Berger Paints aims to become $1bn co by FY22

Kolkata: City-based

Berger Paints

has set a target to be over $1billion company by the end of this fiscal. The second largest paints company in India is aiming to clock a Rs 10,000crore revenue by 2023-24, its centenary year. Currently, its consolidated turnover is around Rs 6,800 crore.

Following the company’s annual general meeting on Friday, Abhijit Roy, the MD and CEO of Berger Paints, pointed out that its Indian business will be a major growth driver for achieving its centenary goal. In the current fiscal itself, the company is eyeing Rs 8,000crore turnover as it hopes to achieve 18-19% value growth in the top line followed by 12% value growth in 2022-23 and 2023-24.

The paints major is hoping an operating profit of around 17% on the top line of Rs 10,000 crore, which could be close to Rs 1,700 crore. “This financial year will largely contribute to our growth,” he added.

He also made it clear that the high double-digit growth would be mostly organic. “We shall mostly grow organically. The main growth would be from the decorative segment, protective coating, where we are the market leader. Our construction chemicals segment is also growing rapidly,” Roy added. Currently, the decorative segment constitutes almost 80% of its top line, which is likely to remain the same for some time.

Elaborating on its plan for construction chemicals business, Roy indicated that in the next few years, it wants to be in the top-three of the market. The Rs 9,000crore construction chemicals market is now led by Pidilite, followed by Asian Paints. There are a lot of mid-size players with Rs 500-600 turnover in this segment as well. Berger Paints now has 4%-4.5% market share in construction chemicals. The construction chemicals industry in eastern region is 15% of the country.

On overseas operations of the Berger paints subsidiaries, Roy said that it is planning to enter new markets like France and Switzerland in Europe. The European operation of Berger will be under Bolix. Currently, Berger has a presence in Poland, the UK and in Russia. The Russian operation has now being brought under Bolix. “The Russian operation has more synergy with Bolix that is why it was now under it,” he added. Bolix has a turnover of Rs 350 crore.

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Panagarh ops in 2 yrs

Berger Paints is hoping that its new unit at Panagarh in Burdwan district would start production in the next two years. The company has taken up 20 acres of land at Panagarh Industrial Park and is investing over Rs 100 crore there. It will be Berger’s one of the most advanced plants in the region. The company already has two plants in Bengal in Rishra and Howrah.


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