Berger scouts for acquisitions in Asia

Berger Paints is scouting for acquisitions in SAARC countries and Thailand to take the benefit of the liberal trade agreements that India would have with these countries in near future.

Kuldip Singh Dhingra, chairman of Berger Paints, said the company was sitting on a huge pile of cash which could be used for buying paints companies abroad.

"We have a reserve over Rs 100 crore. But there are not many acquisition target left in India. We need to look at other countries for expansion," Dhingra told the media at the sidelines of an extraordinary general meeting (EGM) in Kolkata on Monday.

At the EGM, the company approved a bonus issue of 1:2. It also passed the resolution to delist shares from Delhi and Ahmedabad stock exchanges.

Berger has 18 per cent market share in India. A major player in decorative paints, the company strengthened its presence in automotive sector by buying out ICI''s auto paint business. The company expanded its operation outside the country after buying out Jenson & Nicholson of Nepal.

"The government is considering a number of free trade agreements with SAARC (South Asian Association for Regional Co-operation) and BIMSTEC (Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Co-operation). It will open a new window as far as low cost manufacturing base is concerned," he added.

However, the company may not be able to use the Berger brand as Berger India's right over the brand is limited to India. "Either it has to buy out Berger brand in the countries where it exists with local owners or it has to create a new brand," an expert said.

When asked Dhingra replied that Berger would try to promote the brand it acquires overseas.