Berger Paints Pakistan Limited (Berger or "the Company") is a publicly listed company. The registered office of the Company is situated in Lahore, Pakistan, and the production facility is located at 28 Km, Multan Road, Lahore.

Berger Paints Pakistan Limited traces its roots to the early post-independence period when Jenson & Nicholson Limited (UK), one of the oldest paint companies globally, introduced the Berger brand in Pakistan. In 1955, under Jenson & Nicholson’s ownership, the company established its first local manufacturing plant in Karachi, marking the formal start of paint manufacturing operations in the country. The company remained under the control of Jenson & Nicholson until 1974, when Berger was converted into a public limited company. At that stage, 49.38% of shares were acquired by Pakistani investors, while Jenson & Nicholson retained the controlling stake. In 1991, a significant shift occurred when Slotrapid Limited, a British Virgin Islands–based holding company, acquired 52.05% of shares from Jenson & Nicholson and assumed control. Slotrapid continues to be the parent company and principal shareholder of Berger Paints Pakistan Limited. Berger expanded its presence beyond Karachi. A major milestone was the establishment of a state-of-the-art plant in Lahore in 2006, which also includes an in-house resin manufacturing facility.

Berger Paints Pakistan Limited is engaged in the manufacturing and trading of paints, varnishes, and allied products. The Company offers a diverse product portfolio that spans decorative paints, automotive paints, general industrial finishes, powder coatings, protective coatings, vehicle refinishes, marine coatings, road safety products, construction chemicals, and adhesives. These operations are structured into three business lines. The Retail Business focuses primarily on decorative paints and related products targeted toward households, contractors, and the retail segment. The Non-Retail Business caters to industrial and institutional clients through offerings such as automotive paints, industrial finishes, protective and marine coatings, and powder coatings. The Allied Business line covers construction chemicals, adhesives, printing inks, road safety products, and other specialized coatings, enabling the Company to serve a wide range of customer needs across sectors. In addition to its proprietary lines, the Company undertakes toll manufacturing for Buxly Paints Limited, which contributes to revenue diversification and strengthens its industry presence. Berger maintains a nationwide distribution network, supported by a well-developed base of dealers and distributors. The supply chain is further reinforced through warehousing facilities in major cities across Pakistan, which ensures efficient inventory management and timely delivery to end-users. Berger places strong emphasis on quality assurance, operating its own in-house quality control laboratories to maintain consistency with global benchmarks. Furthermore, through technical collaborations with international players, the Company continues to enhance its product quality and manufacturing standards. The paints industry, and Berger by extension, is inherently raw material intensive, with a large portion of inputs sourced through imports. This makes the Company’s cost structure and profitability sensitive to exchange rate volatility and fluctuations in global commodity prices. While Berger’s backward integration through in-house resin manufacturing provides partial insulation against raw material risk, it does not fully offset the exposure. Overall, Berger Paints’ wide-ranging product base, structured business lines, toll manufacturing arrangements, extensive distribution network, and warehousing infrastructure reinforce its operational strength. These elements, coupled with established technical collaborations and a commitment to quality, underpin the Company’s positioning within Pakistan’s paints and coatings industry.

Slotrapid Limited, a foreign company incorporated in the British Virgin Islands and acting as the parent company of Berger Paints, holds a majority stake of 52.05%. The remaining shareholding is distributed among various categories of institutional and individual investors. Local general public holds 39.44% of shares, while foreign general public owns 0.83%. Financial institutions also form part of the shareholder base, with NIT & ICP holding 1.45%, banks/DFIs/NBFCs holding 1.35%, and insurance companies holding 1.07%. Other shareholders, including modarabas, mutual funds, and miscellaneous investors, collectively account for 3.80%.

Slotrapid Limited has remained the controlling shareholder of Berger Paints Pakistan Limited for nearly three decades. The Company’s ownership is concentrated with Slotrapid, an offshore holding entity with a clearly identified ultimate beneficiary. Since its inception, the controlling interest has changed hands only once, when Slotrapid acquired the majority stake from Jenson & Nicholson in 1991. This long-standing and consistent ownership structure reflects a high degree of stability and continuity in governance, which has supported the Company’s strategic direction over time.

