Before we explain the strengths, weaknesses, opportunities, and threats of Asian Paints, we must look at the Asian Paints company. SWOT analysis of Asian Paints is necessary for determining the external and internal factors that impact the company.
Asian Paints is a well-renowned multinational paint company in India. With its headquarters in Mumbai, Asian Paints sells and distributes paints all over India. Asian Paints is now not only a household name in India, it has extended its reach to over 20 countries worldwide. They are also famous for their outstanding marketing strategies.
Asian Paints: An Overview
Established in 1942, Asian Paints Company is now the third-largest paint company in Asia. Champaklal Choksi, Chimanlal Choksi, Arvind Vakil, and Suryakant Dani were the four founders of the company. As the company was built during the period near the independence of India, it had a close association with India’s freedom time. At that time, it faced no competition and became the largest paint manufacturer in India in 25 years.
The products of Asian Paints include chemicals, decorative paints, home decor and fixtures, coatings, and industrial finishing products. The major competitors of Asian Paints are Kansai Nerolac Paints, Nippon Paint, and PPG industries.
Asian Paints Company Profile
| Name | Asian Paints Ltd |
| Founded in | 1942 |
| Employee | 5k-10k |
| Headquarters | Mumbai, Maharashtra, India |
| Founders | Champaklal Choksey, Chimanlal Choksi, Suryakant Dani, Arvind Vakil |
| CEO | Mr. K B S Anand |
| Industry | Chemicals |
| Area served | Worldwide |
| Market Cap* | $33.9B |
| Website | asianpaints.com |
SWOT Analysis of Asian Paints
Strengths of Asian Paints
#1. Wide Portfolio: Asian paints not only cover the paint business for homes but also include decorative paints, industrial coating, etc. Asian Paints Royale is an innovative and unique idea of Asian Paints. This diverse portfolio allows the company to cater to different industries.
#2. Market-Share: Asian Paints company holds more than half a percentage of its share in the paint industry. It contributes 54% of market share in the industry. It is far more than any other paint company in the long term in India.
#3. Global Presence: Asian Paints has extended its reach to over 20 countries worldwide. Its 25 manufacturing units are operating across the globe. They are operating and providing their products to about 65 countries in the world. That’s why, they have ranked 3rd position as the largest paint company in Asia.
#4. Advanced Technology: Asian Paints has been dominating India’s paint industry since its foundation due to its technological advancements. In 1970, they bought a supercomputer at about 8 crores, which most of the Indians and even ISRO could not afford.
Weaknesses of Asian Paints
#1. Market Trends: Customer choice is changing fast in the modern world. So, the company needs to focus on innovation to cope up with market trends. Today’s hot products may not be the choice of customers tomorrow.
#2. Over-dependence on Physical Retail Shops: With a large network of offline retail shops, Asian Paints is currently working all over India. But in digital India, the demand for online stores is increasing. So, Asian Paints can balance online business through E-commerce websites
#3. Infrastructure: Asian Paints’ massive production needs extensive infrastructure. Though it allows an effective supply chain, it needs expensive maintenance. The company with the help of technology and sustainability may control the operations and reduce overheads thus increasing profits.
#4. Environmental Issues: Asian Paints have been alleged for VOC emissions. The company needs to invest in greener technologies. Thus, it can comply with the government’s strict rules and regulations.
Opportunities for Asian Paints
#1. Increase in Market Share: Asian Paints may grow its industrial coating and automotive paint business. The company is expected to increase its market share by meeting industry needs with R&D strengths and high-performance coatings.
#2. Government Policy: Asian Paints can benefit from government policies like rapid urbanization, easy home loans, etc. These policies allow the customers to intend toward the paint industry. As Asian Paints is a renowned company, the customers may crave for this company’s products thus increasing its revenue.
#3. Emerging Nations: Like developed countries, Asian Paints must focus on spreading its business to emerging nations.
Threats of Asian Paints
#1. Tough Competition: Asian Paints holds a prominent position in the paint industry. Yet, some national and international paint companies are posing a threat to the brand.
#2. Raw Materials: Like other industries, the paint industry also requires raw materials. The price of the paint depends on the price of raw materials. If Asian Paints faces a scarcity of raw materials, the price of the paint will increase thus reducing the customer base.
Conclusion
Thus, a SWOT analysis of Asian Paints determines that Asian Paints is a well-known paint company with its strengths and opportunities. This analysis will help the company to overcome its weaknesses and threats.
