CHAPTERS

1.1

Financial Statements

A financial statement (or financial report) is a formal record of the financial activities and
position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form easy to
understand. They typically include basic financial statements, accompanied by a management
discussion and analysis:[1]
1. A balance sheet, also referred to as a statement of financial position, reports on a
company's assets, liabilities, andowners equity at a given point in time.
2. An income statement, also known as a statement of comprehensive
income, statement of revenue & expense, P&L orprofit and loss report, reports on
a company's income, expenses, and profits over a period of time. A profit and loss
statement provides information on the operation of the enterprise. These include sales
and the various expenses incurred during the stated period.
3. A statement of changes in equity, also known as equity statement or statement of
retained earnings, reports on the changes in equity of the company during the stated
period.
4. A cash flow statement reports on a company's cash flow activities, particularly its
operating, investing and financing activities.

1.2 Reporting and Interpretation of Financial Statement

Introduction
Financial statements on their own are of limited use. For example: if you were to identify that
a business has made profits of $1 million what does that tell you about the business? Does it
suggest the business is a success? It might, but not if in the previous year they made profits of
$50 million and their closest rival earned profits of $60 million.
It is important that users of financial statements can interpret the financial statements to be
able to draw out valid conclusions. Typically this involves the use of comparisons to prior
years, forecasts and competitors. Users can compare sales and expense figures, asset and
liability balances and cash flows to perform this analysis.

Ratio analysis is widely used to support this process of comparison. Don't forget though that
ratios are calculated using the figures already present in the financial statements. The raw
data is equally useful when performing analysis. Ratios are simply a tool to try and assist
understanding and comparison.
Users of financial statements
When interpreting financial statements it is important to ascertain who are the users of
accounts and what information they need:

shareholders and potential investors primarily concerned with receiving an adequate

return on their investment, but also with the stability/liquidity of the business

suppliers and lenders concerned with the security of their debt or loan

management concerned with the trend and level of profits, since this is the main
measure of their success.

Other potential users include:

financial institutions

employees

professional advisors to investors

financial journalists and commentators.

Ratio analysis
Ratios use simple calculations based upon the interactions in sets of data. For example;
changes in costs of sale are directly linked to changes in sales activity. Changes in sales
activity also have an effect upon wages and salaries, receivables, inventory levels etc. Ratios
allow us to see those interactions in a simple, concise format.
Ratios are of limited use on their own, thus, the following points should serve as a useful
checklist if you need to analyse data and comment on it:

What does the ratio literally mean?

What does a change in the ratio mean?

What is the norm?

What are the limitations of the ratio?

1.3 Financial Analysis Meaning and Concept

Financial analysis (also referred to as financial statement analysis or accounting
analysis or Analysis of finance) refers to an assessment of the viability, stability and profitability
of a business, sub-business or project.
It is performed by professionals who prepare reports using ratios that make use of information
taken from financial statements and other reports. These reports are usually presented to top
management as one of their bases in making business decisions. Financial analysis may
determine if a business will:

Continue or discontinue its main operation or part of its business;

Make or purchase certain materials in the manufacture of its product;

Acquire or rent/lease certain machineries and equipment in the production of its goods;

Issue stocks or negotiate for a bank loan to increase its working capital;

Make decisions regarding investing or lending capital;

Make other decisions that allow management to make an informed selection on various
alternatives in the conduct of its business.

1.4 Tools and Techniques of Financial Statement Analysis:

Following are the most important tools and techniques of financial statement analysis:
1.
2.

Horizontal and Vertical Analysis

Ratios Analysis
1. Horizontal and Vertical Analysis:
Horizontal Analysis or Trend Analysis:
Comparison of two or more year's financial data is known as horizontal analysis, or trend
analysis. Horizontal analysis is facilitated by showing changes between years in both dollar

and percentage form.

