In the last 20 years, Asian Paints is probably the only company that has grown 25% yearly.
But what could be the secret?
The secret is ERP (Enterprise Resource Planning).
Chamapklal Choksey, the founder of the company, in the starting years, made sure that the company's paint directly goes to the retailer and not the distributors.
This increases the margins, and paint can be sold at a lower price.
The execution was a challenge.
That's when Champaklal Choksey decided to bring India's first supercomputer for ₹8 crore in 1970.
ERP helped them understand the demand and helped them plan logistics accordingly.
Asian Paints is having data across cities, retailers, seasons and colors.
This data science helps Asian paints to deliver paint 3.8 lac times a day to the retailer.
And the accuracy of the features of the paint cans expected to be sold every day is more than 90%.
No other paint company has that!
It is rightly said, "Data is the new oil!"
What is your view about this company?
Disclaimer: This is not stock advice. I do not own stocks of Asian paints in my portfolio.
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