"We have appointed Ernst & Young to advise on the deal," said K S Dhingra, chairman, on the sidelines of the company's 86th AGM.
While he did not elaborate further on the acquisition, he said: "We are in talks over the last 7-8 months and the issue will be taken up at our board meeting later today."
The company is planning to increase its capacity from 2,50,000 tonne to 5,00,000 tonne in the next five years. While it has decided to set up two greenfield plants at Andhra Pradesh and Maharashtra it will also step up capacity of its existing plants at Rishra, Jammu and Goa. Berger Paints has acquired 50 acres at Hindupur in Andhra Pradesh for setting up a water-based plant with a capacity of 150,000 kl/mt per annum.
It is also expanding the capacity of the water-based paint plant at Goa by 72,000 kl/mt per annum. Capacity of the Rishra plant is also being increased by 60,000 kl/mt.
In tune with a bounce back in the automotive coatings segment of the industry, the company is planning to revive the automotive paints and power coating project at Jejuri in Pune.
"The Pune project was shelved following economic slowdown last year, but now we are planning to revive the project. We already have 20 acres land in our possession and all relevant approvals," said Subir Bose, managing director of the company.