Asian Paints first to open factory at Bangabandhu Shilpa Nagar
Inauguration this month
Jagaran Chakma
Thu Nov 4, 2021 12:00 AM Last update on: Thu Nov 4, 2021 12:49 AM
Bangladesh's largest industrial enclave, Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, Chattogram, is finally going to witness the commissioning of its maiden factory this month.
Asian Paints Bangladesh is all set to begin commercial operation of its second manufacturing plant in Bangladesh at the BSMSN, officials said.
Prime Minister Sheikh Hasina is likely to inaugurate the facility.
"Another 13 industrial units including, SQ Electric and Bangladesh Auto Industries, are about to complete setups for commercial operation," Shaikh Yusuf Harun, executive chairman of Bangladesh Economic Zones Authority (Beza), told The Daily Star.
"Those will be inaugurated by next June," he said.
Earlier, Zhuzhou Jinyuan Chemical Company's factory was scheduled to be the first to be inaugurated in March 2020 but it faced a setback due to the Covid-19 fallout.
Besides, Nippon-McDonald, a joint venture of Japan's Nippon Steel and Bangladesh's McDonald Steel Building Products, wanted to go into operation but failed as foreign experts could not come on time.
Harun believes that within next year the under-implementation industrial units would be commissioned as they do not want to waste time.
He also believes that the commissioning of the first industrial units would encourage the other investors to invest in economic zones.
According to BEZA, the BSMSN drew investment proposals amounting to $20.13 billion till date -- $19.85 billion from locals and $1.28 billion from abroad as foreign direct investment.
Vagiskuma Vijayshankar Pandey, project head of Asian Paints Bangladesh, said they are ready to open the factory this month.
Considering the growing demand for paint products, Asian Paints established its second plant on over 20 acres of land at the BSMSN, he said.
The company already invested around Tk. 180 crore to establish the manufacturing plant to meet demands of a growing market for paint. Already the new plant directly created employment for around 2,000 people, the official said.
Initially, the company had proposed to invest $26 million or Tk 2.23 crore and create employment for 350 people.
Pandey said they have taken a majority of the support from banks to implement the project with a very small percentage of equity.
The size of Bangladesh's decorative paint market currently stands at around Tk 4,000 crore whereas in 2017 it was around Tk 3,500 crore, according to industry insiders and Bangladesh Paint Manufacturer's Association (BPMA).
Around 40 local and multinational companies are now in operation in the market, which has been witnessing an average growth of around 8 to 10 per cent since 2010.
At present, the annual demand for paint stands at nearly 200,000 tonnes.
Asian Paints Bangladesh started its journey in 2002 as a joint venture with Confidence Cement to produce international standard paints for the discerning consumers of Bangladesh. It owns the brand Berger Robbialac and offers home paints such as water-based distempers and solvent-based exterior enamels.
Now the company is manufacturing and distributing a wide range of high-performing decorative, marine and industrial paint products with its expertise and innovative technology to provide all the painting needs of consumers in Bangladesh.
Asian Paints Bangladesh, the second largest paint company in Bangladesh, aims to increase its market share by providing quick supplies to the south east part of the country, Pandey said.
He believes that their market share would increase after commissioning of the new manufacturing plant.
Pandey also said the one in Bangladesh was the largest manufacturing plant among those in 18 countries where the company was operational.
According to him, Asian Paints has an efficient research and development team as well as good marketing channels which helps them grow in the market of Bangladesh.
Now, Asian Paint's has a market share in Bangladesh of around 40 per cent.