Horizontal analysis is facilitated by showing changes between years in both dollar and
percentage form as has been done in the example below. Showing changes in dollar form
helps the analyst focus on key factors t hat have affected profitability or financial position.
Observe in the example that sales for 2002 were up $4 million over 2001, but that this
increase in sales was more than negated by a $4.5million increase in cost of goods sold.
Showing changes between years in percentage form helps the analyst to gain perspective and
to gain a feel for the significance of the changes that are taking place. For example a $1
million increase in sales is much more significant if the prior year's sales were $2 million
than if the prior year's sales were $20 million. In the first situation, the increase would be
50% that is undoubtedly a significant increase for any firm. In the second situation, the
increase would be 5% that is just a reflection of normal progress.
Trend Percentage:
Horizontal analysis of financial statements can also be carried out by computing trend
percentages. Trend percentage states several years' financial data in terms of a base year. The
base year equals 100%, with all other years stated in some percentage of this base.

Vertical Analysis:
Vertical analysis is the procedure of preparing and presenting common size
statements. Common size statement is one that shows the items appearing on it in
percentage form as well as in dollar form.
Each item is stated as a percentage of some total of which that item is a part. Key financial
changes and trends can be highlighted by the use of common size statements.
Common size statements are particularly useful when comparing data from different
companies. For example, in one year, Wendy's net income was about $110 million, whereas
McDonald's was $1,427 million. This comparison is somewhat misleading because of the
dramatically different size of the two companies. To put this in better perspective, the net
income figures can be expressed as a percentage of the sales revenues of each company,
Since Wendy's sales revenue were $1,746 million and McDonald's were $9,794 million,
Wendy's net income as a percentage of sales was about 6.3% and McDonald's was about
14.6%.

2. Ratios Analysis:
Accounting Ratios Definition, Advantages, Classification and Limitations:
The ratios analysis is the most powerful tool of financial statement analysis.Ratios simply
means one number expressed in terms of another. A ratio is a statistical yardstick by means of
which relationship between two or various figures can be compared or measured. Ratios can
be found out by dividing one number by another number. Ratios show how one number is
related to another.

Definition of Accounting Ratios:

The term "accounting ratios" is used to describe significant relationship between figures
shown on a balance sheet, in a profit and loss account, in a budgetary control system or in any
other part of accounting organization.Accounting ratios thus shows the relationship between
accounting data.
Ratios can be found out by dividing one number by another number. Ratios show how one
number is related to another. It may be expressed in the form of co-efficient, percentage,
proportion, or rate. For example the current assets and current liabilities of a business on a
particular date are $200,000 and $100,000 respectively. The ratio of current assets and current
liabilities could be expressed as 2 (i.e. 200,000 / 100,000) or 200 percent or it can be
expressed as 2:1 i.e., the current assets are two times the current liabilities. Ratio sometimes
is expressed in the form of rate. For instance, the ratio between two numerical facts, usually
over a period of time, e.g. stock turnover is three times a year.
Advantages of Ratios Analysis:
Ratio analysis is an important and age-old technique of financial analysis. The following are
some of the advantages / Benefits of ratio analysis:
1.
2.

3.

4.

5.

Simplifies financial statements: It simplifies the comprehension of financial

statements. Ratios tell the whole story of changes in the financial condition of the business
Facilitates inter-firm comparison: It provides data for inter-firm comparison. Ratios
highlight the factors associated with with successful and unsuccessful firm. They also reveal
strong firms and weak firms, overvalued and undervalued firms.
Helps in planning: It helps in planning and forecasting. Ratios can assist
management, in its basic functions of forecasting. Planning, co-ordination, control and
communications.
Makes inter-firm comparison possible: Ratios analysis also makes possible
comparison of the performance of different divisions of the firm. The ratios are helpful in
deciding about their efficiency or otherwise in the past and likely performance in the future.
Help in investment decisions: It helps in investment decisions in the case of
investors and lending decisions in the case of bankers etc.
Limitations of Ratios Analysis:
The ratios analysis is one of the most powerful tools of financial management. Though ratios
are simple to calculate and easy to understand, they suffer from serious limitations.

1.

Limitations of financial statements: Ratios are based only on the information which
has been recorded in the financial statements. Financial statements themselves are subject to
several limitations. Thus ratios derived, there from, are also subject to those limitations. For
example, non-financial changes though important for the business are not relevant by the
financial statements. Financial statements are affected to a very great extent by accounting

2.

