Farmers across Maharashtra, Chhattisgarh and Telangana celebrate a rather unique festival in honour of the bulls that help till their land. They decorate their bulls with ornaments and silk, paint their horns and put up a very colourful spread of bovines. However back in the old days, painting a bull’s horn in bright colours and procuring them in such small quantities proved to be a particularly difficult challenge. This is when Champaklal Choksey, a budding entrepreneur found both a need gap and an interesting opportunity to expand his business.

What began as a dream soon gave way to unbridled ambition culminating in the company becoming the largest paint manufacturer in the country. Started as “Asian oil and Paints company” by Champaklal Choksey, Chimanlal Choksey, Suryakant Dani and Arvind Vakil, Asian paints Ltd is ranked today at No 10 among the top Decorative Coatings Companies in the World. Asian Paints and its subsidiaries has operations in 22 countries across the world and 27 paint manufacturing facilities, servicing consumers in 65 countries.

Now 2 questions arise,

• How a paint company could do this over a span of 50+ years?
• How are they constantly outperforming their peers?

Well, here’s a story of an entrepreneur and his company that was too innovative for its time, even by global standards.

Champaklal Choksey did a brilliant move by removing the distributor and the wholesalers as they were taking off 20% of the margins of the company. They simply kept retail dealers and to whom they had to transport the paints. For dealers, this was a tough task to hold such a big inventory.

They requested Mr. Choksey to look into this.

Choksey made a genius move. He said that our truck would come every 3 hours and replenish the stock. So that was like 4 times a day and 28 times a week. And this was back in the 70s when ease of doing business was difficult. And they had 40,000 such dealers which totalled to 1.6 lakh times a day. Today, the figure is as high as 3 lakh times a day.

Innovating the supply chain has played a very important role in the company’s growth. This was an hugely impactful stroke, since when you talk about the margins, 97% of the MRP goes to the manufacturer and 3% goes to the dealer in Asian Paints. In other cases, manufacturers get 60% of the MRP, 30% the distributors and wholesalers, and the rest the dealers. Asian Paints is a master at this game. It has a cash conversion cycle of a mere 6 days i.e. it only takes the company 6 days to recoup its investment in inventory and other resources through sales and generate cash in the process.

How was this made possible?

Asian Paints, at a very early stage of its growth, recognized the importance of Information Technology & Data, and how it could use the technology to its advantage.

Champaklal Choksey bought the first-ever mainframe computer in India in 1970 for 8 crore rupees(CDC 6600 is regarded as the first successful supercomputer in the world). This was 10 years before ISRO & IITB adopted it and 21 years before any other company. Even an SAP consultant testified that the best ERP implementation was not by Amazon or any other Western/Chinese corporation, but it’s India’s Asian Paints Ltd.

For a span of 50 years, Asian Paints Ltd has collected data on:

• What colour is being sold the most?
• What quantity is being sold?
• And what tin size is being sold the most?

The use of computers provided an automated way of generating details of dispatches to the depots. AP also invested in branch computerization which helped zonal distribution centres to get daily stock position levels. This information was tracked and analysed to determine the performance of the dealers, thus helping forecast sales, take corrective actions in case of low sales and incentivize the high performing dealers. Also, around 1994, Asian Paints installed terminals which connected factories to depots and helped in accounting and planning procedures.

Through intensive application of machine learning & predictive analytics, Asian paints has been able to forecast demand with >90% accuracy. Ensuring the right product at the right time being made available in a semi-unpredictable environment.

This helped them bring down inventory stock costs and working capital costs by minimizing supply chain inefficiencies.

Machine learning applies complex mathematical algorithms to automatically recognize patterns, capture demand signals and spot complicated relationships in large datasets. These capabilities enable ML-based software to produce more accurate and reliable forecasts in complex scenarios.

Asian Paints was also one of the first paint companies to use Supply Chain Management (SCM) and Enterprise Resource Planning (ERP) software for streamlining and automating its processes. It selected the SCM solution offered by i2 Technologies and later also started using SAP’s ERP solution, much before other companies adopted similar solutions. This helped the company to connect to all their vendors and suppliers.

Data and analytics were always at the core of the company’s operations. It starts with a good forecasting engine which tries to predict the demand and all the next generation algorithms but slowly usage of data and analytics is populating right up to the shop floor. The paint manufacturer looks at technology as an enabler for reimagining the current value chain which includes customer experience, dealers, logistics and distribution, manufacturing & distribution, and product development & research

Today, Asian Paints also uses connected IoT and visibility systems so that a complete tracking and tracing could be done right from when the products leave the factories and lands at the dealers’ shops. The company serves over 65,000 dealers directly from its depots. In tier 1 cities, the company also offers day zero promise for the dealers which means if an order is placed around 11 AM, the products will be delivered the same day.

It is estimated that these initiatives gave AP an estimated savings of INR 100 million, 25% of which came due to reduction in finished goods inventory.

