The country’s second largest paint-maker Berger Paints India Ltd will invest around ₹500 crore towards capacity expansion and setting up new units over the next three years (till FY-20).

Total capacity is expected to go up by nearly 25 per cent or by 10,000 tonne per month across both decorative and industrial paints. The existing capacity stands at around 32,000 tonnes per month for decorative paints and at 6,000 tonnes per month in the industrial paint category.

According to Abhijit Roy, MD and CEO, Berger will bring on-stream in January its ₹90 crore greenfield plant at Tejpur in Assam with a capacity of 4,000 tonnes per month. The plant will cater to decorative paints.

This apart, expansion will be carried out at Jejuri (Maharashtra) and Hindupur (Andhra) units. The total capacity addition across these two units will be around 6,000 tonnes per month. Berger will also set up a mixing unit at Gujarat at a cost of ₹10 crore, while an emulsion unit (the basic raw material required for paint) will come up at Rishra (West Bengal) at an estimated cost of ₹25 crore.

“So far we have been bringing-in the emulsion from our Gujarat unit. Now we intend to have one in Rishra. The unit will cater to the east and southern markets and Assam (Tejpur),” he told BusinessLine on the sidelines of 53rd AGM of the Indian Paint Association.

Market share

According to Roy, the capacity addition will see Berger take up its market share to around 22-23 per cent (up from the existing 19 per cent) over three years.

Berger competes with market leader Asian Paints (45 per cent market share).

“Ideally, we intend to increase our market share up by around one percentage point every year. So may be we will have a 22-23 per cent market share over the next three years,” he added.

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