INTRODUCTION

The earliest paint factory in India dates back to 1902, when Shalimar Paints, Colour & Varnish Company, A Pinchin Johnson unit, was established at Calcutta. Growing industrialization, expansion of the railways and introduction of electric power a couple of years earlier had all kept business confidence soaring high. However, this did not provide a ready and expanding market for the nascent paint industry then. Imports from Britain continued to swarm the market and raw materials were not easy to come by. The industry still consisting of one lone unit went through a rather prolonged period of infancy, till the World War II brought in dramatic opportunities. With the stoppage of imports owing to war conditions, the domestic market at last became almost the exclusive reserve of the domestic industry. European manufacturers, hitherto exporting to India, readily saw the advantages of setting up manufacturing facilities here. The period between the wars thus saw the greatest ever influx of foreign paint companies into IndiaGoodlass Wall (1918), Elphant Oil Mills (1917) in Bombay, and British Paints, Jenson & Nicholson and Macfarlances in Calcutta. Macfarlanes was brought over by the Poddars and became a completely Indian company, while the other three: Shalimar Paints (Pinchin Johnson), British Paints and Jenson Nicholson continued as British operated units. While talking about the post independent development of the Paint industry in India, mention must be made of Asian Paints, a completely Indian unit which started on a very small scale, grew so big and so beyond recognition over the years that it is today not only the largest unit in India but way ahead of the second largest, Kansai (Goodlass) Nerolac Paints Ltd., formerly a unit of Goodlass Wall (UK). Besides Asian Paints, numerous factories, wholly Indian in ownership and with rare exceptions in technology as well were set up in Calcutta, Kanpur and Bombay. But even in this period, paints were considered a

luxury item. Only people with high incomes were expected to decorate their houses with the use of paints. Paints, as a protective element, were totally unheard of. The industrial segment, which was traditionally a low user of paints, vis--vis its counterparts in the decorative segment, too contributed to this notion. In line with this misconceived notion, the government drastically increased duties on paints in the early nineties with an aim to bolster exchequer revenues. The result was obvious. This inevitably brought about a downturn in the fortunes of the industry. The products, which are highly price elastic, saw a negative growth rate of 20 % in 1991-92. The next year was also not good, registering a growth of only 2%, bringing it back to the 1990-91 level, thus corroborating the fact that the industry needed lower excise levels to grow. The industrial slowdown during that periodalso did not help matters. In line with the liberalized policies and the realization that paints are not necessarily a luxury item, duties were progressively reduced from 1993-94. This squared growth as most companies passed on duty reductions. Further, the entry of world majors in the automobile and white goods market in India since 1993 helped the market to expand. Demand for auto paints shot up suddenly. Form a modest 8% growth rate in 1993-94, paint demand touched 12% in 1995-96. Rapid industrialization and improvements in the infrastructure such as transport, energy and communication during the last decade gave a further fillip to the growth of the paint industry. Aided by Governments liberal policy of technology import, the automotive and consumer durable segments expanded phenomenally, with a flurry of foreign collaboration. Increased demand for decorative, protective and functional coatings was a natural fall out, which brought, in its stride, a host of indigenous developments as well as the injection of new technology.

THE BRIEF HISTORY OF ORGANISATION

Welcome to the world of Berger Paints where we turn your dreams into colorful reality. With an unmatched range of products and services, Berger Paints India Ltd is a leader in paints, offering its customers a variety of innovative painting solutions, is it decorative or industrial. Whether it is your home or office, your shop or factory, interiors or exteriors, metal, wood, plastic or any other surface - we have a paint solution for it! With an ever-evolving profile and rich history, Berger Paints India Ltd. (an ISO 9001 Company) has come a long way in the highly competitive Indian paints industry. Today the names "Berger" and "Lewis Berger" are synonymous with color. Berger Paints continues to be inspired by the creation and innovation of Mr. Lewis Berger, who through his marvelous shades, had offered people a chance to transform their homes through the power of imagination. At Berger we believe in taking paints to the level of fine art. Enriched by the imagination of Lewis Berger since 1760. The history of BERGER PAINTS (INDIA) LIMITED is literally as colorful as the business it is in. This chapter will reveal the milestones in our history. Please click on the milestones in the picture below to travel through our past.