Rama Bijapurkar, one of India’s most respected thought-leader in market strategy notes-

“Asian paints is obsessed about hiring the best people, about having the best IT and the smartest technology-driven process.”

It started hiring IIM graduates back in 1969 and had mainframe computers in the 70's to forecast demand. It installed automated warehousing systems (robots stacking up shelves & loading trucks) in 2008 and uses GPS on its vehicles to optimise its supply chain- all pointing to a culture of innovation and an insatiable desire to grow.

In yet another winning move Asian Paints raises salaries, among other assistance to ensure that its employees remain motivated and find hope to cling onto during these dark times. Not only this, but they also plan to make things easier for the sales channel by offering an assistance package that includes insurance and hospitalisation, direct cash support and complete disinfection and sanitisation facilities to its partner stores. Asian Paints felt that this wasn't enough to help a situation as grave as the pandemic, they also deposited INR 40 crores to the accounts of their contractors.

References :-

• Asian Paints - Leading the way
• Competitions, Quizzes, Hackathons, Scholarships and Internships for Students and Corporates
• Computational and Information Systems Laboratory

• Asian Paints: A case study, Why is Asian Paints Ltd Such a Huge Money Making Machine?

The future of the paint industry in India looks promising, driven by several key factors:

1. Economic Growth and Urbanization:

• Economic Development: India's growing economy is driving increased construction activities in residential, commercial, and infrastructure projects, boosting demand for paints and coatings.
• Urbanization: Rapid urbanization is leading to higher demand for housing and commercial spaces, which in turn increases the need for paints.

2. Rising Disposable Income:

• Middle-Class Expansion: With the expanding middle class and rising disposable incomes, there is a greater willingness to spend on home aesthetics and renovation, supporting the growth of the decorative paints segment.

3. Technological Advancements:

• Innovative Products: The industry is seeing a shift towards eco-friendly and sustainable paints, driven by increasing environmental awareness and stringent regulations.
• Smart Coatings: Technological advancements are leading to the development of smart coatings with features like self-cleaning, anti-microbial, and energy-saving properties.

4. Government Initiatives:

• Housing for All: Government schemes like "Housing for All" and Smart Cities Mission are propelling the demand for paints in residential and urban infrastructure projects.
• Regulations and Standards: Implementation of strict environmental regulations is pushing manufacturers towards sustainable practices and products.

5. Growing Automotive Industry:

• Automotive Sector: The expanding automotive industry is contributing to the growth of the industrial coatings segment, with increased demand for high-performance and durable coatings.

6. Expanding Rural Market:

• Rural Penetration: Paint companies are focusing on expanding their reach in rural markets, which are becoming significant contributors to overall sales growth.

7. Digital Transformation:

• E-commerce and Online Sales: The rise of e-commerce platforms is changing the way consumers purchase paints, with increased convenience and a broader selection available online.

8. Foreign Investments:

• FDI Inflow: The influx of foreign direct investment in the paint industry is introducing new technologies and fostering competitive pricing, benefiting consumers and driving market growth.

Challenges and Considerations:

• Raw Material Prices: Fluctuations in raw material prices, especially for petrochemical-based products, can impact profit margins.
• Environmental Regulations: Adapting to stringent environmental regulations requires continuous innovation and investment in sustainable practices.
• Competitive Landscape: The presence of both large multinational companies and small local players creates a highly competitive market environment.

Conclusion:

The paint industry in India is poised for robust growth, driven by economic development, technological advancements, and increasing consumer awareness about sustainability. Companies that innovate and adapt to changing market dynamics, while focusing on sustainable practices, are likely to thrive in this evolving landscape.

If you're looking for companies that manufacture paints for the automotive industry, there are several options available to you. One of the leading paint suppliers in this space is SBL Coating, which offers a range of coatings for different substrates such as metals, plastics, alloys, and more.

SBL Coating has been in the business for several years and has gained a reputation for producing high-quality, durable, and long-lasting coatings that are specifically designed for use in the automotive industry. Their coatings are formulated to provide protection against a wide range of environmental factors, including UV radiation, temperature extremes, and chemicals.

When choosing a paint supplier for your automotive needs, it's important to consider factors such as the quality of the coatings, the range of colors available, and the company's reputation for customer service and support. With the right paint supplier, you can ensure that your vehicles are protected and look great for years to come.

Certainly! The Indian market for industrial coatings offers a diverse range of options to choose from. Here are some examples of different types of industrial coatings available in India:

1. Epoxy coatings: These coatings are widely used in industrial and commercial applications due to their excellent resistance to chemicals, abrasion, and impact. They are commonly used to protect concrete floors, metal surfaces, and pipes.
2. Polyurethane coatings: Polyurethane coatings are known for their exceptional durability and resistance to UV radiation, making them ideal for outdoor applications. They are commonly used in the automotive and aerospace industries.
3. Zinc-rich primers: These primers are used to protect metal surfaces from corrosion. They are commonly used in industrial settings where metal surfaces are exposed to harsh environmental conditions.
4. High-temperature coatings: These coatings are designed to withstand extreme temperatures and are commonly used in the oil and gas industry, as well as in power plants.
5. Anti-corrosive coatings: These coatings are formulated to protect metal surfaces from corrosion and are commonly used in marine and offshore applications.

