Berger Paints will increase prices of its decorative paints for the third month in a row from August following a 15% rise in raw material costs.
KOLKATA: Berger Paints will increase prices of its decorative paints for the third month in a row from August following a 15% rise in raw material costs. This will take the cumulative price hike by the company to 15-20% if increases effected in June and July are also taken into account.
The company has also decided to invest Rs 100 crore for expanding capacities of its plants in Gujarat, Goa and at Pune in Maharashtra.
Subir Bose, managing director, Berger Paints, said on Wednesday that raw material costs for paints have jumped 15% on the back of soaring oil prices. “We increased our prices in June and July and now will go in for a third hike from August. On a cumulative basis, costs of enamel paints will go up by 15-20% and water based paints will be 5-8% dearer,” he said.
These price escalations effected just at the beginning of the paints season have made Berger a little apprehensive about its growth. Inflation may be another dampener for the company. Bose, however, said that the growth figures will be clearer only after the end of the season.
On Berger’s capacity expansion plans, Bose said the company would invest Rs 50 crore in its automobile paint manufacturing plant at the Jejuri Industrial Estate in Pune, which is slated to be operational by September 2009. The company will be investing Rs 25 crore each in its solvents plant at Goa and emulsion plant at Vallabh Vidyanagar in Gujarat.
Meanwhile, Berger said it will complete all formalities regarding its acquisition of the Polish firm Bolix in the third week of August.
Kuldip Singh Dhingra, chairman, Berger Paints, said the Bolix acquisition would help Berger expand its footprint in Ukraine and Latvian countries. “We will also leverage Bolix’s presence in those markets to sell our own products,” Dhingra said. Similarly, Berger may also introduce Bolix products in India later, he said.
g_nandini@dnaindia.net
){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}