Indian Paint Manufacturer, Berger Paints, has made a Decision to Invest £3.1 million in the Southern Russian town of Nevinnomyssk
The plan was first announced back in February 2015 following a visit by Indian investors to the town. The region has excellent transportation links north to Moscow and to the Caspian and Black Seas to the east and west. The industrial coatings manufacturer plans to produce approximately 3,000 tonnes initially. Production will steadily increase in the coming years to a staggering 50,000 tonnes. All this with a workforce of only 50 staff.
Company officials from one of India’s largest paint makers where impressed by the level on inward investment to the region. They were treated to a grand tour of the town by the regions governor, Vladimir Vladimirov. He signed an agreement in New Delhi with Berger Paints owner, Kuldip Singh Dhingra, back in February 2015. The deal is good news for Russia which has seen investment cut by the EU and US over the last 12 months. You can read more about this investment here for background information on the local officials involved in negotiations.
There were questions asked of the companies decision to invest outside of India. Prime Minister Narendra Modi has been urging Indian businesses to invest at home where ever possible. However one of the companies spokesmen pointed out it was a logistical decision due to the weight and cost of transporting large quantities of industrial paint over long distances. India see Russia as a growing market and are keen to invest now. Berger Paints have invested in other countries including Poland, Nepal and Bangladesh. However the combined turnover of their businesses outside of India is less than 5% of the companies overall income.
About Berger Paints
Berger Paints is one of India’s largest industrial paint manufacturers. It was first founded in 1760 by Louis Steigenberger. After moving from Frankfurt to London the business was eventually named Lewis Berger in 1870. An American company, Sherwin-Williams, acquired the business in 1900 and by the 1920s they had expanded into India where the legacy continues to this day. British Paints (Holdings) Limited acquired the business for time, until 1983 when the company changed its name the what we know today as Berger Paints India Limited.
With it’s headquarters in Kolkata and 11 manufacturing facilities globally in all, the company is India’s second largest producer of paint products. A workforce of 2,500, 170+ sales offices and 15,000+ dealers nationwide, keeps the company in a prime position. The company as of June 2015 is headed up by Chairman Mr. Kuldip Singh Dhingra, Vice-Chairman Mr. Gurbachan Singh Dhingra, Managing Director & CEO Mr. Abhijit Roy and a board of seven directors.