#NSE0048– Trusted Wall Painting, Home Painting & Waterproofing in India – Asian Paints
Company Profile
Asian Paints is India’s largest home decor company with a rich history spanning over 80 years. Founded in 1942, the company has grown from a small paint business into a diversified home decor conglomerate, serving millions of customers across the globe.
Brands and Subsidiaries
Asian Paints operates under several major brands, including:
- Asian Paints: The flagship brand, known for its wide range of wall paints and coatings.
- Berger Paints: Acquired in 1969, it is a well-known name in the paint industry, offering high-quality paints and coatings.
- Apco Coatings: A prominent brand in the Asia-Pacific region, known for its innovative and eco-friendly products.
Product Portfolio
Asian Paints’ extensive product range covers various aspects of home decor and improvement:
- Wall Paints: Offering a variety of interior and exterior paints, from emulsions to enamels, with numerous finishes and textures.
- Wall Coverings: Providing decorative wall coverings in various designs and materials.
- Waterproofing Solutions: Comprehensive solutions for preventing water damage in homes and buildings.
- Texture Painting: Specialized paints and techniques to create textured finishes on walls.
- Wall Stickers: Easy-to-apply stickers for quick and stylish wall decor.
- Mechanized Tools: Tools for efficient and professional painting and decorating.
- Adhesives: High-performance adhesives for various applications in construction and home improvement.
- Modular Kitchens: Customizable kitchen solutions combining functionality and aesthetics.
- Sanitaryware: A range of bathroom fixtures and accessories.
- Lighting: A selection of lighting solutions for different spaces and requirements.
- Soft Furnishings: Includes items like curtains, upholstery, and cushions to enhance home interiors.
- uPVC Windows: Durable and energy-efficient window solutions.
Market Presence
With a strong presence in India and operations in 15 countries, Asian Paints serves a diverse customer base. The company has a vast network of dealers and service providers, ensuring accessibility and support for its extensive product range.
Financial Highlights
- Market Capitalization: ₹2,69,000 crore
- Stock P/E (Price-to-Earnings Ratio): 49
Brand Portfolio
Asian Paints boasts a strong portfolio of leading brands, enhancing its dominance in the home decor and improvement market. The notable brands under its umbrella include:
- Asian Paints: The flagship brand known for its extensive range of paints and coatings.
- Sleek: Specializing in modular kitchens and storage solutions.
- Berger Paints: Acquired in 1969, providing high-quality paints and coatings.
- Weather Seal: Known for its waterproofing solutions.
- Apco Coatings: A leading name in the Asia-Pacific region, offering eco-friendly products.
- Taubmans: Recognized for premium paint products.
- Kadisco: A significant player in the African paint market.
- Scib Paints: Known for its wide range of decorative and industrial coatings.
Innovations and Achievements in FY23
- Patents Filed: 25
- Patents Granted: 10
- Total Patents by FY23: 49
Product Development in FY23
- New Products Launched: 22
Asian Paints: Geographical Revenue Distribution for FY23
Asian Paints has a significant presence across various regions, contributing to its robust financial performance. Here’s a breakdown of the company’s geographical revenue distribution for FY23:
- Asia: 44%
- The largest revenue contributor, reflecting the company’s strong market presence and extensive operations in its home continent.
- Middle East: 29%
- A significant market for Asian Paints, showcasing its strong foothold and growth in this region.
- Africa: 22%
- Demonstrates the company’s expanding influence and successful market penetration in the African continent.
- South Pacific: 4%
- A smaller yet noteworthy segment, indicating Asian Paints’ reach in the South Pacific region.
Key Highlights
- Leading Wallpaper Manufacturer: Under the brand NILAYA, Asian Paints is a prominent name in the wallpaper segment, offering a variety of designs and textures to cater to diverse consumer preferences.
- Retail Network:
- Retail Touchpoints: The company boasts over 150,000 retail touchpoints across India, ensuring widespread availability and easy access to its products.
- Beautiful Home Stores: With 42 stores, these specialized outlets provide a comprehensive range of home decor solutions, offering customers a unique and immersive shopping experience.
- Global Reach: Asian Paints serves more than 60 countries, showcasing its strong international presence and ability to cater to a global market.
- Business Influencers and Supplier Network:
- Business Influencers: The company collaborates with over 240,000 business influencers, including architects, interior designers, and contractors, to drive product adoption and brand loyalty.
