March 3: Berger Paints, the second largest paint manufacturing company, will invest Rs 1.5 billion towards building a new plant near Lucknow. The move is expected to help the company push up sales volume by around 7 percent in the next two years.
The new plant is expected to be built in Sandila Industrial Area, said a BS report, which added that the plant will have the bonus of a few fiscal incentives like refund of the state’s share of the Goods and Services Tax. The new plant will cater to the Uttar Pradesh-Bihar belt, it added.
According to the report, Berger looks to increase the installed capacity by 7-8 per cent so as to cater to the demand from the market by year 2020. It believes that the new plant will help meet the projected volume. Further, the fiscal sops and the opportunity to save much on logistics would be added advantages Berger will have when the plant goes on stream. Berger looks to position the new plant as a manufacturing point for decorative paints. It will be catering to the local needs for industrial coatings.
The company’s decorative paint making facilities at West Bengal, Jammu and Delhi have been full to capacity and this has spurred the need for a new manufacturing plant, it is said. A new plant in the Lucknow region would help the company to line up cost effective means to cater to the UP-Bihar region in a much more effective manner.
Berger currently boasts an installed manufacturing capacity of 609,247 KL per annum, of which 79 per cent caters to the decorative paints business, followed by protective coatings which account for 11 per cent of total sales, the report added.