Berger Paints to hike prices in September as rupee weakens

Decorative paints major Berger Paints India will take another price hike in September owing to weak domestic currency against the dollar. This will be the third hike by the company this fiscal as the the domestic currency at 60 level against dollar.

The paints major has also lined up a capex investment of Rs 120 crore and a major part would be invested in its Hindupur facility in Andhra Pradesh.

After the company’s annual general meeting here on Friday, company chairman K S Dhingra said that the facility at Hindupur would be commissioned in October with an initial production capacity of 2.5-3 mt a month as over all demand is muted. The company plans to take its total capacity to 33,000 mt per month in the current financial year from the present level of 20,000 mt a month.

Meanwhile, the company has reported a net profit of Rs 49 crore in the first quarter of the current fiscal as against Rs 44 crore in a year ago period, showing a growth of 11 per cent. Net sales jumped by 13 per cent to Rs 904 crore in the quarter under review.

Going forward, Roy feels the volume growth will be better in FY 14 compared to FY13. “This year volume growth should be in double digits,” he added.