Berger Paint's largest upcoming decorative paint plant at Hindupur in Andhra Pradesh is now set to get commissioned next month, after suffering from prolonged delays due to reasons as varied as the formation of a separate Telengana state to objection from airport authorities. This would be followed by the commissioning of another plant in Pune, which would be producing automobile paints. These plants are expected to significantly raise the company's output next quarter.
Berger had in January inaugurated the Rs 550-crore fully automatic facility having advanced robotics at Andhra Pradesh, but seven months later, the plant is yet to start operations.
The plant has incorporated technologies like pneumatically controlled powder handling, automated liquid transfer system, storage and retrieval system and robotic palletisation system.
However, too much of technology it seems has left the authorities confused.
"We have built a highrise within the plant to house the ASRS or Automatic Stock Retrieval System. But permission for that wasn't forthcoming as there is Bangalore airport nearby. But we are now just about to get that permission. Trial production has already been carried out and commercial operations would start next month," Berger managing director Abhijit Roy said,.
"We are starting 4,000 tonne a month Hindupur plant and will be scaled up substantially," Roy told reporters after the annual general meeting of the company.
Earlier, the plant was supposed to start production in September 2013, but the Telengana agitation resulted in widespread absenteeism of government officials and permissions to start operations got stuck.
Post the commissioning of Hindupur plant, the company plans to start the powder coating plant at Jejuri near Pune with an initial capacity of 900 tonne a year, and later enhancing it to 3,600 a tonne.
"The Jejuri plant is on schedule. The shed has been prepared and machinery installed. Trial production would start in August," Roy said.
Even as these two plants get commissioned, Berger has decided to go slow on its Gollapuram plant, also at Andhra Pradesh, due to slow uptick in the revival of demand in automobile sector.
"'We will start off on a smaller scale beginning with powder coating and then will start industrial paint," he said.
The plant, planned as a joint venture with Nippon Bee Chemicals of Japan under Berger's British Paints range of industrial paints was supposed to target the fast emerging automobile manufacturing clusters in southern India.
The facility was supposed to have an initial capacity of 40,000 tonnes of paints and resins. The plant would now cater to British Paints' existing clients like Toyota and Honda for the time being, Roy said.
"Gollapuram project would be executed later on and we will only be building a part of it. The project partly to be commissioned would service existing customers. Currently British Paint is addressing these customers from its northern India plants like Surajpur and Sikandrabad, which includes significant freight costs".
Meanwhile, Berger on Friday reported 17% growth in both revenues and bottomline for the first quarter at Rs 1,060 crore and Rs 57 crore over the same quarter a year ago.
"All three premium decorative paint brands (silk, easy clean and weathercoat) are doing well, with each crossing Rs 100-cr mark. A key reason why our profits are beating industry is the growth in these three brands growing by in excess of 25%."
After acquiring decorative brand Sherwin Williams in 2013, Berger is still eager to acquire more brands.
"Our growth strategy is organic as well inorganic so we are always looking at acquisition opportunities. We even looked at an African country but due to some reasons, the acquisition didn't happen. Within the country there are acquisition opportunities though," Berger chairman Kuldip Singh Dhingra said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}