This is the second largest company in the decorative paints market with a 17% market share and it posted a set of good numbers for Q1FY14 and continued with the same momentum into Q2 also. The consolidated net profit (YoY) rose 17% at Rs.63 crore on a 19% rise in net sales at Rs.962 crore. The company has stated that its decorative business recorded good double-digit volume growth driven by healthy performance across geographies, particularly Tier 2 and Tier 3 cities. Decorative paint accounts for 75% of Berger's sales while industrial paint contributes the balance. Reflecting the macro factors, the company has stated that its automotive and industrial coatings business was affected because of the economic slowdown, especially in the heavy commercial vehicles segment. Protective coatings business was restrained on account of subdued infrastructure growth.

The company is expanding big time. Its plant at Hindpur at Andhra Pradesh in the first phase will manufacture 8000 tonne per month which will be eventually scaled up to 20,000 tonne per month. During Q2, it commenced trail production at Hindpur. It is also putting up a unit in Pune too which is expected to go on stream by 2014. The company aims to increase its market share by another 4% over the next 3 years. Till date the company has been focusing on economy and mid range but now it has moved into the higher margin, premium segment in the emulsion range. This is expected to improve its market share and give it a better foothold in the decorative paint segment. The company has a capex of Rs.150-175 crore in FY14. Second half is expected to be much better. As at 30^th Sept 2014, reserves stood at Rs.984 crore and promoters stake at 74.96%.