Case 15: Asian Paints

CASE 15: ASIAN PAINTS Core Issues: 1. Fall in demand expected for home building, renovations and repainting work in Indian grocery store collectable to financial crisis. 2. Excess capacity due to aggressive expansion by players in the Indian paints effort during the economic boom period of 2003 2007. Foreign firms entering into the Indian market also exacerbated the excess capacity. 3. Difficult choices that Asian Paints would pay to make: Whether to further rationalize its portfolio by exiting underperforming markets. 4. Asian Paints has a goal of becoming one of the top 5 nonfunctional paints company in the world. Can it accomplish this goal with: Acquisitions within India or by international expansion? How else potty it do to gain even greater success in the international market? Should it focus on the Chinese market? Current Strategies: 1. Corporate-Level Asian Paints uses the dominant-business diversification strategy. Despite being cash-rich, Asian Paints did not diversify into other businesses. Instead, it used cash to affix new product categories to its portfolio of products and worked to grow these segments. (Pg 177) The Indian market accounted for 80.6% of its sales in 2007. 2.

Business Level Asian Paints principal(prenominal) focus is on decorative paints business, which accounts for about 75% of bring market in India. Strongest presence in decorative paints was in wall-finish paints (emulsions, distempers and primers) Uses strong advertising and branding through the Gattu mascot . Internal outline: 1. Accounting (Financial Ratios) [pic] 2. Finance Means of funding and risk management Means of financing for Asian Paints include debt and equity issuance. Since 2000, Asian Paints has been voted the 4th some admired company in India and had been described as the mordantst of the blue chips. Asian Paints also has a large amount of militia and surplus, Rs 8,326 million as of FY2008, so financing... If you want to get a full essay, order it on our website: Ordercustompaper.com

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