Asian Paints vs Berger Paints – Which Is The Better Paint Company?

Asian Paints vs Berger Paints

Choosing paint for your home is a big decision. Especially when you have two popular options- Asian Paints and Berger Paints. This leads to an obvious query- Asian Paints vs Berger Paints- which is better or a better paint company?

Asian Paints vs Berger Paints

For the former query, we will compare the products and services. While the latter query, we will compare the business and financial aspects of Asian Paints vs Berger Paints.

Whether you’re into colors, quality, or budget-friendly options, we’ll help you figure out which paint brand might be the better choice for your home improvement project. So, let’s dive into the details of Asian Paints vs Berger Paints to make your decision easier.

Here we go!

(A) Asian Paints vs Berger Paints: A Brief Overview

First of all, let’s understand the roots of both famous paint companies in India.

(A.1) Asian Paints

Asian Paints Ltd stands as a prominent Indian multinational paint enterprise with its headquarters nestled in Mumbai, Maharashtra, India. The corporation actively participates in the production, sales, and distribution of paints, coatings, home décor products, bath fittings, and associated services.

Notably, Asian Paints holds the crown as India’s leading paints company in terms of market share. Additionally, it serves as the holding company for Berger International. The company’s manufacturing footprint extends to 15 countries globally, with a significant presence in the Indian subcontinent and the Middle East.

(A.2) Berger Paints

Berger Paints Ltd, headquartered in Kolkata, stands out as an Indian multinational paint enterprise. With an extensive footprint, the company boasts 16 manufacturing units across India, along with 2 in Nepal, and one each in Poland and Russia. 

These manufacturing hubs are strategically located in places like Howrah, Rishra, Arinso, Taloja, Naltoli, Goa, Devla, Hindupur, Jejuri, Jammu, Puducherry, and Udyognagar. Operating in five countries – India, Russia, Poland, Nepal, and Bangladesh- Berger Paints maintains a workforce exceeding 3,600 employees.

Also, it has a widespread distribution network encompassing over 25,000 dealers nationwide.

(A.3) Overall Comparison

Now, let’s compare both companies’ i.e. Asian Paints vs Berger Paints in terms of various aspects-

AspectsAsian PaintsBerger Paints
Type of CompanyPublicly listedPublicly listed
Traded asBSE: 50082
NSE: ASIANPAINT
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
BSE: 509480
NSE: BERGEPAINT
IndustryChemicalsChemicals
Founded1st February 1942December 17, 1923
HeadquartersMumbai
(Maharashtra, India)
Kolkata
(West Bengal, India)
FoundersChampaklal Choksey,
Chimanlal Choksi,
Suryakant Dani,
Arvind Vakil
Lewis Berger
Area ServedWorldwideFive Countries- 
India,
Russia,
Poland,
Nepal, 
Bangladesh
ProductsChemicals,
Decorative Paints,
Industrial Finishing Products,
Coatings
Chemicals,
Decorative Paints,
Industrial Finishing
Products,
Coatings
CompetitorsBerger Paints,
Nerolac Paints,
Akzo Nobel,
Shalimar Paints
Asian Paints,
Indigo Paints,
Sirca Paints
Asian Paints vs Berger Paints: A Brief Overview

(B) Asian Paints vs Berger Paints: Business Analysis

Let’s see how these paint companies are doing in the market in terms of their market cap, revenue, and assets-

Business Aspects (FY23)Asian PaintsBerger Paints
Market CapitalizationRs.3.12 trillionRs.675.99 billion
RevenueRs.34,875 crore
($4.4 billion)
Rs.10,619 crore
($1.3 billion)
Operating IncomeRs.5,594 crore
($700 million)
Rs.1,223 crore
($150 crore)
ProfitRs.5,489.60 croreRs.1,102.72 crore
Net IncomeRs.4,101 crore
($510 million)
Rs.859 crore
($110 million)
Total AssetsRs.25,798 crore
($3.2 billion)
Rs.7,967 crore
($1 billion)
Total EquityRs.15,992 crore
($2 billion)
Rs.4,494 crore
($560 million)
Number of Employees7,1603,600
Asian Paints vs Berger Paints: Business Analysis

Looking at the business aspects for the fiscal year 2023, Asian Paints emerges as a colossal player compared to Berger Paints. In terms of market capitalization, Asian Paints dwarfs Berger with a staggering Rs.3.12 trillion against Berger’s Rs.675.99 billion. 

