1

I NTRODUCI NG THE ASI AN PAI NTS GROUP

Asian Paints is Indias largest paint company and Asias third largest paint company, with a turnover of Rs
127.15 billion. The group has an enviable reputation in the corporate world for professionalism, fast track
growth, and building shareholder equity. Asian Paints operates in 17 countries and has 23 paint
manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, the
group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB
Paints and Taubmans.
Asian Paints was included in Forbes Asias Fab 50 list of Companies in Asia Pacific in 2011, 2012 and
2013. Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the
World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company. Asian Paints is the
only paint company in the world to receive this recognition. Forbes has also ranked Asian Paints among the
Best under a Billion companies in Asia in 2005, 2006 and 2007.
The company has come a long way since its small beginnings in 1942. Four friends who were willing to take
on the world's biggest, most famous paint companies operating in India at that time set it up as a partnership
firm. Over the course of 25 years Asian Paints became a corporate force and India's leading paints company.
Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints
since 1967. Today it is double the size of any other paint company in India. Asian Paints manufactures a
wide range of paints for Decorative and Industrial use.
In Decorative paints, Asian Paints is present in all the four segments v.i.z Interior Wall Finishes, Exterior
Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative concepts in the Indian paint
industry like Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids
World (painting solutions for kids room), Colour Next (Prediction of Colour Trends through in-depth
research) and Royale Play Special Effect Paints, just to name a few.
Asian Paints has always been ahead when it comes to providing consumer experience. It has set up a
Signature Store in Mumbai & Delhi in India, where consumers are educated on colours and how it can
change their homes.
Vertical integration has seen it diversify into products such as Phthalic Anhydride and Pentaerythritol, which
are used in the paint manufacturing process. Asian Paints also operates through PPG Asian Paints Pvt Ltd
(50:50 JV between Asian Paints and PPG Inc, USA, one of the largest automotive coatings manufacturer in
the world) to service the increasing requirements of the Indian automotive coatings market. Asian Paints has
2

formed another 50:50 JV with PPG named Asian Paints PPG Pvt Ltd to service the protective, industrial
powder, industrial containers and light industrial coatings markets.
I NTERNATI ONAL PRESENCE
Today the 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 viz. Asian Paints, Berger
International, SCIB Paints, Apco Coatings and Taubmans. 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)
The company has a dedicated Group R&D Centre in India and has been one of the pioneering companies in
India for effectively harnessing Information Technology solutions to maximize efficiency in operations.

About Us
70 years of innovation in paint
Since its foundation in 1942, Asian Paints has come a long way to become Indias largest and Asias third
largest paint company, with a turnover of Rs. 127.15 billion. Asian Paints operates in 17 countries and has 23
paint manufacturing facilities in the world servicing consumers in over 65 countries.
Asian Paints has always been a leader in the paint industry, pushing new concepts in India like Colour
Worlds, Home Solutions, Colour Next, and Kids World.
History
All great things start small
The company has come a long way since its small beginnings in 1942. It was set up as a partnership firm by
four friends who were willing to take on the world's biggest, most famous paint companies operating in India
at that time. Over the course of 25 years, Asian Paints became a corporate force and India's leading paints
company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader
in paints since 1967. Today, it is double the size of any other paint company in India. Asian Paints
manufactures a wide range of paints for decorative and industrial use.
3

Balance Sheet of Asian Paints
------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10


12 mths 12 mths 12 mths 12 mths 12 mths


Sources Of Funds

Total Share Capital 95.92 95.92 95.92 95.92 95.92

Equity Share Capital 95.92 95.92 95.92 95.92 95.92

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 3,505.01 2,926.34 2,391.86 1,879.40 1,461.30

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 3,600.93 3,022.26 2,487.78 1,975.32 1,557.22

