Asian Paints And Berger Paints To Increase The Capital Expenditure After Birla Opus’s Powerful Performance

The new player in the paint industry Birla Opus is working ambitiously. The company is looking forward to completing its target of selling its franchise in the 6,000 towns. The company is heading at a fast speed giving tough competition to the existing players. Being a matter of concern for other players in the market, they decide to invest more. Paint industry giants like Asian Paints and Berger Paints will be increasing their capital expenditure.

Paint Majors To Invest More After Increasing Response To Birla Opus From Public

Birla Opus is a new company in the paints industry. It established itself in  states like Punjab, Haryana, Rajasthan, Delhi, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana. It is working aggressively to expand its production in the southern states. The new three plants in Chamarajanagar, Karnataka; Mahad, Maharashtra; and Kharagpur, West Bengal are operational from the second quarter of FY25.

It invested Rs. 10,000 crores in the plants in Northern India. Apart from that, Asian Paints and Berger Paints are making big investments in the market. Asian Paints will start investing Rs. 2,200 Crores per annum. Thus, the total investment for the company will be Rs. 8,800 crores. The company will be focusing on the greenfield and brownfield projects. The top executives of the company said the above.

On the other hand, Berger Paints is going to spend Rs. 2,000 crores in two years. It will be setting up two new plants in West Bengal and Odisha. It recently invested Rs. 1,000 Crores in the setting up of a plant in Sandila, Uttar Pradesh. According to the companies, there is still some gap in the industry. Thus, it leads to more competitors entering the market to occupy the space. Thus, there is a need for further expansion to reach the deeper parts of the economy.

Many experts appreciate the companies’ move to expand further. However, many also believe that there is a need for creating more networks and relations as well. Thus, Berger Paints and Asian Paints are the two companies that are also installing tinting machines in the stores. It helps in getting the exact colour that the customer wants.

This attracts more dealers, painters, architects, and customers. The company is making a smart move here. The Birla Opus and the Asian Paints are now cautious of their next moves. They are trying to take steps to strengthen their identity further. It will help them maintain their profitability for the upcoming years.