3.
4.

5.

6.

7.
8.

conventions and concepts. Personal judgment plays a great part in determining the figures for
financial statements.
Comparative study required: Ratios are useful in judging the efficiency of the
business only when they are compared with past results of the business. However, such a
comparison only provide glimpse of the past performance and forecasts for future may not
prove correct since several other factors like market conditions, management policies, etc.
may affect the future operations.
Ratios alone are not adequate: Ratios are only indicators, they cannot be taken as final
regarding good or bad financial position of the business. Other things have also to be seen.
Problems of price level changes: A change in price level can affect the validity of
ratios calculated for different time periods. In such a case the ratio analysis may not clearly
indicate the trend in solvency and profitability of the company. The financial statements,
therefore, be adjusted keeping in view the price level changes if a meaningful comparison is
to be made through accounting ratios.
Lack of adequate standard: No fixed standard can be laid down for ideal ratios. There
are no well accepted standards or rule of thumb for all ratios which can be accepted as norm.
It renders interpretation of the ratios difficult.
Limited use of single ratios: A single ratio, usually, does not convey much of a
sense. To make a better interpretation, a number of ratios have to be calculated which is likely
to confuse the analyst than help him in making any good decision.
Personal bias: Ratios are only means of financial analysis and not an end in itself.
Ratios have to interpreted and different people may interpret the same ratio in different way.
Incomparable: Not only industries differ in their nature, but also the firms of the
similar business widely differ in their size and accounting procedures etc. It makes
comparison of ratios difficult and misleading.

1.5 Application of available Tools & Techniques for Financial

Analysis of a Company
Financial Analysis is defined as being the process of identifying financial strength and
weakness of a business by establishing relationship between the elements of balance sheet
and income statement. The information pertaining to the financial statements is of great
importance through which interpretation and analysis is made. It is through the process of
financial analysis that the key performance indicators, such as, liquidity solvency,
profitability as well as the efficiency of operations of a business entity may be ascertained,
while short term and long term prospects of a business may be evaluated. Thus, identifying
the weakness, the intent is to arrive at recommendations as well as forecasts for the future of
a business entity.
Financial analysis focuses on the financial statements, as they are a disclosure of a financial
performance of a business entity. A Financial Statement is an organized collection of data
according to logical and consistentaccounting procedures. Its purpose is to convey an

understanding of some financial aspects of a business firm. It may show assets position at
a moment of time as in the case of balance sheet, or may reveal a series of activities over a
given period of times, as in the case of an income statement.
Since there is recurring need to evaluate the past performance, present financial position, the
position of liquidity and to assist in forecasting the future prospects of the organization,
various financial statements are to be examined in order that the forecast on the earnings may
be made and the progress of the company be ascertained.
The financial statements are: Income statement, balance sheet, statement of earnings,
statement of changes in financial position and the cash flow statement. The income
statement, having been termed as profit and loss account is the most useful financial
statement to enlighten what has happened to the business between the specified time intervals
while showing, revenues, expenses gains and losses. Balance sheet is a statement which
shows the financial position of a business at certain point of time. The distinction between
income statement and the balance sheet is that the former is for a period and the latter
indicates the financial position on a particular date. However, on the basis of financial
statements, the objective of financial analysis is to draw informationto facilitate decision
making, to evaluate the strength and the weakness of a business, to determine the earning
capacity, to provide insights on liquidity, solvency and profitability and to decide the future
prospects of a business entity.
There are various types of Financial analysis. They are briefly mentioned herein:
External analysis: The external analysis is done on the basis of published financial
statements by those who do not have access to the accountinginformation, such
as, stock holders, banks, creditors, and the general public.
Internal Analysis: This type of analysis is done by finance and accountingdepartment. The
objective of such analysis is to provide the information to the top management, while
assisting in the decision making process.
Short term Analysis: It is concerned with the working capital analysis. It involves the
analysis of both current assets and current liabilities, so that the cash position (liquidity) may
be determined.
Horizontal Analysis: The comparative financial statements are an example of horizontal
analysis, as it involves analysis of financial statements for a number of years. Horizontal
analysis is also regarded as Dynamic Analysis.
Vertical Analysis: it is performed when financial ratios are to be calculated for one year only.
It is also called as static analysis.

