The name Berger or Lewis Berger is today synonymous with color worldwide.
But not many people know that the origin of the name dates back to over two & a half centuries in England in 1760!
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#fintwit
But not many people know that the origin of the name dates back to over two & a half centuries in England in 1760!
Who's up for a thread?
🧵👇
#fintwit
A young color chemist named Lewis Berger, started manufacturing in Europe, 'Prussian blue' using a secret process that every designer and householder coveted.
Mr. Berger perfected this process & art of the blue color, which was the color of most military uniforms of that time.
Mr. Berger perfected this process & art of the blue color, which was the color of most military uniforms of that time.
The history of Berger Paints India Limited as a company started in 1923 as Hadfield's India Limited- a small colonial venture producing ready-mixed stiff paints, & varnishes.
It was set up on 2 acres of land in one of India's first industrial towns, Howrah, Bengal.
It was set up on 2 acres of land in one of India's first industrial towns, Howrah, Bengal.
Subsequently in 1947, British Paints Limited, an international consortium of paint manufacturing companies bought over Hadfield's Limited and thus the name changed to British Paints India Ltd.
Further in the year 1965, the share capital of British Paints (Holdings) Limited was acquired by Celanese Corporation, the USA and the controlling interest of British Paints (India) Ltd were acquired by CELEURO NV, Holland, a Celanese subsidiary.
Subsequently, in 1969, the Celanese Corporation sold its Indian interests to Berger, Jenson & Nicholson, U.K.
There on-wards the company British Paints (India) Ltd became a member of the worldwide BERGER group having its operations across oceans in numerous geographies.
There on-wards the company British Paints (India) Ltd became a member of the worldwide BERGER group having its operations across oceans in numerous geographies.
This marked the beginning of Lewis Berger's legacy in India – which the company would later take forward to enviable heights.
From 1973 the company entered into one of its dynamic phases of business with the introduction of new generation products.
From 1973 the company entered into one of its dynamic phases of business with the introduction of new generation products.
This included products in the industrial, marine and decorative segments under the able leadership of its first Indian Managing Director Mr. Dongargaokar Madhukar.
Year 1976 was another turning point in the history of the company.
Year 1976 was another turning point in the history of the company.
In 1976 the foreign holding in the company was diluted to below 40% by sale of a portion of the shares to the UB Group controlled by Vittal Mallya.
Finally in the year 1983, the British Paints (India) Limited, changed its name to Berger Paints India Limited.
Finally in the year 1983, the British Paints (India) Limited, changed its name to Berger Paints India Limited.
The entire 80's & 90's saw the launch of many new products from company's stable such as premium emulsions and high quality acrylic distempers.
The COLOUR BANK tinting system was launched through which the consumer could select from a range of over 5000 shades.
The COLOUR BANK tinting system was launched through which the consumer could select from a range of over 5000 shades.
Again the fort of the company changed hands in 1991 with UB Group's stake in the company bought over by the Delhi based Dhingra brothers, Mr. K.S. Dhingra & Mr. G.S. Dhingra and their associates of the UK Paints Group.
Presently Dhingras' control a majority stake of almost 75% in Berger Paints India Limited, a professionally managed organization, headquartered in Kolkata.
You name the business house and there will be a paint company they once owned!
You name the business house and there will be a paint company they once owned!
The paint industry has proved to be a stumbling block for many established corporate houses.
In contrast, the Delhi-based Dhingras, have been paint sellers for the last five generations.
In contrast, the Delhi-based Dhingras, have been paint sellers for the last five generations.
The two brothers, Kuldip and Gurbachan Singh Dhingra havetaken @BergerPaintsInd to the position of India’s number two paint company.
When the duo acquired @BergerPaintsInd in 1991 from United Breweries chairman Vijay Mallya, its financial position was precarious.
When the duo acquired @BergerPaintsInd in 1991 from United Breweries chairman Vijay Mallya, its financial position was precarious.
