Susan Gordon, Staff Reporter
MCDONALD
THE DECISION of Asian Paints, the parent company for Berger Paints Jamaica, to pull its 30 per cent stake in the Dutch Boy Philippines Inc. has no strategic implications for the local operations, says chief executive officer for Berger Jamaica, Warren McDonald.
INCURRING LOSSES
Asian Paints, part owners of Berger International, early last week sold its 30 per cent stake in Dutch Boy Philippines Inc. for $2.34 million. According to Berger International, "Dutch Boy Philippines has been incurring losses and after a review of its prospects, the board has decided to divest the entire interest."
Jalaj Dani, president of Asian Paints' international business unit, said in May that the company would consider getting out of some businesses in Southeast Asia due to their small scale and only focus on medium and large markets. Berger had invested $8.66 million in the Filipino paint company and had already written off $6.49 million.
But Mr. McDonald said Asian's Paints' considerations to exit the smaller paints operations would not affect countries like Jamaica.
"It won't have any effect on us," Mr. McDonald told the Financial Gleaner in a recent interview. He said he believed it was the company's general philosophy to have greater control in the companies in which it has a stake.
"They prefer to control. When they took over the Berger Group, they had a 30 per cent stake but this could not influence their
operations. This did not fit in, their general philosophy," explained the CEO who is also regional managing director for Berger Paints.
Berger Paints Jamaica began operations in 1953 in Jamaica as a locally-owned paint company, New World Paints Limited.
Now a subsidiary of Berger International, the company manufactures paint products such Berger 303 Flat Emulsion, 404 Gloss, Everglow Low Sheen and Magicote. It employs over 130 persons.
