Asian Paints

Asian Paints Limited, 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 third 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]

Asian Paints Ltd.
Public
Traded asBSE: 500820
NSE: ASIANPAINT
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
ISININE021A01026
IndustryChemicals
Founded1 February 1942 (1942-02-01)
FoundersChampaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil
Headquarters
Mumbai, Maharashtra
,
India
Area served
Worldwide
Key people
Products
Revenue₹19,349 crore (US$2.7 billion) (2019)[1]
₹3,310 crore (US$460 million)(2019)[1]
₹2,198 crore (US$310 million) (2019)[1]
Total assets₹15,661 crore (US$2.2 billion) (2019)[1]
Number of employees
6,456 (2019)[1]
Websitewww.asianpaints.com

History

The company was started in a garage in Gaiwadi, Girgaum - Mumbai by four friends Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil all four belongs to Jain Family, founded the company 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]

Ownership structure

The company has 12 institutional owners and shareholders that investing through Securities Exchange Commission (SEC). Largest stakeholders include Bridge Builder International Equity Fund, and Touchstone Sands Capital Emerging Markets Growth Fund.[10]

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.[11]

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.[11] 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 Kucch Kehta Hai" (Every home says something). 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.[11] The company revamped its corporate identity in 2000s and axed Gattu as their mascot and later changed its "Asian Paints" logo to the shorter "AP" mnemonic.[11]

gollark: That doesn't actually make it particularly powerful, except by comparsino.
gollark: So powerful! The ability to effect minor cosmetic changes!
gollark: Imagine: giant woolen displays.
gollark: We should be able to wrap wool as a peripheral and set its color.
gollark: Does anyone actually want 1.13 support given that forge mods won't work for a bit?

References
  1. "Asian Paints Limited Financial Statements" (PDF). Asian Paints. Retrieved 23 February 2020.
  2. "Started by four Mumbaikers, how Asian Paints is today one of India's most valued companies". Businessinsider.in. Retrieved 18 November 2016.
  3. "Asian Paints, Hindustan Unilever top innovative Indian firms on Forbes' list". Ibtimes.co.in. Retrieved 18 November 2016.
  4. "Shares of Asian Paints jump 7% on good Q1 results". Economictimes.indiatimes.com. Retrieved 18 November 2016.
  5. "Local people demand jobs in Asian Paints' proposed plant". Thehindu.com. Retrieved 18 November 2016.
  6. "CMR's India Paints Report 2016 - CyberMedia Research - CMR" (PDF). cmrindia.com. Archived from the original (PDF) on 12 November 2016. Retrieved 18 November 2016.
  7. "Asian Paints acquires 96.48% stake in Berger; open offer ends". Economictimes.indiatimes.com. Retrieved 18 November 2016.
  8. Saurabh Mukherjea (2016). The Unusual Billionaires. Penguin UK. ISBN 9789386057679.
  9. 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. Stuff, Publication. "ASIANPAINT Institutional Ownership - ASIAN PAINTS LTD. Stock". fintel.io. Retrieved 2 May 2020.
  11. 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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