Berger hopes to gain market share in UP, Bihar, Madhya Pradesh with upcoming Rs 800-crore plant

by Joseph K. Clark

The Kolkata-based company has also acquired land at Panagarh in West Bengal to set up a new plant to produce construction chemicals and waterproofing products. “Work to set up the plant is expected to start after the monsoon,” Roy said.

The country’s second-largest paint company, Berger Paints, is looking to operationalize its fully-automated manufacturing plant near Lucknow by January next year to gain a higher market share in Uttar Pradesh, Bihar, and Madhya Pradesh.

Work on the Sandila factory near Lucknow is in progress, and the company is investing around Rs 800 crore to set up the plant, which will manufacture its entire range of decorative paints.

 gain market share

“The Sandila factory is expected to commence operation by January-end. Its production capacity will be 15,000 metric tonnes per month. This plant will help us gain market share in Uttar Pradesh, Bihar, and Madhya Pradesh. We will also make efforts to strengthen our distribution network in these markets,” Berger Paints MD and CEO Abhijit Roy said.

The company’s production capacity in the decorative paints segment currently stands at 65,000 metric tonnes per month. Apart from automotive paints and industrial paints, Berger also produces construction chemicals, waterproofing, and protective coatings.

In Uttar Pradesh, Asian paints and Berger Paints are very close in terms of market share. On a pan-India basis, Berger holds around 19% of the overall market share in terms of value among listed paints companies. Berger is trying to improve its distribution network to close the gap with market leader Asian Paints, Roy has said during its 96th AGM in September last year.

The Kolkata-based company has also acquired land at Panagarh in West Bengal to set up a new plant to produce construction chemicals and waterproofing products. “Work to set up the plant is expected to start after the monsoon,” Roy said.

He said that in June, the company has witnessed demand growth in upcountry and rural areas. Demand is also visible in cities. “In April, we saw good demand, but in May, it reduced because of localized lockdowns,” Roy said.

In the current financial year, the company is looking at double-digit sales growth in volume and value. Last fiscal year, it had clocked 7.1% sales growth in terms of value and 13% volume.

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