Secured Loans 6.65 9.28 17.01 23.43 25.59

Unsecured Loans 32.86 37.48 151.21 40.70 40.70

Total Debt 39.51 46.76 168.22 64.13 66.29

Total Liabilities 3,640.44 3,069.02 2,656.00 2,039.45 1,623.51


Mar '14 Mar '13 Mar '12 Mar '11 Mar '10



12 mths 12 mths 12 mths 12 mths 12 mths


4

Application Of Funds

Gross Block 2,908.10 2,803.73 1,659.51 1,611.22 1,194.39

Less: Accum. Depreciation 895.90 701.84 650.47 554.03 486.93

Net Block 2,012.20 2,101.89 1,009.04 1,057.19 707.46

Capital Work in Progress 37.95 52.55 827.30 67.32 380.72

Investments 1,030.19 449.70 542.22 1,034.76 703.69

Inventories 1,665.05 1,480.79 1,264.42 1,071.76 763.14

Sundry Debtors 712.36 633.88 500.24 366.68 331.43

Cash and Bank Balance 745.36 566.86 450.94 20.28 28.58

Total Current Assets 3,122.77 2,681.53 2,215.60 1,458.72 1,123.15

Loans and Advances 478.60 362.61 361.22 270.88 241.68

Fixed Deposits 0.00 0.00 50.03 0.19 0.02

Total CA, Loans & Advances 3,601.37 3,044.14 2,626.85 1,729.79 1,364.85

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 2,423.55 2,078.94 1,929.18 1,511.37 1,229.04

Provisions 617.72 500.32 420.23 338.24 304.17

Total CL & Provisions 3,041.27 2,579.26 2,349.41 1,849.61 1,533.21

Net Current Assets 560.10 464.88 277.44 -119.82 -168.36

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

5

Total Assets 3,640.44 3,069.02 2,656.00 2,039.45 1,623.51


Contingent Liabilities 447.75 464.28 414.71 505.87 223.80

Book Value (Rs) 37.54 315.08 259.36 205.93 162.35


















6

Standalone Profit & Loss
account
------------------- in Rs. Cr. -------------------
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths


Income

Sales Turnover 10,418.78 8,971.70 9,139.39 7,244.59 5,794.09

Excise Duty 0.00 0.00 812.31 638.57 426.37

Net Sales 10,418.78 8,971.70 8,327.08 6,606.02 5,367.72

Other Income 163.70 126.15 90.43 72.38 150.61

Stock Adjustments 75.34 175.91 143.78 157.54 130.83

Total Income 10,657.82 9,273.76 8,561.29 6,835.94 5,649.16

Expenditure

Raw Materials 6,044.66 5,361.00 4,866.63 3,812.47 2,966.23

Power & Fuel Cost 114.65 101.65 74.29 65.98 47.03

Employee Cost 482.43 404.59 343.51 302.34 262.73

Other Manufacturing Expenses 0.00 0.00 77.05 61.46 52.30

Selling and Admin Expenses 0.00 0.00 1,672.74 1,331.85 1,119.89

Miscellaneous Expenses 2,075.11 1,733.10 36.77 28.19 17.41

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 8,716.85 7,600.34 7,070.99 5,602.29 4,465.59

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10


12 mths 12 mths 12 mths 12 mths 12 mths


Operating Profit 1,777.27 1,547.27 1,399.87 1,161.27 1,032.96

PBDIT 1,940.97 1,673.42 1,490.30 1,233.65 1,183.57

Interest 26.08 30.56 27.88 16.34 19.10

PBDT 1,914.89 1,642.86 1,462.42 1,217.31 1,164.47

Depreciation 212.32 126.98 99.49 94.48 60.74

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 1,702.57 1,515.88 1,362.93 1,122.83 1,103.73

Extra-ordinary items 0.00 0.00 2.38 4.22 7.23

7

PBT (Post Extra-ord Items) 1,702.57 1,515.88 1,365.31 1,127.05 1,110.96

Tax 533.51 465.88 406.92 351.90 336.46

Reported Net Profit 1,169.06 1,050.00 958.39 775.15 774.50

Total Value Addition 2,672.19 2,239.34 2,204.36 1,789.82 1,499.36

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 508.37 441.23 383.69 306.94 258.98

Corporate Dividend Tax 82.02 74.29 62.24 50.11 43.33

Per share data (annualised)

