Spend-IT: Berger Paints records 44% increase in IT expenses

Berger Paints, the second-largest paint company in India with a market share of nearly 20% as of July 2023, is making strides in adopting Industry 4.0 through technology and digitalization.

The Kolkata-based company has spent ₹49.37 crore towards its information technology expenses in the fiscal year 2022-23, marking a 44% increase compared to the previous year. This surge in IT expenditure significantly outpaces the annual growth rate of 10-12% witnessed between FY2020 and FY2022.

Berger Paints is implementing digitalisation efforts across its functions. “Today, we use a significant level of digitisation to drive efficiency, optimise costs and enhance customer experience. We use digital tools for project management, market reconnaissance, project estimation, colour selection, scheduling and invoicing, including data analytics to understand customer behaviour and market trends,” said Chairman Kuldip Singh Dhingra in the annual report. Dhingra also added that the company is also using artificial intelligence-enabled solutions, especially to improve customer servicing.

In manufacturing, Berger Paints introduced several initiatives in FY23, including an e-compliance tracker and a manufacturing dashboard at its factories. These tools provide real-time insights into production lines, productivity metrics, and manufacturing costs.

Turning attention to supply chain operations, Berger Paints has achieved end-to-end digitalization spanning sales, marketing, procurement, and logistics. The company has implemented a warehouse management system (WMS) to enhance traceability and offer an improved experience to channel partners and customers. This digital transformation is expected to enhance inventory management and ensure seamless warehouse operations. Berger Paints also disclosed its selection of the business management platform o9 for supply chain management to drive efficiency in this area.

These comprehensive digitalization efforts are poised to position Berger Paints for substantial growth, with a target of achieving double-digit revenue of ₹20,000 crore by 2028-29, as outlined by Chief Operating Officer Abhijit Roy during a recent post-annual general meeting interaction.

Disclaimer: All the information, data, and figures are as per company's annual reports.