History and Milestones

The name Berger or Lewis Berger is today synonymous with colour worldwide. But actually the origin of the name dates back to over two & a half centuries in England in 1760, when a young colour chemist named Lewis Berger, started manufacturing in Europe, 'Prussian blue' using a secret process that every designer and householder coveted. Mr. Berger perfected this process & art of the blue colour, which was the colour of most military uniform of that time. Enriched by the imagination of Lewis Berger, the unending quest for creation and innovation in the world of colour & paints still continues. The history of Berger Paints India Limited as a company started in 1923 as Hadfield's (India) Limited which was a small colonial venture producing readymixed stiff paints, varnishes and distempers setup on a 2 acres of land in one of India's first industrial towns close to Kolkata in Howrah, Bengal. Subsequently in 1947, British Paints (Holdings) Limited, an international consortium of paint

manufacturing companies bought over Hadfield's (India) Limited and thus the name changed to British Paints (India) Ltd. The gentleman who took over, as its first managing director was Mr. Alexender Vernon Niblet, an Englishman who was later on followed by Mr. Alfred Godwin in 1962. Further in the year 1965, the share capital of British Paints (Holdings) Limited was acquired by Celanese Corporation, USA and the controlling interest of British Paints (India) Ltd was acquired by CELEURO NV, Holland, a Celanese subsidiary. Subsequently in 1969, the Celanese Corporation sold its Indian interests to Berger, Jenson & Nicholson, U.K. Then onwards the company British Paints (India) Ltd became a member of the worldwide BERGER group having its operations across oceans in numerous geographies and this marked the beginning of Lewis Berger's legacy in India which the company would later take forward to enviable heights. From 1973 the company entered into one of its dynamic phases of business with introduction of new generation products in the industrial, marine and decorative segments under the table leadership of it first Indian Managing Director Mr. Dongargaokar Madhukar. Year 1976 was another turning point in the history of the company when the foreign holding in the company was diluted to below 40% by sale of a portion of the shares to the UB Group controlled by Mr. Vittal Mallya. The reins of the company were taken over by Mr. Biji K Kurien as its Chief Executive & Managing Director in the year 1980. Finally in the year 1983, the British Paints (India) Limited, changed its name to Berger Paints India Limited. The entire 80s & 90s saw the lunch of many new products from company's stable such as premium emulsions and high quality acrylic distempers. The COLOUR BANK tinting system was launched through which the consumer could select from a range of over 5000 shades. Again the fortunes of the company changed hands in 1991 with UB Group's stake in the company bought over by the Delhi based Dhingra brothers, Mr. K.S.Dhingra & Mr. G.S.Dhingra and their associates of the UK Paints Group. Presently Dhingras' control a majority stake of almost 73% in Berger Paints India Limited, which is a professionally managed organization, headquartered in Kolkata, with the stewardship resting since 1994 with the current Managing Director Mr. Subir Bose.

James Wilfred Adamson, founder of the British Paints Organization, embarked on his career as a traveling salesman. Adamson bought his first Oil and Colour business in 1909. By 1917 Adamson owned paint manufacturing companies in Rhodesia, Canada and the Caribbean. Elsewhere an Englishman, Mr. Hadfield, set up Hadfield's (India) Limited on 17 December, 1923, a small paint company in Calcutta. Towards the end of 1947 British Paints acquired Hadfield's (India) Limited and thus British Paints (India) Limited was incorporated in the State of West Bengal. What British Paints, (Holding), UK acquired was a company which at that time produced 150 tons of ready mixed stiff paints, varnishes and distempers. Our 1947 sales were a princely RS.25 lakhs, with total employee strength of 100. The first Managing Director of British Paints was Mr. A. V. Niblett.

Analysis of Mission Vision

Vision
To endure an environmentally safe and secure future with a commitment from the company and its entire employee to practice and implement methods that help reduce the harmful effects on our environment.

Mission
To conserve natural resources and ensure that protection of the environment remains our top priority. To take up the challenge and develop more advanced products which consistently help reduce the harmful effects on our environment and conserve natural resources. We not only take the responsibility for environmental protection but also make our employees aware and committed to the cause We respect the needs and social implications of all communities and cultures where our business operates.

A TOUCH OF GREEN IN OUR LIVES

We are committed to taking stringent measures to consistently reduce the harmful effects on our environment. A few of them are as follows: Reducing waste and conserving natural resources in manufacturing facilities. Launching green and energy efficient products. Installing energy efficient systems at all new plant facilities. Using renewable and sustainable raw materials in our formulations. Our products are manufactured keeping in mind stringent VOC limits along with other environmental guidelines as per it him industry. Our products are compliant to all global and industrial green certifications

SHADES OF GREEN IN ALL OUR COLOURS

ECO PRO BREATHE EASY Our first low VOC Paint By reducing the VOC content in our paint considerably, we're offering a products that's not just low on emission but odorless as well. It's our flagship product that leads the way to our Green Horizon. Mentioned below are a few of its properties: Low VOC Negligible aromatic content Highest standard of indoor air quality Global accreditation Chemical components restriction Zero health hazard Maximum performance ECO SAFE We ensure that all our other household decorative products are environment friendly and compliant to global environmental standards as well. No added Lead, Mercury of Chromium Minimal aromatic content Acceptable levels of VOC