Slotrapid Limited, an investment management company with interests in diversified businesses. Under its stewardship, the Company’s operations have expanded meaningfully, supported by consistent improvements in scale and performance. A key milestone in this journey was the establishment of a state-of-the-art manufacturing facility in Lahore, which significantly enhanced production capacity, efficiency, and backward integration through in-house resin manufacturing. Backed by a long operating history, brand equity, and sustained investment in capacity and product development, Berger today ranks among the leading players in Pakistan’s paint and coatings industry.

The Company benefits from a stable and supportive sponsor profile. The identified beneficial owner, Dr. Mahmood Ahmad, also serves as the Managing Director of Berger Paints Pakistan Limited. His active leadership, along with diversified business interests including investments in Dubai’s real estate sector, contributes to the sponsor’s financial standing. The sponsor’s commitment has been evident in times of stress. Following the fire incident at Berger’s Karachi facility in 2008, a 122 percent rights issue was announced and fully subscribed, providing the necessary capital to restore operations. This timely intervention reflected the sponsor’s willingness and financial capacity to safeguard the Company’s continuity. The demonstrated support enhances Berger’s resilience and strengthens confidence in its ability to withstand unforeseen shocks.

The Board of Directors comprises eight members, including Mr. Maqbool H. H. Rahimtoola as Chairman, four independent directors, three non-executive directors, and Dr. Mahmood Ahmad, the Chief Executive Officer, as the executive director. Dr. Ahmad also serves as the representative of the sponsoring shareholder. The presence of a majority of independent and non-executive directors provides an effective balance between management and oversight. This composition facilitates objective decision-making, strengthens governance practices, and enhances the Board’s ability to safeguard the interests of all stakeholders.

The Board is chaired by Mr. Maqbool H. H. Rahimtoola, who brings over four decades of experience, having served on the boards of leading listed and multinational companies. He has also been the caretaker Federal Minister for Foreign Affairs and has chaired several government authorities, which reflects his strong governance and leadership credentials. Dr. Mahmood Ahmad, the Chief Executive Officer, has been associated with Berger since 1995. A medical graduate by qualification, he has played a central role in the Company’s growth journey, including capacity expansion and operational integration. His leadership has been pivotal in positioning Berger among the leading players in Pakistan’s paint industry. Mr. Muhammad Naseem, a Fellow Chartered Accountant with more than 30 years of professional experience, contributes significant expertise in accounting, auditing, and corporate finance. His strong financial acumen supports the Board’s oversight of financial reporting and internal controls. Mr. Shahzad M. Husain holds a Master’s degree and has 25 years of diverse professional experience. His business background and operational exposure enable him to provide valuable insights into strategy and market development. With nearly 30 years of experience in banking and financial services, Mr. Zafar Aziz Osmani adds depth to the Board’s understanding of financial markets, risk management, and regulatory frameworks. His presence strengthens the Board’s ability to guide the Company’s financial and strategic decisions. Mrs. Zarin Aziz Khan brings 25 years of experience in civil services and public sector administration. Her expertise in governance, institutional management, and policy contributes an external perspective that enriches the Board’s deliberations. Mr. Ilyas Sharif, with 25 years of professional experience in business management, brings practical industry knowledge and entrepreneurial insights. His contribution supports the Company’s operational and commercial decision-making. Mrs. Rohi Raees Khan has over 30 years of diverse experience, including exposure to road safety and infrastructure development initiatives. Her broad professional background adds value to the Company’s oversight framework and complements the skill set of the Board.

During FY24, the Board convened four meetings, with the majority of members in attendance. Meeting packs, including detailed agendas and relevant financial data segmented by business lines, were circulated at least seven days in advance, enabling informed participation. The Board has also established three sub-committees: (i) Audit Committee, (ii) Human Resource & Remuneration Committee, and (iii) Business Risk & Strategy Committee.

