2. Company Overview  India’s largest paint company and Asia’s third largest paint company  Turnover of Rs 96.32 billion.  Asian Paints operates in 17 countries, consumers in over 65 countries 24 paint manufacturing facilities in the world servicing.  The company has come a long way since its small beginnings in 1942.  Company operates in Decorative coatings and Industrial coatings segments across India and in the geographies of Asia, Middle East, Caribbean and South Pacific Islands through its subsidiaries and joint ventures.  In Decorative paints, Asian Paints is present in - Interior Wall Finishes, - Exterior Wall Finishes, - Enamels - Wood Finishes.

3. Business Operations Paints India Decorative Coatings – India Industrial Coatings – India Chemicals India International Operations

4. International Presence  Today the Asian Paints group operates in 17 countries across the world and is the largest paint company in eleven countries  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)

5. International Operations Contributes 13% to the group turnover Began by establishing presence in Fiji in 1978

6. Manufacturing Facilities Country No.Countries Manufacturing Plants Company Location South Asia 1India10Bhandup, Ankleshwar, Patancheru, Kasna, Sriperumbudur, Rohtak, Khandala, Sarigam, Baddi & Taloja 2SriLanka1Asian Paints 3Nepal1Asian Paints 4Bangladesh1Asian Paints South East Asia 5Singapore1Berger International South Pacific 6Tonga Asian Paints 7Fiji1Asian Paints & Taubmans 8Samoa Islands 1Taubmans 9Vanuatu Asian Paints 10Solomon Islands Asian Paints Middle East 11Oman1Berger International 12Bahrain1Berger International 13Dubai1Berger International 14Egypt2SCIB Paints Caribbean 15Jamaica1Berger International 16Barbados1Berger International 17Trinidad & Tobago 1Berger International Total24

7.  Supply Chain - state-of-the-art supply chain system using technology to integrate all its plants, regional distribution centres, outside processing centres and branches in India. - All the company's paints plants in India, two chemical plants, 18 processing centres, 350 raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional distribution centres, 72 depots are integrated.  Information Technology - The successful deployment of ERP, CRM, Business Intelligence and Portal software from leading solution providers and integrated SCM systems has helped improve efficiency in the business as well as increase the transparency and accuracy of information across the company. - Research and Development -Supports Manufacturing in process cycle time reduction & improves productivity by alternate / break through processes -Provides solutions to environmental issues by minimizing waste at the time of generation and also in recycling -Aids Marketing in providing technical tools/USPs to demonstrate and push new products -Support Materials by providing new Raw Materials as alternate to current one to give them negotiating power and also alternate vendors for supply chain flexibility. -Has set up a new Research & Technology centre at Turbhe

9. Shareholding Pattern Promoter and Promoter Group52.79% Indian52.79% Foreign-- Public7.21% Institutions27.18% FII18.64% DII8.54% Non Institutions20.03% Bodies Corporate5.69%

11. Asian Paints V/S Nifty

14. Peer Analysis

15. STP  Segment Caters to all segments with brand Royale aimed at premium segment and rest at mass market.  Target Group Home-owners, industries-hotels, education, healthcare, agro & manufacturing equipment and automobile etc. infrastructure, govt. buildings  Positioning A complete array of products to cater to everyone.

16. SWOT analysis Strengths Market leader: Asian Paints is the largest paint Capacity expansion plans Manufactures PAN Wide distribution network Importance of brand image as barriers to new entrants Goo Superior technologies deployed to achieve maintain the competitive edge The company has strong financials. Weaknesses Industrial business performing below par In decorative paints Industry Customer tastes and perceptions change very fast and products may become obsolete with change in trends International presence restricted to small pockets Seasonal demand and hence in off season it can lead to cash flow problem. Opportunities Fast growing Indian economy: Shorter repainting cycles Growth in the tier II and III towns Steady growth in industry volume Fiscal incentives provided by the government Threats Competition from the world majors Competition from the unorganized sector Slowdown in the economic growth Raw material scarcity and volatlility in prices. Industry growth depends on two factor - Repaint Activity - Construction

17. Porters 5 Forces  Threat of new entrants (High) : Brand, distribution network, working capital efficiency, technology, high capital costs, strong input cost.  Bargaining power of Buyer (Low to Medium) : Customers are more price sensitive because for them number of options are available and decisions are made based on quality, price and differentiating factors. Unorganized market has also have a large chunk of market. High due to availability of high choices. Industrial segment is low margin also buyers of these segments are knowledgeable about their needs. Therefore, price comparison is done effectively by the customers. Which limits the bargaining power of buyers.

18. Porters 5 Forces  Bargaining power of suppliers (High) : Supplier of this material has solid bargaining power (Major raw material is crude based, facing global supply shortage of raw material Titanium Dioxide.  Availability of Substitute (Low to Medium) : In the rural areas lime wash is conventionally used substitute for paints. One alternative option for decorative walls available today is Wallpaper.  Competitive Rivalry (Low to Medium) : About 80% of organized market is created to by the four players. Also, the presence of unorganized market does provide room for competition.

19. CORPORATE GOVERNANCE The Corporate Governance philosophy of the Company is based on the following principles:  Satisfaction of the spirit of the law through ethical business conduct  Transparency and a high degree of disclosure levels.  Truthful communication about how the company is run internally.  A simple and transparent corporate structure driven solely by the business needs.  Strict compliance with Clause 49 of the Listing Agreement as amended from time to time.  Establishment of an efficient corporate structure for the management of the Company's affairs  Management is the trustee of the shareholders' capital and not the owner

20. FCCBs / ECBs  Company does not have exposure to FCCBs ECBs.  Did not accepted any fixed deposits 2011-12  Does not have any outstanding GDRs/ ADRs/ Warrants/ Convertible Instruments as on 20011-12

21. Growth Strategies  Asia-Pacific paint industry was valued at USD40bn accounting for roughly 30-35% of the global paint industry  Indian paint industry accounted for a mere 9% Raising Above the Bell Curve  Domestic  International Domestic  7th Decorative paint plant at Khandala (MH) 300,000 KL  Rohtak has been increased from 150,000 KL to 200,000 KL per annum

25. PE prospective  Risks that the funds are hesitating to take. Execution risk Technology risk Corporate Risk Political risk  BEST GOVERNED COMPANY in 2011

26. Du Pont Analysis Du pont analysis OPERATING EFFICIENCY ASSET USAGE EFFICIENCY FINANCIAL LEVERAGE ROE 08FY10.4%3.5710.493.91 09FY8%3.8912.093.77 10FY14.4%3.3016.928.07 11FY11.7%3.2321.268.08 12FY11.5%3.1327.6910