Berger Paints lndia has entered into a Shareholders' Agreement with Rock Paint of Japan (Rock Paint) for the purpose of forming a joint venture company for sale of superior automotive refinish paints in lndia and Nepal.

The joint venture company is proposed to be named as "Berger Rock Paints Private". Berger will hold 51% and Rock Paint will hold 49% in the share capital of the joint venture company.

Earlier in 2017, Berger and Rock Paint had entered into a memorandum of understanding and had carried out trial sales of automotive refinish paints in lndia. The results of the trial sales have been encouraging and the alliance has culminated in signing the agreement. The companies are optimistic that the high quality automotive refinish paints will have considerable demand in the Rs 20 billion automotive refinish market in lndia. The joint venture company will benefit from the market knowledge and infrastructural strength of Berger in lndia and the technical expertise and high end products from Rock Paint.

K S Dhingra, Chairman, Berger Paints said, "we are happy to collaborate with Rock Paint and deliver an array of international quality auto refinish paints to the Indian consumers. We shall provide all support to Rock Paint and the JV company for its success."

Shares of the company gained Rs 7.45, or 2.57%, to trade at Rs 297.20. The total volume of shares traded was 38,795 at the BSE (9.48 a.m., Friday).