How much paint did our megaprojects use?
Government infrastructure megaprojects have significantly contributed to the surge in paint demand in recent years, consequently encouraging entrepreneurs to emphasise the production of novel paint varieties
Approximately 2.40 lakh litres of industrial paint have been applied to adorn the steel structures and roofs of 16 stations along the country's first metro rail line, which is awaiting its full-service inauguration from Uttara to Motijheel. These paints, specially customised with Japanese technology, hold a market value exceeding Tk10 crore.
Sources reveal that in total, over Tk25 crore worth of decorative paint has been used for various purposes within the metro rail project, including station embellishments, 24 sets of six-coach trains, and depot work.
Significant structures, such as the four coaling towers, at the Rooppur nuclear power plant – a project costing over Tk100,000 crore – have consumed industrial paint worth no less than Tk20 crore. This figure is expected to rise when considering decorative paint usage.
In the meantime, an estimated Tk10 crore worth of paint is projected to be used for the third terminal of the Hazrat Shahjalal International Airport, slated for inauguration in October this year.
Government infrastructure megaprojects have significantly contributed to the surge in paint demand in recent years. Consequently, entrepreneurs are emphasising the production of novel paint varieties. This expansion has led to increased employment opportunities in the country and a partial alleviation of pressure on the currency exchange rate due to reduced import dependence.
Manufacturers assert that the industrial sector accounts for 10-12% of the nation's total paint consumption, with at least half being directed toward government infrastructure.
Sources said Kansai Nerolac Paints (Bangladesh) Limited, a Japanese-based company, has supplied paints for the metro rail station steel structures. Additionally, other companies, including Nippon Paint (Bangladesh) Private Limited, have provided paint for various establishments.
Nurul Karim Sifat, head of marketing at Kansai Nerolac Bangladesh, explained that water-based paint is typically used for residential walls, as it can be easily mixed with water. However, such decorative paints have lower durability. Conversely, high-performance paints are utilised in industrial and large-scale infrastructures, requiring solvents to be mixed with oil-based paints.
Sifat emphasised the importance of long-lasting industrial paint in safeguarding installations from various risks, such as sun and rain exposure.
As an example, he cited the Dhaka Mass Transit Company Limited's request for a special type of paint with a 10-year guarantee for metro rail station steel structures. To meet this demand, new paint varieties were developed and supplied using Japanese technology under the supervision of the late Prof Engineer Jamilur Reza Chowdhury.
Kansai Nerolac has also created specialised technology paint for the coaling tower of the Rooppur Nuclear Power Plant, emphasising that large structure painting necessitates custom colours to enhance durability, necessitating lengthy research and approvals at various stages.
Nippon Paint, Kansai Nerolac, and Asian Paints are the primary suppliers of paint for the Dhaka airport's third terminal.
Rajesh Sircar, deputy general manager of Nippon Paint, estimates that approximately Tk10 crore worth of paint would be required for this installation. However, the cost is comparatively lower compared to the installation size as decorative paints are being primarily used here.
He believes that government infrastructure, particularly mega projects, plays a pivotal role in the growth of the industrial paint industry.
He noted that domestic companies previously depended mainly on decorative paint for home use, resulting in import dependence as only one company produced industrial paints. The significance of industrial paint production has surged in the last 8-10 years as the government prioritised megaproject implementation.
Currently, about half a dozen multinational and domestic companies have the capacity to supply various types of industrial paint, leading to reduced prices and savings in foreign exchange due to reduced import reliance.
Nurul Karim Sifat said that because various companies have attached importance to the industrial paint segment, investment, production, and employment have increased. This surge in activity has led to a dual benefit: a decrease in the cost of paint and a reduction in foreign exchange expenditure due to decreased import dependency.
Furthermore, Sifat highlighted a pressing issue in the home decorative paint industry – selling products to dealers on credits. This often results in financial entanglement, with funds becoming tied up and collection difficulties arising, sometimes necessitating lengthy legal procedures. Interestingly, Sifat noted that this problem contrasts with the smooth functioning of government infrastructure projects, which do not face similar challenges.
According to sources, government projects in the power sector are substantial consumers of paint, consuming large quantities. For instance, the rehabilitation project for Rohingyas on Bhashanchar Island has used approximately Tk7 crore worth of paint. Similarly, the Padma Rail Link project has reportedly involved the use of paints valued between Tk1.5 crore and Tk2 crore.
Road marking a huge market
According to Roads and Highways Department (RHD) sources, road marking has become a huge market for industrial paint in the construction and renovation of road infrastructure.
The cost of road marking in the Sylhet-Charkhai-Sheola highway development project approved by the Executive Committee of the National Economic Council (Ecnec) in April has been estimated at Tk6.27 crore.
A project taken up in February to increase the width of four roads in Cumilla district has been estimated to cost Tk2.25 crore.
During the approval of the fourth amendment of the Chattogram Outer Ring Road project, Tk9.55 crore was allocated to this sector.
Three road construction projects connecting Satkhira Road and City Bypass are estimated to cost Tk2.53 crore for road marking.
The expenditure on road marking in Bhulta-Araihazar-Bancharampur-Nabinagar-Shibpur-Radhika Regional Highway Development Project approved in June this year has been estimated at Tk4.34 crore.
About 60% of the total allocation for road marking is spent on buying paints, said an additional chief engineer of the RHD, on condition of anonymity. And the remaining 40% is spent on thinner, labour wages, and machine maintenance, the official added.
The RHD additional chief engineer also told TBS that there is no fixed amount of money per kilometre for road marking. Marking cost per kilometre depends on road design, number of lanes, alignment, and location.
The official thinks that the cost of marking per kilometre on a four-lane road may be Tk7 lakh to Tk10 lakh.
According to sources, the implementation of about 125 projects in road construction under the RHD is going on at present. Even if Tk3 crore is spent on each project on an average, a total of Tk375 crore will be spent in this sector in the next few years.
According to RHD sources, in the last three financial years, the organisation has completed the surfacing of 6,935km, widening of 2,139km, upgrading of 2,445km, and reconstruction of 775 km of roads, bridges, and flyovers besides Joydebpur Chowrasta-Chandra-Elenga 4-lane, construction of 4-lane Kanchpur, Meghna, and Gomti bridges, construction of Dhaka-Mawa Expressway, Cox's Bazar-Teknaf Marine Drive road.
If the per kilometre cost of this work is Tk7 lakh, the cost of marking 12,294 kilometres stands at Tk861 crore, and about Tk516 crore from the amount was spent on buying paint as paint accounts for 60% of the total costs.