The revenue disparity is equally significant, with Asian Paints raking in Rs.34,875 crore ($4.4 billion) compared to Berger Paints’ Rs.10,619 crore ($1.3 billion). Operating income and net profit also follow this trend, showcasing Asian Paints’ financial dominance.

The contrast in total assets and equity further underscores Asian Paints’ dominance, boasting Rs.25,798 crore ($3.2 billion) in total assets and Rs.15,992 crore ($2 billion) in total equity. 

In contrast, Berger Paints reports Rs.7,967 crore ($1 billion) in total assets and Rs.4,494 crore ($560 million) in total equity. 

Additionally, Asian Paints maintains a substantially larger workforce with 7,160 employees compared to Berger Paints’ 3,600. This comprehensive analysis portrays Asian Paints as a formidable giant, overshadowing Berger Paints across multiple financial dimensions.

(C) Key Metrics of Asian Paints vs Berger Paints

ParticularsAsian PaintsBerger Paints
Face Value (INR)11
Net Profit Margin (%)10.419.69
Operating Profit Margin (%)17.9216.09
EPS (INR)31.67.72
ROE (%)21.9421.2
Market Cap (INR)265,00056,500
Promoter’s Holdings (%)5375
Dividend Yield (%)0.690.54
Debt/Equity Ratio0.06%0.26%
Current Ratio21.42
CMP (INR)2765575
Stock P/E8874
Book Value14440
Price to Book Value1914
7 Year Stock Returns19.9216.48
Key Metrics of Asian Paints vs Berger Paints

Diving into the financial metrics of Asian Paints and Berger Paints reveals notable distinctions in their performance. Asian Paints exhibits a commendable net profit margin of 10.41%, indicating efficient profitability after expenses, while Berger Paints maintains a respectable 9.69%. 

The operating profit margin, a measure of operational efficiency, favors Asian Paints at 17.92% compared to Berger Paints’ 16.09%.

Earnings per share (EPS), a pivotal indicator for investors, underscores Asian Paints’ robust standing at 31.6 INR, overshadowing Berger Paints’ 7.72 INR. Both companies demonstrate strong Return on Equity (ROE), with Asian Paints leading at 21.94% against Berger Paints’ 21.2%, reflecting effective utilization of shareholders’ equity.

In the market realm, Asian Paints commands a substantial 265,000 INR market capitalization, surpassing Berger Paints at 56,500 INR. These metrics collectively highlight Asian Paints as a financially robust and valued entity in comparison to Berger Paints within the competitive landscape.

(D) Products and Services

Products & ServicesAsian PaintsBerger Paints
ProductsPaints
(Decorative Paints,
Industrial Paints)
Paints
(Decorative Paints,
Industrial Paints)
AdhesivesAdhesives
Waterproofing ProductsWaterproofing Products
Wall based Products
(Wall Coverings, Wall Stickers)
Bath fittings and sanitary ware
Modular kitchen and wardrobe
Furniture, lighting, sanitizers
ServicesColor ConsultancyColor Consultancy
Home PaintingHome Painting
Interior Design
Sanitization Services
Asian Paints vs Berger Paints: Products & Services

(E) Post-Crisis Revenue Growth

Asian Paints has been on a revenue rollercoaster, growing at a speedy 12% every year for the past five years. On the flip side, Berger Paints hasn’t lagged far behind, with a growth rate of 11.6%. But guess what? Asian Paints is like the superstar here, outshining Berger with almost 3.5 times the revenue.

