Asian Paints Or Berger - Which is better?

Asian Paints and Berger are two of the most well-known paint brands in India, and both have established themselves as leaders in the industry. While they have a lot in common, there are also several key differences between the two companies. In this article, we will take a closer look at the history, market presence, financials, and other factors that may influence investors in choosing between Asian Paints and Berger.

Thu Mar 30, 2023

History and Founding

Asian Paints was founded in 1942 by Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani, and Arvind R. Vakil. The company started with a small manufacturing plant in Mumbai and has since grown to become one of the largest paint manufacturers in India. In 1967, Asian Paints went public and listed on the Bombay Stock Exchange (BSE), becoming the first Indian company to do so.
On the other hand, Berger Paints India Ltd. was founded in 1923 in Kolkata by Lewis Berger. The company started with manufacturing of linseed oil and has since expanded its product range to include paints and coatings. Berger Paints also went public in 1973 and was listed on the BSE.

Market Share of Burger and Asian Paints

Both Asian Paints and Berger have a significant presence in the global market. Asian Paints currently operates in 14 countries and has 26 manufacturing plants worldwide. Berger, on the other hand, operates in 5 countries with 16 manufacturing plants. Asian Paints is the largest paint company in India and commands a market share of 58% in the chemical paints industry. In comparison, Berger's market share is only 18%.
Both companies have a similar product portfolio, including decorative paints, industrial paints, and automotive coatings. However, Asian Paints has a wider range of products and has been expanding its portfolio to include new categories such as waterproofing solutions, adhesives, and home automation systems.

Financials of Both Company

When it comes to financial performance, both Asian Paints and Berger have been performing well over the past few years. In terms of market capitalization, Asian Paints has a much larger market value of 2 lakh 62 thousand crore, compared to Berger's 55,000 crore. However, both companies have similar price-to-earnings (PE) ratios, with Asian Paints at 68 and Berger at 61. The industry average PE ratio is around 52.
Both companies have reported consistent revenue growth over the years. Asian Paints reported annual sales of 33 thousand crore, while Berger's annual sales were only 10000 crore. However, both companies have had a sales growth of 12% in the last 10 years, and their sales have grown at the same rate of 20% in the last year.
When it comes to profitability, both companies have a similar return on equity (ROE), with Asian Paints at 26% and Berger at 23%. However, Asian Paints has a higher net profit margin of around 10%, compared to Berger's net profit margin of around 7%.

Environmental and Social Responsibility

In recent years, there has been an increasing focus on environmental and social responsibility in the business world. Both Asian Paints and Berger have taken steps to improve their sustainability practices and reduce their environmental impact.
Asian Paints has set a target to reduce its carbon footprint by 30% by 2025 and has already made significant progress towards achieving this goal. The company has also implemented several initiatives to promote sustainable living, such as rainwater harvesting, solar energy, and waste reduction.
Berger Paints has also taken steps to reduce its environmental impact and promote sustainability.

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