Berger Paints: Redefining industry benchmark

When the going is good, it is the wise who seek to secure their future in business. Berger Paints Limited, the country’s second-largest player in the industry, has always adapted to the changing market scenario and invested in capacity expansion while introducing new products that have disrupted the paint industry. Intensive research and innovation have always paid Berger Paints dividends. The company has grown steadily and presented a creditable report card.

There has been a revolution in the country’s paint industry in terms of aesthetics, durability, and affordability. It offers holistic surface-enhancing solutions that are used not only for home interiors and exteriors but also in the industrial and automotive segments. The growth of the paint industry is closely linked to the housing and infrastructure markets. The shortening of the repainting cycle, rapid urbanisation, and increasing demand for premium products also drive this growth.

Over the last 5 years, the paint industry in India has witnessed an influx of new players. While this increased competition has impacted mid-sized players, established ones like Asian Paints and Berger Paints have maintained a strong market position. However, the competition intensified further when Grasim Industries, a flagship company of the Aditya Birla Group, launched its paint business under the brand name Birla Opus in September 2023. It entered the paint market with a big bang and brought about a remarkable transformation. The company has even stated that it is willing to incur losses over the next 3 years to establish its brand in the market. It has invested Rs.10000 crore, having six manufacturing plants. Now, all existing players, including the biggies, have been forced to roll up their sleeves to retain their market positions.

According to investor presentation of Aditya Birla group investor presentation Birla Opus has already gained market of 10 per cent in decorative segment. JSW Paints the other significant player already operating in the industry for last 5-6 years has achieved a revenue of Rs 2000 crore of which 50 per cent constitute of industrial coil coating (for own use). They merely have one per cent market share.

The oldest paint manufacturer in the country, Kolkata-headquartered Berger Paints India Limited, which has consistently demonstrated the foresight to anticipate future trends and outmanoeuvre the competition, is already in expansion mode. Unmoved by the entry of new players with deep pockets, Kuldip Singh Dhingra, Chairman Emeritus of Berger Paints and a veteran of the industry, believes this is nothing new. He explains: “The paint industry has always been fiercely competitive. Even when I joined the industry, I saw the entry of large multinationals with experience in the paint industry and deep pockets.” However, the only change he observes today is that the paint market has grown manifold. Therefore, the industry can now comfortably accommodate several manufacturers, with five or six large players at the top.

Echoing him, Abhijit Roy, Managing Director & CEO, says: “The paint industry is seen as a lucrative investment. We have seen players with cement and steel backgrounds venture into the segment, hoping to capture a larger share. But this has been going on for some time, and nothing has really changed the face of the industry. We believe this will give us an opportunity to strengthen our market more efficiently.” Berger is placing greater emphasis on construction chemicals and strengthening its network in new markets. It is relatively weak in some urban markets such as Mumbai, Pune, Ahmedabad, and Bangalore. The task is to grow at a faster pace in these markets and improve distribution. “Our target is to make our product available in these markets, and also to win the confidence of painters and contractors by undertaking promotional activities,” says Roy. Berger remains strong in the eastern and northern markets.

“At Berger, we are never complacent. So, our growth strategy is always in place,” says Dhingra. Following the commissioning of the company’s largest greenfield facility at Sandila, Uttar Pradesh, it is now planning to set up two more greenfield manufacturing plants – one in Odisha and another in West Bengal.

The genesis

The history of Berger Paints India Limited began in 1923 as Hadfield’s (India) Limited, a small colonial venture producing ready-mixed stiff paints, varnishes and distempers on two acres of land in Howrah, Bengal (one of India’s first industrial towns near Kolkata). In 1947, British Paints (Holdings) Limited, a consortium of paint manufacturing companies, acquired Hadfield’s (India) Limited, changing the company’s name to British Paints (India) Ltd.

In 1965, British Paints (Holdings) Limited was acquired by Celanese Corporation, USA. In 1969, the Celanese Corporation sold its Indian interests to Berger, Jenson & Nicholson, UK. From then on, British Paints (India) Ltd became a member of the worldwide Berger group, marking the beginning of Lewis Berger’s legacy in India.

1976 was another turning point. Under the FERA regulations imposed by Indira Gandhi, foreign holding in the company was diluted to below 40 per cent by selling a portion of the shares to the UB Group, controlled by Vittal Mallya. Finally, in 1983, British Paints (India) Limited changed its name to Berger Paints India Limited. The company was eventually taken over by the Delhi-based Dhingra brothers, Kuldip Singh and Gurbachan Singh, in 1991.

