Kolkata: Berger Paints India Ltd will set up a new plant in Jejuri, near Pune, to manufacture automotive paints
The company will invest Rs50 crore in the plant, which will have a capacity of 800 kilolitres per month. “The land has been allotted to us by MIDC (Maharashtra Industrial Development Corp.) and construction has started,” Kuldip Singh Dhingra, the chairman of Berger Paints, said on the sidelines of the company’s 83rd annual general meeting here. “We expect to start production by next year.”
Berger Paints earned a net profit of Rs83 crore in 2006-07, up 18% from the previous year’s figure of Rs70.3 crore. Revenues rose 18.42% to Rs1,322 crore from Rs1,116.4 crore.
“The raw materials used in the paint industry are mostly derived from crude oil and with crude prices going up, our profitability increase has been somewhat stunted,” said Subir Bose, Berger’s managing director. Capacity at Berger’s plant in Goa, damaged in a fire last year, is also being enhanced by about 38,000 tonnes per annum. The company has also signed a joint venture with Nippon Bee Chemicals Ltd of Japan.