The Telegraph
Since 1st March, 1999
Email This Page
Berger Paints going overseas

Calcutta, July 31: Berger Paints is looking to enter overseas markets like China, Malaysia, Russia and West Asia through acquisitions. Chairman Kuldip Singh Dhingra said Berger was exploring takeover possibilities in these countries.

The Berger management did not rule out the possibility of acquiring Jenson & Nicholson either, but maintained that there was no “firm proposal on the table” as yet. The management of debt-ridden Jenson is scouting for a partner.

Berger was reported to have considered acquiring Jenson in the past, but was intimidated by its indebtedness. Dhingra said Berger could consider Jenson for acquisition if a proposal came from the company’s lenders. The Jenson management is trying to cut its Rs 150-crore debt by half. Berger’s attempt to acquire Snowcem last year failed because the two companies could not agree on price.

“We have indicated to merchant bankers that we may invest overseas and are receiving offers from various countries,” Dhingra said. Berger is also exploring takeover targets in Africa. “We have an offer there, and are examining it,” he added.

Berger has looked at various buyout targets in Africa in the past. “We are a conservative company, and are extremely cautious in our decisions. Berger is doing well, but one wrong acquisition could upset the good going,” Dhingra explained.

Q1 sales up 17 per cent

Berger’s gross sales in the first quarter increased 17 per cent compared with last year, to Rs 173.91 crore. Its pre-tax profit of Rs 7.65 crore was 2.3 per cent higher.

Email This Page