Berger Paints India Ltd is eyeing an identified acquisition target, which has a small share of paints market in the country. Mr K S Dhingra, Chairman of the company, after the AGM here on Thursday said that Ernst & Young has been appointed for due diligence exercise. He, however, declined to divulge the acquisition target's name.
Apparently board of directors has been informed of the development on Thursday. Mr Dhingra told Business Line that the company hoped to take a decision on the acquisition proposal in three months. “We do not want to keep it hanging indefinitely,” he added. The company has also planned brownfield capacity expansion and greenfield projects. In Maharashtra at Jejuri near Pune it will set up an automotive and industrial paints factory with a capacity of 50,000 kilolitres per annum at an estimated cost of Rs 75 crore. The plant should be operational within a couple of years.
http://www.thehindubusinessline.com/2010/07/30/stories/2010073054170500.htm