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Asian Paints

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Asian Paints Ltd.
FormerlyAsian Oil and Paint Company Pvt. Ltd. (1945–1965)[1]
Asian Paints (India) Pvt. Ltd. (1965–1973)[1]
Company typePublic
ISININE021A01026
IndustryChemicals
Founded1 February 1942; 82 years ago (1942-02-01)
Founders
  • Champaklal Choksey
  • Chimanlal Choksi
  • Suryakant Dani
  • Arvind Vakil[2]
Headquarters
Mumbai, Maharashtra
,
India
Area served
Worldwide
Key people
Products
RevenueIncrease ₹36,183 crore (US$4.3 billion) (2024)
Increase ₹7,215 crore (US$860 million) (2024)
Increase ₹5,558 crore (US$670 million) (2024)
Total assetsIncrease ₹29,924 crore (US$3.6 billion) (2024)
Total equityIncrease ₹19,424 crore (US$2.3 billion) (2024)
Number of employees
7,160 (2021)[3]
Websiteasianpaints.com
Footnotes / references
Financials as of 31 March 2024.[4]

Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai.[2] 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.[5][6] The company has 27 paint manufacturing facilities in 15 countries, servicing consumers in over 60 countries. Asian Paints is also present in the home improvement and décor space in India.[7]

History

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The company was started in a garage in Gaiwadi, Girgaon, Mumbai by four friends Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil, in February 1942.[2] 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.[8][9]

Asian Paints established its first overseas subsidiary in 1978 in Fiji,[10] before expanding into Nepal in 1983.[11] In 1999, the company made its first international acquisition with the takeover of Sri Lanka's second largest paint company, Delmege Forsyth & Co.[12] In 2000, it began operations in Oman through a joint venture with the Al Hassan Group.[13]

In 2002, Asian Paints acquired a 60% stake in Egyptian paint manufacturer SCIB Chemicals for ₹24.5 crore (US$5.04 million).[14] It also acquired a 50.1% stake in the SGX-listed Berger International Singapore, which had operations in 11 countries across Southeast Asia, West Asia, the Caribbean, China and Malta, for US$20.8 million.[15] Later that year, it entered the Bangladesh market by incorporating a joint venture with Confidence Group.[16]

In 2003, it acquired Taubmans Paints, which functioned in Fiji and Samoa; this added to Asian Paints' existing presence in the region under Apco Coatings brand in Fiji, Solomon Islands, Vanuatu and Tonga.[17] In 2004, the company sold its stake in the Malta subsidiary, which was its only venture in Europe.[18] By 2010, it exited operations in Malaysia, Hong Kong, China and Thailand, which were making losses.[19]

In 2013, Asian Paints increased its stake in Berger International Singapore to 96.48%.[20] In 2014, it entered Indonesia through the Singapore subsidiary.[21] In India, the company ventured into home improvement and décor with the acquisitions of modular kitchen manufacturer Sleek International and bathroom fittings company Ess Ess.[22]

In 2015, Asian Paints completed the acquisition of a 51% controlling stake in Ethiopia-based Kadisco Paint for US$18.95 million.[23] In 2017, it acquired 100% of Sri Lanka's Causeway Paints for ₹387 crore (US$59.43 million).[24]

In 2022, Asian Paints acquired a 49% stake in the Indian decorative lighting company White Teak for ₹180 crore (US$22.9 million), before buying another 11% the following year.[25]

Corporate structure

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Ownership

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The families of the four founders (Choksey, Choksi, Dani and Vakil) together held the majority shares of the company. But disputes started over the global rights in 1990s when the company expanded beyond India. Champaklal Choksey died in July 1997 and his son Atul took over. After failed collaboration talks with the British company Imperial Chemical Industries, Choksey family's 13.7% 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%.[9] Ashwin Dani, the non-executive director of Asian Paints, died on 28 September 2023 at the age of 79.[26][27] As per the Forbes list of India's 100 richest tycoons, dated 9 October 2024, Dani family is ranked 36th with a net worth of $8.1 billion.[28]

Shareholding pattern

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As of 12 August 2024[29]

