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A Thread on unheard Secrets behind the success of a Game Changing Indian Company: Asian Paints
Asian Paints is the only company in the history of the planet which has grown #revenues at 20% p.a. consistently for 60 years, from 1952 till 2020.
Asian Paints is the only company in the history of the planet which has grown #revenues at 20% p.a. consistently for 60 years, from 1952 till 2020.
• The Company went public in 1982 & has given a 1800x return till date.
• Their entire #business doubles in size every 3 years since past ~30 years.
• Promoters worth ~$12 Billion.
Minority share holders worth ~$10 Billion.
• Their entire #business doubles in size every 3 years since past ~30 years.
• Promoters worth ~$12 Billion.
Minority share holders worth ~$10 Billion.
Reasons?
Paint is the only sector in India where:
1) The #product goes straight from – manufacturer to the dealer.
2) The dealer’s shop is replenished multiple times in the same day (4x/day & 28x/week).
Paint is the only sector in India where:
1) The #product goes straight from – manufacturer to the dealer.
2) The dealer’s shop is replenished multiple times in the same day (4x/day & 28x/week).
3) The manufacturer (Asian Paints) earns 97% of the retail #price (MRP) of the product [other products channel accounts for 30-40% of MRP].
4) The distribution logistics are still unmatched by any #competitor.
They have 70k dealers, getting paint delivered ~3 Lakh times/day.
4) The distribution logistics are still unmatched by any #competitor.
They have 70k dealers, getting paint delivered ~3 Lakh times/day.
How?
Answer – #Technology.
• In 1970, Champaklal Choksey, the dominant visionary founder spent ₹8 Cr buying India’s 1st Supercomputer; decades before ISRO, IIT or any other Indian conglomerate.
Answer – #Technology.
• In 1970, Champaklal Choksey, the dominant visionary founder spent ₹8 Cr buying India’s 1st Supercomputer; decades before ISRO, IIT or any other Indian conglomerate.
World’s finest ERP implementation is done at Asian Paints.
√ Unmatched consumer data
√ Raw material to Cash cycle – 8 days
Hence, The success of the giant.
√ Unmatched consumer data
√ Raw material to Cash cycle – 8 days
Hence, The success of the giant.
