Berger Paints to set up Rs100 crore plant
Berger Paints has firmed up plans to set up a Rs100-crore greenfield water-based plant, along with a supporting emulsion facility in southern India. The company is also looking at an additional investment of Rs30 crore to set up an emulsion plant in Gujarat and a resin plant in Goa. The greenfield plant is likely to be operational by mid-2011.
Talking to the media on the sidelines of the company’s AGM recently, MD Subir Bose said, “We have already taken a decision to set up the plant either in Tamil Nadu or Karnataka. It will largely be an automated plant with an annual capacity of 100,000 mt per annum. The water-based paints sector is growing at a rate of 15-18% and it makes strategic sense to come up with this project.”
“This greenfield plant will also support an emulsion plant,” he added. “So long, we used to source emulsions from outside. Having a captive plant will help us save costs by around 15%. Nearly 60-70% of our captive need will be met through this plant.” The company, which has a 19% market share in the paints segment, is expected finance the projects largely from internal accruals and conversion of warrants.