What separates a small-cap company from a mid- or large-cap one isn’t just size—it’s outperformance. Market capitalisation tiers shift with the broader market, meaning that to climb the ranks, a company must grow faster than its peers. Simply keeping up won’t cut it.
Many of today’s large and mid caps began their journey in the small-cap bracket, steadily gaining ground through sustained growth, strategic decisions, and industry leadership. This week, we turn the spotlight on one such standout: Berger Paints, a 100+ year old paint company that is the second largest in India.
How it started
Like many legacy Indian companies, Berger Paints has its origins in an old English company. Berger Paints India Limited began in 1923 as Hadfield’s (India) Limited, a small colonial venture producing paints, varnishes, and distempers in Howrah, near Kolkata. In 1947, it was acquired by British Paints (Holdings) Limited and renamed British Paints (India) Ltd. In 1965, Celanese Corporation (USA) took over British Paints (Holdings), and in 1969, sold its Indian operations to Berger, Jenson & Nicholson (UK), bringing the Indian arm into the global Berger group.
A major shift came in 1976, when FCRA regulations (Foreign Contributions Regulations Act) required foreign holdings to drop below 40%, leading to a stake sale of the company to the UB Group, led by Vittal Mallya. The company was renamed Berger Paints India Limited in 1983. In 1991, it was acquired by Delhi-based brothers Kuldip Singh Dhingra and Gurbachan Singh Dhingra, whose family had been paint distributors and manufacturers for generations.
The real growth for Berger began with the Dhingra family, and it is a true Indian success story.
- 1999: Lists on the NSE
- 2001: Berger Paints Ltd and ICI Ltd form a 50:50 joint venture to manufacture auto and industrial coatings at Rishra in West Bengal.
- 2002: Acquires 50% stake in Berger Auto & Industrial Coating Ltd.
- 2005: The Motors & Industrial paints business of ICI India acquired as a 100% subsidiary Berger Auto & Industrial Coatings Limited and merged with the company.
- 2006: JV with Nippon Bee Chemical Co Ltd of Japan for manufacture and sale of coatings for plastic substrates used in automobiles.
- 2008: Acquires Polish firm Bolix SA, a leading provider of external insulation finishing system (EIFS) in the B2B segment
- 2013: Acquires architectural operations of Sherwin Williams Paints.
- 2014: New Facility in Hindupur, Andhra Pradesh.
- 2015: Signs MOU with the Russian Government. Powder Coating plant at Maharashtra commences commercial production.
- 2017: Acquires Saboo Coatings. Paint and putty plant at Nalbari, Assam commences production. Production of decorative paints commences at Naltali plant, Assam. Commercial production of automotive and general industrial paints begins at Jejuri.
- 2023: Fully automated manufacturing facility at Sandila, UP commences production.
Key growth drivers and success factors
At the time of listing, Berger was a small-cap company with limited geographic reach, primarily focused in eastern and northern India. But, by strengthening its distribution network, expanding its capacity, and launching innovative products and services, Berger managed to grow into the second largest paint company in the country with a pan-India presence.
- Capacity expansion: Berger always maintained its focus on paints and growing its core product offering. The company scaled manufacturing in a sustainable manner with 29 manufacturing facilities worldwide, including multiple greenfield projects. Some of the major capacity expansions have happened post-2010: a new facility in Hindupur, Andhra Pradesh in 2014, Jejuri plant in Maharashtra in 2017; Sandila facility in Uttar Pradesh in 2023, and upcoming projects in Panagarh (West Bengal) and Khordha (Odisha). The company also has units in Goa, Puducherry and Jammu, ensuring a presence across regions.
- Network: With more than 64,000 touchpoints, Berger’s reach is enviable. The company has a vast network of dealers and retailers that has grown 20% in the last 3 years alone. There are manufacturing facilities in strategic locations across India (from Jammu to Puducherry and Goa to Howrah) cater to demand in all major regions.
- Focused M&A and JVs: Berger made some smart acquisitions and inked partnerships along the way that enabled their entry into auto, industrial, wood, EIFS (Exterior Insulation and Finish System), and construction chemicals segments. In 2006, Berger entered into a JV with Nippon Bee Chemical Co Ltd of Japan to float a new company for manufacturing plastic coatings for the automobile industry. In 2008, Berger Paints India acquired the Polish firm Bolix SA, a leading provider of EIFS in the B2B segment. In 2013, Berger acquired the architectural operations of Sherwin Williams Paints, expanding their foothold in the West and South. In 2017, Berger acquired Saboo Coatings Pvt. Ltd., a manufacturer of specialty liquid coatings, and picked up a 51% stake in Saboo-Hesse Wood Coatings Pvt. Ltd, bolstering the company’s industrial coatings business. These moves helped Berger expand its product portfolio and specialisations.
- Decorative and premium push: Berger paints tapped into the premium market early on, beginning in the 1980s: variants like Luxol Silk (the first premium emulsion in India), Viton Refinish for cars, Bison Acrylic Distemper and Rangoli Acrylic Emulsion. Later launches under the decorative/premium segment include variants under the WeatherCoat category (Long Life, All Guard, Smooth), designed to protect exterior walls in any climate. In FY17, the company launched a range of premium offerings, including Weathercoat Anti Dustt, featuring proprietary dust-guard technology to prevent dust accumulation on exterior walls; Silk Glamor, a luxury interior paint with a crystal-reflective finish; and Luxol XTRA Super Gloss Enamel, designed to deliver superior coverage and a long-lasting glossy sheen. A focus on premiumisation helped boost margins, with the lower-end offerings driving volume growth and market share.
- Innovation: Berger Paints has been a leader in customer-centric innovation, with offerings like Colour Bank, Berger Express Painting and Berger Easy Clean (India’s first washable luxury interior emulsion).
The Colour Bank is a compact, ATM-sized tinting machine installed at dealer locations that lets customers choose from over 5,000 shades. The system automatically calibrates and blends the selected tint with base paint in real time, ensuring precision and convenience. Berger Express Painting, a customer-focused quick-service paint job that employs trained professionals and advanced tools to deliver faster, cleaner, and more efficient painting experiences, setting a new benchmark in the industry.
Berger Paints today – and beyond
As of 2025, Berger paints has served 2,50,000 homes across 500+ towns with a 95% satisfaction rate. Plans are in place to expand capacity to 1.6 lakh tonnes per month from the current 95,000 tpm, to double revenue to ₹20,000 crore, and to invest Rs 2,700 crore in greenfield and brownfield expansion projects in the coming years.
From a modest small cap company in the 1990s to a dominant player that sits among the top 150 companies on the bourses today, Berger Paints is a great example of steady, sustainable growth backed by a focus on its core offerings and a strategic clarity. While Asian Paints still remains the number one paint company in India, Berger has maintained its position for years as the strong number two, with a market cap of ₹60,000 cr as of June 2025. With new state of the art manufacturing facilities, premiumisation, and a service-first, regionally-agile strategy, Berger Paints looks poised to grow further and hit the targets it has set for itself.
Sources
Business India: Berger Paints: Redefining industry benchmark
Business India: The Success Story of Berger Paints
Economic Times: Berger Paints aims to double revenue to Rs 20,000cr by 2028-29
Economic Times: Berger Paints Sherwin Williams Unit Is A Strategic Buy
Coatings World: Berger Paints Approves Acquisition of Saboo Coatings
PA Wealth: Berger Paints 2nd in the lead
Startup Talky: Berger Paints Success Story