Berger Paints India Ltd, a leading player in the coatings industry, has outlined ambitious targets for the second quarter of fiscal year 2025. The company is forecasting a 5% increase in value growth, bolstered by three strategic price hikes implemented between June and August. Despite achieving a volume growth of 11.8% in the first quarter, value growth was subdued at 2.5% due to a combination of price reductions, decreased raw material costs, and a slowdown in the luxury paints segment in key markets such as West Bengal and Kerala.
During the company’s centennial Annual General Meeting, officials revealed that Berger Paints is aiming to double its turnover to Rs20,000 crore by 2029, up from Rs10,000 crore recorded in FY2024. This ambitious target aligns with the company’s broader growth strategy, which includes substantial investments in infrastructure and research. A significant component of Berger Paints’ growth strategy involves the closure of its Howrah plant, which will be repurposed into a larger Research and Development centre by the end of 2025. This transition will follow the operational commencement of the new greenfield Panagarh facility in West Bengal.
The company reported a revenue from operations of Rs2,806 crore for the quarter ending June, reflecting a 2.4% increase from Rs2,740 crore in the same quarter the previous year. Berger Paints anticipates maintaining a gross margin of approximately 40% and an EBITDA margin of around 17% for the current quarter. Looking ahead, Berger Paints projects a significant enhancement in value and growth for the full year. The company’s capacity is set to expand by 25% by 2027 with the commissioning of the Panagarh and Odisha plants. Despite competition from new market entrants, Berger Paints expects to benefit from the overall growth in the sector.
Roy, the company’s Managing Director and CEO, also highlighted that Berger Paints’ international operations in Poland are performing well, despite energy shortages stemming from the ongoing Ukraine conflict. Additionally, operations in Nepal are poised for recovery after facing challenges over the past two years. At the close of the financial year, Berger Paints reported a consolidated turnover of Rs11,199 crore, with standalone turnover exceeding Rs10,000 crore, reaching Rs10,003 crore. The company remains focused on leveraging its strategic investments and operational efficiencies to drive future growth.
