
The points supporting this claim is as follows:-
1. International Strategy
 All the research and development centres of the company is in India. Asian Paints have a Research & Technology centre at Turbhe on the outskirts of Mumbai. PPG Asian Paints, the subsidiary of Asian Paints Ltd have a R&D centre in Mumbai and Chennai.
 Asian Paints have 23 manufacturing facilities around the world. All of these facilities are managed by the corporate office in India.

3. 2
DEFEND
Defend existing market by strengthening existing competencies
DEEPEN
Build complementary/new competency to fortify position in existing market.
2. Multi domestic/localisation strategy
The Group operates as:
 Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka)
 SCIB Paints in Egypt.
 Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman), Caribbean (Jamaica, Barbados, Trinidad & Tobago)
 Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu)
 Taubmans in South Pacific (Fiji and Samoa)
Each of these subsidiaries have their own customised product for the need of that market. Branding and positioning is also done in different way for different markets.
There are 23 manufacturing facilities for Asian Paint, of which most of them are outside India. Each of these use locally available raw materials to manufacture the final product.
The corporate strategy of Asian Paints
New
Market
Opportunities
Existing
Existing New
Distinctive Competencies
DISCOVER
Exploit new markets by creating products/services by leveraging existing competencies differently.
DEVELOP
Build new competency to create the future.

4. 3
Asian Paints as a Value Chain
Supporting Activities
Primary Activities
Primary Activities
1. R&D:-
Research & Development has played a significant role in the growth of the organization. The company has continuously invested in R&D. The company has a dedicated Group R&D Centre in India. PPG Asian Paints has a robust R&D lab in Mumbai that specialises in colour development and troubleshooting.
2. Production
Asian Paints have world class production facilities across the world. The company have 23 manufacturing facilities across the world.
3. Marketing & Sales
Asian Paints puts forward a unique selling proposition. The Rural Marketing Initiatives started since 1960. Distribution is one of the main strategy of Asian Paints. Advertising & Promotional started in 1980s. Advertising Methods include Radio, TVCs, Print, and Internet. Promotional Expenditure grew from 15% in 2003 to 21% in 2008.
Information Systems
Logistics
Human Resource
Company Infrastructure
R&D
Production
Marketing & Sales
Customer Service

5. 4
4. Customer Service
Customers - the very core of all the business activities of Asian Paints. From the beginning, Asian Paints has fostered a customer-centric approach to business. A simple but unbeatable concept of "going where the customer is" drives all our retail strategies. Asian Paints efforts are continuously on to engage the consumer in the painting process and fulfill all the requirements related to the world of painting.
Supporting Activities
1. Information System
Information technology (IT) plays a key role in enabling the company to grow and generate profits. Asian Paints is the only company in India to have integrated Supply Chain Management (SCM) Solution from i2 Technologies, and Enterprise Resource Planning (ERP) solution from SAP. With these IT tools firmly in place and with the backing of an extensive communication platform, Asian Paints is an internally enabled enterprise.
2. Logistics
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. 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.
3. Human Resource
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, human resources systems are designed to create a focused, performance oriented and agile company. A talent pool of over 5000 employees employed across 17 countries bring in a unique blend of mind-sets and skills.

6. 5
Porter’s Five Forces Model Analysis
Indian Scenario
 BARGAINING POWER OF BUYERS
There are two types of buyers. Household users and industrial users. Household users include contractors and the end customers. The contractors have high bargaining power and are more price sensitive. The end customers have a number of options and decision is made based on a number of factors. Industrial users are those who are highly knowledgeable about the product and market. The price comparison is done effectively by this consumers. The bargaining power of consumers is high due to availability of wide choice.
 BARGAINING POWER OF SUPPLIERS
Paint industry is raw material intensive. More than 300 products are required to manufacture the final products. In India there are a large number of suppliers. So there bargaining power is less compared to other factors.
Rivalry among competing sellers
Firms in other industries providing substitute products
Supplier of raw materials and components
Buyers
Potential new entrants

7. 6
 COMPETITIVE RIVALRY
About 80% of the organized market is catered by the top four players of the industry. The current market growth rate provide ample room for all the players of the industry to flourish. Competition may increase as the market gets saturated. The presence of the unorganized market does provide room for competition. Companies in the organised sector focus on brand building. Higher pricing through product differentiation is also followed as a competitive strategy
 AVAILABILITY OF SUBSTITUTES
Lime wash is conventionally used substitute for paints. In decorative paints segments an alternative option is wallpapers. These markets are very small. So the threat of substitutes are very low.
 THREAT OF NEW ENTRANTS
The paint industry in India is dominated by few players making difficult for anyone new entering the industry. Establish foreign players may pose a threat by virtue of the knowledge and expertise. Brand, distribution network, working capital efficiency and technology also play a crucial role.
Scenario in Middle East (Egypt, UAE, Bahrain and Oman)
With an influx of foreign investments in the Middle East, construction has reached new heights in terms of large-scale infrastructural and industrial projects. The Middle East paints and coatings sector earned revenues of $ 2.059 billion in 2010, with estimates to reach $ 3.003 billion by 2017.
 BARGAINING POWER OF BUYERS
The bargaining power of consumers is high due to availability of wide choice. The market is also very price sensitive.
 BARGAINING POWER OF SUPPLIERS
The raw material prices are increasing. Most of the items has to be imported. So the suppliers have a medium bargaining power in this condition.

