Berger Paints to invest Rs 120 cr on capex in FY14

Berger Paints India Ltd is planning to invest Rs 120 crore on capital expansion for augmenting production capacity by 13,000 tonne per month to 33,000 tonne per month by the current financial year.

Meanwhile, the paint maker is set to hike price for decorative and industrial paints by 2.5% from September 1, resulting in total rise in price by 5.7% since April this year.

"The hike is being done to protect from the rupee depreciation," Berger CEO and MD Abhijit Roy said.

This would be the third price hike by the company in the current financial year.

However, this rise in price will keep product price stable till rupee remains below Rs 65-mark against US dollar.

The rupee depreciated 6.28% against the greenback in 2012-13, and has fallen 10.18% against the dollar so far during the current financial year.

During 2012-13, the company raised its prices by around 4% across all categories, he said.

The company is in the process of completing the construction work at its plant in Hindupur, Andhra Pradesh, which is expected to be commissioned by October.

"The initial capacity at Hindupur plant will be at 2,500 tonne per month, and it will be gradually scaled up to 8,000 tonne per month, Roy said.

Berger paints has also completed the ongoing capacity augmentation exercise at its plants in Rishra, West Bengal, and Goa which would generate additional capacity, he said.