Asian Paints is the largest paint company in the country. The company however had humble beginnings. Four friends who were willing to take on the world's biggest, most famous paint companies operating in India at that time set it up as a partnership firm in 1942. Chimanlal Choksi was a painter whose daughter had died. Chimanlal Choksi was unable to save her because of financial problems. Suryakant Dani owned a Garage where he did the painting work for Machines & Vehicles. The same garage is where Asian Paints started off its operations. Arvind Vakil was a worker who did the bicycle painting work for Suryakant Dani. Champaklal Choksey had been thrown out of his house as his parents caught him selling houdsehold things at a huge margin to British officials. The name was picked out randomly out of the directory.6 decades later the company was ranked by Forbes as one of the best 200 Small Companies in the world.
Within three years of starting operations, the firm touched a turnover of Rs. 3, 50, 000. The famous Asian Paints mascot Gattu was born in 1954. Asian Paints faced competition from international players but still established itself as the largest company in the country in 1967 thanks to its innovative marketing strategy- reach the farthest destination of the country with small packs. The years 1956-67 were very important as it made a transition from a family owned enterprise to one which was professionally managed. Asian Paints got an order from Balmer Lawrie beating competition from a British company in the same period. In 1974 a major modernisation programme was undertaken to streamline the paint production facilities by improving the layout of machines, in addition to balancing equipment and replacement of old machinery. The Company embarked on phased modernisation of resin manufacturing facilities as well. The company raised money through the equity market in 1982. The year 1985 saw the company setting up its third and fourth paint plants in Patancheru and UP respectively. The Company entered into a collaboration agreement with Nippon Paints Co. Ltd., Japan, to obtain technical know-how to manufacture powder coating and coil coatings under an exclusive licence. The company set up Joint ventures in 1991 in Nepal, Fiji, Tonga and Vanuatu.
In 1998, the company entered into organised retail with its first exclusive showroom in Mumbai. In 1999, in a first the company acquired 76 per cent equity stake in Sri Lanka-based Delmege Forsyth & Co (Paints) Ltd and in 2000 another company in Australia. In 2002, the company also acquired 51% stake in Berger International, Singapore at Rs. 58 crores. It was also the first company to enter into rural markets.
The company was not without its share of problems between its founders. Choksey who was the public face of the company had almost sold his 9.1% stake in the company to Britain’s Imperial Chemical Industries Plc, the company’s only foreign rival in India. This was after two US mutual fund companies—Morgan Stanley and Capital International—backed out when they learnt that the shares they bought belonged to Choksey, the managing director of the company then, which caused a feud among the promoters. Choksey eventually exited the business in 1998 by selling his stake partly to UTI and partly to the other promoters.
The company recently established a network of computer-controlled kiosks allowing consumers to create their own paint colors.
The company today has revenues of Rs. 5500 crores and now derives a huge amount of sales from places outside India. Today Asian Paints operates in 22 countries and is one of the most respected companies in the country. It also is the 10th largest decorative company in the world. No mean achievement for a company started by 4 Painters all bound together for their love for Colour.
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