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Berger Paints India Ltd is looking to reposition its products following the acquisition of Sherwin Williams’ decorative paints business in India, to avoid competition within the group. In the changed scheme of things, Sherwin will primarily cater to the premium paints segment.
While texture coating-enabled paints and water-based enamels are some products unique to Sherwin Williams, emulsion paints will be a focus area.
In March, Berger had acquired the decorative or home paints business of the Indian subsidiary of US-based Sherwin Williams. The takeover helped the company acquire market share in the western and southern markets, where Berger had limited presence.
But the acquisition has also led to overlapping of products. Since Sherwin has a stronger presence in pockets like Pune or Mumbai, Berger is avoiding any hasty re-jig of the product portfolio. Initially, lower-end Sherwin Williams products will be taken out.
“The Sherwin brand will continue. We intend to have a dual-brand strategy. The idea is to reposition Sherwin Williams in a different price bracket by taking out some of the lower-end products,” Abhijit Roy, Managing Director and CEO, Berger Paints, told Business Line. He expects the repositioning to be through by April next year.
Berger, incidentally, has gone ahead with a similar dual brand strategy in the case of its British Paints division. British Paints is placed as a mass brand (lower end).
Technology Transfer
According to Roy, Berger’s acquisition will also give it access to Sherwin Williams’ technology. However, a decision on integrating the technology and brand consolidation is yet to be taken. “We have a meeting in October where we will talk on integration of technologies and brand consolidation,” he said. Manufacturing will continue from Sherwin Williams’ existing facility at Taljola, Mumbai. If required, Berger’s facilities will also be used. The over Rs 3,300 crore Berger Paints has eight manufacturing facilities with a capacity of nearly 23,000 tonnes a month.
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