BDO Ebrahim Co., Chartered Accountants are the new external auditors of the Company. Previously, A.F Ferguson & Co. Chartered Accounts gave an unqualified opinion on the company’s financial statements for the year ending June 30, 2024. The board has also outsourced its internal audit department to E&Y Ford Rhodes & Co., Chartered Accountants.

Berger follows a vertical organizational structure, with operations divided across key functional departments, namely: (i) Purchase and Planning, (ii) Supply Chain, (iii) Environment, Health & Safety, (iv) Administration, (v) Production, (vi) RMS/Distribution, and (vii) Engineering.

Dr. Mahmood Ahmad leads the management team as CEO. The COO, Divisional Head HR & Admin, and Director Accounting & Finance report directly to him. Supporting this leadership line, the General Manager Retail Business & Marketing, General Manager Allied & Non-Retail Business, and General Manager Technical report to the COO. All functional departments are overseen by highly qualified and experienced professionals. The sales function is structured into three regions: (i) North, covering Islamabad and all northern areas; (ii) Centre, comprising the Punjab region; and (iii) South, encompassing Sindh and Balochistan.

The management has constituted several committees to support coordination and decision-making, namely: (i) Executive Committee, (ii) Purchase Committee, (iii) Finance Committee, and (iv) Credit Committee. The Executive Committee, serving as the apex body, includes the Managing Director, Regional Sales Heads, and senior finance executives. It meets monthly, with segment-wise sales and gross profit reports shared in advance to review performance and align strategic priorities.

The Company has implemented Oracle ERP to streamline information flow and reporting. The system enables the generation of customized MIS reports for the Board and senior management, while also supporting robust internal controls and oversight.

Berger Paints Pakistan Limited maintains a structured internal control framework that supports effective governance and operational oversight. Annual budgets are prepared for each business segment, formally approved by the Board, and monitored through monthly performance tracking and Executive Committee reviews. A dedicated Quality Control Department conducts regular audits to ensure consistency, while corporate clients frequently inspect facilities to verify compliance with strict quality and safety standards. The Company also benefits from technical collaborations with leading international paint manufacturers, which reinforce adherence to global best practices. In addition, Berger has a sound internal audit function that operates independently and reports directly to the Board Audit Committee. This framework enhances accountability, ensures transparency, and provides timely assurance on the effectiveness of internal processes and risk controls.

The paint industry of Pakistan, valued at ~USD 401mln in CY24, is projected to grow at a CAGR of ~4.2% over the next five years, reaching ~USD 492mln by 2029. Demand is primarily driven by the decorative (architectural) segment, linked to residential, commercial, and infrastructure development, with further impetus expected from post-flood reconstruction. The industry is fragmented, with ~50% share held by unorganized players competing mainly on price. This is attributable to the relatively simple manufacturing process, which lowers entry barriers and enables smaller players to capture significant market share. The organized segment is led by multinational brands (AkzoNobel, Berger, Nippon) and strong local players (Master, Brighto, Diamond), represented under the Pakistan Coating Association (PCA). The sector is raw material intensive, with imported inputs (pigments, solvents, binders) comprising ~85% of COGS in FY24 (FY23: ~84%). This exposes players to exchange rate volatility and rising import costs. Industry challenges include intense price competition, macroeconomic and political uncertainty, and pressure to adopt low volatile organic compounds (VOC), eco-friendly coatings. Nevertheless, investments in local production facilities, rising urbanization, and demand for branded decorative paints are expected to support medium-term growth, while infrastructure rebuilding post-floods offers incremental opportunities. Within this landscape, Berger holds substantial competitive advantages, underpinned by superior product quality, innovative formulations, an extensive nationwide distribution network, and a loyal customer base, positioning it well to sustain its strong market presence.

