Asian Paints: India’s Largest Paint Company

#1 in India, #3 in Asia and #9 in Global

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Asian paints ltd- blog

(A) About The Company

Asian Paints is India's largest paint manufacturer among all existing players in the country. The beginning of the Asian Paints started in the year 1942.

The foundation of the Asian Paints laid down as a Partnership Firm by four friends Champaklal Choksi, Chimanlal Choksi, Suryakant Dani, and Arvind Vakil.

Asian paints has a very wide range of products under its portfolio which are Paints, Wall Coverings, Waterproofing, Wall Stickers, Adhesives, and many more.

Moreover, the company introduced Modular Kitchens & Wardrobes, Bath Fittings and Sanitaryware, Furniture, Furnishings as well as Lighting to its portfolio.

In Addition to its product portfolio, Asian Paints started Safe Painting Services, Interior Design Services, Experience Retail Stores and Color Consultancy, and many more.

(B) Journey of Asian Paints Ltd

(C) Executive Management of the company

(i) Deepak Satwalekar - Chairman

Mr Deepak Satwalekar is appointed as the chairman of the Asian Paint Ltd with effect from 30 June 21.

Moreover, Mr. Satwalekar has been the MD and CEO of HDFC Standard Life Insurance Co. Ltd.

He is currently on the advisory boards of multiple organizations in the field of primary education for the low-income and underprivileged members of society in rural and semi-urban India. 

He holds a Bachelor’s Degree of Technology in Mechanical Engineering from IIT, Bombay and MBA from The American University, Washington D.C., USA

(ii) Manish Choksi - Non Executive Director and Vice Chairman

Mr Manish Choksi (54) joined Asian Paints Ltd in the year 1992 as an Executive and has grown in ranks
by holding various positions across Sales, Information Technology, Supply Chain, Chemicals, and many more.

At present, Mr Choksi is holding the position of vice chairman with effect from 22nd October, 2018.

In addition, He holds a Bachelor of Chemical Engineering degree from University of Houston, USA and an MBA with specialization in Entrepreneurial Management and MIS from University of Houston, USA

(iii) Amit Syngle - MD and CEO

Mr Amit Syngle has been appointed as the Managing Director & CEO of the Company w.e.f. 1st April, 2020. He is 56 Years old.

Mr Amit joined the Company as a Management Graduate and initially spent 8 years in Sales and headed the North and Central parts of the operations of the Company.

In fact, Mr Syngle headed the Sales & Marketing for the Decorative Business as Vice President. He became the President in 2012 and was responsible for not only the Sales & Marketing at Asian Paints but also headed the Research & Technology function across the organization.

Post taking over, he has propelled the brand from a zone of having ‘share of surface’ to a ‘share of space’ in homes bringing home décor categories like Furniture, Lighting, Fabrics and Furnishing into play.

(D) Shareholding Pattern of the company

Asian paints ltd- Shareholding pattern
Asian paints ltd- Shareholding pattern
Asian paints ltd- Shareholding promoters

(E) Product Portfolio of the company

Asian Paints has a very extensive product portfolio. The Company is engaged in the business of manufacturing, selling and distribution of Emulsion paints, Coatings, Wallpapers and adhesives.

Moreover, Asian paints also manufactures metal sanitary ware such as bath, sinks, washbasins and similar articles.

Further, Company moved in the business home décor space which includes products related to Lightings, Furnishings and Furniture.

In fact, In FY21 company rolled out "The Safe Painting Service" which gained good responsiveness, but gained most in FY22.

(F) Products Segment

Asian paints ltd- Product segment

(i) Decorative Business

Decorative business consists different categories of products such as Coatings, Wood & Metal Finishes, Tools, Adhesives, lightings, etc.

Furthermore, company forayed in the Decorative lightings, wallpaper Coverings, Metal and wood Finishes spaces.

In addition, to serve clients better, company has opened Beautiful Home stores and colour consultancy services that helps in guiding the customers to choose best options for their homes.

(ii) International Business

Company operates International Business in four regions across Asia, the Middle East, South Pacific and Africa through seven corporate brands viz. Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints

(iii) Industrial Business

Company's Industrial Business consists of products and solution related to Automotive, industrial, refinish, packaging and marine coatings.

