Berger Paints Ltd. will seek to double its revenue to Rs 20,000 crore by 2028-29, a top company official said on Friday.
To achieve it the company will need to expand its capacity to 1.6 lakh tonnes per month from the current 95,000 tonnes per month, Berger MD and CEO Abhijit Roy said during a post-AGM interaction.
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"We plan to invest Rs 2,700 crore in greenfield and brownfield expansion projects over the next 5-6 years. The capacity expansion will enable the company to maintain its 14% year-on-year growth," he said.
Berger Paints has outlined a plan for three greenfield facilities - one in Panagarh (West Bengal), another in Odisha and the third in western India but the site has not been finalised.
The expansions will be primarily funded through internal accruals, Roy said.
The company also plans to merge its subsidiaries which were established through the acquisition of STP Ltd and Sahoo Coatings Ltd.
The company has achieved its Rs 10,000 crore revenue target a year ahead of the target in FY '23.
It has attained a 20% market share in the June quarter of the current fiscal and has become the fourth-largest paint maker in Asia after Nippon, Kansai, and Asian Paints.
Talking of the way ahead for the company, Roy said that even if crude oil prices were to rebound to $100 per barrel, it would only have a slight impact on the company's margins, which he expects will remain in the range of 17.5-18% in the coming quarters.
Berger Paints has set a revenue target of around Rs 11,700 crore for FY24, up from Rs 10,600 crore in the previous fiscal.
The company is also concentrating on the development of new products and technologies to thrive in the coating market, which is becoming more competitive with the entry of new players.
"Although the competition might exert some pressure on the coating market share, our new products like construction chemicals and protective coatings will compensate and help us maintain a healthy growth rate of around 14%," Roy added.
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