24 Apr 2024

Why do Asian Paints own a SuperComputer?

Asian Paints is the only company in the history of the world to grow revenue by more than 20% annually for more than 60 years. Since its IPO IN 1982, Its share price has grown consistently at an insane 25% CAGR, meaning it doubles roughly every 3 years. But, how did AP manage to achieve this? If you ask any painter, they would say the best paint is Dulux (by Akzo Nobel) or Nerolac, but AP has still been dominating since the 1960s. AP has managed to achieve this using data! Champaklal choskey, APís founder bought Indiaís first supercomputer in 1970 for Rs 8 crores. Yes, a paint company bought it before ISRO or the Indian Institute of Technology, Bombay. Then, AP started collecting data over the past 50 years, AP has built a database so powerful that it can predict the exact type and amount of paint needed in your neighborhood tomorrow, with a staggering 98% accuracy. This allowed AP to eliminate distributors and deliver straight to retailers because the data-driven inventory that is delivered to the retailers gets sold out in 3 hrs. max AP has a network of 1.2L retailers in India. It delivers to each retailer every 3 hrs. i.e., 4 times a day. So AP makes an unmatched 4.8L deliveries each day This is the network AP has built through the power of data, which allows it to cut costs and competition. Would you consider buying Asian Paints after the recent dip? credits - Saurabh Mukherjee