A paint dealership is a great business idea and an opportunity call as the industry reported growth of 12% in the year 2019 with promises of future development on a tremendous scale. The opportunity is even more enticing with the growth the sector reported in the year 2020, despite the scare of and around the Covid pandemic.
A paint dealership is an excellent idea for a business around the year. It is also promising with the back of a brand name. And, when the paint industry comes into the picture, the first name that pops up is Asian Paints. The company is a household name in India, and its dealership offers more significant business and sales. The company is leading the paint industry in 2020 with a whopping market share of 39% in the decorative segment, which is a massive holding for a single company.
The paint company and industry is one of the very few segments, which saw growth in the difficult time of the Covid pandemic, and Asian Paints is leading the paint sector in India, which brings us to the conclusion that a paint dealership is a sure call today. So, to know more about the Asian Paints dealership, read further.
Homegrown Asian Paints is now an international public company with its paints and other decorative products selling worldwide. The company was founded in a garage by four friends with humble backgrounds in the year 1945. The company grew tremendously with considerable turnovers in the favorable conditions, where there was a temporary ban on importing paints from the year 1942. By the year 1967, it was the leading manufacturer in India with very few local paint companies in competition.
Asian Paints saw new heights of success with their unique and middle-class consumer-targeted marketing and products with all new and mischievous mascot “Gattu.” The company targeted middle-class consumers with affordable yet expensive-looking paint called “washable distemper.” The line grew very popular and became a paint staple during the time. With time the company continued its middle-class consumer products and marketing and versatile and different products in different categories.
Today, Asian Paints offer colors and textures in various colors along with paints for interior and exterior, wood, and metals. Other products from the company include waterproofing solutions, wallpapers, stencils for wall art, and a massive range of DIY kits to paint and decorate by yourselves.
Apart from paint and paint solutions, the company also offers interior design services, safe painting, sanitization, wood solutions, waterproofing, and color consultancy. You can get your space and kitchen designed and assembled by the company, along with other services listed above.
Opportunity with Asian Paints distributorship is tremendous with a huge market share of the Indian paint market as discussed above. The company’s products are sought on a high-quantity basis for various construction projects and from end consumers in smaller quantities. Other paint-based and coating materials from Asian Paints also make quiet sales like varnishes.
The most important aspect and opportunity with Asian Paint dealership is a direct dealership offered by the company and includes no middle party like distributors and sub-distributors. The distributorship provides a fixed percentage of sales as revenue to the dealers along with supplies and machinery.
To acquire an Asian Paint dealership, an initial investment of INR 3 to 4 lakhs is required, which includes initial inventory and distributorship acquiring fees.
Another substantial investment includes investing in a color mixing machine of upto two lakhs and additional investment in shop furniture, computer and printer of 1.5 lakhs and 50 thousand respectively.
The dealership fees for the paint aren’t substantial. However, the cost of setting up shop and acquiring inventory is considerable. Considering all the costs, the total cost to acquire the dealership will be around eight lakhs.
The space requirement of the shop for the dealership is around 500 to 1000 square feet or more. And, apart from space and investment requirement, the dealership also seek valid documents from the applicant, which are as below:-
Documents required to get an Asian Paints dealership
The process to acquire an Asian Paint dealership is straightforward yet heavily scrutinized. The process includes getting in touch with the company’s territorial office, which is in charge of preliminary and primary scrutiny of your proposal to acquire a dealership.
Customer care of Asian Paint allows you to get in touch with the territorial officer. The officer arranges meetings to assess your business and financial background for the dealership. The shop’s location is evaluated along with the density of the Asian Paints dealership in the area. Other checks are also made regarding the legitimacy of the information, documents, and everything the dealership applicant proposes. And, if the officer deems the applicant fit, the dealership is given. The dealership is issued with an authorization certificate from Asian Paints after fulfillment of all the requirements.
To acquire an Asian Paints dealership, you need to get in touch with the company’s territory officer. The officer is in charge of assessing preliminary screening, including the financial condition, business knowledge of the applicant, and dealership density, shop location, and more. Passing the screening will get you a license and dealership.
Asian Paints offers you a 3 to 8% margin on your sales depending upon various factors in the agreement.
Yes, paint dealership is profitable and definitely with Asian Paints due to its popularity and massive market share.
Looking at the statistics, Asian Paints stands at the top with a 39% market share in the decorative paint market, making it the best paint in India.
All in all, the Asian Paint dealership is a profitable business and all good to take on keeping the current statistics in mind. The paint and chemical industry are one of India’s most regulated industries and abroad, making your business easy and stable with the dealership. Also, the brand value and popularity amongst the masses are crucial factors that Asian Paints possess to promise a successful business venture. If you are ready with the requirements, calling customer service should be the first thing you should do. We wish you all the best.
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