Berger Paints has ambitious plans for expansion, aiming to increase its production capacity from the current 95,000 tons per month to 1.6 lakh tons per month. Additionally, the company has set a goal to double its revenue to ₹20,000 crore within six months. To achieve this, Berger Paints intends to establish three new plants in West Bengal, Odisha, and a third one in the western region. The latter location is yet to be decided between Gujarat and Maharashtra.
Abhijit Roy, the Managing Director of Berger Paints, stated that the company intends to invest ₹2,700 crore in both greenfield and brownfield expansion projects over the next 5-6 years. This investment is aimed at sustaining a consistent annual growth rate of 14 percent. The company achieved a turnover of ₹10,000 crore in the last fiscal year, and it aspires to reach ₹20,000 crore in the next six years.
For the fiscal year 2024, Berger Paints has set a revenue target of around ₹11,700 crore, compared to the previous fiscal year’s achievement of ₹10,600 crore. The company also plans to relocate its Howrah plant to Panagarh due to residential developments in the surrounding area. Furthermore, Berger Paints plans to merge its recently acquired subsidiaries, STP and Sahoo Coatings, within the next two years.
As reported by businessline, despite challenges in the market, Berger Paints managed to attain a twenty percent market share during the June quarter, making it the fourth-largest paint manufacturer in Asia after Nippon, Kansai, and Asian Paints.
As part of its expansion strategy, Berger Paints aims to strengthen its dealer network in the western and southern markets to match the growing production capacity. The company sees significant potential in the protective coatings and industrial paints sector, given the increase in factories resulting from the ‘China plus one’ policy. Although decorative paints dominate the Indian market, Berger Paints anticipates a shift towards a more balanced distribution between decorative and industrial paints.