Despite that, Company caters the Industrial Coatings segment through two 50:50 JVs with (i) PPG Industries Inc. USA – PPG Asian Paints Pvt. Ltd. (PPG-AP) and (ii) Asian Paints PPG Pvt. Ltd. (AP-PPG).

(iv) Kitchen and Bath Business - Home Décor category

Asian Paint entered in the Kitchen space by acquiring Sleek International Pvt Ltd. Under the Kitchen Components segment, company sell its own range of Kitchen Hardware, Kitchen Accessories and Kitchen Appliances through the B2B channels.

Further, the company also offers Full Modular Solutions, Under the Full Modular Solutions segment, company undertakes design-to-execution of full kitchens through a strong network of franchisee-owned showrooms across the country.

On the other hand, in Bath Fitting space Asian paint forayed by acquiring Ess Ess.

(G) Revenue Breakup

(i) Segment Wise Revenue of Asian Paints Ltd

Asian paints ltd- segment wise breakup

~85% of Revenue comes from decorative business which is key segment of Asian Paints. In Fact, the Company is the Market leader in the decorative space of the Total Decorative industry.

On the other hand, Company's new segments which are Bath and kitchen are contributing about to 2.60%. The company is in the process to expand the Bath and Kitchen Segment by adding premium and customization services which may lead to good revenue in future.

The International business stood at 10% in Mar-22, Asia Geography contributes highest revenue share of more than 51%, followed by the Middle East 26%, Africa 19% and South Pacific 4%.

(ii) Product Wise Revenue of Asian Paints

Asian paints ltd- Revenue breakup

97% of the revenue has been reported from paint and Paint related products. Products such as Interior-Exterior Paints, Coatings, Putty, textures, Emulsions.

As of Now Painting and Décor services contribute mere 0.28%, with the expansion of Beautiful Home store in untapped cities will report exponential growth.

(iii) Geography-wise

Asian paints ltd- Geography wise revenue

Asian paints major revenue comes form domestics market which is 99.21%. whereas, Export Market shares a revenue of just 0.78%.

(H) Operational Parameters

(i) Operational facilities

Asian paints ltd- Operation facilities

(ii) Manufacturing Facilities

Asian paints ltd- manufacturing facilities

Asian paints has the highest in house manufacturing facilities for the production of every categories of paint and coatings.

Moreover, company has also forayed in the the manufacturing of "kitchen and Sanitary ware" products, that will definitely increase its market presence and revenue numbers.

For Wardrobe and general tiles Asian paints announced green field foray in 21-22.

(I) Cost Structure of the Company

(i) As % of Net Sales

Asian paints ltd- cost structure as % of Net sales

(ii) Raw Material Expense as % of Net Sales

Asian paints ltd- Raw material as % of Net sales

It has witnessed a 5-7% sequential cost increase in its raw material basket in 1QFY23. In 4QFY22, the raw material cost increase was small. However, It is taking a cumulative price increase of ~2%in early May’22 and in Jun’22.

(iii) Advertisement & Sales Promotion expense as % of Net Sales

Asian paints ltd- advertisement & sales promotion as % of Net Sales

(iv) Freight and Forwarding expense as % of Net Sales

Asian paints ltd- Freight and forwarding expense as % of Net sales

(J) Peers Comparison

(i) Dealer Network

Asian paints ltd- Peers comparsion

(ii) Current Capacities

Asian paints ltd- paint capacities

(iii) Market Share of top 5 Players

Asian paints ltd- Market share

(K) Financial Parameters

Asian paints ltd- Financial parameters

In FY22, Company Net Sales grew phenomenally well. In FY21 Asian Paints registered a growth of 34% in net Sales from the Previous year.

The PAT reduced in FY22, due to High Margin pressure and Consistent inflationary pressure. Somehow Asian Paints took 3 price hikes during the year.

In Fact, The Free Cash flow was fell by 87% in FY22.

