| |
Berger Paints India has plans to set up a green-field plant in south India.
"We will set up a water-based paints plant in south India on an investment of Rs.100 crore. It will have a production capacity of 100,000 tonnes per annum," said Kuldip Singh Dhingra during Berger’s AGM.
The plant will be set up either in Karnataka or Tamil Nadu over a period of two years.
The funds for this venture will be accumulated via internal accruals and conversion of warrants.
The company is investing in water-based paint as the segment is growing faster than the solvent-based paints, Dhingra said.
The annual industrial volume growth of the water-based segment is about 15-17% but solvent-based paint is witnessing a growth of only %8.
Berger gets 80% of its business from decorative coatings, with the remaining 20% being a mixed bag of protective, automotive, general industrial and powder coatings.
Berger’s emulsion plant in Gujarat will be set up by next month along with the existing facility at a cost of Rs.26 crore.
