Berger Paints, the country’s second-largest paint company, is expecting to touch a turnover of Rs 10,000 crore in the financial year 2023-24, the centenary year of the company’s operations in the country.
At the end of the last financial year, consolidated revenue from operations of the Kolkata-based company stood at Rs 6,817.59 crore, registering a 7% year-on-year growth.
“Year 2023-24 will be our 100th year in India. We had started our operations in 1923 with our Shibpur (Howrah) factory in West Bengal. We are expecting to touch Rs 10,000-crore turnover in 2023-24,” Abhijit Roy, MD & CEO of Berger Paints, said during a press meet after the company’s 97th AGM held on Friday.
In this fiscal itself, the company is eyeing Rs 8,000-crore turnover. Roy said currently about 93% of the total consolidated turnover comes from the domestic market.
Currently, around 80% of the company’s revenue comes from the decorative segment, while the remaining 18% comes from the non-decorative segment (includes protective, powder and auto coatings). This kind of revenue mix is likely to continue for some time, the MD said.
Replying to the shareholder queries during the AGM, Roy said Berger will become one of the top three players in the construction chemicals market very soon in India.
Currently, the market size for construction chemicals is around Rs 9,000 crore and it is growing at a high rate.
On overseas operations, Roy said Berger has already appointed distributors in France and Switzerland in order to “test waters” in these two European countries. Market sizes in France and Switzerland can potentially be large.
In Europe, Berger has presence in Poland, the UK and Russia through its wholly-owned Polish subsidiary Bolix SA, which has a turnover of around Rs 350 crore.
Earlier, addressing the shareholders, chairman Kuldip Singh Dhingra said the company is expecting to commission its new plant at Sandila Industrial Area, Hardoi, Lucknow, in 2022, subject to receipt of required consents and approvals.
“The company is now the 7th largest paint company world-wide in terms of market capitalisation and ranked amongst the top 14 paint companies in the world in 2020,” Dhingra said.