The Hindu Business Line : Berger Paints to start units in Haryana, Russia — Turnover at Rs 294 crore in third quarter

"The Rewari unit in Haryana will start production from January next year, while the one at Kraskadar in Russia in July this year," said Mr Subir Bose, Managing Director, Berger Paints, while briefing presspersons about the company's third quarter results.

During the third quarter, the net sales at Rs 294 crore (Rs 258 crore in the corresponding period last year) posted a growth of 14 per cent compared to the national average of 12-13 per cent and the profit after tax at Rs 19.91 crore (Rs 15.22 crore) a growth of about 33 per cent.

The cumulative sales for first nine months at Rs 848 crore (Rs 700 crore) grew by 21 per cent, while the cumulative net profit at Rs 56.6 crore (Rs 36.5 crore) by 55 per cent. "We're looking forward to a turnover of Rs 1,100-crore by March this year," he said.

The Rewari unit, to be the company's eighth unit being set up at an investment of Rs 35 crore, would mainly produce paints for the automotive sector, while the Russian unit, estimated to cost $2.5 million, for the decorative segment, he said. Right now, the company produces paints for the automotive sector at its Howrah unit in West Bengal, about 700 kl per month.

To start with, the Rewari unit would produce at 500 kl per month, to be stepped up gradually as the market develops. "In addition to the existing clients in the automotive sector, we're also targeting new customers in the same sector," Mr Bose said. The Russian unit would be the company's second overseas venture, the first being in Nepal. It might be recalled that in 2000, Berger acquired the manufacturing facility in Nepal from the erstwhile Jenson & Nicholson Paints.

Although northern region, particularly the national capital region, accounted for a sizeable chunk of the company's business, Mr Bose sounded very bullish about the southern region, particularly Tamil Nadu, Andhra Pradesh and Karnataka. "The monthly sale of a major paint company in Karnataka is more than the total monthly sales by all paint companies in West Bengal," he said.