Berger Paints - The Journey of the Second-Largest Paint Company in India
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We all are aware that colors add spark to everyone's life! And to think of a world without shades of green, blue, or yellow is truly impossible. To ponder more deeply, colors have an extremely vital function in our lives as they have an impact on our thinking process, decision-making skills, and moods. In the marketing world as well, color is vital in generating expectations for a product and expressing its major features. Color is the second most essential factor in allowing customers to recognize brand packaging.
Now imagine you want to get your house painted, but there are no such companies that offer you your favorite shade to paint the walls of your home. Boring, right? Thanks to the industrial revolution, the paint industry has grown so much over the last decade that we now have limitless options to even decide which color we want our walls to be painted.
Berger Paints Limited founded almost 98 years ago by Lewis Berger, has been ruling the Indian Paint industry since its inception. It is regarded as the second-best paint company in India, with 16 manufacturing units spread across India, two in Nepal, and one each in Poland and Russia. This multinational paint company has its headquarters in Kolkata, India.
Let us take a ride through the successful journey of Berger Paints, how it started, its founder and team, its business model, and other key features in this article further.
Berger Paints - Company Highlights
| Headquarters | Kolkata, India |
|---|---|
| Sector | Chemicals, manufacturing, Express Painting Services |
| Type | Public |
| Founder | Lewis Berger |
| Key People | Kuldip Singh Dhingra (Chairman) |
| Founded | 1923 |
| Valuation | Rs 60,102.23 crores |
| Revenue | Rs 8,826 crores |
| Parent Organisation | U. K. Paints India Private Limited |
| Website | www.bergerpaints.com |
About Berger Paints
Berger Paints - Industry Details
Berger Paints - Founder and Team
Berger Paints - Startup Story
Berger Paints- Mission and Vision
Berger Paints - Name, Tagline, Logo
Berger Paints - Business Model
Berger Paints - Revenue Model
Berger Paints - Agreements and Partnerships
Berger Paints - Mergers and Acquisitions
Berger Paints - Advertisements and Social Media Campaigns
Berger Paints - Awards and Achievements
Berger Paints - Competitors
Berger Paints - Future Plans
About Berger Paints
Berger Paints is one of the leading paint manufacturers globally and the second-largest paint company in India. It provides a wide range of creative painting solutions with a distribution network comprising more than 50,000 dealers and retailers. In addition to a comprehensive selection of industrial and ornamental paints, the Company provides waterproofing solutions, wood and glass coating, rapid painting services, home, and living services, and other related services.
Key Facts of Berger Paints:
- 6th Position among the Top 15 Global Paint Companies as per market capitalization
- 4th Largest paint company in Asia
- 7th Largest decorative paint company in the world
The company boasts of having 16 manufacturing plants which are located in India including its subsidiaries. Besides this, Berger Paints has manufacturing plants present outside India, with two plants located in Nepal, one each in Poland and Russia, and 180 stock stations globally.
It has an international presence in five countries; Russia, Poland, Nepal, and Bangladesh.
Berger Paints' CSR Initiatives
The company's CSR project is called as iTrain. It offers training for unskilled and semi-skilled employees in painting, waterproofing, and polishing. It has 47 Total iTrain training centers covering some of the rural areas of India. More than 1,30,000 people have benefited from iTrain so far.
Berger Paints have also collaborated with many NGOs on various welfare projects in the spaces of education, livelihood, healthcare, and women.
Berger Paints - Industry Details
Whether industrial or residential, the paint industry is an essential part of everyone. They are being used by construction industries, hospitals, transportation, automotive, residential, and even non-residential buildings or infrastructures.
With the increasing trend of using paints and high-tech coatings, the paint industry is growing phenomenally. It is recorded, that the market size of the global paint industry was valued at $160.03 billion in 2021. In addition, the worldwide paints and coatings industry is expected to increase at a 5% CAGR from $167.04 billion in 2022 to $235.06 billion by 2029.
Berger Paints - Founder and Team
Lewis Berger is the founder of Berger Paints. Berger Paints Ltd is currently handled by Kuldip Singh Dhingra, who is the Chairman of the company.
Lewis Berger
Louis Steigenberger, who later changed his name to Lewis Berger, was a bright young German chemist who originally started the brand 'Berger' in the UK in 1760. He had mastered the production of Prussian Blue, one of the most significant pigments of that time. His discovery was the color of the military uniforms during that period. Lewis Berger's company was called Louis Berger & Sons Limited. Gradually, the company became to known as Berger Paints in the 1870s, which then started offering 19 different pigments such as black lead, sulfur, sealing wax, and mustard. After Lewis Berger's death, his sons took over the charge of the company.
Kuldip Singh Dhingra
Kuldip Dhingra holds a Bachelor of Science degree from Hindu College, Delhi University. He is a company promoter and an industrialist with extensive expertise in paints and associated sectors. Kuldip Dhingra is the fourth generation of his family to work in the paint industry, which began in 1898. According to Forbes, he has a net worth of $9.4 billion(2021). Kuldip Dhingra has three children with his wife, Meeta Dhingra.
