Berger looks for overseas hues

KOLKATA: Berger Paints is eyeing acquisitions in the foreign markets. While its recent greenfield manufacturing facility in Russia has just commenced production, the paints major is exploring opportunities in China, Brazil, Russia and eastern European countries.

Back home, the company is investing Rs 15 crore for manufacture of automotive paint at a new facility in Pune.

“We are in a position to explore good targets for acquisitions in the domestic market. Money is not an issue as bankers and private equity funds are eager to fund acquisitions these days. Berger is not leveraged and if need be we can dilute our equity to some extent,” Kuldip Singh Dhingra, chairman, Berger Paints India Ltd, said.

“We just failed at an acquisition because the price did not suit us. Everything was almost decided but the board came to a conclusion it a very high price. Hence, we’ll be scouting around again,” he said.  Dhingra, however, did not divulge the name of the company with which the acquisition agreement fell through.

Berger Paints is focusing on the Russian market in a big way. With a big potential in the market, the present plant at 3000 tpa for decorative and industrial paints will line up major expansions after a while.

According to managing director Subir Bose, increase in prices of paint products has paid off in the first three months of the current fiscal.