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Berger Paints India Ltd has decided to set up two manufacturing units in Assam to serve the North-East market at a cost of around ₹60 crore.
Kuldip Singh Dhingra Chairman told reporters after the 91st AGM, “we have applied for land to the State Government for the proposed units — one in an industrial area of Guwahati and the other one at Tejpur”.
The company is looking at an initial capacity of around 25,000 tonnes each in the two units. Dhingra said the proposed Guwahati unit is planned to produce the company's British Paints’ branded items, while the other would manufacture paints from the Berger brand portfolio.
In a filing to the stock exchanges on Monday, the company said that it “decided to install two factories in Assam. One of them will be a putty and distemper manufacturing facility, to be put up by British Paints division of the company, and the other will be a water and solvent-based paint mixing plant by Berger division”.
Logistics benefits, 10-year tax incentive, and revival of British Paints brands were among the various factors that led the company to propose the new units.
Dhingra said the company was considering a second unit in Russia. “We have been offered 10 hectares. We are examining the viability issues,” he said. The Berger Chairman, who has recently visited its first plant in the Republic of Adygeya (in Caucasus region) within the Russian Federation, said the unit was likely to turnaround this year. Meanwhile, the company has reported a stand alone net profit of ₹82.80 crore in the first (April-June) quarter of 2015-16 against ₹62.55 crore in the corresponding quarter of the previous fiscal.
The lower crude oil prices have led to lower input cost and higher profitability. The consolidated net profit stood at ₹77.30 crore (₹57.46 crore). The Berger Paints stock closed 2.11 per cent higher at ₹222.55 on the BSE.
Meanwhile, the company reported a net profit of Rs 82.80 crore in the first (April-June) quarter of 2015-16 against Rs 62.55 crore in the corresponding quarter of the previous fiscal.
Q1 net profit
Berger Paints today reported a 34.52 per cent increase in consolidated net profit at Rs 77.3 crore for the first quarter ended June 30, 2015.
The company had posted consolidated net profit of Rs 57.46 crore a year ago.
Its net sales in the quarter under review stood at Rs 1,117.75 crore, an increase of 5.83 per cent compared with Rs 1,056.16 crore in the same quarter of the previous year, Berger Paints said in a filing to BSE.
Overall expenses in the quarter stood at Rs 995.97 crore, up 2.99 per cent compared with Rs 967.05 crore a year earlier.
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