Page 19 - DECO405_MANAGERIAL_ECONOMICS

Managerial Economics

Notes Table 2: Ratios
In % Group Top 10 Top 20 Last 10

RONW 17.8 18.9 18.3 4.2
ROCE 7.4 77 7.8 1.9
PAT/SALES 8.9 8.7 9.2 5.5
ASSETS

RONW = Return on Net Worth
ROCE = Return on Capital Employed
PAT = Profit After Tax
4. Latest Technology: It has also drawn on the world’s latest technology for its
manufacturing capabilities in areas like powder coatings and high-tech resins – thus
ensuring that its product quality lives up to exacting international standards, even
in the most sophisticated product categories.
5. Emphasis is on R&D: The company places strong emphasis on its own in-house
R&D, creating new opportunities by effectively harnessing indigenous creativity.
The Asian Paints Research & Development Center in Mumbai has acquired the
reputation of being one of the finest in South Asia. With its team of over 125 qualified
scientists, it has been responsible for pioneering a number of new products and
creating new categories of paints. The entire decorative range of the company has
been developed by the R&D team.
6. State of the Art Plants: The company boasts of state-of-the-art manufacturing plants
at Bhandup in the state of Maharashtra; at Ankleshwar in the state of Gujarat; at
Patancheru in the state of Andhra Pradesh; and at Kasna in the state of Uttar Pradesh.
All the company’s plants have been certified for ISO 9001 – the quality accreditation.
All the company’s plants have also received the ISO 14001 certificate for Environment
Management Standard. The Phthalic Anhydride plant has been certified for ISO 9002
and ISO 14001 whereas the Penta plant has been certified for ISO 14001. The Penta
plant will shortly receive its ISO 9002 certification.
7. Environment Friendly: In June 2002, Asian Paints plant in Patancheru was conferred
“The Golden Peacock” award by the World Environment Foundation and the award
for ’Excellence in Environment Management’ by the Government of Andhra Pradesh.
8. Emphasis on IT: Asian Paints was one of the first companies in India to extensively
computerize its operations. In addition to computerized manufacturing, computers
are used widely in the areas of distribution, inventory control and sophisticated MIS
to derive benefits of faster market analysis for better decision making. It is a
continuously evolving company deriving its cutting edge from the use of innovative
IT solutions. All the locations of the company are integrated through the ERP solution.
9. World Wide Presence: Asian Paints operates in 23 countries across the world. It has
manufacturing facilities in each of these countries and is the largest paints company
in nine overseas markets. It is also India’s largest exporter of paints, exporting to
over 15 markets in the Asia-Pacific region, the Middle East and Africa. In 12 markets
it operates through its subsidiary, Berger International Limited and in Egypt through
SCIB Chemical SAE.

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