According to Berger's annual report for 1997-98, it held 77,100 equity shares in Rajdoot as on March 31, 1998. Berger officials were not available for comment.

However, according to a company notice to the stock exchange, the Berger board met on Tuesday and decided to `examine and explore' the feasibility of the merger of Rajdoot Paints with the company.

Berger chairman KS Dhingra had announced plans for acquisition and mergers with smaller companies. The Rajdoot merger will help Berger expand its network of operations.

Berger reported sales of Rs 348 crore in 1997-98, and a profit after tax of Rs 18.23 crore, against Rs 14.29 crore the previous year.

On Tuesday, it also declared its unaudited results for the first half of 1998-98. It saidnet profit had increased by 37 per cent to Rs 11.72 crore for the first-half ending September 30, 1998, from Rs 8.57 crore in the corresponding period of the previous year. Net sales grew 16 per cent to Rs 172.39 crore from Rs 149.11 crore in the same period of 1997-98.

Operating profit in the first-half of this fiscal was Rs 16.82 crore, against Rs 13.65 crore last year.