Berger plans to set up manufacturing unit in Russia

Kolkata-based Berger Paints plans to set up a production facility in Stavropol, Russia, with an initial investment of USD 5 million (Rs 31.17 crore).
The company today signed an MoU with the government of Stavropol region for conducting a feasibility study for the plant. It would complete the study by the end of 2015.
"We have been offered land by the government of Stavropol region and would finish the feasibility study by the end of 2015. We have plans to invest USD 5 million," Berger Paints India Chairman Kuldip Singh Dhingra said.
The new plant would have an initial capacity of 3,000 tons per year and will employ around 50 people.

"We would increase the production capacity if demands pick up later," he said.
Located in the Northern Caucasus region, Stavropol is an industrially developed area with automobile manufacturing facility and several other industries.

Berger Paints, which has presence in three countries, is looking for acquisitions in emerging markets like Indonesia, Vietnam, China, Sri Lanka and some African countries.
"We are always open for acquisitions. We are looking for assets in India and abroad and when we would find it worthy, we would go for that. It's not an easy task to get the right one... We would like to acquire in the fast growing markets," Dhingra said.

The company has a production capacity of 320,000 tons and is growing at an annual rate of 16 per cent.
"Our capacity in the next two years would be above 500,000 tons. We have just started our Hindupur plant in Andhra Pradesh, which would have 300,000 tons capacity," he added.
Berger Paints has started production at its water-based paint manufacturing unit at Hindupur where it has invested Rs 250 crore.