The Dhingras, originally from Amritsar, had been major paint distributors, in the field since 1898. After 1960, Kuldip and Gurbachan began manufacturing paint under the brand Rajdoot, which became popular in North India during the 1970s. They became the largest exporters of paint to the Soviet Union in the 1980s. While Dhingra was looking to acquire a paint company to strengthen his exports to Russia, liquor baron Vijay Mallya decided to offload his controlling stake in Berger Paints. Incidentally, Mallya sold Berger Paints International many years later to Asian Paints. It was the perfect opportunity for the Dhingra brothers, and they seized it, acquiring Berger Paints.

The deal was funded through cash generated from their export business. It was a new lease of life for Berger, which had been under severe financial stress. Kuldip and Gurbachan played a major role in reshaping the company. Both worked with passion and single-minded determination to become the best in the industry. Fresh capital was infused. Their zeal for growth saw the company expand from a single plant in 1981 into a giant with the capacity to produce 1.50 million KL across its 15 manufacturing facilities. In addition, there are 14 subsidiary units spread across India, Nepal, Poland, and Russia. From a sixth-place ranking in 1981, the company has grown to become the second-largest player in the country today, after Asian Paints.

Interestingly, Berger is one of the few large companies whose headquarters remain in Kolkata. The Delhi-based owners never considered relocating. “Kolkata is the birthplace of the paint industry,” says Gurbachan Singh Dhingra. “So, we never wanted to shift our head office to Delhi. Besides, Berger is managed by able professionals, and we do not interfere in the day-to-day running,” he explains.

It is also the fourth-largest paint company in Asia and the seventh-largest decorative paint manufacturer in the world. “When we bought the company, many of our friends thought it was a bad investment. Today, they want to buy the company’s shares,” Dhingra chuckles.

Next phase

The next generation, Rishma Kaur (Kuldip’s daughter) and Kanwardip (Gurbachan’s son), later joined the board to help steer the company into its next phase. The market capitalisation of the company has shown remarkable improvement in the last 10 years, rising from Rs18,600 crore to Rs65,300 crore at present.

Last year, in August, Kuldip Singh Dhingra, 77, and his brother Gurbachan Singh Dhingra, 75, both stepped down as chairman and vice-chairman of the company. The board appointed Rishma Kaur, 52, as the new chairperson and Kanwardip Dhingra, 42, as vice-chairman of Berger Paints. “This is part of a regular succession planning exercise,” says Kuldip Singh Dhingra. “We have now taken a back seat. Rishma and Kanwardip are the true next-generation leaders the board has appointed.” Both brothers will continue on the board as non-executive directors, designated Chairman Emeritus and Vice-Chairman Emeritus respectively, and will guide their successors on strategic thinking, leadership, and overall understanding of the business.

While Chairperson Rishma is a science graduate from the University of Buckingham, UK, she has successfully led business development efforts in the company’s retail business, in addition to providing guidance and handling various other matters such as marketing and corporate affairs. Vice-Chairman Kanwardip holds a Bachelor’s degree in Chemical Engineering from the University of Akron. Prior to joining the family business, he gained experience in the field of paints and specialty coatings at The Rohm & Haas Company, Texas, USA, and The Sherwin-Williams Company, Ohio, USA. Both vow to take the Berger legacy forward.

The company has moved to its new, classy headquarters in New Town, Kolkata. The LEED-certified Platinum green building, powered by solar energy, was built to commemorate the company’s 100th year. The museum on the ground floor of the eight-storey building illustrates the journey of Berger Paints since 1923.

The paint industry is broadly classified into two categories – decorative and industrial. Decorative paints include higher-end acrylic exterior and interior emulsions, accounting for over 75 per cent of the paint market, and are growing at a faster pace than industrial paints. Decorative paints are either water-based or solvent-based. Water-based paints (or emulsions) are preferred by customers because they offer better aesthetics, durability, and are more environmentally friendly. Both Asian Paints and Berger together have over 80 per cent share of the decorative segment. The industrial paints segment essentially comprises general industrial, protective and powder coatings, and automotive coatings, which together have a 25 per cent share of the paint industry. Berger is the market leader in protective coatings, with a share of 30 per cent.

