From Rangwalas to Berger Paints
By
Sonu Bhasin
From Rangwalas to Berger Paints
From Rangwalas to Berger Paints
The Remarkable Journey of Kuldip Singh and Gurbachan Singh Dhingra
“This is where it all started,” says Kuldip Singh Dhingra, pointing to a black and white 1941 photograph on the wall of his study. It is a photograph of a well-to-do Sikh family gathered in the front courtyard of their haveli, clearly dressed in their Sunday best. The patriarch, Bhai Kesar Singh, sits in the middle with a look of pride on his face. He is surrounded by men and women of various ages—men standing with their chests out and smiles on their faces, while the women sit meekly, some with their heads covered, hesitantly looking into the camera. Children of all ages are sitting at the feet of the elders, grinning cheesily at the camera. Overall, the photograph portrays a family that appears to be genuinely happy.
The 1941 Photograph of Bhai Kesar Singh Rangwala Family, Race Course Road haveli, Amritsar. Bhai Kesar Singh (seated 2nd from left).
Kuldip Singh Dhingra represents the fourth generation of the family depicted in the photograph. He is a co-owner of Berger Paints India Group, which is among the fourteen largest paint companies in the world, the second largest in India, and one of the top four paint companies in Asia. Berger Paints India Group operates in eight countries, leading the market in two of them. Kuldip’s younger brother, Gurbachan Singh Dhingra, is the other co-owner of the group. Together with their families, the two brothers hold a total of 75 percent of the publicly listed company, Berger Paints India Ltd, along with other investments.
When Kuldip says, “This is where it all started,” he refers to the year 1898 when his great grandfather, Bhai Uttam Singh, and his grandfather, Bhai Kesar Singh, established a general-purpose hardware shop in Amritsar.
During the late 1800s, all paint in India was imported. In 1898, to the young Kesar Singh and his father Uttam Singh, trading in paints and various other hardware items seemed as interesting a business as any other. Kesar Singh wanted to diversify from the family’s wholesale fruit trade.
“So, our shop was established in 1898 in Amritsar and was named Bhai Uttam Singh Kesar Singh,” says Kuldip. “Later, the company became known as UK Paints.”
“Did UK Paints have a British connection like British Paints even back then?” I ask Kuldip. He takes a sip of his black coffee, closes his eyes briefly, savors the taste, and responds, “No, no, no, UK Paints has nothing to do with Britain. It stands for Uttam Singh Kesar Singh Paints, shortened to U. K. Paints. The shop in Amritsar was named after my great grandfather and grandfather. The British Paints connection came much later when the family acquired Berger Paints, previously known as British Paints India. Incidentally, British Paints is now a division within Berger Paints.”
B. Uttam Singh Kesar Singh was a prominent shop in Amritsar, occupying three levels. As the business thrived, Kesar Singh realized that paints were the fastest-selling items in the shop. Therefore, he decided to focus primarily on the distribution and sales of paints. The paints business flourished, and the family soon gained a reputation as the ‘Rangwala Family’ (Rang means color in Hindi).
The Rangwala business prospered, and Kesar Singh sent his six sons to different cities across undivided India to further expand the business. Each son had trusted professionals by his side to assist with the business. “My grandfather always employed professionals in the business,” says Kuldip, adding that these professionals played a significant role in the sustained growth of the business.
The professionals inducted into the business were called “Working Partners” and were given a share in the business’s profits. These Working Partners did not invest any money into the business but served as de facto CEOs, managing and growing their respective areas. Over time, the shareholding of each Working Partner increased, ranging from 20% to 50% in their respective businesses. This appears to be one of the earliest models of profit sharing established in the early 1900s for professional managers.
While the professionals were referred to as Working Partners, Kesar Singh and his sons were known as the Owner Partners. All investments in the business, including the purchase of shops, warehouses, and other assets, were made by the Owner Partners. The business paid rent to them for the properties used, and the Owner Partners provided the working capital necessary for day-to-day operations, including stock and inventory. Interest was paid to the Owner Partners for the funds they invested in the business. After deducting all costs, profits were shared between the Working and Owner Partners according to their predetermined shares. This arrangement proved successful and mutually beneficial. As the business thrived, the profits and returns for the Working Partners increased. The Working Partners understood this model well and worked diligently to expand the business. In hindsight, it is evident that Kesar Singh had shown great foresight.
