Berger Paints India rose 2.38% to Rs 296.65 at 09:51 IST on BSE after the company signed a shareholders' agreement with Rock Paint Co., Japan for the purpose of setting up of a joint venture company in India.
The announcement was made after market hours yesterday, 5 July 2018.Meanwhile, the S&P BSE Sensex was up 82.14 points, or 0.23% to 35,656.69.
On the BSE, 40,000 shares were traded in the counter so far, compared with average daily volumes of 24,000 shares in the past two weeks. The stock had hit a high of Rs 297.45 and a low of Rs 291.10 so far during the day. The stock hit a record high of Rs 305.40 on 29 May 2018. The stock hit a 52-week low of Rs 230.80 on 23 August 2017.
The large-cap company has equity capital of Rs 97.10 crore. Face value per share is Re 1.
Berger Paints India entered into a Shareholders' Agreement with Rock Paint Co., Japan (Rock Paint) for the purpose of forming a joint venture company for sale of superior automotive refinish paints in India and Nepal. The joint venture company is proposed to be named as Berger Rock Paints. Berger will hold 51% and Rock Paint will hold 49% in the share capital of the joint venture company.
The joint venture company will benefit from the market knowledge and infrastructural strength of Berger in India and the technical expertise and high end products from Rock Paint.
Earlier in 2017, Berger and Rock Paint had entered into a memorandum of understanding and had carried out trial sales of automotive refinish paints in India. The results of the trial sales have been encouraging and the alliance has culminated in signing the agreement. The companies are optimistic that the high quality automotive refinish paints will have considerable demand in the Rs 2000 crore automotive refinish market in India.
K S Dhingra, Chairman, Berger Paints said the joint venture company will deliver an array of international quality auto refinish paints to the Indian consumers.
Rock Paint is a leading manufacturer of automotive refinish paints in Japan and is well known in the industry for the quality and utility of its products. Rock Paint offers a wide range of high quality, easy-to-use coatings suited to the diverse needs of today's auto-refinish market.
Berger Paints India's consolidated net profit rose 0.67% to Rs 106.21 crore on 15.63% increase in total income to Rs 1310.47 crore in Q4 March 2018 over Q4 March 2017.
Berger Paints India is the second largest paint company in India. Berger is present in all segments of paints including decorative, automotive, industrial, protective and powder coatings.
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