THE STRUCTURE OF ORGANISATION

In the last five years the companys products demand has doubled due to many factors such as increase in consumption, no. of vehicles, a boom in the

construction sector and foreign industries establishment in Pakistan. Etc Therefore, Berger and its major competitor ICI, both cannot meet the total market demand. Berger currently is producing at full capacity

ICI at present is producing an equivalent average of 24 laccolites/month. Berger distributes itself to retailers throughout Pakistan by a mechanized Order flow structure

Berger is also introducing its new products:

Berlet (glue) (like Movelith by Clairant)

Printing Ink (offset,graviel) Powder Coating (e.g. BerCoat) Auto-Refinishes Aerosol Spray Paints

MARKET SHARE

The overall organized sector market share is shown in the following graph. Asian Paints leads with a market share of 37 per cent; GoodlassNerolac has 16 per cent while Berger Paints has 14 per cent share.

Others , 12% Shalimar, 4% Jens on and Nic hols on, 5.7% A s ian Paints , 37%

ICI, 11% Berger paints , 13.8%

Goodlas s Nerolac , 15.9%

Board of Directors
Mr. Kuldip Singh Dhingra was born on 2nd September, 1947 and has been a director of the Company since 17th July, 1991. He was appointed as the Chairman of the Company on 17th June, 1994. Mr. Dhingra is a graduate, an industrialist, a promoter of the Company and has a long standing experience in the paints and related industries. Mr. Dhingra also received an Alumni Award from the Delhi University for distinction in the field of Industry.

Mr. Gurbachan Singh Dhingra was born on 9th April, 1950. He has been the director of the Company since 14th May, 1993. Mr. Dhingra is a graduate, an Industrialist, a promoter of the Company and has considerable experience in the paint industry, especially in its technical aspects. He holds the position of the Vice-Chairman of the Company.

Mr. Subir Bose, the Managing Director of the Company, was born on 10th December, 1949. He graduated in Chemical Engineering from the Indian Institute of Technology, Kanpur and the completed his post graduation in Business Administration from the Indian Institute of management, Ahmadabad. Mr. Bose joined the Company in 1984 and was named the Managing Director of the Company in 1994.

Mr. Anil Bhalla was born on 14th September, 1946. He graduated in Economics (Hons) from the University of Delhi and is a Fellow Chartered Accountant. He is also the Managing Partner of JC Bhalla and Co. His Career graph boasts of vast experience in auditing, joint venture consultancy, strategic business consultancy, business valuations, merger and acquisitions.

Mr. Gerald Kenneth Adams was born on 17th June, 1953. He has done his MBA from the Harvard Business School and thereafter was awarded a Bachelors Degree in Arts, Magna Cum Laude, Phi Beta Kappa by the University of Washington. Mr. Adams was the Managing Director of Orica Consumer Products and held senior positions in Box USA, Amcor Limited and the Boston Consulting Group.

Mr. Gureharan Das was born on 3rd October, 1943. He has been a director of Berger Paints India Limited since July, 2001. Mr. Das is a Harvard graduate and was CEO of Proctor & Gamble, India and Managing Director of Proctor & Gamble, Worldwide. He is also a reputed author, a management consultant and advises companies on sales & marketing and global strategies.

Mr. Kamal Ranjan Das was born on 23rd February, 1932. A science graduate with honors, he began his career in the year 1951. Mr. Das joined Berger Paints Indian Limited in 1975 after successful stints elsewhere and then after 20 years of service, retired in 1994 as Executive

Director. Mr. Das is now a management consultant.

Mr. Naresh Gujral was born on 19th May, 1948. He has been a Director of the Company since February, 2003. He is a fellow member of the Institute of Chartered Accountants of India and is the founder of Span India Group, which is one of the leading exporters of high-end fashion garments to Europe from India. He is an eminent industrialist.

Mr. Pulak Chandan Prasad was born on 27th May, 1968 and has been Director of the Company since November, 2009. Mr. Prasad is a B.Tech from IIT and IIM Ahmadabad alumni. He was the Managing Director and co-head of the India office of Warburg Pincus and a Management Consultant with McKinsey & Company, USA and South Africa prior to that. Currently he holds the position of member in the Audit Committee in Bharti Airtel Ltd. and is also a Director on the Company's Board.

Management Team Mr. Subir Bose Managing Director Mr. Bose is a B.Tech (Chemical) from IIT, Kanpur & PGDM from IIM, Ahmadabad having over 36 years of work experience. He started his career with Asian Paints Limited & prior to joining Berger was associated with Abukon Nigeria Limited.

