Berger Paints India Ltd today said it will be pumping Rs 60 crore in West Bengal's Rishra plant out of total Rs 200 crore capex plan in FY18'.
Berger Paints India Ltd today said it will be pumping Rs 60 crore in West Bengal’s Rishra plant out of total Rs 200 crore capex plan in FY18′. “The total capex plan for the current fiscal is Rs 200 crore and of which Rs 60 crore will go in the Rishra plant in West Bengal. This is our major investment since past six to seven years,” Berger Paints managing director & CEO Abhijit Roy said today on the sidelines of the AGM. Rest amount will be shared by other plants of the company, he said. Roy said the company was facing short of land, otherwise, it could have invested additional Rs 50-60 crore.
He said they require at least two acres of land contiguous with its Rishra unit lying idle and which once belonged to ICI India but now is owned by an NRI technocrat. The company was set up the emulsion plant with a capacity of 44160 tonnes in phases and setting up first colorants, vital ingredients for manufacturing paints with a capacity of 2640KL per annum. Berger Paints will bring the technology for the construction of green buildings in India, and in this effort, its step-down subsidiary Bolix S.A. of Poland has signed a pact with NBCC (India) Ltd for import, of the technology in the country.
The paint maker, in June, had acquired Saboo Coatings Private Ltd engaged in industrial coatings segment. “The acquisition cost was Rs 81.74 crore,” Roy said. It has also entered into an understanding with the concerned parties for the purchase of 51 per cent of equity shares of Saboo Hesse Wood Coatings Private Ltd and the balance 49 per cent is held by Hesse shares GmbH of Germany, company’s chairman Kuldip Singh Dhingra told shareholders while addressing the AGM here.
The acquisition is not yet completed and is subject to necessary approvals. “Hesse is another partner there and it a German company. Therefore, we need Reserve bank of India’s permission for that (acquisition). We have applied for it and we hope by September-October, the permission will come through. Once it comes, the acquisition will be completed,” Roy said.