- Supplier Base: A robust network of more than 20,000 suppliers ensures a reliable supply chain, supporting the company’s extensive operations and product diversity.
Manufacturing Facilities
Asian Paints has a significant manufacturing footprint, both domestically and internationally:
- India: 11 manufacturing facilities
- International: 17 manufacturing facilities
New Manufacturing Facility
Asian Paints is making a significant investment to expand its manufacturing capabilities in India, focusing on advanced and environmentally friendly products.
Investment and Capacity
- Proposed Investment: Approximately ₹2,100 crores over a period of 3 years.
- Installed Capacity:
- VAM (Vinyl Acetate Monomer): 1 lakh TPA (Tons Per Annum)
- VAE (Vinyl Acetate Ethylene Emulsion): 1.5 lakh TPA
Strategic Significance
- Next-Generation Emulsion:
- VAE: This is an environment-friendly emulsion based on unique VAM technology. The development of VAE will provide Asian Paints with a robust competitive edge in the coatings business, enhancing its product portfolio with sustainable solutions.
Joint Venture and New Manufacturing Facility
Asian Paints has entered into a joint venture to further diversify its product offerings and expand its manufacturing capabilities.
White Cement Manufacturing Facility
- Location: Fujairah, UAE
- Capacity: 2.65 lakh MTPA (Metric Tons Per Annum)
- Investment: Approximately ₹550 crores over the next 2 years
Clinker Grinding Units
- Location: India
- Purpose: To support the white cement manufacturing facility by processing clinker into finished cement.
Strategic Significance
- Diversification: This joint venture allows Asian Paints to enter the white cement market, diversifying its product portfolio beyond paints and coatings.
- Global Expansion: Establishing a manufacturing facility in Fujairah, UAE, enhances Asian Paints’ global footprint and leverages strategic locations for distribution.
- Vertical Integration: Setting up clinker grinding units in India complements the white cement production, ensuring a streamlined supply chain and efficient production process.
New Water-Based Paint Manufacturing Facility
Asian Paints continues to expand its production capabilities with the establishment of a new state-of-the-art manufacturing facility focused on water-based paints.
Facility Details
- Capacity: 4 lakh KLPA (Kilolitres Per Annum)
- Investment: Approximately ₹2,000 crores
- Timeline: Expected to be commissioned 3 years after land acquisition
Key Subsidiaries
- PPG Asian Paints Private Limited
- Stake Held: 50%
- Overview: A joint venture with PPG Industries, this subsidiary focuses on providing innovative solutions in industrial and automotive coatings, leveraging PPG’s global expertise and Asian Paints’ extensive market presence.
- Obgenix Software Private Limited
- Stake Held: 49%
- Overview: This subsidiary highlights Asian Paints’ foray into the software sector, supporting the company’s technological infrastructure and digital initiatives.
- Total Subsidiaries: 24
- Overview: Asian Paints has a total of 24 subsidiaries, reflecting its broad diversification across different segments and geographies, further strengthening its market position.
Strategic Acquisition
- Specialty Chemical and Nanotechnology Player
- Acquisition Details: Asian Paints has signed a definitive agreement to acquire a majority stake in a company specializing in next-generation nanotechnology and specialty chemicals.
- Strategic Significance:
- Technological Capabilities: This acquisition will significantly enhance Asian Paints’ technological capabilities across all product lines.
- Innovation: Access to cutting-edge nanotechnology and specialty chemicals will enable the development of advanced products, offering superior performance and competitive advantages.
In March 2024, the shareholding pattern of Asian Paints is as follows:
- Promoters: Hold a significant majority with 52.63% ownership stake.
- FIIs (Foreign Institutional Investors): Hold 52.63% of the company’s shares.
- DIIs (Domestic Institutional Investors): Own 15.89% of the company’s shares.
- Public: Comprising individual investors and other entities, hold 19.78% of the shares.
Disclaimer-
It’s important to note that discussions like are for informational purposes only and should not be taken as specific We are not SEBI registered investment advisor. Whether analyzing a company’s financial health, examining market trends, or discussing technical chart patterns, the goal is to provide insights and perspectives that can help you make more informed decisions according to your own research and investment strategy. Always consider consulting with a financial advisor or conducting thorough personal research before making any investment decisions.
