Berger's J

Kolkata, Jul 28 (UNI) Berger Paints Ltd today said its factory in Jammu and Kashmir is awaiting clearance of Central Pollution Control Board to start production.

"The company's factory in Jammu and Kashmir is ready to start production, but currently is waiting for the green signal from the Central Pollution Control Board. We are hopeful in getting the approval soon," company's managing director Subir Bose told reporters.

The Russian subsidiary, expected to be commissioned by the end of September 2006, would cater to the European market, Bose said.

Bose said Berger is planning to hike the prices of its solvent-based products shortly.

"About 5-6 per cent price increase in solvent-based products are desirable, since the main pressure is on this segment," he said at the sidelines of the company's AGM here on Friday.

"The jump in crude prices has pushed up the prices of our oil-based inputs such as mineral turpine, xylene and pthalic anahydride by 4-5 per cent and we therefore have no other option but to hike the prices of our solvent-based products," Bose said, indicating that other paints manufacturers too would follow suit.

The solvent-based products account for over 50 per cent of the total products of Berger Paints.

He said the industry's growth would decline by "at least 1-2 per cent" in the current fiscal from its average year-on-year growth rate of 12-13 per cent.

"The increasing price of crude oil is a big threat," Bose said.

"Rise in interest rates for housing and car finance, and inflation are the other reasons which will affect the industry's growth," he said.

UNI TJP PL SS1721