Berger Paints Pakistan Limited is recognized as a leading player in the country’s premium paint segment, with management indicating a market share of around 12 percent in the organized sector. The Company competes with other prominent players, including AkzoNobel, Master Paints, Diamond Paints, and Brighto Paints. Berger distinguishes itself through a focus on superior product quality, innovative formulations, and a broad-based nationwide distribution network. These attributes underpin its competitive positioning and enable the Company to sustain its relevance in an increasingly competitive industry landscape.

During 9MFY25, Berger Paints Pakistan Limited recorded topline revenue of ~PKR 6,760mln (FY24: ~PKR 8,544mln), reflecting an annualized growth of ~5.5%, primarily driven by a slight increase in sales volumes. The Company’s revenue base remains concentrated in the Retail Business, which contributed ~70% of FY25 revenues, led mainly by the Decorative segment. The Non-Retail Business accounted for ~24%, supported by industrial, automotive, protective, powder coating, road marking, and other institutional sales. The Allied Business, comprising printing inks, resin/PVA, and exports, contributed the remaining ~6%. This diversified revenue mix highlights Berger’s strong positioning in the decorative segment while maintaining a meaningful presence across industrial and allied categories. 

In 9MFY25, Berger maintained a stable gross margin of ~20.7% (FY24: ~20.1%; FY23: ~20.2%) despite elevated input costs. Raw materials remained the dominant cost component, representing ~85% of COGS in FY24 (FY23: ~84%), which underscores the Company’s sensitivity to exchange rate movements and global commodity trends. Backward integration in resin manufacturing and effective pricing strategies have provided partial cost insulation. At the operating level, margin stood at ~7.2% (FY24: ~7.7%; FY23: ~7.0%). Net margin improved to ~3.4% in 9MFY25 (FY24: ~3.1%; FY23: ~3.3%), supported by disciplined cost management and a reduction in finance cost during the period. Sustained topline growth, coupled with these measures, further strengthened bottom-line performance.

Berger Paints Pakistan Limited remains committed to advancing its sustainability agenda through continuous investment in efficiency and resilience. Planned capital expenditure is directed toward enhancing manufacturing processes and strengthening operational reliability. At the same time, the Company is aligning with global best practices by focusing on eco-friendly coatings, adopting energy-efficient technologies, and implementing measures to reduce its carbon footprint. These efforts reflect Berger’s dual commitment to environmental responsibility and long-term business sustainability. This agenda is supported by a robust forecasting and budgeting framework. Budgets and forecasts are prepared regularly, and actual performance is closely monitored against defined KPIs. This discipline not only ensures prudent resource allocation but also integrates sustainability objectives into the Company’s broader strategic and operational priorities.

In 9MFY25, Berger’s inventory days increased to ~69 (FY24: ~63; FY23: ~76), while trade receivable days stretched to ~108 (FY24: ~96; FY23: ~88). Resultantly, gross working capital days rose to ~177 in 9MFY25 (FY24: ~159; FY23: ~164). On the other hand, trade payable days improved to ~67 (FY24: ~56; FY23: ~53), partially offsetting the increase. Resultantly, net working capital days edged up to ~110 (FY24: ~103; FY23: ~111).

During 9MFY25, Berger generated FCFO of ~PKR 580mln (FY24: ~PKR 819mln; FY23: ~PKR 743mln). Finance costs declined notably to PKR 175mln in 9MFY25 (FY24: PKR 305mln; FY23: ~PKR 284mln), reflecting lower borrowings and improved cost management. As a result, the interest coverage ratio strengthened to 4.2x in 9MFY25 (FY24: 3.5x; FY23: 3.2x), while the debt coverage ratio also improved to 1.9x (FY24: 1.6x; FY23: 1.5x). 

The Company’s capital structure remains moderately leveraged. As of 9MFY25, leverage improved to ~23.9% (FY24: ~25.7%; FY23: ~25.3%). Short-term borrowings accounted for ~58.3% of total borrowings in 9MFY25 (FY24: ~56.1%; FY23: ~39.3%), indicating a relatively higher reliance on short-term funding compared to the prior year.