AkzoNobel

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people. Sales in 2010 were EUR 14.6 billion. Following the acquisition of ICI, the company has restructured in 2 January 2008, and rebranded itself in 25 April of the same year. It is Global Fortune 500 company

Headquarters - Amsterdam, Netherlands

Origin

AkzoNobel has a long history of mergers and divestments. Parts of the current company can be traced back to 17th century companies. The milestone mergers and divestments are the formation of AKZO in 1969, the merger with Nobel Industries in 1994 forming Akzo Nobel, and the divestment of its pharmaceutical business and the merger with ICI in 2007/2008 resulting in current day AkzoNobel.

Milestones

ü  1871
KemaNobel is established in Sweden. More than a hundred years later, in 1984, KemaNobel will merge with Bofors to form Nobel Industries, which will in turn be acquired by Akzo in 1994.

ü  1895
Alfred Nobel (the man behind the Nobel Prize) founds Elektrokemiska Aktiebolaget – known as Eka – in Bengtsfors, Sweden. Its aim is to make chlorine and alkali. Today Eka Chemicals is AkzoNobel's Pulp & Paper Chemicals business.

ü  1918
Koninklijke Nederlandse Zoutindustrie (KZO) kick-starts the Dutch salt industry in response to salt shortages during World War I.

ü  1923
Saal van Zwanenberg establishes Organon to produce insulin from the pancreases of animals.

ü  1968
UK man-made fiber company Courtaulds acquires International Paints.

ü  1969
Algemeene Kunstzijde Unie NV (AKU) merges with Koninklijke Zwanenberg Organon (KZO) to form AKZO.

ü  1994
Akzo and Nobel Industries merge to form AkzoNobel.

ü  1998
AkzoNobel acquires UK company Courtaulds. Their products include high-tech industrial coatings and man-made fibers such as Courtelle and Tencel.

ü  2007
AkzoNobel sells Organon BioSciences NV to Schering-Plough Corporation.

ü  2008
AkzoNobel acquires Imperial Chemical Industries PLC (ICI).

AkzoNobel is the world’s largest Coating supplier

Geographic Spread

Global Brands & Products

AkzoNobel is the global leader in decorative paints and the largest manufacturer of performance coatings. They also make a huge number of specialty chemicals that find their way into hundreds of everyday products. Many of their products are household names, used and trusted by their customers to brighten, protect and preserve their homes, buildings, offices and factories.

AkzoNobel Key Facts

Organisation Structure

Observations

Strengths

Ø  AkzoNobel is the largest global paints and coatings company and a major producer of specialty chemicals

Ø  With operations in 80 countries and having human capital of around 55,000 this Netherlands’ paint major is in Global Fortune 500 and one of the leaders in Dow Jones Sustainability Indexes.  

Ø  The world's best-selling paint: powder coatings, wood coatings, coil coatings, marine protective coatings, aerospace coatings.

Ø  Wide variety of products ranging from paints to industrial chemicals to organic chemicals provides them scope of diversification compared to other conventional paint companies.

Ø  Continuous R&Ds with international facilities and minds coming together has helped them stay at par with competitors.

Weakness

Ø  In decorative paints Industry Customer tastes and perceptions change very fast and products may become obsolete with change in trends, hence production planning and inventory problem.

Ø  Large working capital required.

Opportunity

Ø  Capitalizing on emerging Asian Markets is critical.

Ø  With more advertising like Asian paints, Nerolac and Berger Paints they can create more brand awareness for their lesser known products.

Ø  Being an international company and financially strong company they can use their muscle power to enter potential markets in a strong way.

Threats

Ø  European markets are in bad shape; growth opportunities very limited.

Ø  Local competitors who offer few products at lesser price

Ø  Government rules and regulations regarding the quality of products and manufacturing facilities as Environment policies are given more emphasis.

Ø  Raw material scarcity, volatility in prices