The Hindu Business Line : Berger Paints Goa plant to go on stream by June

Kolkata, May 2 The proposed acquisition of Bolix SA in Poland, at a cost of Rs 155 crore, marks the end of a string of capital expenditure commitments for Berger Paints India for the time being.

According to Mr Subir Bose, Managing Director, it is commissioning a 1,500-kl a month solvent-based decorative paint plant in Goa by the end of next month at a cost of Rs 20 crore. This is on top of a Rs 55-crore automotive paint (750 kl a month) near Pune by June 2009.

It is also setting up a second decorative paints plant in Nepal with a capacity of 500 kl a month at Rs 5 crore, through its 100-per cent subsidiary. It would be ready by this December.

Apart from this, the company is also engaged in on-going routine capacity expansion activity in its plant near here.

Issue of Warrant

The proceeds from the proposed 2 crore equity warrant issue to promoters and internal accruals will come in handy for financing the capital expenditure plans at home and also for the acquisition of Bolix. This deal is likely to be closed in July. Berger expects to mop up around Rs 100 crore through the issue of warrants, which may happen by the end of this month, after receiving the SEBI approval. The stock closed at Rs 44 on the bourses on Friday.

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