Berger Paints lines up Rs 280 crore capex by 2021

Berger Paints India Ltd today said it would invest Rs 280 crore till 2021 to augment capacities in Uttar Pradesh and Maharashtra.

"We will soon commence water and solvent-based decorative, industrial and protective coating, resins, emulsion and construction chemical manufacturing facility at Sandila, Uttar Pradesh, at an estimated cost of Rs 200 crore," Chairman K S Dhingra said at Berger Paints' AGM here.

The expansion is likely to be complete by 2021.

Another Rs 80 crore would be spent for the second-phase expansion at Jejuri near Pune for automotive, industrial and protective coatings, he told reporters.

The unit will have a paints capacity of 27,000 KL per annum and 12,000 MT of resins.

The company will also add an additional powder coating line at Jejuri with an estimated capacity of 325 MT per month.

Dhingra said he is optimistic about the Rs 2,000-crore automotive refinsh paints market.

He said Berger Paints had encouraging trials out of the MoU with Rock Paint of Japan, and the process of forming a joint venture for automotive refinish paints, was underway.

The Kolkata-based company will hold 51 per cent in the proposed JV, while Rock Paint will own the rest.

Berger Paints CEO Abhijit Roy said in wake of the GST reduction on paints to 18 per cent from 28 per cent, the company was in the process of passing the entire 10 per cent tax benefit to the consumers.

In the pre-GST regime, the tax incidence on paints was 26-27 per cent.