Berger plans to rejig premium products range

Berger Paints India has decided to re-brand it's existing range of premium products that would be available under 'Lewis Berger' brand in the Indian market.

Subir Bose, managing director of Berger Paints said, "The range of premium products including precious, exclusive and select category products would be marketed as 'Lewis Berger'. We will also focus on our premium segment to achieve the targeted turnover of Rs 1,100 crore in 2005-06."

The company recorded Rs 948 crore turnover in 2004-05. , in which Berger enjoys a market share of around 20 per cent in the premium category and the segment contributes to around 20 per cent of the company sales.

"The premium paints market is growing at a significant rate and the company is aimed at strengthening it's position in the category," said Bose.

Berger Paints expects one per cent additional compound annual growth rate(CAGR) this year that was around 15.9 per cent in decorative segment over the last decade, he added. Berger also plans to invest around Rs 15 crore to scale up the look of around 1,000 retail outlets.

"The company has decided to change the entire look of its 1,000 'gold and silver' category retail outlets and will be spending Rs 15 crore for the transformation and promotion exercises," Bose informed.

Bose also noted that post festive season might see a 3-4 per cent rise in paints price owing to increasing oil prices. "Industry would continue with the existing paints price despite significant pressure due to climbing oil prices. The paint companies might though increase paints' price by 3-4 per cent after the upcoming festive season," Bose confirmed.