Berger Paints India will be investing Rs 100 crore from internal accruals in a 100,000 tonnes per annum (tpa) water-based paints plant in South India, that will also have a captive emulsions manufacturing unit.
“We are scouting for around 30 acres of land in the southern states of Tamil Nadu and Karnataka. The plant should be operational by mid 2011,” said Subir Bose, managing director, on the sidelines of the company’s annual general meeting.
“The water-based paints segment is clocking a growth rate of 15-18 per cent in comparison to solvent based paints that are growing at a rate of 8 per cent. So, we are planning to add capacity,” he added.
Berger currently has seven plants across India with an installed capacity of 200,000 tpa. Water-based paints constitute nearly 60 per cent of its production. The company plans to raise around Rs 100 crore by November through conversion of 20 million warrants issued in 2008 into equity shares at a rate of Rs 49.50 each.
Berger is also in the process of commissioning a 24,000 tpa emulsion plant adjacent to its existing unit in Vallabh Vidya Nagar in Gujarat and has invested around Rs 26 crore on the project.