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Kolkata , May 18

Berger Paints India Limited is to hike the prices of its solvent-based products shortly. "The jump in crude prices has pushed up the prices of our oil-based inputs such as mineral turpine, xylene and pthalic anahydride by four to five per cent and we therefore have no other option but to hike the prices of our solvent-based products," Mr Subir Bose, Managing Director of the company, said here on Thursday, indicating that other paints manufacturers too would follow suit. The solvent-based products account for 50 per cent of the total products of Berger Paints.

The extent of rise would be around three to four per cent, just enough to cover the rise in cost, Mr Bose said. The company's accounts for 2005-06 were yet to be finalised, he said but estimated that the turnover during the year might exceed Rs 1100 crore compared to Rs 950 crore in 2004-05. He hoped to post 15 to 17 per cent growth in the current fiscal (2006-07). Since 1993, the paints industry as a whole had been posting 12-13 per cent growth annually, he said attributing it to the general buoyancy of the economy coupled with shortening of the cycle period in painting.

The company's Rewari unit, the eighth unit, would be commissioned some time in April next year.

"The commissioning has been delayed by three months because of the delay in obtaining a plethora of Government clearances," he said, pointing out that paints industry being polluting industry was subjected to so many Government regulations. Being built at a cost of Rs 35 crore, the unit will have the capacity of 600 kilolitre per month, to be stepped up gradually to 1000 kilolitre.

The wholly-owned Russian subsidiary of Berger Paints, the Managing Director said, would be commissioned in August this year. The unit, with a capacity of 400 kilolitre per month, would produce mainly decorative paints. The initial investment would be $ 3 million.

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