Keeping close watch on competition, says Berger Paints India MD & CEO

Roy's comments come in the wake of the entry by the Aditya Birla group into the decorative paints segment

Berger Paints India, the second-largest paint company in the country, expects to continue raising its market share amid increased competition. It hopes to achieve its target of Rs 20,000-crore turnover by 2029.

Assuring shareholders at the company’s 100th annual general meeting (AGM), Abhijit Roy, managing director (MD) and chief executive officer (CEO), said there was nothing to worry.

“We are keeping a watch on all competitors. Competitors have been part of the paint industry for long. Many multinational corporations (MNCs) had come earlier,” he pointed out, adding that Berger has continued to beat them and grow in the market.

Roy’s comments come in the wake of entry by the Aditya Birla group into the decorative paints segment.

 

The Berger MD said for the last four years, the company has been gaining 0.5-0.6 per cent market share year-on-year (Y-o-Y). “We are well on our way to further gain market share by another 0.5-0.6 per cent.”

Berger, which is in its 100th year, has set sights on a turnover of Rs 20,000 crore by 2029. “It took us almost 100 years to get to Rs 10,000 crore. In the next six years, we will do another Rs 10,000 crore,” Roy said.

In FY24, the company’s consolidated turnover stood at Rs 11,199 crore.

 Roy is banking on increased urbanisation and the government’s focus on infrastructure to drive growth.

In the decorative category, painting happens whenever urbanisation improves, he said.

“Today, the urbanisation level is about 35 per cent in India. Consumption (of paint) is going to increase until urbanisation increases to 50-55 per cent. So, there is a big runway for opportunity,” Roy added.

In the protective and general industries, Roy said Berger is the leader. “There is a lot of stress by the government on infrastructure. We stand to gain the most.”

However, the first quarter of the financial year was impacted by elections, weather and slowdown in markets like West Bengal and Kerala. Price decreases in Q3 and Q4 impacted value sales.

Since June, Berger has taken three price hikes with a total impact of 2.5 per cent, which is expected to improve value growth. Part of it, Roy said, was to neutralise the impact of raw material prices, which rose about 1.5 per cent.

Two greenfield projects are on the cards – Panagarh (West Bengal) and Odisha. The combined investment in the project would be about Rs 2,000 crore.

As Berger prepares for the next leg of growth, the baton is being passed on to the next generation.

At the AGM, the company’s chairman, Kuldip Singh Dhingra, told shareholders that in the 100th year of existence — as part of the regular succession planning — Rishma Kaur, non-executive director, will be appointed chairperson of the company with effect from Tuesday, August 13.

Kanwardip Singh Dhingra, non-executive director, will be appointed vice-chairman. 

Rishma Kaur is daughter of Kuldip, and Kanwar Singh Dhingra is Kuldip’s nephew and son of Gurbachan Singh Dhingra. 

The appointments were approved at a board meeting on August 9. 

As part of the transition, Kuldip and Gurbachan would continue as non-executive directors, designated chairman emeritus and vice-chairman emeritus.