The main soul of Berger Paints, Lewis Berger, who formed a foundation of brand Berger route in 1760 in the UK. Berger Paints India Ltd today said that it would contribute Rs 280 crore till 2021 to expand its limits in Uttar Pradesh and Maharashtra.
The extension is probably going to be finished by 2021. In meanwhile, the organization said its income was not comparable as deals are recorded net of GST, while prior deals were recorded gross of excise duty.
Chairman K S Dhingra said, “We will soon start water and solvent based enhancing, modern and defensive coating, resins, and emulsion and development concoction producing office at Sandila, Uttar Pradesh, at an expected cost of Rs 200 crore.” Another Rs 80 crore would spend for the second-stage development at Jejuri close Pune for automotive, modern and defensive coatings, he told reporters.
The unit will have paints limit of 27,000 KL per annum and 12,000 MT of saps.
The organization will include an extra covering line at Jejuri with an expected limit of 325 MT for each month.
According to the report from India Times, The Kolkata-based organization will hold 51 percent in the proposed JV, while Rock Paint will claim the rest. Dhingra said that he is hopeful in regards to the Rs 2,000-crore for an automotive refinish paints market. He said that Berger Paints had encouraging trials out of the MoU with a Rock Paint of Japan, and the way towards shaping a joint wander for automotive resurface paints which were in progress.
“In a wake of the GST decrease on paints to 18 percent from 28 percent, the organization was passing the whole 10 percent tax break to the purchasers,” said Berger Paints CEO, Abhijit Roy.
In the pre-GST regime, the tax frequency on paints was 26-27 percent.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]