Why’s that? 

Well, Asian Paints had a head start of a whopping 30 years! They kicked off their paint journey in 1942, focusing on making walls look fabulous. Now, 80% of their moolah comes from making our homes pretty.

Now, let’s talk about Berger Paints – they joined the home beautification party in the ’70s, and you won’t believe who pushed them into the decorative paint scene. It was the ex-employees of Asian Paints, waving their magic wands and turning Berger’s fate around. Talk about a paint plot twist!

(F) Asian Paints vs Berger Paints (Revenue Growth 2017-22)

YearsAsian PaintsBerger Paints
Revenue  (INR million)Revenue Growth (%)Revenue (INR million)Revenue Growth (%)
2017-18167,56850,952
2018-19195,82917%61,21920%
2019-20205,6785%64,3435%
2020-21220,1587%68,6917%
2021-22294,81334%88,26428%
Asian Paints vs Berger Paints: Revenue Growth

Examining the revenue trends over the past five years reveals intriguing insights into the performance of Asian Paints and Berger Paints. In 2017-18, Asian Paints led the revenue game with 167,568 INR million, while Berger Paints trailed at 50,952 INR million. 

The subsequent years witnessed significant growth for both companies, with Asian Paints consistently outpacing Berger Paints. In 2018-19, Asian Paints marked a 17% revenue surge, reaching 195,829 INR million, while Berger Paints grew by 20% to 61,219 INR million. 

This pattern continued through 2019-20 and 2020-21, with Asian Paints maintaining a steady lead in revenue and growth percentage.

The standout moment occurs in 2021-22, where Asian Paints experienced a remarkable 34% surge, reaching 294,813 INR million, while Berger Paints also demonstrated substantial growth at 28%, reaching 88,264 INR million. 

The table underscores Asian Paints’ consistent dominance in revenue and growth throughout the years, reflecting a robust market position.

(G) Asian Paints vs Berger Paints: Operating Profit Margins (2017-22)

YearAsian PaintsBerger Paints
2017-1819.5%15.9%
2018-1919.4%15.4%
2019-2020.5%16.7%
2020-2122.4%17.4%
2021-2216.1%15.9%
Asian Paints vs Berger Paints: Operating Profit Margins

The table provides insights into the Return on Equity (ROE) for both Asian Paints and Berger Paints over the five-year period. In 2017-18, Asian Paints showcased an ROE of 19.5%, surpassing Berger Paints at 15.9%. The subsequent years witnessed a consistent performance by both companies, with Asian Paints maintaining a slightly higher ROE. 

In 2018-19, Asian Paints recorded 19.4% compared to Berger Paints’ 15.4%, and in 2019-20, the trend continued with 20.5% for Asian Paints and 16.7% for Berger Paints.

The most notable shift occurred in 2020-21, where Asian Paints saw a significant ROE increase to 22.4%, while Berger Paints followed suit at 17.4%. 

However, in 2021-22, Asian Paints experienced a dip to 16.1%, while Berger Paints held steady at 15.9%. 

The data suggests that, overall, Asian Paints maintained a marginally higher Return on Equity compared to Berger Paints during this period, indicating a relatively efficient utilization of shareholders’ equity in generating profits.

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(H) Wrapping up the Battle of Asian Paints vs Berger Paints

In the battle of Asian Paints vs Berger Paints, the former steals the show. With a bigger market cap, higher profits, and a stronger financial vibe, it outshines Berger Paints. Asian Paints is like the Picasso of the paint world, showing off its financial artistry with flair. 

While both bring color to the industry, Asian Paints is the canvas that investors should consider for a masterpiece investment. 

So, if you’re looking for a paint company that adds a splash of financial brilliance to your portfolio, Asian Paints is the vibrant choice that promises a canvas of long-term success!

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Published By: Supti Nandi
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