Berger Paints India Ltd, a leading player in the coatings industry, has outlined its ambitious growth plans for the second quarter of fiscal year 2025. The company aims to achieve a 5% increase in value growth, driven by three strategic price hikes implemented between June and August. Despite a slowdown in the luxury paints segment in key markets like West Bengal and Kerala, Berger Paints has demonstrated resilience.
The company achieved a volume growth of 11.8% in the first quarter, showcasing its ability to navigate challenging market conditions. The company’s ambitious target of doubling its turnover to Rs20,000 crore by 2029 is underpinned by substantial investments in infrastructure and research. The closure of the Howrah plant, which will be repurposed into a larger Research and Development center, is a key component of this strategy. Berger Paints’ financial performance in the recent quarter has been encouraging.
The company reported a revenue from operations of Rs2,806 crore, reflecting a 2.4% increase compared to the previous year. The company has maintained a healthy gross margin of approximately 40% and an EBITDA margin of around 17%. Looking ahead, Berger Paints is optimistic about its prospects for the full year. The company’s expansion plans, including the commissioning of new plants in Panagarh and Odisha, are expected to drive growth and enhance its market position. Despite competition from new market entrants, Berger Paints is confident in its ability to capitalize on the overall growth in the coatings industry.
The company’s international operations have also shown resilience, with Poland performing well despite the challenges posed by the Ukraine conflict. Nepal, too, is expected to recover from the difficulties faced in the past two years. Berger Paints’ strategic focus on innovation, expansion, and operational efficiency positions it well for future growth. With its ambitious targets and strong financial performance, the company is poised to continue its success in the Indian coatings industry.