The country has five reputed players in the paint business: Asian Paints, Berger Paints, Kansai Nerolac, Akzo Nobel, and Indigo. Asian Paints is the market leader way ahead with a turnover of Rs33,905 crore, while Berger Paints (Rs11,544 crore) continues to retain the second position. Kansai Nerolac, Akzo Nobel, and Indigo are the third, fourth, and fifth-largest players in the industry respectively.

Meanwhile, Akzo Nobel, the Dutch paint company with the prominent brand Dulux, is on the block. The bidders are JSW Paints, a consortium of Advent International and Indigo Paints, and Pidilite. JSW is leading the race. When asked why Berger did not participate in bidding for Akzo Nobel, Rishma replied: “We have not participated in the bidding process because we thought the valuation was high and it does not fit our business plan.”

“We have moved up the business through efficiency, capacity enhancement, acquisitions, and a great deal of emphasis on the customer’s needs,” explains Rishma. The mainstay of Berger Paints lies in its 15 manufacturing facilities across the country: Jammu (three plants), Sikanderabad, Sandila, Howrah, Rishra, Nalbari, Naltali, Puducherry, Hindupur (two plants), Goa, Jejuri, and Taloja. All the manufacturing facilities are fully automated, with machinery sourced from global technology providers in the paint industry.

Sandila, in the Hardoi district of Uttar Pradesh, is the largest plant of Berger Paints, with a capacity to produce 32,800 KL/MT per month of water-based paints, solvent-based paints, putty, construction chemicals, resins, and emulsion paints. Spread across 37 acres, this fully automatic integrated plant commenced commercial production in February 2023, with an investment of Rs1,036 crore.

“At Berger, we have always stayed current with technology. The plant is fully automatic – the robotic palletisation along with the automatic filling line ensures human-less operation for palletisation and paint filling. There will be an automatic storage and retrieval system for finished goods storage and dispatch,” says Kanwardip.

This is an environmentally friendly zero-liquid discharge unit with 2 MW solar panel installations. The excess electricity generated by solar panels is supplied to the grid for the state of Uttar Pradesh. It provides direct employment to 1,000 individuals, with many more benefiting indirectly.

Berger is now setting up two more greenfield project units in the eastern region – in West Bengal and Odisha. “We will invest close to Rs2,000 crore to set up these two units. In Odisha, the government is offering several incentives under the state policy,” says Kaushik Ghosh, Chief Financial Officer.

The company has acquired 30 acres of land at Panagarh Industrial Park, Paschim Bardhaman District, West Bengal, for the purpose of setting up a construction chemical plant, a putty plant, and also a resin manufacturing unit. This plant is expected to be commissioned by the end of 2025, subject to receipt of requisite approvals from the government and regulatory bodies. The company will invest close to Rs600 crore to produce 75,000 KL per annum. It will make all types of paints, but with a primary focus on industrial paints.

“The land at Panagarh was acquired to relocate the company’s Howrah unit, which was one of the oldest functioning plants, set up in 1920,” Roy says. Once known as the industrial belt of Bengal, Howrah today has become a congested residential area and is no longer a safe place in which to operate a paint manufacturing plant. “We will shift the machinery and mobilise the manpower from Howrah to Panagarh. But our R&D will remain in Howrah,” says Roy.

Odisha lures

Odisha Industrial Infrastructure Development Corporation (a Government of Odisha undertaking) has allotted 80 acres of land in the district of Khurdha, Odisha, for setting up a manufacturing unit by the company for paints, intermediates, and allied products, with an annual capacity of approximately 4,10,000 KL/MT. The company plans to put up a modern, technology-based, environmentally sustainable unit for the manufacture of paints, coatings, construction chemicals, intermediates (including emulsions and resins), and related products, with an investment of Rs1,458 crore.

The state government of Odisha offered several benefits, such as cent per cent exemption from stamp duty and a capital investment subsidy at 30 per cent on investment in plant and machinery. Cent per cent reimbursement of SGST is capped at 200 per cent of the investment in plant and machinery, including power tariff reimbursement of Rs2 per unit for the first 10 years and 100 per cent electricity duty exemption for the first 10 years. The plant is expected to be commissioned by December 2028.

