Berger Paints to set up Rs 200 cr plant in Tamil Nadu
Berger Paints India said it is setting up a new production plant in Tamil Nadu with an investment of Rs 200 crore which is likely to be operational by next fiscal.
August 19, 2011 / 18:48 IST
Berger Paints India said it is setting up a new production plant in Tamil Nadu with an investment of Rs 200 crore which is likely to be operational by next fiscal.
The company that manufactures and markets a range of decorative and industrial paint products under various product brands also said it is also looking to diversify into industrial chemicals segment in the long term."We are setting up a new plant in Tamil Nadu, which is likely to be completed by December this year, and would start production by early next fiscal," Berger Paints India Chief Business Development Manager Sanjay Chowdhury told reporters here on the sidelines of an IIFT event.The investment will be made through internal accruals. The company currently has eight plants across India and the new one at Tamil Nadu will be the ninth, he added.Chowdhury said besides expanding manufacturing capacity the company is also looking to diversify into industrial chemical segment in future."Entry into the industrial chemicals segment is a long- term plan because it has a close synergy with our current business. There is no concrete plan yet..but we intend to do it," he said.Commenting on increasing prices of crude and metals, he said: "Raw materials have been putting a constant pressure. In June we have taken about 8 to 10% price increase, and will take another similar hike, but post the Diwali season."Berger Paints India currently spends about two per cent of its sales in marketing and advertising, which it might increase to three per cent in the next fiscal.For the fiscal ended March 31, 2011, the company's net sales stood at Rs 2,328.12 crore.Chowdhury said the company expects about 15% sales growth this fiscal, he said.According to him the total paint market in India is estimated at Rs 15,000 crore, including decoratives and industrial paints and Berger Paints currently enjoys 22% share of the total market. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
