Berger creates an Uber model to paint a larger share for itself

It's the era of aggregators. Taking a leaf from the models of players like Uber, Urban Clap and others, Kolkata-headquartered Berger Paints is now trying to disrupt the paints market through an aggregator model.

Abhijit Roy, the Managing Director and CEO of Berger Paints, explains how the company is now trying to play a 'sort of aggregator role' by creating a huge inventory of painting contractors. Typically, when home owners want to get repainting done, they contact the local contractor who suggests the paint brand to be used. Berger is now unleashing a model whereby home owners can SMS the company and it will arrange a painter in the vicinity. "We have aggregated a large number of painters and done their KYCs so quality is assured," says Roy.
To start with the initiative is being piloted in Kerala and West Bengal but will be rolled out nationally too.

In addition, Berger, says Roy, has launched a new Express Painting (XP) initiative based on customer insights. "Most people put off repainting off their homes troubled by the thought of dust flying when the manual sandpapering is done prior to painting," says Roy.  So now, Berger is offering a painting process using a mechanised technology where the sandpapering is done by a machine with an in-built vacuum suction which sucks the dust into a bag. This tool does three things, says Roy. "Not only will it be cleaner, but it reduces the time taken by 40 per cent and also ensures an even coating of paint."  

The company has set up training centres to teach painters the mechanized process.
The size of the paints industry in India, which includes five segments - decorative, protective, automotive, industrial and powder coatings - is around Rs 35,000 crore. Asian Paints is the market leader. Berger, which clocked net sales of Rs 4,350 crore in 2014/15, claims to have the second-largest market share at around 19 per cent.

Among the other new trends that have the potential to disrupt the paints market, says Roy, are healthy green paint offerings with reduced toxicity. For instance, globally, there is work being done on anti-bacterial paint. In India low VOC (volatile organic compounds) paints have gained ground.