Asian Paints Share Price Live

History

Asian Paints Limited was founded as a partnership firm in 1942 by four friends, Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil, focusing on manufacturing paints. The company has been the market leader in paints since 1967 due to its strong consumer focus and innovative spirit. Asian Paints launched an IPO in 1982 and got listed on the BSE. Currently, it is listed on both exchanges, BSE and NSE. The company is engaged in the manufacturing of a wide range of paints for decorative and industrial use. It also offers wall coverings, waterproofing, adhesives and services under its portfolio. The business has also been diversified with products under the home improvement and decor segment, along with bath and kitchen products. The company also introduced lightings, furnishings and furniture in its portfolio. It carries out business activities from 27 manufacturing facilities across 15 countries worldwide. In addition, it serves consumers in over 60 countries with its products and services. In 2022, the company received the Golden Peacock Award for Excellence in Corporate Governance for consecutively 3 years. During the same year, the business was identified among the Top 30 Most Sustainable Companies in India for 2021-22 by Business World magazine in association with Sustain Labs Paris.

Business Segment

• Decorative Business: The company deals in interior and exterior wall finishes, waterproofing, wood finishes, enamels, adhesives, tools and undercoats. The company generated ~84.2% of revenue from the segment during FY 2023, a significant revenue arm for the business.
• Home Decor Segment: The products and services under the segment include modular kitchens and wardrobes, bath fittings and sanitaryware, decorative lightings, uPVC windows and doors, wall coverings, furniture, furnishing and rugs. The home décor business contributed ~4% of revenue in FY 2023. The company is looking to increase revenue contribution to 8-10% by FY 2025-2026.
• International Segment: The international presence of Asian Paints revolves around Asia, the Middle East, Africa and the South Pacific. The overall segment contributed ~9% to the revenue of the overall business.
• Industrial Segment: The company provides high-quality custom, custom-formulated products for India's automotive and industrial coatings business. During FY 2023, it reaped ~2% of the overall revenue.

As of March 31, 2023, the company has 24 subsidiary companies (19 international subsidiary companies). The following are a few:

• Asian Paints International Private Limited (APIPL) Singapore: It is a wholly-owned subsidiary of Asian Paints Limited and is the holding company for all subsidiary companies carrying out operations overseas, except Asian Paints (Nepal) Private Limited. The business activities of APIPL are those of investment holding and management.
• Asian Paints (Nepal) Private Limited: The principal business of Asian Paints (Nepal) Private Limited is the manufacturing and selling paint products in Nepal.

Key Personnel

• Amit Syngle, Managing Director

Amit Syngle is the Chief Executive Officer, MD and director at Asian Paints Ltd. He is also a Member of the Color Marketing Group. He has been re-appointed as MD & CEO of the company for 5 years, commencing from April 1, 2023 to March 31, 2028, due to his exceptional leadership and strong performance.

Management Outlook

• The company is working on an investment plan worth ₹8,750 crore across several areas, including backward integration, capacity growth, and cutting-edge product and technology capabilities.
• Asian Paints' main goal is to increase manufacturing capacity through new construction and renovations of existing facilities. To improve technology and innovation across all of its goods, the firm has entered into a legally binding agreement to purchase majority ownership in a player in next-generation nanotechnology and specialty chemicals.
• The business would be concentrated on developing production capabilities for VAE emulsion, a cutting-edge, environmentally friendly emulsion that will give the company a long-term competitive and cost advantage.

SWOT Analysis

Strengths

• Consistent quarterly revenue growth.
• A well-diversified business by geography and products.

Weaknesses

• High competition from Kansai Nerolac and Akzonobel in the industrial coating segment.
• Subdued global performance except Bangladesh, Nepal, and the United Arab Emirates.

Opportunities

• Growing the e-commerce market for higher revenue opportunities.
• Focus on capacity expansion with an investment plan for future years.

Threats

• Change in customer preferences to create higher unsold inventory.
• Intense competition from unorganised players may deteriorate market position.