Mr. Abhijit Roy Sr. Vice President - Sales & Marketing Decorative / Retail Paints Division Mr. Roy is a B.E (Mech) from Jadavpur University, Kolkata & PGDM from IIM, Bangalore having over 19 years of work experience. He started his career with Asian Paints Limited & prior to joining Berger was

associated with ICI (India) Limited.

Mr. Ashok Sharma Sr. Vice President Sales & Marketing Automotive, GI & Powder Coatings Division Mr. Sharma is a B.Sc (Hons) from Delhi University, B. Sc (Tech) in Technology of Paints, Pigments & Varnishes from Bombay University & MBA from Faculty of Management Studies (FMS), University of Delhi having over 37 years of work experience. He started his career with Asian Paints Limited and prior to joining Berger was associated with the same.

Mr. Sandip Mitra Sr. Vice President Sales & Marketing Protective Coatings Division Mr. Mitra is a B.Sc (Hons), B.Tech & M.Tech (Chemical) from Calcutta University having over 34 years of work experience. He started his career with Shalimar Paints Limited and prior to joining Berger was associated with Jenson & Nicholson (India) Limited.

Mr. Srijit Dasgupta Sr. Vice President Finance & Accounts Mr. Dasgupta is a B.Sc (Hons) from Calcutta University, AICWA from Institute of Cost & Works Accountants of India & Company Secretary from Institute of Company Secretaries of India having over 27 years of work experience. He started his career with Machinery Manufacturers Corporation Limited and prior to joining Berger was associated with the same organization.

Mr. Aniruddha Sen Sr. Vice President & Company Secretary Mr. Sen is a B.Sc (Hons) from Calcutta University, Diploma in Management from IGNOU, Delhi, and AICWA from Institute of Cost & Works Accountants of India & Company Secretary from Institute of Company Secretaries of India having over 28 years of work experience. He started his career with Indian Aluminum Company Limited and prior to joining Berger he was associated with the same organization.

Mr. Bhabesh Bera Sr. Vice President R & D Mr. Bera is a B.Sc (Hons) & M.Sc (Chemistry) from Ranchi University having over 34 years of work experience. He started his career with C.S.I.R and prior to joining Berger he was associated with the same organization in Regional Engineering College, Durgapur.

Dr. Prosanta Kumar Ghosh Vice President Manufacturing Dr. Ghosh is a B.Sc (Hons) from Burdwan University, M.Sc (Physical Chemistry) & M.Tech (Material Science & Engg.Polymer) from IIT, Kharagpur & PhD (Polymer Science) from IIT, Kharagpur having over 24 years of work experience. He started his career with IVP Limited, and subsequently worked for Rotomac Electricals Limited. Prior to joining Berger he was associated with ICI (India) Limited.

Mr. Subir Saha Vice President - IT Mr. Saha is a B.Stat (Hons.), M. Stat & Diploma in Computer Science from Indian Statistical Institute (ISI), Kolkata having over 32 years of work experience. He started his career with National Informatics Centre and prior to joining Berger was associated CESC Limited.

Mr. Subhashish Das Vice President Corp. HR & Personnel Mr. Das is an M.Com & LL.B from Pt. Ravi Shankar Shukla University, Raipur; PGDPM from National Institute of Personnel Management (NIPM), Kolkata, SIMAP from IIT, Kharagpur and PGDHRD from AIMA & NHRD, New Delhi having over 15 years of work experience. He started his career with Abuja Cements Limited and prior to joining Berger was associated with the same organization.

Mr. Dinesh Kumar Virmani General Manager - Materials Mr. Virmani is a B.Tech (Chemical) from HBTI, Kanpur, PGDM&S from Bharatiya Vidya Bhavan, and New Delhi & MBA from University of Delhi having over 32 years of work experience. He started his career with Asian Paints Limited and subsequently worked for Hoyles Paints Limited, Berger Paints India Limited and Goodlass Nerolac Paints.

Product Mix
Two Basic Products:

1) Industrial Products: are customized products for other businesses (B2B Clients) e.g.

Honda(Car) Pakistan, Yamaha DY, Wapda etc. and are also included in the Forecast but their base material is customized. These include Ber-Coat, Oxi-Plast, Matt Finish, and Stoven Paints.

Decorative Products: are those products which are used in homes Flow of Orders:

Berger distributes itself to retailers throughout Pakistan by a mechanized Order flow structure

Decoration: Warehouse- Order Place Purchase Document (PDP) (B.O.M) Lab/Reference Files Production Schedule. Industrial: Regional Office or Warehouse Technical Department Lab Reference Purchase Order (PO) Warehouse Store Production Schedule.