Climate change remains a far-reaching global challenge, intricately linked not only to environmental but also to societal, economic, and political dynamics. “As a future-ready organisation, we recognise these complexities, and that strategies to tackle climate change go beyond risk management. Our mitigation and adaptation measures also encompass opportunities for innovation and sustainable development,” Roy stated in the company’s first sustainability report. The two upcoming plants have incorporated ESG requirements right at the planning stage, reflecting the company’s proactive approach to sustainability. It continues to progress towards its goal of achieving carbon and water neutrality.

The company has been a first mover in establishing a number of trend-setting innovations like Colour Bank, a colour-tinting machine installed at dealer sites. The size of an ATM, the colour-tinting banks allow the consumer to select from a range of over 5,000 shades, for which the tint will be automatically calibrated and mixed with cans of base paint. Similarly, Express Painting is a customer-centric approach with time-saving methods for hassle-free painting by a trained workforce. It has revolutionised the paint industry.

“Earlier we used to be followers. We used to copy whatever the leader did and sell the product at a lower price until the mid-2000s. Then we realised that we had enough strength on the ground and in distribution and decided to create our own products: WeatherCoat Anti Dustt (dust-repelling exterior paint), Silk Breathe Easy (luxury emulsion which reduces indoor pollution and kills bacteria), Easy Clean (India’s first washable luxury interior emulsion), and Waterproof Putty. The products were well received in the market and contributed to the overall growth of the business line. All these products were a runaway success, later copied by competitors under different names,” says Roy.

In the construction chemicals and waterproofing space, Berger introduced Waterproof Putty, a product that actually offers waterproofing ability. Similarly, Roof Kool & Seal and Tank Kool are hugely successful products from the Berger stable. Berger has a formidable presence in construction chemicals. “We want to grow faster in the segment. This will give us a hedge in the marketplace. The construction chemical segment is growing at a rapid pace of 25 per cent. So, our overall growth rate is not disturbed,” Roy points out.

Berger’s high-performance protective coating products specialise in providing safety and durability for key components in industrial areas, protecting them from the risk of corrosion, fire, and the harmful effects of volatile substances. These coatings are used in the power industry, gas- and oil-based industries, refineries, petrochemicals, railways, roadways, bridges, ports, and stadiums. Berger is also present in the auto refinishing market. In protective coatings, Berger is the clear leader.

Innovation has always striven to bring the best products to customers. Research and development is the engine of growth for Berger Paints. It places utmost emphasis on analysing the need gap in a category and understanding the extra value it can add by delivering it in the most cost-competitive and technically superior manner.

“Product innovation is the key factor in the segment to stay ahead of the competition. The company’s R&D in Shibpur, Howrah, is working relentlessly to develop future products,” claims Gurbachan Singh Dhingra. Its lab is recognised by the Government of India with the highest degree of operational equipment, he adds. More than 100 members of the R&D team work closely with the market research group to understand and anticipate customers’ needs. In addition, the expert team has deep knowledge of the raw materials required to formulate paints that reduce the carbon footprint and minimise environmental impact through innovative formulations and processes to deliver high solid, monocoat, and low-VOC solutions.

Population growth, rising disposable income, urbanisation, and a growing rural market are key parameters driving the growth of the paint industry. Also, India’s per capita consumption of paints is only 4.5 kg, compared to the global average of 12-13 kg. Hence, there is immense opportunity in the domestic market.

India’s paint industry is valued at around Rs75,000 crore, of which decorative paints comprise close to Rs60,000 crore. Berger Paints controls 20 per cent of the decorative market and is gaining market share. “We have around 50,000 effective dealers at present. In the next 2-3 years, our plan is to add 10-12 per cent every year. We have identified some areas where we are under-represented. The plan is to increase the network in a significant manner in the southern and western markets to connect with potential customers,” says KK Sai, Executive Vice President, Retail Marketing. In the last year, the paint market has grown in volume but not in value. Post Covid, people are spending more on tourism than on home decoration and repainting. “We are hoping it will move into a better cycle soon,” Sai adds. Repainting accounts for 75 per cent of the total demand for decorative paints. Two per cent of the company’s sales go towards promotion and advertising.

Innovative and lasting

Berger has the ability to spot unaddressed areas which can be exploited to gain market share. The launch of an innovative product typically takes six months to a year. But only one or two products become blockbusters and help the company gain a strong foothold. WeatherCoat is an umbrella brand in exterior paint, and Easy Clean is the highest-selling interior paint for Berger. It contributes almost Rs500 crore to the company’s sales.

