Paints major banks on construction of capital

Berger Paints planning to double its capacity at its Hindupur plant to meet the demand. The company foresees a good market in the wake of sprucing up of new capital city. A growth in excess of 20 per cent is its target. At present, the market is around Rs.140 crore in Andhra Pradesh and Telangana.

Berger Paints India Limited Managing Director and CEO Abhijit Roy speaking to The Hindu in Vijayawada on Thursday. Photo: Ch. Vijaya Bhaskar

Berger Paints India Limited is planning to double its capacity at its Hindupur plant in Anantapur district in the next five years. The paint-maker and its partners - British Paints, Nippon Bee Chemicals Co Ltd - have completed the infrastructural facilities at Hindupur plant, making it a fully integrated paints complex. In an interview to The Hindu , Abhijit Roy, Managing Director and CEO of the company, discussed the company’s vision for Andhra Pradesh in particular and India in general.

Berger Paints India Ltd has commissioned a paints plant in Hindupur with an initial capacity to make 8,000 metric tonnes a month. Currently, the company is producing 1,500 metric tonnes per month. “In next three to four years, the production will touch 8,000 metric tonnes per month. In phase II, the company will invest around Rs. 80 crore for doubling its production capacity at Hindupur,” Mr. Roy said.

British Paints will make water and solvent-based paints and the production is likely to commence by December end. Infrastructure for Nippon Bee Chemicals is nearing completion. This plant will manufacture automotive paints,” he added.

The company foresees a good market in the wake of sprucing up of new capital city. A growth in excess of 20 per cent is its target. At present, the market is around Rs.140 crore in Andhra Pradesh and Telangana. Andhra Pradesh market is expected to do better in the wake of spate of construction activities in and around Vijayawada and Guntur regions.

The Central government’s 100 smart cities programme is also expected to give a fillip to the paint industry. “The country is witnessing rapid urbanisation and we plan to strengthen our position in protective coating, infrastructure and decorative paints”.

Indian automobile companies should take a cue from Korean and Japanese car makers, who buy automobile paints from companies from their own countries. ‘Make in India’ slogan of Central government should act as a catalyst to promote native companies, he said.

Berger Paints is scouting for acquisitions both in India and abroad. The overseas acquisition will be for technology advancement, while domestic acquisition is for increasing the market share.

(Reporting by G.V.R. Subba Rao)

Mail to vijayawada@thehindu.co.in