Asian Paints Ltd.
FormerlyAsian Oil and Paint Company Pvt. Ltd. (1945–1965)
Asian Paints (India) Pvt. Ltd. (1965–1973)
TypePublic
ISININE021A01026
IndustryChemicals
Founded1 February 1942 (1942-02-01)
Founders
  • Champaklal Choksey
  • Chimanlal Choksi
  • Suryakant Dani
  • Arvind Vakil
[1]
Headquarters
Mumbai, Maharashtra
,
India
Area served
Worldwide
Key people
Products
RevenueIncrease ₹34,875 crore (US$4.4 billion) (2023)[2]
Increase ₹5,594 crore (US$700 million) (2023)[2]
Increase ₹4,101 crore (US$510 million) (2023)[2]
Total assetsIncrease ₹25,798 crore (US$3.2 billion) (2023)[2]
Total equityIncrease ₹15,992 crore (US$2.0 billion) (2023)[2]
Number of employees
7,160 (2021)[3]
Websiteasianpaints.com

Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai, Maharashtra, India.[1] The company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing related services.

Asian Paints is India's largest paints company by market share.[4][5][6] It is the holding company of Berger International.[7] The company's manufacturing operations encompass 15 countries of the world including India, with considerable presence in the Indian subcontinent and the Middle East.[8]

History

The company was started in a garage in Gaiwadi, Girgaon, Mumbai by four Gujarati friends Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil.[1] They all belong to Jain families, and founded the company in February 1942. 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 an annual turnover of ₹23 crore in 1952 but with only 2% PBT margin. By 1967, it became the leading paints manufacturer in the country.[9][10]

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 remaining three families and Unit Trust of India. As of 2008, the Choksi, Dani and Vakil families hold a share of 47.81%.[10] Ashwin Dani, the non-executive director of Asian Paints, died on September 28, 2023, at the age of 79.[11][12]

Manufacturing locations

The company along with its subsidiaries have 26 manufacturing facilities across 16 countries serving customer globally in over 65 countries.[13]

S.No. Countries Number of Manufacturing plants Location/operating Brand
1 India 10 Ankleshwar & Sarigam (Gujarat), Patancheru (Telangana), Kasna (Uttar Pradesh), Sriperumbudur (Tamil Nadu), Rohtak (Haryana), Khandala & Taloja (Maharashtra), Mysuru (Karnataka), Visakhapatam (Andhra Pradesh)
2 Sri Lanka 2 Asian Paints Causeway
3 Nepal 2 Asian Paints
4 Bangladesh 1 Asian Paints
5 Indonesia 1 Asian Paints
6 Fiji 1 Apco Coatings & Taubmans
7 Samoa Islands 1 Taubmans
8 Vanuatu Apco Coatings
9 Solomon Islands Apco Coatings
10 Oman 1 Asian Paints Berger
11 Bahrain 1 Asian Paints Berger
12 UAE 1 Asian Paints Berger
13 Egypt 2 SCIB Paints
14 Ethiopia 3 Kadisco Asian Paints
Total 26

Ownership structure

The company has 12 institutional owners and shareholders that are investing through Securities Exchange Commission (SEC). Largest stakeholders include Bridge Builder International Equity Fund, and Touchstone Sands Capital Emerging Markets Growth Fund.[14]

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.[9] 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.[15]

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.[15] 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.[15] 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.[15]

Shareholding pattern

As of 18 September 2023[16]

Category of Shareholder Shareholding
Promoter Group 52.63%
FII 17.48%
DII 10.06%
Public 19.82%
Others 0.01%
Total 100%

In 2022, Asian Paints Q1 net profit up 79% to ₹1,017 crore; revenue up 55%.[17]

References

  1. 1 2 3 "Started by four Mumbaikers, how Asian Paints is today one of India's most valued companies". Businessinsider.in. Retrieved 18 November 2016.
  2. 1 2 3 4 5 "Asian Paints Limited Financial Statements". Moneycontrol.com. Retrieved 23 May 2023.
  3. ↑ "Asian Paints Limited Financial Statements". Moneycontrol.com. Retrieved 23 February 2022.
  4. ↑ "Asian Paints, Hindustan Unilever top innovative Indian firms on Forbes' list". Ibtimes.co.in. 25 August 2016. Retrieved 18 November 2016.
  5. ↑ "Shares of Asian Paints jump 7% on good Q1 results". The Economic Times. Retrieved 18 November 2016.
  6. ↑ "Local people demand jobs in Asian Paints' proposed plant". The Hindu. 29 June 2016. Retrieved 18 November 2016.
  7. ↑ "Asian Paints acquires 96.48% stake in Berger; open offer ends". The Economic Times. Retrieved 18 November 2016.
  8. ↑ "Annual report 2019-20" (PDF). Archived (PDF) from the original on 26 September 2020.
  9. 1 2 Mukherjea, Saurabh (2016). The Unusual Billionaires. Penguin UK. ISBN 9789386057679.
  10. 1 2 Hiscock, Geoff (2008). India's Global Wealth Club: The Stunning Rise of Its Billionaires and Their Secrets of Success. John Wiley & Sons. p. 211. ISBN 9780470822388.
  11. ↑ "Ashwin Dani, non-executive director of Asian Paints, passes away at 79". Livemint. 28 September 2023.
  12. ↑ "Asian Paints' Ashwin Dani passes away". Moneycontrol. 28 September 2023.
  13. ↑ "Asian Paints". www.asianpaints.com. Retrieved 7 June 2021.
  14. ↑ Stuff, Publication. "ASIANPAINT Institutional Ownership - ASIAN PAINTS LTD. Stock". fintel.io. Retrieved 2 May 2020.
  15. 1 2 3 4 Pinto, Viveat (12 February 2015). "40 years ago...And now: Gattu's antics coloured Asian Paints' future". Business Standard. Retrieved 19 November 2016.
  16. ↑ "Asian Paints Shareholdings".
  17. ↑ Standard, Business. "Asian Paints". {{cite news}}: |first1= has generic name (help)
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