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Berger Paints plans to double its topline in Russian venture with paint contracts

Buoyed by paint contracts for three World Cup venues and two airports in Russia, Berger Paints is hoping to double its topline in the Russian venture this year, a company official today said.


PTI 13 Jul 2018, 07:14 PM Russian Federation

Buoyed by paint contracts for three World Cup venues and two airports in Russia, Berger Paints is hoping to double its topline in the Russian venture this year, a company official today said.

"Berger Paints Russia was not getting much attention. In the last year, the Russian unit's topline was just Rs 7-8 crore. But, the order for the three world cup venues and two airports will help the turnover reach Rs 15-16 crore in the current fiscal," Berger Paints Managing Director Abhijit Roy said here today.

He claimed that an in-house silicon based coating technology, developed some four years ago, was behind winning of the latest orders in Russia. "We are in the process of setting up a team for the Russian company and also scouting for acquisitions if the opportunity comes through," Roy said.

In the ongoing FIFA World Cup held across 12 stadiums in Russia, Berger Paints won contracts for three venues -- Rostov Arena, Volgograd Arena and Kaliningrad. Berger's overseas business is generated from Nepal, Poland and Russia. With Rs 450 crore, the contribution from its overseas business accounts for about 10 per cent of Berger's total revenues.

Berger is open to acquisition of firms in a range of Rs 70-200 crore offering distribution and brand strength, Roy said. "Currently we are only present in decoratives but now we will move into industrial coatings. We will begin direct exports and over the next two years production in Russia could comnence," Roy said.

Roy said the company is also open to inorganic growth on its home turf. In India, the Lucknow plant will be the largest paint location site for Berger with installed capacity of two lakh tonne per annum in phases that would entail an investment of Rs 400 crore.

Roy, who is also the president of Indian Paintsm Association, urged government to reduce the Goods and Services Tax (GST) to 18 per cent from 28 per cent to spur growth and reduce losses of the paints industry.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)