Kolkata, Aug 12 (PTI) Coating major Berger Paints India Ltd has implemented three price hikes since June, which are expected to boost its 'value' growth to around 5 per cent in the second quarter ending September 2024, while maintaining a volume growth target of at least 10 per cent, an official said on Monday. Speaking after the company's 100th AGM, Berger revealed that its next milestone is to double its turnover to Rs 20,000 crore by 2029, up from Rs 10,000 crore in FY2024. The company also plans to close down the Howrah plant and convert it into a larger R&D centre by the end of 2025, once the greenfield Panagarh facility in West Bengal becomes operational.
"We achieved a volume growth of 11.8 per cent in Q1 of FY2025, but value growth was just 2.5 per cent due to factors like price decreases, reduced raw material costs, and a slowdown in the luxury paints segment in West Bengal and Kerala.
"The three price hikes between June and August will improve and mitigate the cost impact of 1.5 per cent, leading our value growth to about 5 per cent in the ongoing second quarter," said Abhijit Roy, MD & CEO of Berger. While the luxury segment was facing some pressure, construction chemicals and waterproofing segments are growing strong, he said.
. Berger's revenue from operations for the quarter ended June was Rs 2,806 crore, compared to Rs 2,740 crore in the corresponding quarter last year, marking a 2.4 per cent increase.
Roy expects margins to remain at around 40 per cent gross ma.