The Indian paints industry can be broadly classified into two segments, namely, decorative and industrial. Decorative paints’ market size stands at Rs. 32.5 bn with Asian Paints as the market leader in this segment. On the other hand, industrial paints’ market size is around Rs. 9.5 bn with Goodlass Nerolac as the leading player. While some have been performing very well, Berger Paints is facing problems related to costs and reduced market share. To deal with them, it is taking up various measures like reduction of overheads, transportation costs, cost audits, etc.

Headquartered in Kolkata, Berger Paints India Limited (BPIL) is the country’s third largest paint manufacturer controlling a distribution network which comprises of 66 cities and 12,000 dealers, spread across the country. Being an ISO 9001 company, the company’s products have attained worldwide recognition. Approximately 80% of Berger’s revenues accrue from the decorative segment while industrial paints contribute the rest. Berger Paints ranks second in terms of operational risk profile, reserving the first position for Asian Paints. The company’s market is spread over various parts of the country but it has a stronghold in the Eastern and Southern markets. The growth in the decorative segment is expected to remain moderate and hence, the companies depending on this segment need to branch out into niche areas or innovate.

Berger Paints is targeting acquisitions in SAARC countries and Thailand to derive benefits of the bilateral trade agreements in the future. According to Kuldip Singh Dhingra, Chairman, Berger Paints, “We have to look carefully at the
impact of coming down of trade barriers among South Asian countries. Though at present there are a few opportunities left in the Indian market for acquisition, we could look at markets like Thailand and Myanmar where India has entered into free trade agreements with these countries.” The company expanded its operations outside the country after buying Jenson & Nicholson, Nepal in February 2002. Berger Paints is strongly placed in powder coatings and has a tie-up with Teodur NV of Holland for the same. The company is also exploring business opportunities in Sri Lanka, South-East Asia and even in Africa but is yet to report anything concrete.