 "Kanwardip Singh Dhingra, Vice-Chairman, Abhijit Roy, MD & CEO, Rishma Kaur, Chairman, Berger Paints India at the company's new headquarters in Kolkata")
Berger Paints India reaffirmed its target of achieving Rs 20,000 crore revenue by 2030 even as it steered clear of placing a bid for Akzo Nobel’s paints business currently up for grabs.
Rishma Kaur, chairman, Berger Paints India, said that growth would be steady. She said, “Wherever we have scope to grow, we shall grow,” adding that it would be planned, thought through and not kneejerk.
Responding to questions from the media on Akzo Nobel, Abhijit Roy, managing director (MD) and chief executive officer (CEO), Berger Paints India, said bids were invited.
He said, “We had asked for clarifications. And we have not bid. We are not in the race as of now.”
The bid, he said, was for outright sale of Akzo Nobel’s India operations except powder coating and research and development. It also included outright sale of Sri Lanka and Pakistan operations.
Media reports indicated that the bids had been closed and JSW Paints and Pidilite were said to be in the fray.
One of the reasons that Berger has not put in a bid, is the valuation.
Berger has a significant capex plan ahead. By 2027, it would be investing about Rs 2,000 crore across projects in Odisha, West Bengal and Andhra Pradesh. It will take the capacity to 142,000 tonnes per month from 110,000 tonnes.
The capacity addition is largely on the back of the India story. Kaur said, “India is in a sweet spot, we see it growing. The government has big plans on improving infrastructure. When development happens, urbanisation happens. And, there will be demand for painting.”
“We see a very bright future because India has a bright future,” she said.
Roy added that the company would continue to grow as it has been in the past. He said, “That’s what wins the race.”
The decorative paints market is facing competition with the emergence of Birla Opus as a challenger. However, Kaur said competition was not new to the family.
Berger, which is celebrating 100 years, came into the Dhingra family fold in 1991 when Kuldip Singh Dhingra and Gurbachan Singh Dhingra acquired controlling stake from the UB Group.
The company has since grown from Rs 100 crore to Rs 11,199 crore revenue in FY24. Revenue from operations had stood at Rs 6,366 crore in FY20.
On Monday, Berger unveiled its new headquarters in New Town, Kolkata. It was officially inaugurated by West Bengal industry minister Shashi Panja.
Speaking at the event, Kaur, daughter of Kuldip Singh Dhingra, recalled how necessary investments had been pumped in. And with support from the management, she said Berger’s status had gone up from fifth position to second among Indian paint companies and 14th in the world.