Regional Office or Warehouse

WarehouseOrder Place

Technical Department Lab Reference Purchase Order (PO) Purchase Document (PDP) (B.O.M)

Warehouse Lab/Referen ce Files Store

Production Schedule

Production Schedule

Products: Interior Wall Coatings

Interior Emulsions

Silk The very name silk conveys soft to touch & feel high sheen, aesthetics and premiumness. Hence to consumers Silk a symbol of refined taste, lifestyle and class. All of which come alive in Berger Silk - the first luxury emulsion introduced in India. Silk is considered as a niche brand among the range of Berger products. It represents premiumness, sheen, smoothness and colour which brings alive both the rich luxurious smooth feel of silk on the walls as well the premium silk lifestyle.

Breathe Easy Breathe Easy is the only paint which leaves no smell after painting. It has been certified by Green Label Committee of Singapore Environment & Health Safety Standards as eco-friendly and healthy. Additionally, it is highly cleanable and resistant to fungus growth. All this and its impeccable sheen, make it a truly innovative product in premium interior emulsion segment.

Rangoli Easy Clean Rangoli Easy Clean emulsion consists of special varieties of polymers and colorants. Its balanced composition and additives provide minimum porosity. As the emulsion is easy to clean, it maintains its new look for years. Rangoli Easy Clean is the best option for excellent finish at a reasonable price.

Rangoli Super Acrylic Emulsion Rangoli Super Acrylic Emulsion is made of unique forms of co-polymers and pigments available. These ingredients along with exclusive additives provide an optimum dispersion level. It gives a rich matt effect and gives a superior covering when applied for interior walls with stain guard technology.

Bison Acrylic Emulsion Bergers Bison Acrylic Emulsion has a smooth and stylish matt finish, making it an ideal choice for the price conscious customer. It has twice the durability of distemper and is suitable for a wide variety of surfaces. Made up of special colour fast pigments with excellent anti-fading properties, it comes in a range of 10,000 shades.

Designer Finishes

Illusions Illusions are a unique product in its lifestyle portfolio which is designed to inspire its customers to paint their imagination. The ultimate in stylish and modern living, the interior wall paints enliven spaces with their fascinating patterns created with internationally designed tools and techniques. Illusions include designer wall finishes from Imagine, Metallica and Marble.

Illusions Imagine Imagine includes a range of slow drying emulsions in non-metallic and smooth textures. The emulsions allow customization and their unique cross linking polymers make the designs washable and easy to maintain.

Metallica Besides walls, the Metallica range of luxurious designer finishes which is nonblackening is perfect for surfaces in metal and wood. With its two basic colours, gold and silver, a myriad metallic shades can be created.

Marble Marble is a range that offers a wide variety of textures and colours in three finishes satin, matt and gloss. Being 100% washable walls painted with Illusions Marble retain their gloss even after being cleaned.

Distempers

Bison Distemper Bison Acrylic Distemper is a-100% water based acrylic co-polymer emulsion designed for interior walls. Available in both factory-made ready shades and in a tint able format, it gives surfaces an elegant and durable mat finish.

Jadoo Acrylic Distemper Berger Paints Jadoo Acrylic Distemper is complete water based acrylic emulsion meant only for interior walls. It comes in a wide range of colours and is Indias most preferred brand of paints. Jadoo provides excellent finishes to walls at a reasonably low cost.

Exterior Wall Coatings

Exterior Emulsions

Weather Coat All Guard Silicon based paint with enhanced water resistance; Weather Coat All Guard, a Premium Plus Exterior Wall Paint, is the first paint in the industry to use the Silicon Technology. Silicon is a powdered chemical which when added to paint imparts visible water repellency to the paint film and water rolls of it keeping your house 100% rain proof. Moreover, it comes with a 7-year warranty.

Weather Coat Smooth Weather Coat exterior emulsion paint made of unique pigments and additives, can withstand extreme weather conditions. Furthermore, it has a unique feature called one way barrier which enables the wall to breathe out moisture. It also comes with the highest sheen from among its compatriots with Heat Resisting technology that keeps your house up to 5 degrees cooler.

Weather Coat Long life Weather Coat Long life, a premium plus acrylic paint for exterior walls, with its Elastomeric property, ensures that the paint film stretches to cover hairline cracks thus ensuring that walls a look new for longer. The paint is suitable for buildings with hairline crack problems and structures in high rainfall areas where water seepage occurs through hairline cracks.

Weather Coat Tile Protector Weather Coat Tile Protector is a tough, super protective 100% acrylic latex paint specially formulated for tiles and bricks. It is highly water resistant and protects tiles/bricks from dampness, algae and fungi caused by lashing/heavy rain. Its unique latex formulation gives tiles a long lasting new look.

