Berger Paints: Legacy Of Trust

Berger Paints stands as the world’s seventh largest decorative paints company and the fourth largest paint company in Asia. In India it is the second largest paint company. A longstanding leader in protective coatings, Berger has also held a dominant position in India’s GI Segment, strengthened by its association with SBL Specialty Coatings. With its subsidiary, STP, Berger is a leading player in the water-proofing and construction chemicals market.

Over the past three decades, the company has achieved an astounding 81-fold revenue growth, securing the 206th position on Fortune India’s 500 list for 2023. Berger Paints has built an extensive distribution network of approximately 64,000 dealers across India and empowered around 10 lakh painters nationwide through its iTrain programme, which has elevated skill levels across the industry since its inception.

Berger Paints has flourished by fostering trust among its stakeholders—employees, dealers, and painters—rooting relationships not merely in transactions but in a strong emotional bond. This deeply integrated culture has established a supportive and innovative environment where creativity and resilience are encouraged. “Our collective efforts ensure Berger Paints’ enduring success and strong reputation,” reflects the company’s commitment to an environment that inspires motivation and a sense of purpose.

Enduring Relationships

Berger Paints’ long-term stakeholder relationships remain a cornerstone of its growth. An accessible culture, open communication, work-life balance, and strong partnerships have been pivotal in driving its esteemed industry position. This cultural foundation has also enabled impactful joint ventures, such as the partnership with Becker Coatings, leading to plants in Goa and Nagpur, showcasing the spirit of collaboration that Berger Paints embodies.

Equally resilient is its joint venture with Nippon Paints, a relationship that has withstood challenges, reflecting Berger Paints’ dedication to fair dealings and mutual support. Even with smaller partners, the company’s commitment to long-term relationships shines, reinforcing its dedication to partnership and trust, even during challenging times.

Robust Performance

In FY24, Berger Paints achieved remarkable financial milestones. “Our commitment to excellence has been the cornerstone of our success over the past 100 years,” said Abhijit Roy, Managing Director and CEO. Driven by product innovation, expanded networks, focused marketing, and manufacturing excellence, Berger outperformed industry benchmarks. Consolidated revenue rose by 6 per cent to Rs 11,199 crore from Rs 10,567 crore in the previous fiscal year. The company’s EBITDA climbed impressively by 25 per cent, reaching Rs 1,925 crore from Rs 1,538 crore, a growth aided by reduced raw material costs, which also allowed the company to pass benefits on to its customers.

Notably, Pat increased, with margins rising by 181 basis points, reflecting the company's efficiency and customer-centricity.

The decorative business of Berger Paints witnessed substantial volume growth despite inflationary challenges and extended monsoon impacts. The construction chemicals and waterproofing sectors performed exceptionally well, underpinning strong value contributions. Berger’s network expansion remained robust, adding about 14,552 retail touchpoints and installing around 7,848 Colorbank machines, further amplifying market presence. Additionally, the company took strides in influencer outreach, enhancing its brand’s positioning and customer engagement in a competitive market.

In essence, Berger Paints exemplifies a resilient company rooted in trust, innovation, and growth. With revenue hitting Rs 11,199 crore, Pat at Rs 1,170 crore, and an expansive reach bolstered by partnerships and innovations, Berger Paints is well-poised to continue flourishing across all segments.