It has become the second-largest paint company, overtaking Goodlass on net consolidated sales for the first time.
KOLKATA: Berger Paints has pipped Goodlass Nerolac to move to the second slot. It has become the second-largest paint company, overtaking Goodlass on net consolidated sales for the first time. The gap between the two is just Rs 10 crore now.
The paint major plans to invest around Rs 55 crore this fiscal for setting up an automotive finishing plant at Rewari, Haryana and scaling up its existing facilities. It has also tied up with Tata Motors for supplying paint to latter’s auto unit at Pune.
The company plans to invest about Rs 40 crore on a standalone plant, which is likely to be commissioned next year.
Addressing the results, Subir Bose, managing director, Berger Paints, said, “Crossing the Rs 1,000- crore sales mark is a milestone and the elaborate re-branding exercise that we did over the last one year has paid off well. There were major packaging changes, alterations in shop decor and two new products that caught on well with the market.”
Berger is gunning for an 18% growth in the current year. Value-wise, Berger’s market share stands at around 19% at present.
The company has lined up a host of products in the current year. “The fundamentals of the economy are strong and the outlook of the paint industry looks good as well. And our strength is in the architectural and decorative segment which constitutes almost 75% of the paint market,” Bose added.
Berger may implement a 2% increase in prices this month on its solvent-based products, given the impact of rise in crude oil prices.
On acquisitions, chairman, K S Dhingra said, “We are keen on acquiring companies in both domestic and international markets. Our current cash flow allows us to scout around.”
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