Coating major Berger Paints India Ltd has implemented three price hikes since June, which are expected to boost its 'value' growth to around 5 per cent in the second quarter ending September 2024, while maintaining a volume growth target of at least 10 per cent.
Berger revealed that its next milestone is to double its turnover to Rs 20,000 crore by 2029, up from Rs 10,000 crore in FY2024. The company also plans to close down the Howrah plant and convert it into a larger R&D centre by the end of 2025, once the greenfield Panagarh facility in West Bengal becomes operational.
While the luxury segment was facing some pressure, construction chemicals and waterproofing segments are growing strong, he said. Berger's revenue from operations for the quarter ended June was Rs 2,806 crore, compared to Rs 2,740 crore in the corresponding quarter last year, marking a 2.4 per cent increase.
The company expects margins to remain at around 40 per cent gross margin and EBITDA at approximately 17 per cent for the ongoing quarter. The company's capacity will increase by 25 per cent by 2027 when the Panagarh and Odisha plants become operational.
The company has 30 acres of land at Panagarh, with commercial production expected to start by the end of 2025. Additionally, its Polish international operation, Bolix, is performing well despite energy shortages in Europe following the Ukraine war. Meanwhile, operations in Nepal are expected to improve this year after struggling for the last two years. At the end of the financial year, the company's consolidated turnover stood at Rs 11,199 crore, with standalone turnover crossing the Rs 10,000-crore mark, closing at Rs 10,003 crore.