Category of Shareholder Shareholding
Promoter Group 52.63%
FII 15.27%
DII 12.36%
Public 19.68%
Others 0.06%
Total 100%

Manufacturing locations

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The company along with its subsidiaries have 27 manufacturing facilities across 15 countries serving customer globally in over 60 countries.[30]

S.No. Country 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 2 Asian Paints
5 Indonesia 1 Asian Paints
6 Fiji 1 Apco Coatings & Taubmans
7 Samoa 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 27

Marketing and advertising

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Logo used until 2012

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.[31]

In the 1980s, the festive advertising tagline "Har Ghar Kucch Kehta Hai" (Every home says something) was introduced.[31] 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.[31]

References

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  1. ^ a b "Company History - Asian Paints". Moneycontrol. Retrieved 12 August 2024.
  2. ^ a b c "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 Limited Financial Statements". Moneycontrol.com. Retrieved 23 February 2022.
  4. ^ "Asian Paints Limited Financial Statements" (PDF). Bseindia.com. Retrieved 9 May 2024.
  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. ^ "Operations" (PDF).
  8. ^ a b Mukherjea, Saurabh (2016). The Unusual Billionaires. Penguin UK. ISBN 9789386057679.[page needed]
  9. ^ a b 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.
  10. ^ "Ashwin Dani of Asian Paints: A billionaire who found his real wealth in Iyengar Yoga". The Economic Times. 28 September 2023. Retrieved 9 November 2024.
  11. ^ "Asian Paints Nepal building third plant in Hetauda". Kathmandu Post. Retrieved 9 November 2024.
  12. ^ "Asian Paints acquires Sri Lanka company". domain-b.com. Retrieved 9 November 2024.
  13. ^ Pourmohammadi, Elham (26 November 2015). "Mega paint plant to open soon in Sohar". Times of Oman. Retrieved 9 November 2024 – via PressReader.
  14. ^ "Asian Paints goes to Egypt". The Telegraph India. 27 August 2002. Retrieved 9 November 2024.
  15. ^ "Asian Paints to buy Berger Intl". The Telegraph India. 5 September 2002. Retrieved 9 November 2024.
  16. ^ "Asian Paints forays into Bangladesh". The Times of India. 2 September 2002. Retrieved 9 November 2024.
  17. ^ "Asian Paints buys Fiji firm". The Telegraph India. 11 September 2003. Retrieved 9 November 2024.
  18. ^ "Asian Paints to exit Malta subsidiary". Business Standard. 14 May 2004. Retrieved 9 November 2024.
  19. ^ "Asian Paints to exit ops in Thailand, China by Feb-end". The Economic Times. 25 January 2010. Retrieved 9 November 2024.
  20. ^ "Asian Paints acquires 96.48% stake in Berger; open offer ends". The Economic Times. Retrieved 18 November 2016.
  21. ^ "Asian Paints' subsidiary to set up plant in Indonesia". The Economic Times. 22 August 2014. Retrieved 9 November 2024.
  22. ^ Chatterjee, Purvita (25 January 2016). "Home décor: will Asian Paints get the new colours right?". BusinessLine. Retrieved 10 November 2024.
  23. ^ Hokka, Takafumi (13 February 2015). "India's biggest paint-maker acquires Ethiopian rival". Nikkei Asia. Retrieved 9 November 2024.
  24. ^ "Asian Paints arm acquires Sri Lankan firm Causeway Paints". Hindustan Times. 3 April 2017. Retrieved 9 November 2024.
  25. ^ Bhalerao, Mayur (23 June 2023). "Asian Paints acquires additional 11% stake in White Teak". Mint. Retrieved 9 November 2024.
  26. ^ "Ashwin Dani, non-executive director of Asian Paints, passes away at 79". Livemint. 28 September 2023.
  27. ^ "Asian Paints' Ashwin Dani passes away". Moneycontrol. 28 September 2023.
  28. ^ "India's 100 Richest". India’s 100 Richest. 9 October 2024.
  29. ^ "Asian Paints Shareholdings".
  30. ^ "Asian Paints". www.asianpaints.com. Retrieved 7 June 2021.
  31. ^ a b c 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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