It was, at the time, the country’s smallest paint company and hadn’t made money in years.
When they took over Berger Paints, the morale was down and there was no money to even pay salaries.
At one time, the company asked the Dhingra brothers for a Rs 10 crore loan.
When they took over Berger Paints, the morale was down and there was no money to even pay salaries.
At one time, the company asked the Dhingra brothers for a Rs 10 crore loan.
10 crore in those days, was a lot of money!
The Dhingras however, made it available at short notice with a lower interest rate as well as a moratorium on payments for five years.
Tough ask, but they were determined to make @BergerPaintsInd a force to reckon with.
The Dhingras however, made it available at short notice with a lower interest rate as well as a moratorium on payments for five years.
Tough ask, but they were determined to make @BergerPaintsInd a force to reckon with.
Apart from 20 factories across India, @BergerPaintsInd also operates in Bangladesh and Nepal.
So committed are the Dhingras that, through the years, they’ve taken their shareholding to 75 percent.
It is the maximum allowed under Indian law.
So committed are the Dhingras that, through the years, they’ve taken their shareholding to 75 percent.
It is the maximum allowed under Indian law.
When they bought it from Mallya, they owned 32 percent.
They also own 95 percent of @BergerPaintsBD Bangladesh.
In the 1980s, the Dhingras had a thriving paint business under Rajdoot Paints.
They had also started exporting to the Soviet Union!
They also own 95 percent of @BergerPaintsBD Bangladesh.
In the 1980s, the Dhingras had a thriving paint business under Rajdoot Paints.
They had also started exporting to the Soviet Union!
Kuldip would handle sales and marketing while Gurbachan was in charge of the factories.
Given the tax incentives, exporting was far more lucrative.
Soon they also started dabbling in soaps and detergent exports.
Given the tax incentives, exporting was far more lucrative.
Soon they also started dabbling in soaps and detergent exports.
But with the collapse of the Soviet Union, that business went bust and they were left with only the domestic market.
Around that time, @BergerPaintsInd came on the block.
The brothers bid for it and, in 1991, the company was theirs.
Around that time, @BergerPaintsInd came on the block.
The brothers bid for it and, in 1991, the company was theirs.
The business, however, was based in Calcutta while the Dhingras had spent all their lives in Delhi.
The Dhingras realized pretty early on that if they wished to grow, they had to allow in the professionals.
The brothers have steadfastly stuck to this.
The Dhingras realized pretty early on that if they wished to grow, they had to allow in the professionals.
The brothers have steadfastly stuck to this.
They only travel to Kolkata for board meetings and for the board committees they chair.
They don’t interfere in the day-to-day functioning. Even dealers they know are encouraged to deal directly with the company.
They don’t interfere in the day-to-day functioning. Even dealers they know are encouraged to deal directly with the company.
While the promoters take care of broad strategic issues like partnerships and joint ventures, they are not involved in the day-to-day running of the company.
The family has never invested in anything except @BergerPaintsInd.
The family has never invested in anything except @BergerPaintsInd.
Even the dividends were ploughed back.
The market regulator SEBI stipulated that promoter holding in all private-sector listed companies to be brought down to below 75 per cent.
The market regulator SEBI stipulated that promoter holding in all private-sector listed companies to be brought down to below 75 per cent.
Soon, the Lehman crisis broke and Berger Paints’ share price—along with the rest of the market—collapsed.
But the family still subscribed to the issue at Rs 50 a share even though the market price was Rs 38 a share.
But the family still subscribed to the issue at Rs 50 a share even though the market price was Rs 38 a share.
Currently, they are faced with a peculiar problem. While the Dhingras are ready to put in more money into the company, capital requirements have reduced.
That’s a good problem to have!
That’s a good problem to have!
The Dhingras are still operating @BergerPaintsInd as the Chairman and Vice-Chairman of the company.
@BergerPaintsInd continues to grow under their able leadership.
@BergerPaintsInd continues to grow under their able leadership.
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