Berger is also setting up an emulsion plant in Gujarat next to its existing facility at a cost of Rs.26 crore.

The plant, with an annual production capacity of 2,000 tonnes, will be commissioned by April 2010 and will help bring down yearly cost of inputs for water-based paints by 15 percent.

However, the company has shelved plans for setting up of an automative paint plant near Pune because of the economic slowdown.

'The decision to build an automotive paint plant in Pune has been deferred following the slowdown in the automobile market. We will take a call once the sector starts reviving,' said managing director Subir Bose.

Berger's current paint making capacity is 200,000 tonnes a year, of which 60 percent is water-based, Bose said.

The company is expected to post a 30 percent profit growth this fiscal.

'Last year was an anomaly, but this year we expect to achieve about 30 percent growth in our net profit,' Dhingra said, adding that sales were expected to grow 12-13 percent this fiscal.

The company posted a net profit of Rs.88.7 crore last fiscal.