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Berger Paints India is planning to foray into new product categories especially in the industrial segment. The company is eyeing an entry into auto-refinish and marine paints through joint ventures that are likely to be finalised by the end of this fiscal.
Also on the cards is the introduction of offerings in the specialised, energy-efficient ETICS (external thermal insulation and composite systems) category. The company may also set up a new plant to cater to this segment.
According to Abhijit Roy, Managing Director and CEO, Berger Paints, will formalise joint ventures with Japanese majors Rock Paints and Chugoku for entry into the ₹2,000-crore auto re-finish and the ₹250-crore marine paints and coatings markets, respectively.
The idea, he said, is to be present in all sectors.
Some of the major players in the auto re-finish category (used for repainting cars) include PPG Industries, Akzo Nobel, Nerolac among others. In case of marine coatings, the segment is dominated by foreign players.
“If we want to have a presence in a segment that is big and is reasonably growing, where international approvals are required, then it makes sense (for Berger) to enter into tie-ups with companies having international repute,” Roy told BusinessLine during an interview.
Currently, industrial paints account for 18 per cent of its turnover, while the remaining 82 per cent comes in from the decorative segment.
ETICS segmentAccording to Roy, Berger Paints India will soon come out with offerings in the ETICS category. The paints major along State-owned construction firm NBCC (India) will promote the use of these offerings. NBCC, which won contracts in Mauritius and Maldives, may use them there too.
Use of ETICS reduces (energy) costs by at least 30-35 per cent. It will target large establishments such as malls, hotels and hospitals, and also premium bungalows.
Initially, Berger Paints will look to import offerings from its Poland-based subsidiary Bolix SA. Once it gets volumes, a manufacturing unit of Bolix may come up in North India.
“We think there will be substantial demand for these paints in North India where temperatures fluctuate between summer and winter months,” he said.
Berger has 12 plants across the country with a combined capacity of 600,000 tonnes per annum.
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