Berger India will strengthen its brand and expand the distribution and is not based on a discount model, to consolidate its number two in the paints sector despite the competition intensified by new competitors and consolidation.Berger MD Abhijit Roy, speaking after Tuesday’s AGM, said that the company continued to earn market shares among the listed companies in the first quarter of the current year and all companies recorded a decent performance.
Roy said that by 2030 Berger should be a company of 20,000 RS and keep second place. Currently, Asian Paints is the number one of the paints producers in India, followed by Berger, who has a 20% market share at national level.
Roy claimed that in terms of competition, only Birla Opus was a new player, while JSW Paints has been here for some years. As for the acquisition of JSW’s Akzo Nobel, it was only a change of ownership. “There will be a struggle for the first place between Nerolac, JSW Paints and Birla Opus,” he said.Roy said that to maintain the first place number two, Berger would never resort to a discount model, since he believed this did not produce long -term dividends. He admitted that Berger is weak in states like Karnataka, Andhra Pradesh, Tamil Nadu, Telangana, Maharashtra, Rajasthan and Madhya Pradesh. “The distribution network in these areas is very scarce, even if there is awareness of our brand. Appointing multiple distributors,” he said.
Currently, the total number of distributors for Berger is 50,000, which will be doubled in a lakh by 2030. The rural areas constitute 60% of Berger’s revenues, while the rest is urban. Going forward, it will be 45% for urban areas, Roy said.
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