HISTORY

The company Berger Paints was established in 1760 by a young color chemist
Lewis Berger. He began the company by manufacturing “Prussian Blue” color, which was in
great demand at that time, as it was used in as the color of most military uniforms at that time.
Since then the name Burger paints has become a synonymous with colors all over the world.

In India, the rooting of the company started during the colonial time as Hadfield’s(India)
Limited, at Howrah(West Bengal). Initially the company produced ready-mixed stiff paints,
varnishes and distempers. However, in 1947 British paints, which is an an international
consortium of paint manufacturing companies
bought over Hadfield’s (India) Limited. In 1965 the shares of British paints was bought by a U.S.
based firm called Celanese Corporation and hence the Celeuro NV, Holland, a Celanese
subsidiary took control of the British Paints (India).

In 1969, Celanese Corporation sold some part of its shares to Berger, Jenson and Nicholson,
U.K. And this marked the beginning of the legacy of Berger group in India, having its having its
operations across oceans in numerous geographies.

From 1973, under the leadership and guidance of the company’s first Indian Managing Director
Mr. Dongargaokar Madhukar, the company stepped into new dynamic phases of business with
introduction of new generation products in the industrial, marine and decorative segments.
In the year 1976, due to the sale of a segment of shares to the UB Group controlled by Mr. Vittal
Mallya, the foreign holding in the company was decreased below 40%. In 1980 Mr. Biji K
Kurien became the Chief Executive & Managing Director of the company and at last in 1983 the
name of the company changed from British Paints(India) to Berger Paints India Limited.

In 1991, Delhi based Dhingra Brothers, Mr. K.S.Dhingra & Mr. G.S.Dhingra and their
associates of the UK Paints Group bought the UB Group’s stake in the company and currently
they own 73% of the stake of the company. In 1994, Mr. Subir Bose, a 10-year company veteran,
took over as Managing Director and after completing 18 years of hard work with an immense
garnish of success he retired in 2012, and handed over his reign to Mr. Abhijit Roy.
Organizational Structure

The setup is designed in such a way that it provides a framework where different work roles and
responsibilities are entrusted, curbed and coordinated. This is developed to show how an
organization does in obtaining its goals for future growth.
There are Types of organizational structure include: divisional, functional, geographical
hierarchy and matrix. The structure berger paints followed is hierarchical structure.
Organizational Hierarchy

Abhijit Roy CEO & Managing Director

Aniruddha Sen Sr. Vice President & Co. Secretary
Dhirendra Swarup Non Executive Director
Gopal Krishna Pillai Non Executive Director
Gurbachan Singh Dhingra Vice Chairman
Kamal Ranjan Das Non Executive Director
Kanwardip Singh Dhingra Executive Director
Kuldip Singh Dhingra Chairman
Naresh Gujral Non Executive Director
Pulak Chandan Prasad Non Executive Director
Rishma Kaur Executive Director
Srijit Dasgupta CFO & Director - Finance
Product profile

Berger Paints has been a great contributor to the Indian Market, by providing its excelling
services, not only in the form products but also in the form of customer service as well. And
quite clearly this company has been the the one-stop solution for a consumer's complete painting
requirements.

PRODUCTS OFFERED BY BERGER PAINTS

INTERIOR COLLECTION

 Silk Luxury Emulsion

 Breathe Easy Emulsion
 Rangoli Total Care
 Bison Arcrylic Emulsion

EXTERIOR COLLECTION

 Weather Coat All Guard

 Weather Coat Smooth
 Walmasta Kool And Seal

ENAMELS

 Breathe Easy
 Luxol Satin
 Luxol Lustre
 Luxol Hi-Gloss

WOOD FINISH

 Polyurethane
  Finish
 Melamine
 WoodKeeper

TEXTURES

 Tartaruga Hi-Build
 Tartaruga
 Illusion Exterior Texture
Competitors

1) Asian Paints:-

Started in 1942 an Indian chemical company which manufactures paints, has become ASIA’S
3rd largest and India’s largest paint company. It has got 44% market share in Indian paint
Industry. Its main business line is wall paintings with famous brands like PRPEX,PROPIN,
PAD, Apex Duracast etc. Until 2012-2013 it had sales revenue of 8971.70 crores and net profit
of 1050 crores. Its current market cap is 45,528.32 crores.

2) Kansai Nerolac Paints Ltd:-

Second largest paint company in India and has got a dominating position in industrial paints
sector. It is owned by Kansai paints Ltd, Japan. Started in Mumbai in 1920. With 40% market
share in Industrial sector and 14% market share in decorative sector makes it powerful player of
the paint industry. However, in the last decade it has seen stagnated growth in neti profit and
share prices has dropped drastically. Its current market cap is 5261.47 crores.
3) Akzo Nobel India Ltd:-

Starting its campaign in the year 1987 under ICI group, it has become the 4th largest in Indian
paints industry. In 2008, a Dutch based firm Akzo Nobel took leadership of the firm and named
it Akzo Nobel India Ltd. It has a formidable presence in premium decorative segments with its
premium brands of Dulax series. With its ups and downs in profit making it has now recovered
with a net market cap of 3698.53 crores.

