newsdesk@business-northeast.com

+91 6026176848

More forecasts: New York weather 30 days

Berger Paints expands retail presence and capacity amid growing demand

BNE News Desk , June 12, 2024
Spread the love
Share on Twitter

Kolkata: Berger Paints India Ltd, the country’s second-largest paint company, is strategically bolstering its retail network and enhancing production capacity across key regions in response to increasing demand and rising competition.

Berger Paints is intensifying its retail presence in west and south India while bolstering capacity in the east. Abhijit Roy, the Managing Director and CEO, recently outlined plans to expand retail networks in Tamil Nadu, Telangana, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, and Rajasthan.

The company aims to accelerate the installation of Colourbank tinting machines, with a projected increase from 7,300 to over 8,000 this year, and a potential rise to 9,000 in the subsequent year. Roy emphasized that 65 percent of the new machines will be deployed in untapped areas, while the remainder will fill gaps in existing markets.

Roy highlighted the importance of strengthening teams in target locations, enhancing ground presence, and aligning with stakeholders such as dealers, painters, architects, and builders. This concerted effort aims to establish a robust presence in all targeted regions within the next three to four years.

Industry analysts view Berger’s expansion strategy positively, citing its systematic market approach and transformation from a low-end to a mid- and top-end player over the years. Abneesh Roy, Executive Director of Research at Nuvama Institutional Equities, emphasized the effectiveness of capturing markets incrementally rather than pursuing a nationwide approach.

Berger Paints plans to invest Rs 1,800 crore over three years to establish manufacturing plants in Panagarh, West Bengal, and Khordha, Odisha. The Panagarh and Khordha projects, worth Rs 500 crore and Rs 1,300 crore respectively, are expected to commence operations by the first quarter of the financial year 2027. These investments will be financed through internal accruals.

With 25 manufacturing plants in India currently, Berger Paints aims to address capacity constraints in the eastern region through these strategic investments, ensuring continued growth and market competitiveness.

As Berger Paints India continues to fortify its retail presence and production capabilities, industry observers anticipate significant contributions to the paint sector’s evolution and market dynamics.

ALSO READ: SBI to raise upto $3 billion via debt in FY25