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Informist, Monday, Aug 12, 2024

By Avishek Rakshit

KOLKATA – Berger Paints India Ltd aims to improve its market share by 0.5-0.6% in the ongoing financial year, and maintain its position as the second-largest paints' company in India, Managing Director and Chief Executive Officer Abhijit Roy said today.

"For the last three years, we have been gaining market share by 0.5-0.6% in the country, and hope to maintain this growth rate in the ongoing (financial) year as well," Roy told shareholders at the company’s 100th Annual General Meeting.

The company is about to roll out a new strategy aimed at gaining market share from urban markets in west and south India which will lead to overall market share gains for the company, Roy said. "From being the 4th and 5th largest player years ago, Berger Paints is now the number two company in India, and the fourth-largest in Asia; globally, Berger Paints is the 15th largest paints company," Roy said.

Responding to a shareholder question over the entry of the Aditya Birla Group in the 600-bln-rupee paints industry, and the impact on Berger Paints, Roy said that it takes a long time for companies to gain ground in the paints' industry as consumers tend to be loyal to a brand.

"The first is branding, the second is distribution reach, and the third is influencer connect," Roy said explaining the key requisites for paint companies to maintain or gain ground in existing the paints' markets.

Roy said that Berger Paints has one of the largest distribution bases and its connect with influencers is very strong. The company is also spending aggressively on branding and advertisement. The company will also soon roll out targeted digital advertising. Influencers in the paints' industry refer to paint contractors and not celebrities.

"We are keeping a close watch on the new entrants. They (new entrants) have been coming in for the past years as well, but we have continued to grow and beat them," Roy said. The official said that Berger Paints is looking to become the third-largest construction chemicals player in the country soon in the 150-bln-rupee industry which is growing at a rate of 20%.

Roy said that the paints' industry is expected to keep growing as a result of urbanisation and there is enough headroom for the company to grow. "Demand for painting keeps growing with urbanisation. In India, the level of urbanisation is 35%, and till it reaches at least 55%, the industry will keep growing," he said.

Roy said that the company's greenfield project in Panagarh in West Bengal is expected to commence operations from April, and the under-construction factory in Odisha is expected to be commissioned in mid-2027.  End

Edited by Aditya Sakorkar

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