Berger Paints to hike prices by 10% from Nov 12

Kolkata:

Berger Paints

, one of the country’s leading paint manufacturers, looks all set to hike the product prices by 10% from November 12. The company has already revised the price by 6%-7% in the last few months following pressure of rising raw material cost.

The paints major has witnessed a flat net profit in the third quarter following cost pressure. The managing director of Berger Paints, Abhijit Roy, pointed out that price increase was inevitable and most of its competitors have already increased the price.

Berger Paints has registered a marginal decline in net profit to Rs 219 crore in the second quarter of this fiscal from Rs 221 crore in the year-ago period. However, revenue from operations for the quarter was up by over 27.6% to Rs 2,225 crore from Rs 1,742 crore. The revenue from operations for the first half witnessed a 50% jump.

Roy pointed out that most of the paints manufacturers have de-grown during the quarter. “Last year, revenue was down but profit went up because raw material prices were low. This time the opposite has happened,” he added.

The Berger MD was optimistic that this fiscal (2021-22), the company would cross Rs 8,000 crore turnover. Berger is witnessing an average CAGR of 18% for the last few years. He was also confident that in the 100th year of the company, in 2024, it should touch Rs 10000crore mark in terms of revenue.