"We Have Outgrown The Industry By Far, Both In Terms Of Sales & Profit"

Berger Paints' MD & CEO ABHIJIT ROY outlines an ambitious growth strategy consisting of premium product expansion and aggressive dealer network scaling in an exclusive conversation with BW Businessworld's

- Reema Bhaduri

Your Q4 FY25 results reflected an 18 per cent net profit jump and margin expansion to 15.8 per cent. What products are contributing more to this margin expansion?

Mostly premium products contributed to the margin growth. The mass consumption products had relatively slower growth in Q4 last year. So, much of the growth came from the premium and luxury range, which is why there's been a slight improvement in the margin ratio. At the same time, the profit percentage went up substantially.

After taking 100 years to hit Rs 10,000 crore in revenues, what key strategies will help Berger double its turnover to Rs 20,000 crore by 2030?

Currently, we are at about Rs 11,500 crore and the objective is to reach Rs 20,000 crore by the end of FY30, i.e., March 2030. Now, once you have a large base, the numbers might sound big in absolute terms, but the growth rate needed is only 12.5 per cent. We've been growing at over 14 per cent CAGR for the past 25 years. So, this isn't an impossible or overly difficult task. While the consumption economy has been slower and we haven't grown at that pace, last year at least, therefore, in the short run, the growth rates might look a bit muted. We believe that in the medium term, over the next five to six years, that type of CAGR we should be able to achieve. It is much more of an organic growth rate in terms of real basics, essentially of distribution, expansion of product additions, which we can do in the network.