Berger Paints, the country’s second-largest paint maker, has been following double-digit growth in volume and value in banking for 22 years due to continued growing demand for decorative paints – both in the economy and in premium areas; growth of industrial supply and calibrated growth of prices. One round of hiking took place in May and another is expected in July.
According to Abhijit Roy, dr. Med. And to the CEO, Berger Paints India Ltd, overseas markets continue to boost demand for decorative paints; while subway markets are being “toured” by continuing repainting work.
Interestingly, some markets in the West Indies, North India and the pockets of South India are witnessing a recovery in demand after reopening after a second wave of Covid infections led to a series of local and regional blockades.
The eastern region, which is otherwise one of the largest companies suffering money, is witnessing a “certain lag” (in recovery) as restrictions continue in markets such as West Bengal, Odyssey and parts of the Northeast. In some markets, trade time restrictions and movement restrictions continue.
Roy holds that initial trends in recent days suggest a jump at the primary level – sales by the company to both distributors and retailers – as well as sales in the secondary market (end user). Premium and economic supply testify to a steady increase in demand, whether coming from urban or urban markets. Moreover, monsoon offers in the segments of waterproofing and construction chemicals have a “slightly higher” traction (compared to other products).
“The concern we had a few weeks back was whether the second wave had hit the rural economy and markets in the country more seriously. Last year’s economic recovery was driven by the rural economy, and then the auto industry began to accelerate. What we have seen over the course of a few days is that rural and market markets are not as affected as we feared. We are confident that we will close Q1 (April to June) FG22 at numbers greater than Q1FY20. “Last year’s numbers would obviously not be a correct comparison due to the low base effect,” he told BusinessLine.
Taking into account the good monsoons – which are mostly on the way so far – and other factors such as the increase in the number of unemployed, if agriculture grows at levels similar to last year (3.5-3.6 percent), then a good recovery can be expected.
The industrial paint portfolio is growing, and new launches in the decorative category are available, depending on market opening.
“For a full year, we have been convinced of double-digit growth – both in volume and value. Price increases have occurred or are being prepared. It is now a little difficult to determine growth numbers due to the changing nature of viruses and infections, ”Roy added.
In FY21, Berger recorded sales growth of over 7 percent and 13 percent, respectively, in terms of value and quantity. He reported a consolidated net profit of 209 kroner (twice as much as in the same period last year) from January to March; supported by higher operating income, 2026 kroner (a jump of 50 percent over the same period last year).
According to Roy, the solvent-based price increase starts on July 1 by 1.5 percent. The reason is the increase in input costs, primarily raw derivatives. Earlier in May, water-based sales accounted for nearly 4.5 percent.
“So far, we have grown to 4.5 percent of sales, while the impact of raw materials is about 8 percent,” he said.