Berger Paints is looking at increasing its capacity by 1.5 lakh kilolitres per annum by 2011, as it lays down expansion plans and proposes to set up a greenfield unit in south India with an investment of Rs 100 crore.
The leader in the d?cor paint segment produces 2 lakh kl paints per year at seven plants and is looking at increasing the capacity substantially as it feels that demand has already started picking up. While the demand for water-based paints is growing at 18-20%, solvent based-paints are increasing at 8% now.
With demand for water-based paints set to increase further, its share in Berger’s palette will increase from 60% at present. The south India facility, either in Karnataka or Tamil Nadu, will be earmarked for water-based paints only. “We are yet to decide between Tamil Nadu or Karnataka for setting up the new plant,” chairman Kuldip Singh Dhingra said. Berger will also put up an emulsion plant at the 30-acre facility in south India.
Meanwhile, it is constructing a 24,000-kl emulsion plant in Gujarat with an investment of Rs 26 crore. “Earlier we used to buy emulsion, but once this plant is operational, it will help us save costs of manufacturing water-based paints by 16%,” said Subir Bose, MD.
It has already received ECB clearance for a proposed resin plant in Goa. The Rs 5-crore unit is likely to be operational in December 2009.