City-based Berger Paints has set a milestone of Rs 10,000-crore revenue from operations by 2023-24, its centenary year.
The company has clocked a consolidated revenue of Rs 6,817.59 crore for 2020-21. The company hopes to achieve the Rs 10,000-crore milestone with the help of capacity expansion, favourable demand and stable raw material prices, said Abhijit Roy, managing director and CEO of Berger Paints.
“The year 2023-24 will be our 100th year in India. We started our operations in 1923 in Bengal. We are expecting to touch Rs 10,000 crore in 2023-24. We have two factories in Bengal and we have taken land for a third one here,” Roy said after the company’s annual general meeting on Friday. The paint maker has also scaled up its investment in Uttar Pradesh to Rs 800 crore and the plant there is expected to be commissioned in 2022.
Roy said while the company in the past three years has grown 11-12 per cent by volume, there has been no value growth. This was primarily on account of raw material price fluctuations and price adjustments. Berger is eyeing a topline of Rs 8,000 crore this fiscal with expectations of a recovery in demand in the second half.
“So with a volume growth of 13 per cent, I now have a value growth of 17-18 per cent this year,” Roy said. Berger does not expect raw material prices to rise further leading to better operating margins in the third and fourth quarter.
“In July we bounced back to growth level and August also as we stand now, it looks good. Overall demand scenario looks healthy. The bases are very strong in the third and fourth quarter so, growth rate will not be very high, but we will still grow at a reasonable pace and profitability which has been compressed because of escalating raw material prices...will get restored to normal levels in the two quarters,” Roy had said at the AGM.
On the international front the company is consolidating business under its subsidiary Bolix and the paint major is eyeing France and Switzerland as future markets.