In order to meet anticipated higher demand in Northern belt, Berger Paints, is setting up a plant near Lucknow, Uttar Pradesh at an investment of Rs 150 crore. “The Company is considering putting up an integrated paint plant at Sandila Industrial Area near Lucknow in UP. The details of the project are being worked out,” said the company statement. The proposed plant will enjoy fiscal incentives such as refund of the state’s share of the Goods and Services Tax.
The plant will largely manufacture decorative paints and will cater to Uttar Pradesh-Bihar belt which has one of the highest decorative paint sales for the company. A unit in the region will not only help the company to avail of the fiscal incentives but will also effect lot of savings on logistics. At present, demand from the region is met from its West Bengal, Jammu and Delhi units. However, there is little scope for increasing the installed capacity in these units. The company is also scaling up the production capacity at its Jejuri plant in Maharashtra and has completed building its putty unit in Assam.
At present, Berger Paints company has an installed manufacturing capacity of 609,247 KL per annum, of which 79 per cent caters to the decorative paints business, followed by protective coatings which account for 11 per cent of total sales. The company enjoys 18% market share in the Indian paint industry. With the introduction of GST, the company hopes to increase its market share at the cost of suppliers in the unorganised sector. The company has 17,000 strong dealers network across the country.