These are just a few examples of the types of industrial coatings available in the Indian market. As mentioned earlier, there are numerous companies in India that specialize in producing speciality coatings for different industrial applications, so you can easily find a coating that suits your specific needs.

SBL Coatings offers a range of speciality coatings for different industrial applications. These coatings are designed to meet the specific needs of industries such as automotive, aerospace, and construction, among others. SBL Coatings' product line includes epoxy coatings, polyurethane coatings, zinc-rich primers, and more.

Solar radiation and other environmental factors has negative effects on the paint job of the vehicle and suitable initiatives needs to be taken to protect the paint job of the vehicle.

Parking the vehicle under the shade is the best way to protect the paint job of the vehicle from solar radiation.

Different types of contaminants like dust particles, salt particles also has significant impact on the paint job of the vehicle. So, wash and wax at a regular interval is really necessary to protect the paint job of the vehicle from different types of contaminants.

Apart from this, we could also use protective films to ensure all round protection to the paint job of the vehicle and extend the lifespan of the vehicle.

Denting painting is a term used in the automotive industry to refer to the process of repairing and repainting a car's bodywork that has been damaged due to collision or general wear and tear. The process involves several steps, including:

• Denting or repairing the damaged area: The first step in denting painting involves identifying and repairing any dents, scratches, or other damage to the car's bodywork. This is typically done using specialized tools and techniques, such as pulling dents or filling in scratches with body filler.
• Sanding and priming: Once the damaged area has been repaired, the car's bodywork is sanded to create a smooth surface for the new paint to adhere to. A primer is then applied to further prepare the surface for painting.
• Painting: The car is then painted using a combination of spray guns, airbrushes, and other specialized equipment. Multiple coats of paint may be applied to achieve the desired finish and color.
• Clear coat: After the paint has dried, a clear coat is applied to protect the finish and add shine to the car's bodywork.

Overall, denting painting is an important process in the automotive industry, as it helps to restore damaged cars to their original condition and improve their overall appearance.

In 2018 the global Decorative Paints and Coatings market will hike its revenue and will reach about xxx Million USD and CAGR xx% 2018-2023.

The report begins from an overview of Industry Chain structure, and describes industry environment, then analyses market size and forecast of Decorative Paints and Coatings by product, region, and application, in addition, this report introduces a market competition situation among the vendors and company profile, besides, market price analysis and value chain features are covered in this report.

In this field, Many companies are serving services like to provide the best industrial painters by taking contracts from engineers, owners, property managers, architects, engineers, interior designers, and general contractors.

Anyone who is best in painting coating and belongs to that industry should get connected with these companies.

The auto industry is set to evolve into a new phase of auto 2.0 comprising of EV and self driving vehicles as the world moves on to a newer platform. As per RBC research the growth of auto manufacturers (OEM) is going to average around 5~6% in 2019. The European and Chinese markets have been soft owing to US-China trade tensions and Brexit clouds looming large. The changes in manufacturing setups and increasing steel prices due to slack in conventional sources is going to weigh in heavily on profitability. One of the major indicators of Auto production slump is slower finished car transport in the shipping segment. Companies are spending heavily to fall in line with incremental environmental regulations on Auto players and the recently announced WLTP norms. So unless the macroeconomic headwinds settle and the industry moves on to a low carbon process, auto industry growth is going to see some slowdown in the short to medium term.

Automotive coating is type of coating where vehicle parts are coated with some liquids or powders to enhance the toughness,colour lock(in case of outer parts),heat or shock resistance(in case of inner parts) or for various enhancement of the vehicle surface…

There are 2 types of coating till i know…

*powder coating* and *liquid coating*.

Having personal experiance of working on liquid coating i would like to give you brief intro. About it…what basically happens is there is a ceramic liquid which enhances shine of colour and locks it for years,makes surface scratch proof,fire proof etc. This liquid coated over surface by layers …3 layers,6 layers,9 layers coating packages are there…

Any coating incudes very much attention in work…because as it get misattented,it would create permanent damage to your surface…

Hope this is sufficient information..

Thank you…

Thanks for the A2A.

The initial investment widely depends on the location where you want the shop. The cost of shops will vary from place to place. So, when we decide on the location we have keeps 2 things in mind.

• The cost of shop in the location
• The expected number of customers in the location.

If you choose a cheap place, but did not analyse on the number of customers, you may end up getting a very less return on investment (ROI). On the contrary, you may open a shop in a posh location where the shop rent may be huge, but you are certain that the rich locals may turn up, and hence increasing the ROI.

In the end, you just need to do an extensive market study before you set up the shop.