Gurbachan Singh Dhingra
Gurbachan Dhingra serves as the Vice-Chairman of Berger Paints. He has been associated with the company as a Board of Directors since 1993. Gurbachan Dhingra has extensive expertise in the paint business, particularly in its technical aspects. Along with Berger Paints, he serves as director of Anshana properties, Citland commercial credits, Lobelia builds well, UK Paints, Valerian Hospitality and Hotels, Berger becker coatings, and many more organizations.
Abhijit Roy
Abhijit Roy is the Managing Director and CEO of Berger Paints. Before being associated with Berger, he was working at L'oreal and Asian Paints Limited. Abhijit Roy holds a Bachelor's degree in Mechanical Engineering from Jadavpur University, Kolkata, and an MBA from the Indian Institute of Management, Bangalore.
Berger Paints - Startup Story
The brand 'Berger' was first established in the UK by founder Lewis Berger in 1760. This was the beginning of the brand in the European region.
The Birth of Berger Paints in India
Berger Paints India Ltd. began in 1923 by Mr. Hadfield as Hadfield's (India) Limited, a tiny colonial operation making ready-mixed stiff paints, varnishes, and distempers on 2 acres of land in Howrah, Kolkata. Later on, in 1947, British Paints acquired Hadfield's (India) Ltd and, thus the name of the company was changed to British Paints (India) Ltd. Berger Paints' sales offices were established in Delhi and Bombay in 1951, and storage was opened in Guwahati.
In 1965, a company called Celanese Corporation, USA bought the share capital of British Paints (Holdings) Limited, and CELEURO NV, Holland, a Celanese subsidiary, acquired the controlling interest of British Paints (India) Ltd. Following that, in 1969, the Celanese Corporation sold its Indian operations to Berger, Jenson & Nicholson of the United Kingdom. The firm British Paints (India) Ltd then became a member of the global BERGER group, with operations across oceans and in multiple locations. This marked the beginning of Lewis Berger's legacy in India.
After a few challenges and turning points, British Paints (India) Limited changed its name to Berger Paints India Limited in 1983 under the leadership of the UB Group owned by Vittal Mallya. Slowly many novel products like emulsions and distempers were introduced in the 1980s and 1990s by the company.
In 1991, the Delhi-based Dhingra brothers, Kuldip Singh Dhingra and Gurbachan Singh Dhingra bought Berger Paints from the UB Group. As of now, the two brothers own a combined 75% stake in the company.
Today, Berger Paints composes an employee strength of over 3,600 and a countrywide distribution network of more than 25,000 merchandisers.
Berger Paints in Pakistan
Berger Paints Pakistan Limited was incorporated in Pakistan in 1950. The company became a public limited corporation in 1974. In the same year, Jenson & Nicholson Limited (the main business in the United Kingdom) owned 50.62% of Berger Pakistan, while Pakistani investors owned 49.38%. Slotrapid Limited, a British Virgin Island firm, took control of Berger Paints Pakistan Limited in 1991 by buying 50.62% of the business's shares.
Berger Paints in Bangladesh
The company was first brought into Bangladesh from Berger UK, and then from Berger Pakistan. Berger Paints Bangladesh Limited replaced J&N (Bangladesh) Limited as the company's name in 1980.
Berger Paints- Mission and Vision
The vision statement of Berger Paints is, "To be the most admired Indian Paint & Coating Solutions company with globally recognized competencies."
Berger Paints' mission says, "To maximize shareholder value by developing and delivering innovative and best solutions for our customers, consistently outperforming our peers and providing a Dynamic & Challenging work environment for our employees."
Berger Paints has always aimed to bring change and growth through innovation, which will ultimately make them one of the best paint companies not only in India but globally.
Berger Paints - Name, Tagline, Logo
Berger Paints proudly spreads its message which truly reflects through its tagline, "Paint your imagination". This catchy catchphrase captures its customer's attention and makes them want to trust the brand always.
Berger Paints also goes by another tagline, which is, "No Daag No Dhabba, Only Beautiful walls"
Berger Paints - Business Model
Berger Paints' business model revolves around the manufacturing process and selling of various embellishing paints and commercial paint coatings. To put it in simple terms, Berger Paints is engaged in the manufacturing business model.
The brand operates its business activities on 4Ps. These four parameters are; product, price, place, and promotion.
Berger Paints Products & Services - With their product line, the company's product offerings are categorized into two parts; industrial paints and decorative paints.
Under the industrial paint category; it offers services like GI & Automotive coatings, powder coatings, and protective coatings. In the decorative paints category, it provides Berger Silk, Easy Clean, Berger Luxol HiGloss, Bison, Weathercoat All Guard, and Weathercoat Floor Protector.
As the second-largest paint company in India, Berger Paints has a wide distribution network that includes over 170 stock facilities and over 25,000 dealers or retailers. Its manufacturing units are also spread across India and other countries like Nepal, Bangladesh, Russia, and Poland.
