Berger Paints to put in Tk400cr for a state-of-the-art factory
Berger Paints with its two factories in Dhaka and Chattogram achieved 31.80% revenue growth in FY22
Berger Paints Bangladesh Limited has moved to invest some Tk400cr in setting up a state-of-the-art factory as it looks to further expand its market reach, which is currently about 50% of the country's paint market.
The company plans to produce higher quality paints in its planned production unit, which will be built on a 40-acre area at Bangabandhu Sheikh Mujib Shilpa Nagar, the largest industrial city in the country.
All preparations to set up an "environment-friendly" factory have been completed and construction is expected to begin in full swing within the next one and a half months, say officials.
"The construction is expected to take some 18 months and it will cost up to Tk400 crore for the factory alone," said Rupali Chowdhury, managing director of the company.
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"We will use the latest technology in the construction of the factory, which will be an automated production unit," she said, adding that the facility will also feature a Research and Development centre.
In 2018, the company leased 30 acres of land in the industrial city located in Mirsarai and Sitakunda upazilas of Chattogram and Sonagazi upazila of Feni and added another 10 acres in 2020.
Berger Paints plans to use the new factory to produce decorative paint, industrial paint, marine coatings, wood coatings, construction chemicals, adhesives, automotive paints – all of which are in increasingly high demand in the market.
The local paint industry has become more competitive as the new entrants are very aggressive in expanding their distribution reach and grabbing market shares.
The top paint companies are focused on diversified product offerings and introduction of premium products with enhanced features, technology driven solutions for various industries and high protective coatings.
Six multinational companies - Berger Paints, Asian Paints, Nippon Paint, Jotun Paint, AkzoNobel Joint Collaboration with ACI, and Kansai Nerolac Paints Bangladesh Ltd in joint collaboration with RAK Paints have acquired 82% of market shares while the rest of the companies, including 8 major local players, are competing for the remaining 18% of the market.
Berger Paints with its two factories in Dhaka and Chattogram dominates about half the market share, followed by Asian Paints Ltd, an Indian multinational, which accounts for 16% of the total market.
According to data from Bangladesh Paints Manufacturers Association (BPMA) in 2019, the country's paints market is expanding by 10-12% annually. The market size stood at Tk300.30 crore or 2 lakh tonnes in that year.
Berger Paints, which got listed on the stock exchanges in 2006, achieved 31.80% revenue growth and around 19% volume growth in the financial year 2022, ending on 31 March.
During the year, the net profit of Berger Paints stood at Tk291 crore, with the company recommending 400% cash dividends for its shareholders.
The company has taken initiatives, including the addition of a number of new products, to meet the diversified needs of customers and explore new frontiers.
Berger is one of the oldest names in the paint industry and one of the world's leading paint manufacturers based in the United Kingdom. It was incorporated in Bangladesh in June 1973.
