"We have entered into a non-binding understanding for transfer of our paint division related to four-wheeler passenger cars and SUV, three wheelers and related ancillaries to BNB Coatings India," said Roy at the company's 92nd annual general meeting here.
BNB is a joint venture where Japan's Nippon Paint Automotive Coatings holds 51 per cent while Berger has 49 per cent of the paid up capital.
"In most of the categories, be it decorative or protective, we are either number one or two. But in automotive segment we have been an insignificant player, in the car segment we have a negligible presence. This has largely been because of technology and approval issues,"
"Indian automotive industry is dominated by Japanese companies. So we thought of tying up with a Japanese company who have the technology and it's easier to penetrate the car segment," he said informing about the reasons the transfer.
He said the turnover of the transferred division was about Rs. 29 crore or 0.85 per cent of the company's total turnover. The transfer of the division was completed on June 30.
Roy also said Bollywood actress Katrina Kaif will continue to be the company's brand ambassador.
"We have extended our agreement with Katrina Kaif, she will continue to endorse our brand for another three years," added Roy.
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