Berger Paints India has entered into a Shareholders' Agreement with Rock Paint of Japan, to create a joint venture company for the sale of superior automotive refinish paints in India and Nepal.
The joint venture company is to be called ‘Berger Rock Paints Private Limited’.
Berger will hold 51% and Rock Paint will hold 49% in share capital.
Earlier in 2017, Berger and Rock Paint had entered into a memorandum of understanding and had carried out trial sales of automotive refinish paints in India.
The results of the trial sales have been encouraging and the alliance has culminated in signing the agreement.
The companies are optimistic that the high quality automotive refinish paints will have considerable demand in the Rs 2,000 crore (approx US$294M) automotive refinish market in India.
The joint venture company will benefit from the market knowledge and infrastructural strength of Berger in India and the technical expertise and high end products from Rock Paint.
Speaking at the occasion, Mr KS Dhingra, Chairman, Berger Paints said: "we are happy to collaborate with Rock Paint and deliver an array of international quality auto refinish paints to the Indian consumers.
“We shall provide all support to Rock Paint and the JV company for its success."
Mr Togo Utsumi, President, Rock Paint said, "Rock Paint is happy to be in India, which already has seen considerable investments from Japan.
“Our paints are known for their quality and reliability in Japan, they have already been tested successfully in India and we shall progress further in the market with Berger."
Rock Paint is a leading manufacturer of automotive refinish paints in Japan and is well known in the industry for the quality and utility of its products.
Rock Paint offers a wide range of high quality, easy-to-use coatings suited to the diverse needs of today's auto-refinish market.
Berger Paints India Limited is the second largest paint company in India with a revenue of more than Rs5000 crores.
Berger is present in all segments of paints including decorative, automotive, industrial, protective and powder coatings.