The paint major is looking to pass on the rise in inputs costs (6-7 per cent) over the last one year to consumers.
"The unabated rally in crude oil prices has pushed up prices of oil-based inputs, such as mineral turpentine, xylene and pthalic anhydride," informed Berger executives.
"Solvent-based products comprise nearly 50 per cent of the company's product portfolio," Srijit Dasgupta, vice-president (finance & accounts), said.
"Prices will rise 10 per cent on an average across the segment," added Managing Director Subir Bose. Enamels will see a 10 per cent price rise, while solvent-based primers will see an increase of 7 per cent, Bose said.
The solvent-based decorative paint segment constitutes nearly 37 per cent of Berger Paints India's net turnover, Dasgupta said.
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However, Berger, Jenson & Nicholson, the Nepal subsidiary, is keeping prices stable.
Meanwhile, BPI is working on its upcoming automotive paint plant at Jejuri, near Pune, with a capacity of 750 klpm. The plant is scheduled to be on stream by June 2009 with an investment of Rs 55 crore.
It has also undertaken modernisation and expansion activities at its Goa and Rishra plants along with expansion of facilities in Gujrat and Jammu. The capex will be Rs 100 crore by June 2009.
In another significant move, Berger recently signed agreements to acquire Polish paint firm Bolix, a leading manufacturer of external insulation finishing system (EIFS), through its Cyprus-based subsidiary.
Bolix currently has 13 per cent market share in EIFS in Poland, and Berger is looking to acquire a 15-20 per cent market of the $300 million market in Poland and the Baltic states to start with, Bose said.
BPI has also tied up with Swedish major Becker Acroma to market wood-finish coatings under the brand Berger-Becker Acroma. It already has a joint venture with Becker for the manufacture of oil-coatings at its Goa facility.