BERGER PAINTS (I) Share price

''The Company was incorporated on 17th December 1923 in thestate of West Bengal as Hadfields (India) Ltd. Hadfields(India) Ltd was purchased by British Paints (Holdings) U.K.on the 12th of December 1947 and the name of the companychanged to British Paints (India) Ltd. SubsequentlyCelanese Corp. of USA acquired the controlling stake ofBritish Paints(Holdings) U.K. in 1965. However in 1969Celanese Corp. of USA sold their interests in the Indiancompany to Berger Jenson Nicholson Ltd. U.K. In 1975 theforeign holding of the company was reduced from 60% to 45%through a public issue. A year later the foreign holdingwas further diluted to below 40% in accordance with theForeign Exchange Regulation Act 1973 by the sale of aportion of the shares to the UB group. At present theforeign share holding in the Company is 18.36%. On and from31st December 1983 the name of the Company was changed toBerger Paints India Ltd. (BPIL).In 1991 the stake of the UB group in the Company waspurchased by Shri K.S.Dhingra Shri G.S.Dhingra and theirassociates the present majority shareholders who hold48.76% in the Company.MAIN OBJECTS OF THE COMPANYThe main objects of the Company are set out in theMemorandum include inter alia the following :i) To acquire and take over as a going concern the businessof the Eastern Paints company Limited and all or any ofthe assets of that business and with a view thereto toenter into and carry into effect (either with or withoutmodification) an agreement which has already been preparedand is expressed to be made between the Eastern PaintsCompany Limited and Lawrence Gerard Bavin its liquidatorof the one part and the company of the other part a draftwhereof has for the purpose of identification been endorsedby Mr. R.W.Martell Solicitor.ii) To purchase and acquire from Hadfields (Merton)Limited the right to use in India and the East only thename Hadfields and the right to use in India and the Eastonly all trademarks issued in Great Britain of whichHadfields (Merton) Limited is the proprietor and inparticular the right to use in India and in the East onlythe trade name "Heolin" and (subject to proper License andAuthority being first received and on conditions of suchLicense) to use such trademarks trade name and name ofHadfields in any other company province or town ordistrict in which the company may desire to trade and witha view thereto to enter into and carry into effect (eitherwith or without modification) and agreement which hasalready been prepared and is expressed to be made betweenHadfields (Merton) Limited of the one part and the companyof the other part a draft whereof has for the purpose ofidentification been endorsed by Mr. R.W.Martell Solicitor.iii) To carry on similar business in all respects to thatnow or lately carried on by the Eastern Paint CompanyLimited and any part or parts thereof with powers to dropany portion or part of such business either temporarily orotherwise and to revive and carry on any portion or parttemporarily abandoned.iv) To carry on the business of oil and colour menimporters and manufacturers of and dealers in oils paintspigments enamels and varnishes chemicals drugs dyewarepaint and colour griders and manufacture of and dealers inpaint brushes of every description and all other tools andimplements usually required or used by painters decoratorsand all allied or similar trades or business.PRESENT BUSINESS OF THE COMPANYThe company is presently engaged in the manufacture andsale of Paints Varnishes and Enamels.The company has its manufacturing unit at Shibpur HowrahWest Bengal with an installed capacity of 4222 tpa forSynthetic Resins and 14000 tpa for Paints Enamels andVarnishes. In 1987 the company acquired all the equityshares of Beepee Coatings Ltd (BCL) which accordinglybecame a wholly owned subsidiary of the Company. BCL hasits manufacturing unit at VUN in the Kheda district ofGujarat with an installed capacity of 2988 tpa forSynthetic Resins and 31044 tpa for Paints Enamels etc. Interms of the existing processing agreement between the twocompanies Berger Paints India Limited supplies therequisite raw materials to Beepee Coatings Ltd forprocessing the same to produce paints and enamels; BeepeeCoatings Ltd in turn charges a processing fee based on thequantity processed (further details of the processingagreement are provided under "Subsidiary Companies") BPILalso sources certain low technology paints from varioussmall manufacturers and the same are sold through thecompany''s Retail network after stringent quality checks.Berger Paints India Limited has been in the business ofmanufacturing paints enamels and varnishes for the pastseventy years. Over this period the Company has built anextensive distribution network consisting of 35 Depotslocated all over the country and over 7000 Dealers. Furtherto this the company supplies a wide range of products toboth the industrial segment and the architectural segment.The company has a number of technology tie-ups for varioushigh technology paint ranges. Collaborators include HerbertsGermany for automotive paints Vaispar Corp. USA forprotective/heavy duty coatings and Teodur N.V. Holland forpowder coatings. The company also has a strong in-houseResearch and Development Laboratory recognised by theDepartment of Scientific and Industrial Research Ministry ofScience and Technology Govt. of India vide letter number TU/IV-RD/347/94-95 dated 21st March 1994.