8. 7
 COMPETITIVE RIVALRY
There are many players in the market. Most of them are big multinational companies. So the competition is tough. A company have to do a lot of marketing in terms of branding and differentiating their product. Price is also a factor because the market is very price sensitive.
 THREAT OF NEW ENTRANTS
The paint and coating market in Middle East was estimated at $ 2.059 billion in 2010 and expected to reach $ 3 .003 billion by 2017 at a compound annual growth rate of 5.5 %. Almost all the big players are already there in the market. So it is difficult to get entry into such a market until the offering is differentiated and can lead to significant cost savings over a period of time.
Entry Strategies
Joint Ventures
1. PPG Asian Paints
Established in March 1997 is a 50:50 joint venture between Asian Paints Limited and PPG Industries, Inc. USA. It was formed with the objective of providing solutions to the paint requirements of Indian Automobile manufacturers. The joint venture brought together two leading companies with strengths in technology, manufacturing and customer insight.
2. Asian Paints PPG
Second 50:50 Joint venture with PPG Industries, Inc., USA was formed in 2012. This JV caters to Protective coatings, floor coatings, road marking paints and powder coatings.
Greenfield Ventures
 APCO
Asian Paint entered South Pacific Islands under the name APCO Coatings. Asian Paints operates in Fiji, Tonga, Solomon Islands and Vanuatu under the brand name of Apco Coatings.

9. 8
Acquisitions
1. Kadisco Chemical Industry, Ethiopia
Asian Paints has marked its entry in Africa by acquiring 51% equity in Kadisco Chemical Industry, Ethiopia. This acquisition will help the company enter other markets of Africa. Africa is an immense opportunity for Asian Paints and with its scale and size, the company can exploit this untapped market, which is growing at a fast pace (especially Nigeria).
2. Taubmans Paints Fiji
Taubmans Paints Fiji, the fourth largest paint company in Fiji, became a part of the Asian Paints family in September, 2003. Taubmans Paints is the dominant player in the project sales segment in the country and is a leader in the neighbouring Samoa Islands. It has two manufacturing facilities, one in Suva (Fiji) and the other in Samoa.
3. SCIB Paints
Founded in 1979, SCIB Paints today is a reputed name and ranks amongst the top five paint companies in Egypt. SCIB Paints became a part of the Asian Paints group in August, 2002.
4. Berger
Berger grew over two hundred and forty years. Transiting smoothly through different eras, it is moving effortlessly from the period of industrial revolution to the period of silicon microchips. Berger International Limited, in November 2002, became a part of the Asian Paints Group.
5. Sleek Group
As part of strategic initiative in the direction of Home Improvement & Décor, Asian Paints identified modern kitchen space as a key opportunity to be explored in synergy with the existing line of decorative paints business in India. In August, 2013 Asian Paints acquired 51% stake in the Sleek Group, which is a major player in the organized modern kitchen space with pan India presence and is engaged in the business of manufacturing, selling and distribution of modular kitchens as well as kitchen components including wire baskets, cabinets, appliances, accessories, etc.

10. 9
Mergers
Pantasia Chemicals Ltd. (PCL) was merged with the Company. The assets and liabilities of the erstwhile PCL are vested with the Company with effect from 1.10.1994
Strategic Alliances
 The company has technical collaborations with PPG of the US for auto paints and powder coatings.
 Asian Paints, via its Singapore-based subsidiary - Berger International - inks a technology and brand licensing agreement with PT Abadi Coatings Solusi, an Indonesian paint company.
 Alliance with Nippon Paints of Japan for auto paints and with Sigma Coating of Holland for marine and anti-corrosion paints.
 The company also have a strategic alliance with Protech Chemicals, Canada.
Organisation of International Business of Asian Paints
CEO
Production
Marketing
Finance
Human Resource
Asia
Middle East
Africa
South Pacific
Singapore

11. 10
The organisation structure in Asian Paints is Global Structure. Structural arrangement in which domestic divisions are given worldwide responsibility for product groups. Adopted by firms that are reasonably diversified. The main advantages are
 Emphasizes functional expertise,
 Tight centralized control
 Relatively lean managerial staff
 Global product divisions operate as profit centres
 Provides a direct line of communication from customer
 Helps R&D to work on development of products that serve the world customer
 Permits managers to gain expertise in technical and marketing aspects of products
 Helps realize location and experience curve economies
 Facilitates the transfer of core competencies

12. 11
Bibliography
1. http://www.asianpaints.com/
2. http://en.wikipedia.org/wiki/Asian_Paints
3. https://www.equitymaster.com/research-it/sector-info/paint/Paints-Sector-Analysis- Report.asp
4. www.falakconsulting.com/SiteAssets/expertise/ideas-and- insights/The%20GCC%20Paint%20Market.pdf
5. http://www.edelresearch.com/showreportpdf-26172/BRAVEHEART_SERIES_- _ASIAN_PAINTS_-_THE_GROWTH_PALETTE-EDEL
6. http://www.bergeronline.com/
7. http://www.apcocoatings.com/
8. http://members.tripod.com/~Umesh_R/paintsprojects/asianpaints
9. http://economictimes.indiatimes.com/asian-paints-ltd/infocompanyhistory/companyid- 14034.cms