Warmest Bergers Warmest is a-100% water based paint. Made of suitable pigments, it is ideal for dry climates. It has higher resistance to cracking and its matt finish makes it a less expensive alternative to cement paint.

Primer

Weather Coat Biowash A fast acting anti-fungal pre-treatment to be used prior to painting. Biowash has been specially formulated with powerful broad spectrum biocides and fungicides combined with detergent properties to keep exterior surfaces free from a wide variety of microbial activity. A ready to use solution, the product can be applied on masonry, brick, plaster and wood. Low in toxicity. Biowash maintains its stability in high temperatures (up to 100 degrees C) and a pH range of 2 12.

Weather Coat Exterior Wall Primer The Weather Coat is a water based primer which is suitable for exterior surfaces. Made of special pigments, it ensures longer life of the entire paint system. This primer seeps through the permeable surface and seals it. Moreover it primer provides exceptional whiteness and opacity.

Berger Metal & Wood Paints

Enamels

Luxol One Coat Gloss Enamel The Luxol One Coat Enamel can be used on all surfaces particularly on mild steel and well prepared masonry surfaces. Made of refined colorants and essential additives, it provides a long lasting finish and glossy look to surfaces with just one coat.

Luxol Satin Enamel Berger Paints Luxol Satin Enamel is a solvent based paint that is washable and long lasting. It can be used in areas like kitchens, balconies, etc. Made out of exclusive micro fine pigments and extenders, its silky smooth finish gives the surface a glowing look.

Luxol High Gloss Enamel Berger Luxol High Gloss Enamel, perfect for all surfaces both interior and exterior, can withstand any Indian weather condition. Formulated with alkyd and select colorants, it gives a long lasting glossy finish to every surface it touches.

Berger Butterfly GP Enamel l Butterfly Enamel meant only for interior surfaces can be applied on wooden surfaces and select mild-steel surfaces. It is a solvent based paint which provides maximum level of gloss and complete customer satisfaction.

Jadoo Enamel The value for money Jadoo Enamel is a solvent based paint meant only for interior surfaces like doors, windows, furniture and mild steel surfaces like grills. It gives surfaces a glossy look.

Clear Wood

Wood keeper PU Legend Wood keeper, meant for wooden surfaces, is available in both matt and glossy finishes. It is an environment friendly paint as its composition is free from heavy metals like lead. This paint is easy to maintain because of its stain proof feature. It gives an excellent transparent finish and preserves the natural look of the wooden surface for years.

Premium Wood Coatings from Becker Acroma Italy The premium wood coatings imported from Becker Acroma, Italy enliven the aesthetics of your household furniture and woodworks, giving both interiors and exteriors an international look.

2-Pack (2:1) PU System Comprising of the complete range of finishes (matt, semi-gloss and gloss), which renders an appealing look to your furniture and table-tops, the 2:1- PU system is based on the 'CROMO-4' technology. The technology has a rapidcuring coating system offering a silky-smooth finish which has a scratchresistance, a stain-guard-resistance and toughness-flexibility balance, which gives furniture an evergreen new look. It is also available in transparent and opaque shades.

3-Pack Polyester Coating Based on the Italian technology, it offers a mirror-like, high-reflecting artificial glass-look for your table-tops. It is the toughest available coating, with the best abrasion and scratch resistance properties. It is a low-costmaintenance coating, requiring no additional paint application in the renovation operation. Interiors: The parquet flooring lacquer for the interior flooring and furniture, offers the toughest and the highly efficient abrasion-resistant coating in the low-VOC, heavy-metal-free, child-safe coatings range. In addition to being an 'Eco-friendly' coating, it is also a user-friendly and can be offered in 16 colours. Exteriors: These coatings, applicable on exterior woodworks like woodenchalets, doors, window-frames, wooden grills, gates, etc. offer highly elastomeric and flexible coatings, which can expand and contract along with the wood-fibers. The coatings can withstand shuttle temperature and climatic variations, and thus retain the evergreen new look for ages.

Procurement
Overview: Total No. of Materials = 2500 different materials Average Imported Materials = 60% (i.e. 1500 materials) Most important and Expensive Material = Titanium Di-Oxide (TiO2) Purpose = Adds durability to the products. (Only used by Berger and ICI) Usage = 200 ton/month Economic Order Quantity (EOQ) = 600 tons Price = $2000/ton

Manufacturing

Overview: Maximum Capacity: 110,000 liters/day (1000 Kg per day.) Forecast: 3,300,000 liters/month Actual Capacity: 2,500,000/2,600,000 per Month

THE STRATEGIES AND PLAN BEING IMPLEMENTED BY THE ORGANISATION

MRP/MPS/ERP Master production scheduling (MPS) The objectives of this module are to help Berger Pakistan to anticipate shortage before its occur, (current stock, purchasing order, manufacturing order & sales order) these activities creates a projection of your stock levels anywhere from a week to several years in advance through this you can easily highlights your shortage in red and excess in green. Drill down in any item to analysis of stock activity, through MPS you can easily see what exactly the shortage will appear if we execute the specific production plan. Material Requirement Planning MRP serve as a bridge between the master production schedule and real purchase order and manufacturing order. MRP shows which item have to purchase, in what quantity, and when the order should be placed so that the required material will arrive just in time.

