Berger Paints to Invest $500 Million In A New Automative Paint Plant

Berger Paints is India’s second largest paint manufacturing company after Asian Paints. The company deals in quality paint products and home decor. Going well in the market, the company is planning to expand its production capacity. It will take place with the things going automotive. Thus, the company is going to set its another automotive paint plant soon. Where will the plant be set up? How will it affect the company’s performance and its goals?

Berger Paints Invests 500 Million In Its New Automotive Paint Plant

Berger Paints invests 500 million in the setup of an automotive paint plant which will help the company grow at a faster pace and increase its production capacity. The data shows that the current automotive paint production capacity of Berger Paints is 600 kilolitres per month. However, it will increase to 800 kilolitres per month. Thus there will be an increase of 200 kilo litres per month which will help in meeting the consumer’s demand faster.

The Automotive Paint Plant helps in better manufacturing of the paints at a faster speed. Apart from that, the company also becomes able to meet the changing needs at a faster pace. Berger Paint’s current idea is to set up a plant in the Western Indian city of Pune. It will be an automotive paint plant where the company is investing around 500 million rupees. Currently, 24% of the sales depend upon automotive paint production.

This new plant will be capable of the capacity of 800 kilolitres of production. However, the earlier one was only capable of 600 kilolitres per month. The sales percentage of 24% will increase further with this new plant. With the setup of the new plant, another question arises about its price. The company’s officials mention that prices will likely remain similar and there won’t be any major difference in the input costs. The plant will take up to 1 year in the final setup. It will be operational afterwards.

The company’s share price is currently down at Rs. 503.40 per share. It opened at Rs. 513.05 and closed at 503.40 per share. The market cap of the company is 5.52 T Cr with a P/E ratio of 50.24. Berger Paints expects to move up after a short time. Many also advise buying the share now. Berger Paint’s new plant will help in uplifting the sales of the company. Automotive paint plants play a crucial role in the industry’s growth. Pune’s location will be the most suitable for the company’s new plant. Stay tuned for more information on our website.