Joining the Premium Gang!

Berger Paints is the country's second-largest decorative paints manufacturer with 18 per cent market share in the segment. Formed in 1923, it is also one of the oldest paint manufacturers around. Today, Berger is readying itself to gain from its shift to premium paints category where margins are better than in the economy and industrial segment. Talking about the paints industry, it is a playing ground for only a handful of incumbents. Asian Paints is followed by Berger, Kensai and Akzo Nobel (more commonly known as ICI Paints in India). Then there are a host of players in the unorganised sector. Importantly, almost 65 per cent of the paints industry is held by unorganised players. For many years now, paint companies in India have remained under the shadow of industry heavyweight Asian Paints which has a 58 per cent market share. All companies felt the brunt between FY03-05 when Asian Paints decided to enter into the mass segment. Berger has since been clawing back. It changed tack to focus on decorative paints. New launches in exterior paints and premium emulsions have plugged the gaps in its product offerings. It has extensively built its dealer network which is now second-largest in India (just behind Asian Paints). By giving away higher discount to dealers, Berger has managed to gain around 0.6 per cent market share in the last two years. Berger has a stronger presence in North and Eastern India

This article was originally published on April 22, 2013.