Sustainable growth through trust and innovation
Dear Shareholders
It gives me immense pride to write this letter to you as the year marked the most
important milestone in our Company's history – completing 100 successful years of
existence. Not many companies are able to achieve this outstanding feat. On behalf of the
Board, I would like to thank each of our stakeholders for being part of this wonderful
journey and helping Berger emerge as the leading player in both the decorative and
industrial paints segments. From the time of its inception in 1923 till the time we
assumed the management control of our Company, Berger Paints was mainly dealing with
industrial and protective coatings and a few solvent based architectural paints and had
some of the best talents in the industry. Our plan of action in the beginning was clear:
provide strategic guidance and direction, pump in cash to tide over the immediate shortage
as well as infusion of capital from time to time for the next few years, introduce
financial discipline such as credit management through computerised billing systems and
approval processes for expenses, correct supply chain management processes, reorient the
objectives to suit the changing times of liberalisation, inculcate dynamism and ownership
among employees, fill in the gap in decorative paints and focus on water based emulsion
category, set up new factories and expand the existing facilities, strengthen the R &
D structure, introduce unique products, create and effectively market brands and
continuously monitor success and compliance.
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The transformation thereon has been spectacular as we turned into a multifaceted and
chie_y architectural/ decorative paint producing company offering not only products, but
solutions to its customers located all over the country. This has been a painstaking
process undertaken by all concerned under careful guidance by the Board. When we started
the journey, the market was crowded with several players but decades later, we have
emerged as the second largest paints company in the country.
Key milestones
Our journey is marked by pioneering innovations and strategic expansions that have set
industry benchmarks. We introduced the first successful colorbank machines, a breakthrough
soon emulated by other paint manufacturers. Establishing modern resin manufacturing
facilities was another critical step, as resins are key raw materials for solvent-based
paints. Our first joint venture with Becker Industriafarg, Sweden, for manufacturing coil
coatings, gave us the confidence to undertake more ventures, given Becker's leadership in
coil coatings.
We acquired the automotive and industrial paints business from ICI India Limited, along
with its factory at Rishra, West Bengal. The merger of Rajdoot Paints with Berger, renamed
British Paints after 15 years, allowed us to effectively serve specific market segments.
This merger also brought in the pioneering Coil Coating Joint Venture with Becker. Further
expanding our footprint, we acquired Berger, Jenson & Nicholson in Nepal and
established a successful factory in Jammu, a bold move at the time.
Our acquisition of Bolix SA in Poland, a leader in ETICS, enabled us to conserve energy
in cold climates and expand our surface coatings offerings. Bolix exports to over 20
countries and has subsidiaries in the UK, France, and Ukraine. We also acquired the
decorative coatings business from Sherwin Williams Paints India, including their plant in
Taloja, Navi Mumbai. Achieving self-sufficiency in emulsion manufacturing, a key raw
material for water-based paints, has been a_notable milestone.
We expanded our reach with a widespread distribution system, setting up warehouses
nationwide, and pioneering factories in the North East. Our innovative offerings, such as
Express Painting Services, and our successful entry into construction chemicals with our
subsidiary STP Limited, have further strengthened our portfolio. Our subsidiary, SBL
Coatings Limited, acquired in 2017, enables us to supply innovative and custom specialty
coatings. Above all, we've built strong brands like Easy Clean, Anti_Dustt, Weathercoat
Long Life, and Silk Glamour, cementing our leadership in the industry.
Building on our strengths
Our greatest strength lies in our honesty and integrity, values deeply cherished by me
and my family. Integrity encompasses not just financial integrity, though it remains
paramount, but also integrity in all operations, including conduct. For instance, if we
claim a paint has washability, it must be demonstrable. The second strength is the loyalty
of my colleagues. Since
Our journey is marked by pioneering innovations and strategic expansions that have set
industry benchmarks. We introduced the first successful colorbank machines, a breakthrough
soon emulated by other paint manufacturers. Establishing modern resin manufacturing
facilities was another critical step, as resins are key raw materials for solvent-based
paints."
taking over, we have retained the same management and staff, without even relocating
offices, unlike many others. This consistent team has driven all changes over the years in
the same work environment. We have applied this principle to all our inorganic
acquisitions, consistently achieving encouraging results.
The third strength is Berger's adaptability. Berger has transitioned from a
solvent-based paint manufacturer to primarily a water-based paint producer, with the
capability to manufacture every kind of paint. This ongoing transformation aims to turn us
into a platform offering coating and construction chemical solutions, continuously
engaging with customers. Lastly, Berger's experimental culture fosters innovation in new
products and services and creates a family-like atmosphere that aids in retaining key
personnel.
Leveraging lasting partnerships
Every strategic partnership must be symbiotic to succeed. Our alliances have been
mutually beneficial and enduring. We continuously learn from partners like Becker
(Sweden), Nippon (Japan), Rock Paints (Japan), Hesse (Germany), Chugoku Marine Paints
(Japan), and VIP Coatings International (Germany). These collaborations have enriched us
with expertise in automotive, wood, marine, and protective coatings, ensuring our
sustained growth and innovation.
Moving towards the next
We are excited to announce the establishment of two new paint factories in West Bengal
and Odisha. Our focus remains on reaching out to customers—retailers, distributors,
contractors, painters, architects, and industries—making it easier for them to
understand and appreciate our offerings while streamlining the transaction process.
As conscientious citizens, we are acutely aware of issues like global warming and
environmental degradation. To address these, we are deploying resources to ensure
sustainability. Our initiatives include zero liquid discharge, energy conservation, the
use of alternative energy sources, water conservation at all our plants, and creating a
roadmap for water neutrality. These widely practised methods are central to our
sustainability efforts. Additionally, we are promoting products like Roof Kool & Seal,
a _ber-reinforced, liquid-applied, elastomeric waterproo_ng membrane impregnated with
nano-_ber, designed
As conscientious citizens, we_are acutely aware of issues like global warming and
environmental degradation. To address these, we are deploying resources to ensure
sustainability. Our initiatives include zero liquid discharge, energy conservation, the
use of alternative energy sources, water conservation at all our plants, and creating a
roadmap for water neutrality."
for dual effects of waterproo_ng and heat reduction. Further research in these areas is
ongoing. Our subsidiary in Poland, Bolix, specialises in insulation systems across Europe,
which save at least 35% in heating costs for buildings. Our primary CSR activity focuses
on training painters to enhance their skills, ensuring a minimum quality of painting
services, reducing the time and cost of painting, improving painters' earning abilities,
and providing them with the knowledge to elevate their status to contractors. We are
committed to continuing our CSR efforts in this direction, investing our resources to
support the development and professional growth of painters. Our plans for expansion,
commitment to sustainability, and dedication to community development through painter
training reflect our holistic approach to growth and responsible business practices.
Goals for the future
The strategic vision of our Company is to be the most innovative and competent paints,
coatings, and construction chemicals company in the country, trusted by all stakeholders.
Achieving this involves various measures, including enhancing capacities, streamlining the
supply chain, maintaining strong fundamentals, experimenting to create new opportunities,
and scaling successful ventures. A key strategy will be enhancing digital capabilities in
business intelligence, customer relationship management, supply chain management, machine
learning, and AI. However, a fundamentally strong base in production, procurement, sales,
and R&D, supported by durable service functions, is essential to benefit from digital
advancements. These areas will continue to be our priorities.
I believe we will continue painting a brighter future for our stakeholders as we move
forward. Best wishes,
Kuldip Singh Dhingra Chairman