3) Shalimar Paints Ltd:-

Started in 1902 by two British men, is currently India 6th largest paining firm. After seeing
steady growth in revenue generation it has only marginal increased in the net profit making over
the years. While it has a net market cap of 139 crores, it saw only 1 crore growth, in profit
making, from the 2010.
SWOC Analysis

Strength:-
• Brand recognition:- The tag of 2nd largest paint manufacturer gives them a decent brand
equity. And everybody remembers the brand and is familiar with different types of products
offered.

• Pool of Products:- With home to industrial paints Berger paints provide a variety of
products. They also provide decorative paints, which is in great demand in today’s market.

• International Exposure:- Having international links in countries that include Nepal,

Bangladesh, Russia, Poland, Cyprus and collaboration with Becker of Sweden and Nippon
paints of Japan, gifts them an upper hand.

• Proficient Leadership:- Under the guidance of Kuldip Singh Dhingra and vice chairman is
Gurbachan Singh Dhingra who own a combined stake of 75% stake in the company and the
company has taken new heights, and has become the second largest player in Indian Paints
Market.

• Loyalty:- Consumers have shown trust towards the company and from the data obtained it
clearly visible that they turn back to Berger paints for re-painting their houses.
• Stable and efficient supply chain:- They have seven manufacturing facilities, 85 depots and
many regional outlets. They also have 2500 employees and 15000 dealers, which makes
them an efficient supply chain group.

• Diverse Customer Base:- Berger serves to a variety of customer base varying from
households, industries from manufacturing to automobiles and nuclear power plants.

• Diversification:- With its roots capturing the Indian Paint industry, this company has began
its ventures into Construction Chemicals segment as well.

Weakness:-

• High dependence on a particular segment:- Too much dependence on decorative segment

for revenue generation, is not a long lasting strategy. Hence an alternative has to be found.

• Deteriorating Brand Image:- Berger paints faced a lot of criticism due to the presence of
lead in their paints in large amount. Hence the brand image is quite tainted.

• Limited Price Powering:- Due to the presence of two suppliers dominating the market, they
do not have the pricing power in their hands.  They need to keep their prices in check with
the market going paint prices.

• Weaker Distribution:- The company is know to have a weaker distribution with respect to
other prominent players such as Nerolac and Asian paints.

Opportunities:-
• Marketing:- Berger paints requires to up the ante when it comes to marketing
communications. The frequency of advertisement is substantially lower than other eminent
paint industries. Marketing will ensure boost in the consumers demand for the product.

• Unused Market Potential:- Usage of paints in Indian households is relatively lower. And
due to the extent of urbanization in India, there is a need of paints.

• New Segments:- With investment and innovation in the R&D sector, they can come up with
new and exciting products, which eco-friendly and healthy for the customers.

• Emerging Markets:- Berger has its domain in four countries and it is able to expand its base
in more countries as well.

• Government Policies:- With the focus of government over urbanization, industrialization

and developing of tier 2 and tier 3 cities there is a lot of scope for healthy profit making in the
near future.
• Career Opportunities in Berger paints:- With expanding business, career options also
become available in that sector. Some career options in Berger Paints are:-
1. Sales and Marketing
2. Supply chain Management
3. Paint Engineering

Challenges:-

• Raw Material Prices:- Large number of ups and downs in the prices of the raw materials, is a
matter of threat.

• Changing Government Laws:- Changing laws can bring new companies into the market,
which can increase the competition.
• Competition abrading the margins:- Due to high competition between top players of paint
Industry, Berger paints seems to be lagging behind which has resulted into decreasing prices
and lesser margins.

Marketing Strategy

The goal of marketing strategy is to increase sales and achieving a competitive advantage. It
includes all basic short term and long term activities that deal with the initial situation of a
company and formulation ,evaluation and selection of strategies

Strategies based on marketing dominance.

There are 4 types of market dominance strategies
 leader
 Challenger
 Follower
 Nicher

Marketing strategy: knowing your customers

Marketing strategy depends on understanding or knowing your customers ,what they need and
how you can convince them to buy from you. Experience and regular communication will tell
you a lot about your customers. But targeted market will build a detailed picture of customers
with their similar needs. It will help to understand how to target people so there will not be
wasting of time on those who are not interested in your offer .
But besides information about the target market you also need information about your
competitors ,your customers ,products etc. A few techniques are :
  Customer analysis
 Competitor analysis
 Risk analysis
 Product research
 Advertising research
 E-mail survey

Promotional Strategies of berger paints:

 Inspire creativity
 Continue to run business ,with customer satisfaction as the ultimate goal
 To use the strong cash flows to improve returns to the share holders
 Continuous innovation to stay ahead of the curve and growth opportunities
Financial performance (last year)

Financial performance is a subjective measure of how well a firm can use assets from
its primary mode of business and generate revenues. This term is also used as a
general measure of a firm's overall financial health over a given period of time, and
can be used to compare similar firms across the same industry or to compare industries
or sectors in aggregation.