Berger Paints to hike prices of decorative products

February 14th, 2012 - 11:15 pm ICT by IANS  

Kolkata, Feb 14 (IANS) Colour giant Berger Paints will increase prices of its products in the decorative segment by two percent with effect from March, a top company official said Tuesday.

“The prices of raw materials have been ever rising and in order to offset the impact of the increased prices we are compelled to raise the prices of our products in the decorative segment by two percent with effect from March,” Abhijit Roy, director and chief operating officer, Berger Paints India Limited (BPIL), said here.

The company said the hike in the raw material prices has adversely affected its profitability.

“The government has been constantly hiking the price of white spirit, a major component in paint manufacturing and the recent devaluation of the Rupee (against US dollar) has added to our woes. In comparison to previous years our profitability has gone down by 1.2 percent this year,” said managing director Subir Bose.

The official said the company, which has a 20 percent market share in the decorative segment, will not be affected by the price rise of its products.

The company, which has undertaken an expansion drive by investing around Rs.260 crore, will double its production capacity to 5,00,000 metric tonnes in the next two years.

“The manufacturing unit at Hindupur in Andhra Pradesh being built at a cost of Rs.200 crore will become operational by April 13 and will cater to the south Indian market which has witnessed the highest growth in the country,” Bose said.

The two brown-field projects in Hooghly’s Rishra and Goa, both being upgraded at a cost of Rs.30 crore each, will be commissioned by 2014, he added.

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