Some of the Landmark and Prestigious Painting Projects executed by Berger Prolinks are;
- Vidhan Sabha, Jharkhand
- Ashiana Rangoli Garden, Jaipur
- Tata Fort House, Fort, Mumbai
- The CSI Airport, Mumbai
- Akshardham Temple, Delhi
- Eden Gardens, Kolkata All India Institute of Medical Sciences (AIIMS), Delhi
- Cognizant, Chennai
Berger Paints - Revenue Model
Berger Paints makes most of its revenue through manufacturing and selling the above-mentioned products and services. Through its vast product portfolio of innovative paint coats and industrial paint coatings, Berger Paints has put itself as one of the leading paint manufacturers globally.
Berger Paints - Revenue Growth
During the fiscal year 2021-22, Berger Paints reported a turnover of Rs 8826.37 crores ($1.1 billion), which is 28.49% higher than the previous year, owing to an increase in sales volume as well as prices.
It also stated that its PAT (Profit After Tax) grew by 15.73% from Rs 719.72 crores to Rs 832.95 crores.
Berger Paints - Agreements and Partnerships
In the domain of vehicle coatings, Berger Paints has Technical License Agreements with DuPont Performance Coatings. Furthermore, the company has entered into a Joint Venture Agreement with Nippon Bee Chemical Co Ltd., Japan to establish a company in India to manufacture and sell coatings for plastic substrates used in vehicles and other automotive parts.
Berger Paints India stated on February 10, 2017, that it has signed a Memorandum of Understanding (MoU) with Promat International Limited NV of Belgium to collaborate on passive fire prevention and high-performance insulating coatings in India, Nepal, and Bangladesh.
Berger Paints - Mergers and Acquisitions
To date, Berger Paints has acquired three organizations. The details of their acquisitions are:
| Date | Acquiree name | Amount |
|---|---|---|
| October 15, 2019 | STPL | $1.7 Billion |
| May 31, 2017 | SBL Specialty Coatings Private Limited | $81.8 Billion |
| April 30, 2008 | Bolix | $1.5 Billion |
Berger Paints - Advertisements and Social Media Campaigns
When it comes to promoting their brand, we are aware of how Berger Paints is with their marketing game. The company works on a conventional marketing mix promotional strategy with stressed aggressive marketing. Advertising is their biggest promotional tool.
Berger Paints has expanded its emphasis on promoting its products using prominent faces in recent years. It has signed renowned celebrities like Katrina Kaif, Kareena Kapoor Khan, and Akshay Kumar as its brand ambassadors.
In October 2021, Berger Paints launched a campaign known as Easy Clean. The campaign highlights the brand's Easy Clean Luxury Interior paints that keep walls free from long-lasting stains. The advertisement can be seen encouraging parents not to restrict their kids from playing inside the house or from painting their imagination on the walls. It very smartly urges parents to be tension-free about stains or pigment because with Berger Paints Easy Clean, they can easily clean their walls, which keeps them neat and hygienic.
Berger Paints - Awards and Achievements
Berger Paints has won many awards and achievements. To list a few of them, these are;
- Berger Paints has won Special Jury Award At The CII Eastern Regional Productivity Awards 2022.
- In 2022, Berger Paints India Gets Runner-Up Spot In The Coveted ICC Water Awards.
- Berger Silk Glamor was recognized as the Most Preferred Paint Brand.
- Berger Paints India wins Outstanding Digital Transformation in Supply Chain at the 14th ELSC Leadership Awards.
- Berger Paints India was recognized by Economics Times as one of the iconic brands of India.
- Berger Paints India was conferred the prestigious Greentech Environment & Sustainability Award 2021
- Berger Paints India achieved India's Best Managed Companies in 2021.
- Achieved the National Award for Energy Conservation 2019
- Berger Paints India was recognized as the ‘Best Indian Paint Company’ at Times Business Awards 2020.
Berger Paints - Competitors
Presently, Berger Paints is one of the top players in the paint industry today, and it is quite obvious, the company competes with many other tough competitors in the market. Here's the list of competitors of Berger Paints;
- Asian Paints Ltd.
- Shalimar Paints
- Kansai Nerolac Paints Ltd
- Indigo Paints
- Akzo Nobel India Ltd.
- Sirca Paints Ltd.
Berger Paints - Future Plans
Berger Paints is already one of the leading paint manufacturers, so it plans to see itself remain at the top. However, the company aims to maintain the highest levels of corporate governance via transparent business practices that are ethical. In addition to this, the company also announced significant infrastructure expenditure in the Union Budget 2022-23, which has opened new prospects of expansion and development for them.
Here's what Chairman Kuldip Singh Dhingra states about their upcoming plans, "We will continually fulfill the aspirations of the well-informed, discerning customers, whose valuable insights help our R&D teams to come up with better solutions, with a keen eye on both aesthetics and functionality."
FAQs
Who is the CEO of Berger Paints?
Abhijit Roy is the CEO of Berger Paints.
Where is the head office of Berger Paints?
The head office of Berger Paints is in Kolkata.
What is the rank of Berger Paints in India?
In India, Berger Paints ranks 2 in terms of market cap.
