Paints not a commodity play; brand plays a key role

Competition is intensifying in the decorative paints segment. Berger Paints India, the country's second-largest paint manufacturer, plans to hold on to its share in the face of challenges. Abhijit Roy, managing director and chief executive officer of Berger, spoke to Ishita Ayan Dutt in Kolkata about his 100-year-old company's plans and why price is "not the only game in town" in the industry. Edited excerpts:

- ABHIJIT ROY MD & CEO, Berger Paints India

Birla Opus recently flagged off its fourth plant and is said to have become the second largest decorative paints player by installed capacity. Would it prompt you to accelerate expansion plans or look at inorganic options?

First of all, they are not the second largest. We have an installed capacity of 1.5 million kilolitres and they are about half our size. We are actually operating at 55 per cent of our installed capacity. So, there is no need to increase capacity (immediately).

Dutch firm Akzo Nobel said in October that it was reviewing its decorative paints portfolio in South Asia. Does it interest Berger?

We look at all options and proceed only if it makes sense. As of now, they have not made their plans very clear. For any acquisition that we have made in the past, big or small, the same logic is applied. If the acquisition cost is less than the value we can derive out of it, then we look at it. If not, then we give it a pass.

Berger's revenue was flat in Q2FY25. Was it due to extended monsoons?