The success story of Asian Paints dates back to the times of political unrest when India was still under British rule, and World War II was still going on. Even during those turbulent times, the gumption to try ideas that were never thought of before fuelled Asian Paints’ innovation journey. Asian Paints’ business strategy has indeed helped it hold its place in the market from back then to clocking $3.2 billion in revenue with a $37 billion market capitalization today. Asian Paints’ automation success reflects this innovative approach and its ability to produce, market, and sell paints, coatings, bath fixtures, home decor products, and related services. Asian Paints’ digital transformation initiatives helped it transform from a brick-and-mortar business into a click-and-mortar business. Overall, Asian Paints’ market impact in the global paint industry is thanks to the forward-thinking and innovative mindset of its founders.

Began During Chaos

This paint behemoth’s legacy started in 1942 in the midst of World War II, the British administration and India’s fight for independence. During that time, the British regime enforced restraints on imports, especially on paints from other nations. This resulted in a scarcity of paint supplies in India. But, four revolutionary youths came forward and introduced a plan to encourage homegrown products and strengthen the industry to withstand the circumstances at the time. These four bright minds are Champaklal Choksi, Chimanlal Choksi, Suryakant Dani, and Arvind Vakil, who laid the founding grounds of Asian Paints right when luck came their way.

Holding On and Emerging Successfully

However, the business stopped temporarily just as it started. The four friends gave it another shot and brought it out into the market with an annual turnover of 23 crores, although their PBT profit was two percent in 1952. Then, by 1967, they were able to unlock success by becoming the country's leading paint manufacturers.

Ever on the Lookout for Growth Opportunities

Soon after that, the founders started hunting for growth areas to create products by deep-diving and studying the market and consumer preferences. Accordingly, the leaders launched a game-changing new product in the 1950s, paid off by their successful marketing campaign.

Keeping With Changing Times

Having stepped into success, the founders then saw the need to expand their manpower to handle the organization's scaling as new generations sprung.

They made a strategic move to fix their radar more on the underserved Indian market.

 

Together, the leaders all cemented their empires.

Chaos Struck Again

The Paint Titan was strongly supported by its founders, the four pillars who had operated it amicably until 1990.

But the moment it started expanding outside India, bad blood spread among the members until it reached a boiling point. Everything went haywire after Champaklal’s passing in 1997, with his son Atul assuming the role of managing director. But this was short lived, as he left the company due to uncertainty of its future course. 

Problems Unfolded One After Another

DSP-Merrill Lynch's first agreement with Morgan Stanley and Capital International ended after two international institutional investors said that they were misinformed about the identity of the shareholders from whom they were purchasing the stocks.

To sell his and his associates' 9.1 percent stake in the company for Rs 128.70 crore, leader Choksey negotiated a two-stage deal with ICI Plc, one of Britain’s massive paints and chemicals group. As a result, Chokey’s family was left with a meager 0.4 percent stake in the company.

In 1997, Choksey sold his part to Kotak Mahindra Capital Company (KMCC), which obtained an ICI loan to purchase the shares at Rs 347.50 per. ICI then purchased the shares from KMCC. However, since the three other promoters of the company owned almost 30 percent of the business, ICI's 9 percent investment was said to be futile. In their defense, they decided not to sell their interests to any outside party. 

During 1997, Ashwin Choksi was made chairman, who called ICI's action "an attempt by a multinational rival to acquire a foothold in the company." he referred to the guidelines of the Foreign Investment Promotion Board (FIPB), which ruled that a company's board should approve the investment before the government could approve it. Then, vice-chairman Ashwin Dani declared that the shares would not be transferred to KMCC.

Yet Managed to Remain Strong: Success Factors

Iron Resilience and Resolve

Asian Paints struggled immensely to drive through World War II due to shortages of necessary raw materials. But it managed to thrive thanks to the resilience and strong sense of resolve shown by its founders.

Never Budged on Quality

This is another strength factor that helped the company to grow fast by upholding high standards of quality while adapting to new developments and trends in the market. The paint titan’s ability to keep its crown from falling is also thanks to the leaders anticipating future trends.

Robust Distribution System

Third is the building of a robust distribution system throughout India. This helped Asian Paints grow its market share over time and cater to commercial and industrial customers in addition to residential ones.

Leadership Changes

One of the most important leaders who contributed to the company's expansion was Ashwin Dani, the son of one of the founders, Suryakant Dani. As a non-executive director and co-founder, he made significant contributions to the growth of the business.

Always Exploring the Boundaries With Advertising

Time and again, the paint titan always came out with remarkable marketing and advertising initiatives. It has a bigger presence online, just like its offline presence. It continues to excel at creating innovative, socially conscious advertisements.