An assortment of techniques is employed in analyzing financial statements. They

are: Comparative Financial Statements, statement of changes in working capital, common
size balance sheets and income statements, trend analysis and ratio analysis.
Comparative Financial Statements: It is an important method of analysis which is used to
make comparison between two financial statements. Being a technique of horizontal analysis
and applicable to both financial statements, income statement and balance sheet, it provides
meaningful information when compared to the similar data of prior periods. The comparative
statement of income statements enables to review the operational performance and to draw
conclusions, whereas the balance sheets, presenting a change in the financial position during
the period, show the effects of operations on the assets and liabilities. Thus, the absolute
change from one period to another may be determined.
Statement of Changes in Working Capital: The objective of this analysis is to extract
the information relating to working capital. The amount of net working capital is determined
by deducting the total of current liabilities from the total of current assets. The statement of
changes in working capital provides theinformation in relation to working capital between
two financial periods.
Common Size Statements: The figures of financial statements are converted to percentages.
It is performed by taking the total balance sheet as 100. The balance sheet items are expressed
as the ratio of each asset to total assets and the ratio of each liability to total liabilities. Thus,
it shows the relation of each component to the whole - Hence, the name common size.
Trend Analysis: It is an important tool of horizontal analysis. Under this analysis,
different items of the financial statements for various periods are calculated
comparison is made accordingly. The analysis over the prior years indicates the
direction. Trend analysis is a useful tool to know whether the financial health of a
entity is improving in the course of time or it is deteriorating.

ratios of
and the
trend or
business

Ratio Analysis: The most popular way to analyze the financial statements is computing
ratios. It is an important and widely used tool of analysis of financial statements. While
developing a meaningful relationship between the individual items or group of items of
balance sheets and income statements, it highlights the key performance indicators, such
as, liquidity, solvency and profitability of a business entity. The tool of ratio analysis performs
in a way that it makes the process of comprehension of financial statements simpler, at the
same time, it reveals a lot about the changes in the financial condition of a business entity.
It must be noted that Financial analysis is a continuous process being applicable to every
business to evaluate its past performance and current financial position. It is useful in various
situations to provide managers the information that is needed for critical decisions. The
process of financial analysis provides theinformation about the ability of a business entity to
earn income while sustaining both short term and long term growth.

CHAPTER-I

ASIAN PAINTS INTRODUCTION

Asian Paints Limited was established way back on February 1,1942 and today stands as
Indias largest and Asias third largest paint company. Asian Paints operates in 17 countries
and has 25 paint manufacturing facilities in the world servicing consumers in over 65
countries.
The company manufactures paints in the category of Decorative, Automative and Industrial
segment. Apart from these the company also manufactures various Acessories like, Wall
Primar, Wood Primer, Putty and Stainers etc. Driven by its strong consumerfocus and
innovative spirit, the company has been the market leader in paints since 1967.
Besides Asian Paints, the group operates around the world through its subsidiaries Berger
International, Apco Coatings, SCIB Paints and Taubmans, Berger International, SCIB Paints
Egypt, Asian Paints, Apco Coatings and Taubmans. Asian Paints operates in 5 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. In 10 markets, it operates through its subsidiary, Berger
International Limited; in Egypt through SCIB Paints; in 5 markets in the South Pacific it
operates through Apco Coatings and in Fiji and Samoa it also operates through Taubmans.
The company is having its strategically located Indian plants at Bhandup (Maharashtra),
Kasna (Uttar Pradesh) and Sriperumbudur (Tamil Nadu), Ankleshwar (Gujarat), Patancheru
(Andhra Pradesh) and the newly built plant at Rohtak (Haryana). Asian Paints operates in 17
countries and has 25 paint manufacturing facilities in the world servicing consumers in over
65 countries. The company is having stateoftheart supply chain system using cutting edge
technology to integrate all its plants, regional distribution centres, outside processing centres
and branches in India. All the companys 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.
The company is having a big and experienced R&D team which has successfully managed to
develop Highend exterior finished and wood finishes inhouse, which was earlier imported
into the country. These products are currently marketed under Asian Paints Elastomeric Hi
Stretch Exterior paint and Asian Paints PU wood finish respectively.
The company is having three subsidiaries viz, Apco Coatings it is a subsidiary of Asian
Paints in the South Pacific islands. The company operates in Australia, Fiji, Tonga, Solomon
Islands and Vanuatu under the brand name of Apco Coatings.
The other subsidiary of the company is Asian Paints Industrial Coatings Limited which has
been set up to cater to the powder coatings market which is one of the fastest growing
segments in the industrial coatings market.
Berger International Limited in November 2002, became a part of the Asian Paints Group.
Today, the name of Berger is synonymous with quality and innovation. BIL has presence
across three regions viz. Middle East, Caribbean and South East Asia.Asian Paints

