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Berger Paints to shell out more on manpower as competition heats up

Despite the entry of new players - Aditya Birla Group’s Birla Opus, JSW Paints and Pidilite Industries - Berger Paints has downplayed any adverse impact, and said it expects to gain market share as well as volumes this fiscal.

May 16, 2025 / 15:33 IST
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    Berger Paints’ employee cost is expected to stay high this fiscal, at around 12–13% of revenue, as India's second-largest paint company plans to ramp up manpower to defend market share in the competitive decorative paints segment, managing director and chief executive officer Abhijit Roy has said on May 16 during an analyst interaction.

    This comes amid a prolonged slowdown in demand for paints - marked by consumer downtrading - and competition hotting up. Despite the entry of new players - Aditya Birla Group’s Birla Opus, JSW Paints and Pidilite Industries - Berger Paints has downplayed any adverse impact, and said it expects to gain market share as well as volumes this fiscal. In response to heightened competition, Berger said it is ramping up on-ground presence through more ‘feet on the street’, to strengthen retail reach and defend its turf.

    When asked about staffing costs, Roy said, "It will still be elevated a little bit, because we are adding manpower and feet on street, given the current context of intensification of competition. It will be at around the 12-13%, but it won't go down to the 10% level."

    Berger Paints' standalone employee benefits expense rose 14 percent on year to Rs 147.7 crore during the March quarter. Read More

    Launched in February last year, rival Birla Opus has gained a mid-single digit market share of 6.8% within a year, an aggressive entry backed by a Rs 10,000 crore investment, manufacturing expansion, and a talent pool drawn from rivals. Birla Opus has set its sight on becoming the second-largest paint maker in India within five years.

    Berger Paints played down any major impact on its business. "We have still gained market share, even if we add Birla into the market share calculation. It is true that their share has moved up further.. But that doesn't impact us in any significant way in terms of gain or loss of market share," Roy added.

    Berger said it sees improved performance in the decorative paints segment in FY26 on account of a rebound in urban demand, higher disposable income due to tax incentives, and easing inflation.

    Aishwarya Nair
    first published: May 16, 2025 03:33 pm

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