Shares in issue (lakhs) 9,591.98 959.20 959.20 959.20 959.20

Earning Per Share (Rs) 12.19 109.47 99.92 80.81 80.74

Equity Dividend (%) 530.00 460.00 400.00 320.00 270.00

Book Value (Rs) 37.54 315.08 259.36 205.93 162.35














8

FINALCIAL RATIO
Asian Paints Previous Years

------------------- in Rs. Cr. -------------------



Mar
'14
Mar '13 Mar '12 Mar '11 Mar '10


Investment Valuation Ratios

Face Value 1.00 10.00 10.00 10.00 10.00

Dividend Per Share -- -- -- -- --

Operating Profit Per Share (Rs) 20.83 180.56 161.02 137.42 129.09

Net Operating Profit Per Share (Rs) 132.56 1,191.34 1,042.76 833.82 723.97

Free Reserves Per Share (Rs) -- -- 275.64 217.15 167.37

Bonus in Equity Capital 97.98 97.98 97.98 97.98 97.98

Profitability Ratios

Operating Profit Margin(%) 15.71 15.15 15.44 16.48 17.83

Profit Before Interest And Tax Margin(%) 13.63 13.66 14.13 14.92 16.49

Gross Profit Margin(%) 13.78 13.80 14.23 15.06 16.62

Cash Profit Margin(%) 11.81 11.35 11.33 12.18 12.57

Adjusted Cash Margin(%) 11.81 11.35 11.33 12.18 12.57

Net Profit Margin(%) 9.48 9.65 9.81 10.44 11.93

Adjusted Net Profit Margin(%) 9.48 9.65 9.81 10.44 11.93

Return On Capital Employed(%) 44.08 46.71 48.42 52.84 62.58

Return On Net Worth(%) 30.17 32.91 35.97 38.54 48.86

Adjusted Return on Net Worth(%) 31.50 34.17 37.11 39.81 46.58

Return on Assets Excluding Revaluations 42.11 352.83 286.54 228.05 178.27

Return on Assets Including Revaluations 42.11 352.83 286.54 228.05 178.27

Return on Long Term Funds(%) 46.22 49.29 52.76 56.87 68.21

Liquidity And Solvency Ratios

Current Ratio 1.25 1.24 1.16 1.01 0.94

Quick Ratio 0.74 0.72 0.66 0.47 0.49

Debt Equity Ratio 0.06 0.07 0.12 0.11 0.13

Long Term Debt Equity Ratio 0.01 0.01 0.03 0.03 0.04

9

Debt Coverage Ratios

Interest Cover 44.68 46.16 41.79 57.56 42.57

Total Debt to Owners Fund 0.06 0.07 0.12 0.11 0.13

Financial Charges Coverage Ratio 50.50 50.38 42.33 55.71 35.26

Financial Charges Coverage Ratio Post Tax 35.69 35.61 30.09 39.25 26.01

Management Efficiency Ratios

Inventory Turnover Ratio 6.14 6.88 7.10 6.96 8.09

Debtors Turnover Ratio 12.16 12.96 14.62 14.18 12.46

Investments Turnover Ratio 6.14 6.88 7.10 6.96 8.09

Fixed Assets Turnover Ratio 3.65 3.48 4.95 4.17 4.82

Total Assets Turnover Ratio 2.96 3.14 3.23 3.30 3.59

Asset Turnover Ratio 3.06 3.26 3.48 3.51 4.82



Average Raw Material Holding -- -- 45.87 52.75 44.22

Average Finished Goods Held -- -- 43.53 41.62 37.23

Number of Days In Working Capital 33.40 31.56 25.91 10.25 4.06

Profit & Loss Account Ratios

Material Cost Composition 58.70 57.99 59.75 58.18 55.90

Imported Composition of Raw Materials
Consumed
-- -- -- -- --

Selling Distribution Cost Composition -- 4.39 16.07 15.95 15.62

Expenses as Composition of Total Sales -- -- -- -- --

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 48.43 46.28 45.10 42.34 36.17

Dividend Payout Ratio Cash Profit 40.31 40.64 40.17 37.33 32.88

Earning Retention Ratio 53.62 55.43 56.29 59.01 62.05

Cash Earning Retention Ratio 61.12 60.69 60.93 63.72 65.66

AdjustedCash Flow Times 0.16 0.18 0.29 0.24 0.26