participates in the Industrial Coatings segment directly, through a 50:50 JV with PPG Inc. of
US as well as through a 100% subsidiary
On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into
Growth, Decorative and International business units and has adopted SCM and ERP
technology. Asian Paints aims to become the 5th largest decorative paint company in the
world
Product range of the company includes:

Automotive Paints

Decorative Paints

Industrial Paints

Ancillaries Range of ancillaries like primers, fillers stainers, and a lot more.
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 indepth research) and Royale Play
Special Effect Paints etc.

MISSION
Mission and Vision Mission: Asian Paints aims to become the 5th largest decorative paint
company in the world Vision: Asian Paints aims to become one of the top five Decorative
coatings companies world-wide by leveraging its expertise in the higher growth emerging
markets. Simultaneously, the company intends to build long term value in the Industrial
coatings business through alliances with established global partners.

OBJECTIVES
We want to be an innovative, agile, and responsive world class research and technology
organisation thats aligned to future customer needs and catalyses the growth of the
company across existing and future businesses.

SHAREHOLDING PATTERN

SALES OF ASIAN PAINTS IN VARIOUS YEARS

CONTRIBUTION IN REVENUE GENERATION OF VARIOUS

ITEMS
The following table gives the sales break down of different products of the company in the
year 20014 15

The following chart shows the sales by region for the company in the year 2014-15

CHAPTER IV

Financial Statements
Profit & Loss A/c
Asian Paints
Standalone Profit & Loss
account

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Miscellaneous Expenses
Total Expenses

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Profit Before Tax
PBT (Post Extra-ord Items)
Tax

------------------- in Rs. Cr. ------------------Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

13,041.96
1,393.13
11,648.83
173.29
132.43
11,954.55

11,660.58
1,241.80
10,418.78
163.70
75.34
10,657.82

8,971.70
0.00
8,971.70
126.15
175.91
9,273.76

7,964.16
0.00
7,964.16
141.49
143.78
8,249.43

6,336.08
0.00
6,336.08
74.90
157.54
6,568.52

6,609.74
113.88
606.94
2,440.18
9,770.74
Mar '15

6,044.66
118.89
482.43
2,070.87
8,716.85
Mar '14

5,361.00
101.65
404.59
1,733.10
7,600.34
Mar '13

4,866.63
76.96
341.63
1,470.97
6,756.19
Mar '12

3,812.47
68.61
300.45
1,154.83
5,336.36
Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

