Berger Paints planning foray into industrial segments

Berger Paints India is planning to foray into new product categories, especially in the industrial segment. The company is aiming an entry into auto refinish and marine paints through joint ventures that are likely to be finalised by the end of this fiscal. The company will formalise joint ventures with Japanese majors Rock Paints and Chugoku for entry into the Rs 2,000 crore auto refinish and the Rs 250 crore marine paints and coatings markets, respectively.

Also on the cards is the introduction of offerings in the specialised, energy-efficient ETICS (external thermal insulation and composite systems) category. The company may also set up a new plant to cater to this segment. The use of ETICS reduces (energy) costs by at least 30-35 per cent. It will target large establishments such as malls, hotels and hospitals and premium bungalows.

Moreover, according to Indian Paint Association, the paint industry is expected to grow at 12.4 per cent over FY16-20E to reach the mark of Rs 70,875 crore. The uptick in demand of automobile and industrial sector is expected to contribute majorly in the growth of industrial paints, which is expected to grow at 7.4 per cent over FY16-20E to reach Rs. 17719 crore.

Berger Paints is the second largest decorative paint player in India with a market share of around 19 per cent.