(L) Management discussion and Concall Highlights


  • During the Year, Company's revenue was affected because of multiple Covid outbreaks which disturbed the customer sentiment to go for purchase.
  • Further, In FY2021-22, Asian Paints experienced steep Inflation which is highest in last four decades. In Fact, Company faced challenging situations like runaway inflation and supply shortages.
  • Company has widening his presence across multiple platforms to engage with customers and to make its products more accessible.
  • During the year, Company initiated brownfield capacity expansion projects at its manufacturing plants in Ankleshwar, Kasna and Khandala. These capacity expansions are with an eye towards enhancing its ability to cater to the demand in the domestic market over the next few years

-Business Segments Performance

(i) Decorative

  • In FY21-22, The Company registered a volume growth of 31%, and an equally strong value growth of 36%, further reinforcing its market leadership.
  • Moreover, The Highest growth was seen in West & East geographies.
  • Asian Paints is augmenting itself as waterproofing expert because of reporting exponential growth.
  • In Painting Services, Company saw an ultimate growth because customers are looking to get complete painting solution, from consultation to final delivery of finish.

(ii) International Business

  • The International business saw a muted growth due to uncertainties caused by the COVID-19 pandemic.
  • Further, Sri Lanka and Egypt's currency got devaluated consistently which impacted the business operations. Even the Ethiopia Currency's depreciated due to the overall uncertainty in the political and economic environment
  • However, These three countries account for 40-45% of its international business, which forms
    11-12% of its consolidated numbers.

(iii) Home Décor Business

  • In Current FY22-23, Under Home Décor Business, The Company has setup 2 new factory in Maharashtra 1st in Kitchen & Kitchen Hardware verticals and 2nd in Bath & Sanitary verticals.
  • Although, In FY 20-21 Asian paint forayed into greenfield of (i) Wardrobes and Vanities greenfield, (ii) Designer and General Tiles greenfield.
  • In fact, Asian Paints Announced two new acquisition April 2022 (i) White Teak in Decorative & Designer Lighting and (ii) Weatherseal in Doors & Windows
  • Additionally, the company is looking to expand the Home décor Business from ~4% to 8-10% by FY 25-26, including the Home Décor Services.

(iv) Industrial Business

Asian Paints operates in the Industrial Coatings segment through two 50:50 JVs with (PPG-AP) and (AP-PPG). The (PPG-AP) JV caters to Automobile Segment whereas, (AP-PPG) JV caters its services to non automotive segment.

In PPG-AP : Company reported good growth amidst challenges faced by the Auto industry. The growth was led by implementing price increases across B2B customers.

Whereas, AP-PPG : Company registered Almost 20%+ revenue growth for the year on a 3 year compounded basis. the Growth was led by strong Protective Coatings segment and Floor coating.


  • Over the past few years, APNT has done well in terms of widening its distribution network and expanding its product portfolio. It has been in the midst of a massive expansion (it is nearly doubling capacity), which would create further entry barriers for peers.
  • The Real Estate market and Infrastructure activities are already on boost which can fuel the demand of Paint industry.
  • Due to highly Capital intensive Business and fluctuating crude prices on daily basis may disturb the small players which can open the opportunity to capture their market share.

(M) Strengths and weakness


(i) Market Leadership in Paint Industry

The group enjoys a dominant share of over 50% in the organized domestic paints market. In the decorative paints segment, which comprises 80-85% of the Indian paints industry, the group has a share of about 60%.

It also has a healthy position in the automotive industrial coatings segment with a market share of about 20%. However, The leadership position helped the group register compound annual growth rate of 9% in revenue over the past five fiscals through 2021.

(ii) Healthy operating margin 

Asian Paints enjoys a healthy operating margin of 16-19% which is higher than that of peers. Market leadership enables the group to command a premium and pass on raw material price increases partly to customers.

While operating margins are expected to decline to ~14-15% in the current fiscal due to impact of sharp increase in input prices during the first half of the fiscal, they will revert back to long term average of 16-19% over the medium term


(i) Susceptibility of margin to volatility in raw material prices

While the group has the flexibility to pass on rise in input prices to customers in the domestic decorative business, this is limited in the industrial paints segment.

Given that material cost accounts for almost 50% of total cost of sales, with titanium dioxide and crude-based derivatives comprising majority of total raw material cost, profitability in the non-decorative segment is susceptible to volatility in raw material prices.

The adverse impact of sharp rise in raw material prices was visible during the first half of current fiscal. However, with price hikes now being taken, impact is expected to reduce over the medium term and operating profitability is expected to improve over the medium term.

(ii) Limited pricing flexibility 

The organized paint industry is dominated by a few large players. There is competition from strong regional players too, especially in mass-market products. Consequently, while paint manufacturers have the flexibility to pass on cost increases, their ability to absorb cost benefits and thereby materially increase margins is limited.

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry’s Publications.

Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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