2,010.52
2,183.81
27.13
2,156.68
223.11
1,933.57
1,933.57
606.17

1,777.27
1,940.97
26.08
1,914.89
212.32
1,702.57
1,702.57
533.51

1,547.27
1,673.42
30.56
1,642.86
126.98
1,515.88
1,515.88
465.88

1,351.75
1,493.24
30.82
1,462.42
99.49
1,362.93
1,362.93
404.54

1,157.26
1,232.16
15.35
1,216.81
94.48
1,122.33
1,122.33
347.18

Reported Net Profit

Total Value Addition
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

1,327.40
3,161.00
585.12
112.95

1,169.06
2,672.19
508.37
82.02

1,050.00
2,239.34
441.23
74.29

958.39
1,889.56
383.69
62.24

775.15
1,523.89
306.94
50.11

9,591.98
13.84
610.00
44.10

9,591.98
12.19
530.00
37.54

959.20
109.47
460.00
315.08

959.20
99.92
400.00
259.36

959.20
80.81
320.00
205.93

Balance Sheet
------------------- in Rs. Cr. -------------------

Balance Sheet of Asian Paints

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

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

Reserves

4,134.3
4

3,505.01

2,926.34

2,391.86

1,879.40

Networth

4,230.2
6

3,600.93

3,022.26

2,487.78

1,975.32

3.47

6.65

9.28

12.37

19.38

Unsecured Loans

28.62

32.86

37.48

150.78

42.31

Total Debt

32.09

39.51

46.76

163.15

61.69

4,262.3
5

3,640.44

3,069.02

2,650.93

2,037.01

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

Gross Block

3,008.4
1

2,908.10

2,803.73

1,612.24

1,571.77

Less: Accum. Depreciation

1,042.9

895.90

701.84

603.20

514.58

Sources Of Funds

Secured Loans

Total Liabilities

Application Of Funds

2
Net Block

1,965.4
9

2,012.20

2,101.89

1,009.04

1,057.19

Capital Work in Progress

139.54

37.95

52.55

602.84

39.67

Investments

1,893.7
8

1,030.19

449.70

542.22

547.83

Inventories

1,802.1
8

1,665.05

1,480.79

1,264.42

1,071.76

Sundry Debtors

728.87

712.36

633.88

500.24

355.56

61.81

745.36

566.86

500.97

509.01

Total Current Assets

2,592.8
6

3,122.77

2,681.53

2,265.63

1,936.33

Loans and Advances

681.53

478.60

362.61

560.30

274.02

Total CA, Loans & Advances

3,274.3
9

3,601.37

3,044.14

2,825.93

2,210.35

Current Liabilities

2,313.5
7

2,423.55

2,078.94

1,908.87

1,476.85

Provisions

697.28

617.72

500.32

420.23

341.18

Total CL & Provisions

3,010.8
5

3,041.27

2,579.26

2,329.10

1,818.03

Net Current Assets

263.54

560.10

464.88

496.83

392.32

Total Assets

4,262.3
5

3,640.44

3,069.02

2,650.93

2,037.01

Contingent Liabilities

598.28

447.75

464.28

785.37

618.45

44.10

37.54

315.08

259.36

205.93

Cash and Bank Balance

Book Value (Rs)

COMPARATIVE BALANCE SHEET

Cash Flow Statement

sian Paints
Cash Flow

Net Profit Before Tax

Net Cash From Operating Activities
Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from Financing
Activities
Net (decrease)/increase In Cash and
Cash Equivalents
Opening Cash & Cash Equivalents
Closing Cash & Cash Equivalents

------------------- in Rs. Cr. ------------------Mar '15

Mar '14
Mar '13
Mar '12

Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

1933.57
1143.57

1702.57
1368.84

1515.88
1081.12

1362.93
753.67

1122.83
743.25

-292.23

-615.38

-424.87

-464.87

-410.23

-726.55

-559.67

-590.35

-297.06

-321.15

124.79

193.79

65.90

-8.26

11.85

745.08
869.87

551.57
745.36

500.97
566.87

509.23
500.97

495.55
507.40

Source : Dion Global Solutions Limited

CHAPTER-II
Profile of Asian Paints Ltd.
Asian Paints is India's largest paint company and Asia's second largest paint
company, with a turnover of Rs 141.83 billion. The group has an enviable
reputation in the corporate world for professionalism, fast track growth, and
building shareholder equity. Asian Paints operates in 19 countries and has 26
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, Taubmans
and Kadisco.
Asian Paints was included in Forbes Asia's 'Fab 50' list of Companies in Asia
Pacific in 2011, 2012, 2013 and 2014. 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 kid's 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
experiences. It has set up a Signature Store in Mumbai, Delhi and Kolkata 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 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.