Berger rolls out sanitising service

Berger Paints Bangladesh has launched an expert sanitising service to ensure a clean and germ-free environment in: offices, commercial spaces, residences, and government buildings.

The service rolled out at an online event on Sunday.

Initially, the company will offer the service in Dhaka and Chattogram through its own experience zone and roll it out across the country in phases.

Berger is the first company to introduce the service in Bangladesh.

The country's leading paint manufacturer says it will use eco-friendly sanitising agents, smart tools and trained applicators – providing the service to all interested parties as part of its business diversification.

Mohsin Habib Chowdhury, senior general manager of the company, said Berger has always stood by the public in times of crisis in the country. Out of that sense of responsibility, the germicide service has been launched to prevent the spread of the Covid-19 pandemic.

Noman Ashrafee Rahman, group category manager, in a keynote presentation on the service said two types of the service,  external and internal, will be provided to clients.

"With this service, customers can sanitise their offices and homes as well for a period of thirty days," he added.  

Ashrafee said this service can be obtained at a very low cost. For example, for a house below 5,000 square feet, the cost will be Tk3.50 per square foot; for a house below 10,000 square feet, the cost will be Tk3 per square foot; and for a house above 10,000 square feet, the cost will be Tk2.50 per square foot plus 15 percent VAT.

According to this, a customer will need to spend around Tk5,000 to sanitise a 1,200-1,500 square foot flat.

Saiful Ashraf, manager of the company, said, "We use some chemicals and machines for the sanitising. Those chemicals will kill germs without any health risk. Many European countries use this system."

"We have invested Tk25-30 lakh to launch this service. When we run this service across the country, we will need double the investment," said AKM Sadaque, general manager of Berger Paints.

An official of the Berger Paints said from this service, they expect annual revenue of Tk1.50 crore with a 30 percent profit margin.

Earlier on June 30, the company launched hand sanitiser under its existing brand - Mr Expert – amid a spike in demand for cleaning items during the pandemic.

The expected turnover of Berger Paints from Mr Expert hand sanitiser is Tk1 crore in the 2020-21 financial year.

Berger Paints has recommended a 295 percent cash dividend for its shareholders for the 2019-20 financial year.

The board of the company has also decided to invest Tk7.60 crore in ordinary shares of Berger Fosroc Ltd to fund the establishment of a factory.

Berger Fosroc is a joint venture between Berger and Fosroc International Ltd that manufactures and sells chemicals for constructions. Berger has a 50 percent share in the venture.

Berger's sales have increased on average 11 percent annually over the last six years, and it maintained the pace during the 2019-20 financial year.

During this period, the company's earnings per share grew by 18 percent to Tk52.22, riding on declining prices of raw materials on the international market.

In the fourth quarter of the 2019-20 financial year, the earnings per share of the company decreased by two percent due to the lack of sales amid the Covid-19 pandemic.

The company was listed on the stock market in 2006 – with paid-up capital of Tk46.37 crore.

The J&N Investments (Asia) Ltd holds 95 percent while institutional, foreign and general investors hold 2.45 percent, 1.14 percent and 1.41 percent shares of Berger, respectively.