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4Ps
The Colour Connoisseur
And now Asian Paints to focus on intl. business to sustain profitability
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 "It’s not competition that we should worry about; it’s only a question of having our ears fixed to the ground to listen to what consumers want
Ashwin Dani, Managing Director, Asian Paints"
Just imagine how monotonous life in black & white would be? Colours add vibrancy to life and participating in the bucolic euphoria of colours for decades is the $1.1 billion Indian paints major, Asian Paints. Despite stiff competition, this veteran of the Indian paint industry has been able to jump its net profit by 45.6% to Rs.409.2 crore in FY08, thanks in no small part due to the continued growth of the group’s three divisions viz. decorative, industrial coatings and international business. In an e-mail interview to 4Ps B&M, Ashwin Dani, Managing Director of Asian Paints reveals future strategies for the group.
As market leader, how has Asian Paints managed to differentiate its products from its competitors?
We were able to identify latent demand and meet consumer expectations much before others. From the launch of small packs, to the introduction of exterior paints, to a foray in the painting service sector with Asian Paints Home Solutions, we were the first in the industry to introduce such offerings.
Children are the centre of your advertisements. A way to catch the attention of modern day decision makers?
Our strategy has always been to not only grow the market but also upgrade the Indian paint consumer to a more superior and premium product. And we offer products across the price spectrum to help in this upgradation. So, our advertising strategy is based on not only popularising our products, but also upgrading the consumer and also creating excitement about paints and colour in general.
Do you plan to launch more products, besides the current portfolio?
Our new product introduction programme has been remarkably successful in the last five years or so. We have launched a host of innovative products that have enabled us to market a complete range of offerings to our customers. Our paint technologists have played a critical role here, and going ahead we will strive to enhance our R & D capabilities to a whole new level. New products have helped us drive sales and therefore this path will be perused in the future aggressively.
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 Apart from your present 28 manufacturing units do you plan to open more plants in India and abroad? What are your expansion plans?
We have recently acquired land for setting up of a paint manufacturing plant in Rohtak, Haryana. The plant when completed will be the largest manufacturing facility of Asian Paints. Besides, we have expanded the capacities in some of our existing plants too.
What plans to combat competition from foreign & domestic rivals?
Competition is not something new to us. When we took over the leadership of the Indian paint market way back in 1967, rival numbers 2, 3, 4, 5 and 6
were all British companies. But the fact remains that we have successfully
battled foreign competition all these years and have only gone stronger. It’s not competition (whether Indian
or foreign) that we as a leader should be worried about; it’s only a question
of adding value and having our ears fixed to the ground to listen to what a consumer wants.
FY08’ has been good for the group. Will you follow similar growth strategies for FY09’ too?
The Indian paint industry is on a growth trajectory due to rising income levels and growth in construction and manufacturing activities. In FY 07-08, Asian Paints grew by around 20% which is greater than any of our competitors in India. The focus for the international business is to grow top-line and sustain profitability. We expect the Caribbean, Middle East, South Asia and South Pacific regions of our international business to continue their satisfactory performance in FY 08-09 also.
I would say so far so good, but we have to keep on innovating.
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Ratan Lal Bhagat
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