South Asia, with three most populous countries in the world, including India, Pakistan, Bangladesh, Sri Lanka and Nepal, has become one of the fastest growing regions for coatings manufacturers.

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The huge population and rapid urbanization in this area provide many opportunities for paint manufacturers. Bangladesh's coatings industry is valued at nearly 40 billion taka (471 million US dollars) and has maintained a steady growth rate over the past 10 years.

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However, for paint manufacturers in this country, 2019 and the first half of 2020 are not optimistic. Although economic growth has slowed for one year and a half, for the country’s paint industry, some major paint manufacturers have implemented reliable corporate actions and investment announcements.

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Kansai Nerolac of Japan entered the Bangladesh market in mid-2018, and Berger Paints established three new joint ventures with leading international companies.

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Bangladesh's second-largest paint manufacturer, Asian Paints, has begun construction of a second production facility in the country in January 2020. At present, there are nearly 50 companies in the country's coatings industry, and Earl Coatings Bangladesh is currently the market leader. Over 80% of the country’s paint market is controlled by foreign brands.

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These brands include Piaget Paint, Asian Paint, Roxy, Pailac, Aqua and Elite. According to data from the Bangladesh Paint Manufacturers Association, Piaget Coatings has a 48% market share, followed by Asian Paints (18%), Roxy and Elite (7% each), Pailac (5%) and AquaPaints (2%).

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About 30 local companies including Rainbow Paints, RAK and Uzala Paints account for 13% of the total market share. In recent years, the country’s paint market has attracted many international paint manufacturers.

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In 2018, Kansai Paint Company of Japan, through its Indian subsidiary Kansai Nero, invested US$7 million (Tk 572.6 million) to purchase 55% of RAK Paint.

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Vishal N Mothreja, CEO of Kansai Nero Bangladesh, said: “We want to cooperate with an excellent compliance company in Bangladesh. Because the Japanese values transparency, we choose RAK paint.”

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In January 2020, Piaget Coatings Bangladesh and Japan CMP signed a cooperation agreement on Bangladesh's marine and industrial coatings. According to the agreement, the two parties will work together to produce, sell and purchase marine and related industrial coatings in Bangladesh.

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Piaget Paint will be the first company to produce global standard marine paint products in Bangladesh. Piaget Coatings also established joint ventures with Swedish Berger Industrial Coatings and British Fosler, and established Piaget Berger Bangladesh Co., Ltd. and Piaget Fosler Co., Ltd. to provide coil coatings and coatings for the Bangladesh market. Construction chemicals.

Piaget Paint

Piaget Paint is the largest paint manufacturer in Bangladesh. The company is a subsidiary of Indian paint manufacturer Earl Coatings and holds close to 50% of the shares. Piaget Coatings started operations in the country in 1970, when Bangladesh was still part of Pakistan-Piaget Coatings was the oldest paint manufacturer in the country. The company's production facilities are located in the capital Dhaka and Chittagong.

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In the 2019-20 fiscal year ending in March 2020, the total sales revenue of Piaget Paint was 18.82 billion taka (221 million US dollars), which was nearly an increase from the previous fiscal year's sales revenue (17.73 billion taka (209 million US dollars)) 6%.

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“Currently, Bangladesh’s annual paint consumption is about 180,000 tons. The industry’s recent year-on-year growth rate exceeds 6%, thanks to the country’s approximately 167.8 million population and rapid urbanization.” Rupali of Earl Coatings Bangladesh Chowdhury said, “Plastic emulsions, weather-resistant and weatherproof exterior wall coatings and synthetic enamels are the key products that occupy a major market share. Plastic emulsions and water slurry coatings can replace each other. Emulsions are basically used all over the country. For high-end residential buildings, water slurry coatings are economical products that are in demand in the semi-urban and rural markets."

Asian Paint

Asia Paint Bangladesh, a subsidiary of Asia Paint in Bangladesh, is the second largest paint manufacturer in Bangladesh. The company has a state-of-the-art production plant in Gazipur.

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Asian Paint has built the country's second production facility in its Mirsarai Economic Zone (MEZ) in Chittagong earlier this year. The total investment of Asian Coatings in the device is 20 million U.S. dollars, and it is expected to start production in June 2021. The new plant will initially produce 30,000 tons of paint and related products. It covers an area of 20 acres and is equipped with modern facilities.

Kansai Nero

Kansai Nero has always been concerned about the Bangladesh paint market. The company has urged Metro Rail in the country to provide project orders. H MBharuka, General Manager of Kansai Nero India, submitted an annual report in August 2020, and stated that “In Bangladesh, we have launched the Nerolac series of decorative paints through our subsidiary RAK Paints Ltd, and the market has responded well.”

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