Shamira Taj Paints, the largest retailer in West Bengal for Berger Paints, has been associated with the brand since 1984. Berger offers a large basket of products in decorative and protective coatings. “Their products are very innovative, offer a long-lasting finish, and meet customer-specific needs. Emulsion interior Easy Clean is the top-selling brand,” says Tanvir Ahmed, who owns the dealership. However, Ahmed feels the company should be more aggressive in its marketing. “It lacks killer instinct.”

“Berger Paints’ well-thought-out strategy has helped the company grow manifold with a strong bottom line. They are very consistent and never look for short-term gains. I have high regard for Dhingra’s entrepreneurial talent and his team. Berger is comfortably the second-largest in the paint industry. The company always presents healthy challenges to the market leader,” says Hemant Jalan, founder of Indigo Paints and also a competitor of Berger.

“Paint is a competitive business and it is our core business. We have never shifted our focus from it. Cost reduction, formulation, raw material substitution, innovation, and good management are the parameters of a good paint company, and Berger has successfully achieved them,” says Dhingra.

Better than peers

Berger has reported consolidated annual sales of Rs11,544.70 crore in March 2025, as against Rs11,198.92 crore in March 2024. The profit after tax marginally rose to Rs1,182.80 crore in 2025 from Rs1,169.82 crore in March 2024. The current stock price is Rs558 on the NSE. “Our performance is better than the peers. But general slowdown has affected everybody. This year also we are ahead of competition. We are a zero-debt company. Every year we have Rs500-700 crore investment in the pipeline,” Ghosh says.

Berger’s 4QFY25 volume growth of 7.4 per cent y-o-y was in line with our forecast and better than those of its peers, Asian Paints and Kansai Nerolac, at 2-3 per cent y-o-y. This was led by better-than-peers growth in exterior emulsions, construction chemicals, and waterproofing, according to management. Berger also consciously kept away from meaningfully participating in the economy range, as it is seeing increased competitive intensity in that segment, according to the latest Nomura Research report.

The report also stated that urban areas, too, performed better for Berger than for its peers on the back of its initiative to improve its limited presence by adding to its sales force. Revenue growth of 7 per cent was largely in line with our forecast but better than the Bloomberg consensus estimate of circa 5 per cent y-o-y. The management highlighted that Birla Opus is present in East India and supplies goods from other manufacturing locations; hence, it does not expect a further increase in competitive intensity after Birla’s factory opens in Berger’s core market. The company added 8,000 tinting machines (its highest annual addition ever) in FY25, bringing the total to 50,000. It also continued its innovation drive and launched its ‘Kool range’ of differentiated products.

Berger caters to consumers with innovative solutions, offering expert consultation and a trained workforce, transforming about 2,50,000 homes across 500+ towns with a 95 per cent satisfaction rate, the company claims.

Rishma has a vision for Berger to be the most innovative company in the industry, developing new formulations for better products, enhancing capacity, expanding and streamlining the supply chain, implementing strategic solutions for underperforming areas, and improving customer relationship management to live up to expectations.

Kanwardip says: “The value system and the business ethics that have been followed over the years – that has to continue. In every department we have to be more efficient and more productive. We also need to focus more on the urban areas. And most importantly, retain the manpower.”

The Dhingra brothers have led the company through remarkable strides. It is now up to Rishma and Kanwardip to demonstrate the same prescience, retain Berger’s dominance, and seek new avenues of growth. Only then will the mettle of the new generation be truly tested.

Box 1

Foundation of the Indian paint industry

Indian paint industry’s beginning can be traced back to the first factory set up in Howrah, Kolkatta in 1902 by Shalimar Paint Colour and Varnish Company. The company started by two British entrepreneurs paved the way for many more British companies to follow – Goodlass Walls (now Kansai Nerolac), ICI, British Paints (now Berger), Jenson & Nichcolson and Blundell & Eomite (now Garware Paints). 1942 saw the birth of an indigenous paint company, in Mumbai, which grew rapidly to become the market leader in the 60s and maintained that position ever since – Asian Paints.

Source: Paints And Coatings Skill Council

Box 2

Subsidiaries of Berger Paints

• Berger Jenson & Nicholson Nepal

• Beepee Coatings

• Super Specialty Industrial Coatings,

• Berger Paints Overseas, STP,

• Bolix S.A,

• Berger Rock Paints Private

• Berger Hesse Wood Coatings