Calcutta, Feb. 14: Berger Paints India, which has become the first paint maker to foray into construction chemicals, is looking to generate a turnover of Rs 25 crore from this segment in 2012-13.
The company has launched five products in this segment that will be initially manufactured from its Bengal plant at Rishra, where it has invested about Rs 4 crore in equipment. The company also plans to utilise its Pondicherry facility in the future.
"The construction chemical industry is valued at around Rs 2,000 crore and is growing at the rate of 30-35 per cent. Of this, the retail part is about 40 per cent (800 crore) and is the segment where we have made our initial foray," said Abhijit Roy, director and chief operating officer of Berger Paints.
The company is looking to compete with established players such as BASF, Fosroc, Sika and Pidilite.
"There are 8-10 established players in the construction chemical segment. The initial competition will be from the retail players," Roy said.
Managing director Subir Bose said, "We will use our existing distribution channel to market these products."
He said the company could also look at further consolidation (by taking over smaller players in the segment) "if a suitable opportunity comes up".
Price hike
Roy said the company was planning to hike the price of decorative paints by 2 per cent with effect from March on account of rising input costs.
According to Bose, rupee depreciation has resulted in costlier import of titanium dioxide, one of the key components used in paint making. "The recent devaluation of the rupee has added to our woes. Compared with the previous year, our profitability has gone down 1.2 per cent this year," he said.
About 75 per cent of the total requirement of titanium dioxide are met through imports. However, the company is yet to take a decision on the price of industrial paints.
Meanwhile, Berger plans to double its production capacity to 500,000 kilo litre per annum from 250,000 kl by 2013.
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