Financial Daily from THE HINDU group of publications
Friday, May 03, 2002
Financial Daily from THE HINDU group of publications Friday, May 03, 2002 |
|
|
|
|
|
Corporate
-
Mergers & Acquisitions Hurdles in Berger arm merger Santanu Sanyal
KOLKATA, May 2 THE merger of Berger Auto & Industrial Coatings Ltd — now a wholly-owned subsidiary of Berger Paints India Ltd, but till recently a paint unit of ICI India Ltd in West Bengal — into the parent company, though inevitable, may have to wait till something is done about the workforce of the subsidiary company. The Rishra-based Berger Auto & Industrial Coatings employs 80 people and their pay and perks are slightly better than those of Berger Paints India Ltd. Some parity, therefore, has to be achieved before the employees of the subsidiary company can be brought under the fold of the parent company. Berger Auto & Industrial Coatings has the capacity of 900 kl a month of both decorative and automobile paints. However, it now produces only auto paints accounting for a third of its total capacity. Depending on the market situation, Berger India, according to company sources, would like its subsidiary not only to produce more of automobile paints and but also of decorative paints. Right now decorative paints account for nearly 70 per cent of the Berger India's total turnover of about Rs 600 crore, while the industrial paints, the balance 30 per cent including 10 per cent of automobile paints. However, the problem is that the increase in production of the subsidiary company will not be reflected in the balance sheet of the parent company. It might be recalled that a few years ago, the Rajdoot Paints, also belonging to the Dhingras, who are the present owners of Berger Paints, was merged into Berger India. As a result, Berger India has now got five manufacturing units with a total production of about 80,000 tonnes of paints annually. In 2001-02, Berger, it is estimated, will post nearly eight per cent growth in turnover to about Rs 650 crore, against the industry average of two to three per cent.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|