Berger Paints Surpasses INR 10,000 Crore in Sales Milestone

Mumbai:

Berger Paints India has achieved a significant milestone by surpassing ₹10,000 crore in sales and ₹1,000 crore in profit for the fiscal year 2023-24. This accomplishment is driven by double-digit growth in sales volume and a nearly 24% increase in operating profit. As the second-largest paint company in India, Berger Paints also gained market share and anticipates continued strong growth in the waterproofing and construction chemicals segment.

Strong Annual Growth

Berger Paints reported a 6% increase in sales, reaching ₹10,002.9 crore for the year. Operating profit surged by over 24% to ₹1,671.8 crore. Abhijit Roy, the CEO, expressed confidence in the improved demand outlook for the coming year. He highlighted the launch of multiple innovative products in the paint, coatings, and waterproofing segments to meet the evolving needs of customers.

Market Expansion and Competition

Earlier this year, Grasim Industries entered the paints industry with 'Birla Opus', aiming to become the country's second-largest player and achieve ₹10,000 crore in revenue within three years. Despite this new competition, Berger Paints saw a 3% increase in sales to ₹2,249.1 crore in the March quarter. However, net profit for the period fell by over 7% to ₹181.6 crore, despite healthy double-digit volume growth.

Challenges and Future Outlook

The company's value growth was affected by a 4%+ price reduction, a higher contribution of low-value products, and lower-than-expected sales in the luxury segment due to anticipated price reductions. Additionally, operating profit was lower compared to the previous year due to a one-time subsidy received in the previous year, increased operating costs for a new plant, and higher advertising expenditure.

Impressive Financial Performance in 2023-24

Abhijit Roy acknowledged these challenges but remained optimistic about the future, stating that they remained confident of an improved demand scenario in the upcoming year and had prepared for the same with the launch of multiple innovative new products in the paint, coatings, and waterproofing segments to ensure that they provide relevant solutions to the changing needs of their customers.