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In order to bolster its presence in East India, Kolkata-based paint company Berger Paints India Ltd has decided to set up two manufacturing units in the north-eastern state of Assam.
According to KS Dhingra, chairman, Berger Paints India Limited the company would invest a total of Rs 60 crore to set up the two plants construction of which would begin in the next financial year. The place selected for the plants are Guwahati and Tejpur.
Dhingra said that the proposed Guwahati unit is planned to produce company's British Paints branded items, while the other in Tejpur would manufacture products under the Berger brand. Berger Paints would need a total area of around 12 acres for both plants.
"We have already requested the Assam government for land, they are yet to take a decision on that," Dingra added on the sidelines of the company's annual general meeting.
The company is looking at an initial capacity of around 2,000 tonne per month from each unit. Manufacturing units in the region will help the company to cut down its logistic cost.
The company which declared its first quarter results on Monday reported a 34.52 per cent increase in consolidated net profit at Rs 77.3 crore. The company's net sales in the quarter stood at Rs 1,117.75 crore, an increase of 5.83 per cent compared with Rs 1,056.16 crore in the same quarter of the previous year.