Plan
Investors with a long-term perspective can consider buying shares of Berger Paints India, the country's second largest decorative paint maker. Expectations of healthy volume growth, the company's increased focus on premium paints, its big-ticket expansion plans, and the push to enhance presence in high-potential markets support our recommendation. At its current price of Rs 98, the Berger stock trades at around 22 times its trailing 12-month earnings. While slightly higher than the 21 times of its nearest competitor Kansai Nerolac, Berger's earnings multiple is much lower than the 33 times earnings commanded by market leader, Asian Paints. Berger's initiatives to improve product mix, and increase its scale and reach should help it narrow the gap.

Robust volume growth Similar to other paint makers, Berger has been witnessing robust product off-take due to favorable demand dynamics in the country. Increasing incomes, growing construction activities, and industrial growth at a healthy clip have been important drivers. Berger has also been taking price hikes periodically to pass on rising input costs. Driven by robust volume growth (around 20 per cent), price hikes (totaling to around 12 per cent) and changes in the sales mix, the company's FY 11 consolidated sales and profits grew by a strong 23 per cent and 25 per cent yearon-year to Rs 2,328 crore and Rs 151 crore respectively. The recent June quarter too saw consolidated top-line grow by an impressive 30 per cent, driven by volume growth in excess of 15 per cent and price hike of around 9 per cent in decorative paints. Yet, bottom-line grew at a slower 16.4 per cent, primarily due to the rapidly rising cost of inputs such as titanium dioxide and crude oil based derivatives. While prices of decorative paints were raised, there was a lag in increasing prices of industrial paints, which led to a drag in margins. Operating margin declined to 10 per cent in the June 2011 quarter from around 12 per cent in the year-ago period. Berger's volume growth is expected to be healthy, even if it has a muted September quarter due to monsoons. Margins in the near term may continue to be pressured with rising cost of inputs and greater marketing spends. However, the improved contribution from premium paints on which the company is increasing focus should mitigate the impact to some extent. With decorative paints contributing almost 80 per cent to the company's sales, projections of increased demand for housing units in the country bode well. Cushman and Wakefield estimates that residential demand in India is expected to be over 4 million units during 2010-2014. This, combined with increased frequency of repainting in Indian homes should aid the company's volumes. In the industrial paints segment, the company is a market leader in protective coatings which should benefit from expected increased spends on infrastructure. Compared to the Government's XI plan, outlay for infrastructure projects in the XII plan has been doubled to $1 trillion. Though growth in this segment may be muted in the near-term due to ongoing economic uneasiness, long-term prospects appear good. On the international front, Bollix, the subsidiary in Poland, is expected to benefit from some countries in Europe making external insulation mandatory.

Premium focus In the decorative paints segment, Berger's product portfolio has traditionally been tilted heavily (almost 80 per cent currently) in favor of economy paints such as enamels and distempers. With a view to capturing the fast-growing demand for premium paints such as emulsions, Berger has been launching new products in the category and has stepped up marketing efforts. Consequently, premium paints have been improving share in the company's sales and aiding margins. The focus on water-based premium paints is expected to continue, with much of the ongoing expansion plans of the company being in this category. To boost volumes and to garner a bigger share (currently 19 per cent) of the fastgrowing Indian paints market, Berger Paints plans to more than double its capacity over the next three years. Expansion plans include both brown-field expansions (at its plants in Goa and Rishra, West Bengal) and a green-field project in Hindupur (Andhra Pradesh). The expansions at Goa and Rishra (at an outlay of Rs 130 crore) which are expected to be completed this calendar will see Berger's capacity increase from 250,000 tons to 370,000 tones. In addition, Phase-I of the new plant in Hindupur being set up for Rs 160-170 crore is expected to go on steam by FY 2014 and will add 160,000 tones. This could further be scaled up to 320,000 tones. Berger Paints is also stepping up its presence in South and West India. These two regions, where demand for paints is among the highest in the country (about 60 per cent share), account for only 35 per cent of Berger Paints' sales. The company has opened around 30 exclusive stores on franchise basis in Tamil Nadu and Andhra Pradesh to improve visibility and volumes. More stores are on the anvil. The company's good cash position (Rs 127 crore) and low debt-to-equity (0.44 times as on March 2011) gives it sufficient headroom to fund expansion plans. ROE is healthy at around 22 per cent.

