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Equity research report

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ASIANPAINT500820THE PAINT INDUSTRYPORTERS 5 FORCES MODELOligopoly MarketGDP Growth to Revive Fortunes of Paint IndustryUrban demand revival to boost paint demandShorter Repainting Cycle

Oligopoly marketRobust Pricing Power Effective AdvertisingMarket Share Gains To Continue

GDP Growth to Revive Fortunes of Paint IndustryOligopoly MarketGDP Growth to Revive Fortunes of Paint IndustryUrban Demand Revival To Boost Paint DemandShorter Repainting Cycle

Oligopoly MarketGDP Growth to Revive Fortunes of Paint IndustryUrban Demand Revival To Boost Paint DemandShorter Repainting Cycle

THE COMPANY

KEY FINANCIALS

NET SALES

EBITDA, PAT and PBTSWOT ANALYSISCOMPETITIVE ADVANTAGELack of any threatening competition nearest competitor half size

Balanced portfolio of products products are positioned across all price points (economy - mid range - premium)

Closeness to customers & keen market understanding

completely redefined the Exterior Coatings market products perceived as positive value propositions by customersDecorative Coatings Continue the effort to move closer to the consumer to identify & fill needs Tap vast potential of Wood Finish segment Exterior Coatings segment will help increase value sales Continue to invest in brand building

Industrial Coatings To explore alliances with worldwide paint majors to tap vast potential of the segment Leverage the recent acquisition to be a strong player in the industrial coatings business

International To expand and become the leading player in emerging markets

The company plans to set up a greenfield manufacturing facility at Visakhapatnam with an investment of approximately about Rs 1,750 crore. The installed capacity of this plant will be 400,000 KLPA of paint per annum.

The company is also planning to set up a fully automated paint manufacturing plant at Nanjangud in the Mysore District of Karnataka at Rs 2,400 crore. The plant, to come up on 175 acre, will be set up in two phases, with the first phase having a capacity of 300,000 KLPA and the second phase 200,000 KLPA.SELLRECOMMENDATIONTHANK YOU !Davda Janmang 2014081Parul Sharma 2014193Smriti Aggarwal 2014282Himanshu Dawra 2014344