NEW INITIATIVES Berger Paints Corporate Social Responsibility

Conserve. Develop. Respect . Will the environment and those around us suffer as we profit? Are our employees at Berger aware of their responsibility towards the environment? Are they committed towards conserving natural resources? These are just some of the questions raised at Berger before any decision is taken. As a socially responsible corporate citizen, we at Berger ensure that the stringent measures we take to reduce the adverse effects on the environment are taken very seriously. At Berger growing is about creating a greener future alongside. These measures include: Reducing waste and conserving natural resources in manufacturing facilities Developing green and energy efficient products Installing energy efficient systems at all new plant facilities Using renewable and sustainable raw materials in our formulations Manufacturing products with the stringent VOC limits in mind along with other environmental guidelines as per the industry Ensuring every product is compliant to all global and industrial green certifications All because we at Berger respect the needs and aspirations of all communities when our business operates.

The Berger Commitment As a part of the commitment towards the stakeholders and the society at large, Berger Paints is committed to discharge its responsibility for the cause of the society through a variety of philanthropic and benevolent activities benefiting the society. The company has donated medical equipments and has installed shallow pumps in villages and water coolers at various locations in the vicinity of its factories. Initiatives have been undertaken for a cleaner environment through involvement of agencies towards conservation of greenery, spreading the awareness of a greener planet amongst the people, recycling of waste paper and others. Donations have been given to the charitable institutions and social welfare organizations working for the cause of the upliftment of the poor and downtrodden.

Future Plan of action:

New products for retail market (both Interior & Exterior) e.g. Water Repellent Exterior Emulsion, Water Based Anti-corrosive Primer. Cost Reduction & Product Up gradation. Low VOC Paint. Process optimization. New Protective Coating products like Water Based Epoxy Primer & Finish for Metals, Solvent-free Epoxy Phenolic Coating, Solvent-free Glass Flake Tank Liner, H/B Corrosion Resistant Aluminum & Solvent-free Polyurethane Coating. l New Automotive & General Industrial products like, 3C-1B Solid Color for Nano, Epoxy Phenolic Heat Resistant Paint for Casted Automotive Component, Chip Resistance Automotive Clear, PU System for Automotive Chassis, Low Bake System For Shock Absorber & Scratch Resistant PU system.

ANY OTHER SIGNIFICATION FEATURE

Tie-ups
BERGER presently has technology tie-ups with the companies as under:

COLLABORATING COMPANY Nippon Bee Chemical Co. DuPont Herberts Automotive Systems Becker Industrifarg A.B. Orica Australia Pty Ltd. Tigerwerk Valspar Copn. Weld Rite Corp. Awards & Certifications

COUNTRY Japan USA Sweden Australia Austria USA USA

PURPOSE Automotive Coatings Automotive Coatings Coil Coatings Heavy Duty, Anti Corrosive Industrial Coatings Powder Coatings Protective / Heavy Duty Coating Protective / Heavy Duty Coatings

Readers Digest Gold Award for the most trusted brand - 2008

Certified to ISO 9001

Certified to ISO 14001

Environment Excellence Award for Howrah Works by West Bengal Pollution Control Board & Indian Chamber of Commerce 2001, Kolkata

Best Supplier Award for outstanding contribution in Product Development from OEM customer M/S Whirlpool -2005, Faridabad.

Berger Paints received the 1st rank as fastest growing paint company at Construction World NICMAR Award -2005, Bengaluru.

The following table depicts the ISO Certifications of the Companys various Plants & Depots

Plant location

Certifie d

Under Implementatio n

Location Goa Jammu Howrah Pondicherry

ISO 9001

ISO 14001

ISO/TS -16949

Rishra

Other Locations / Depot cum Sales Offices:

Location Corporate Office at Kolkata Bengaluru - I Bengaluru II Chennai I Chennai II Faridabad Hosur Hyderabad Kalyan ( Mumbai) Kolkata - I Kolkata - II Pune Punjabibagh ISO 9001 ISO 14001 ISO/TS -16949

Quality Policy
We at Berger Paints are committed to provide full satisfaction to our customers with respect to Quality, Reliability and Delivery and attain Quality Leadership for all products that are offered by us. We shall achieve this goal by: Establishing a Quality Management System conforming to International Standards. Institutionalizing a culture of "Getting it Right, First Time." Upgrading our Technology continuously to meet expectations of customers. Planned and structured Training and Development Programmers for all employees. Creating an environment which encourages team effort and where each individual's contribution is recognized and values