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The country's paints industry continues to expand, with the multinational corporations (MNCs) dominating the Tk 45-billion paints market, insiders said.
According to them, rapid urbanisation across the country and diversified industrial use are fuelling the growth of paints and coatings market, which has registered 6.0 per cent annual growth in recent years.
There are around 40 companies, including local companies and MNCs, registered with the Bangladesh Paint Manufacturers Association (BPMA).
As per data available with the trade-body, annual production of decorative paints is estimated at around 0.24 million tonnes.
Of the companies, Berger Paints alone holds the majority or some 54 per cent of the market, followed by Asian Paints with 18 per cent, and Kansai Nerolac with 7.0 per cent. Besides, Elite Paints is holding some 6.0 per cent market share, Rainbow Paints 4.0 per cent, Nippon Paints 3.0 per cent, and Roxy Paints 1.4 per cent.
Contacted, Asian Paints Country Head Budhaditya Mukherjee told the FE that the company has been growing its market share since the beginning of its journey in the country in 2002.
It is manufacturing paints in its two factories in Gazipur and Mirsarai and selling across the country.
Regarding challenges that the sector is now facing, Mr Mukherjee said Bangladesh has been in a better position despite several factors impacting the world's macro-economic scenario.
The recent US dollar appreciation, Ukraine-Russia war, and Covid-19 pandemic challenged the demand growth for paints in the country, he observed.
"Having said that, we are hopeful that the worst is over, and Bangladesh's construction industry will bounce back in near future."
"Global standard of quality is ensured in Bangladesh. Our industry is the most innovative, technologically advanced, and world-class. Our consumers are getting the best products across all price points," he added.
To expand market share, Asian Paints began operations of its second factory - installed at a cost of US$20 million in the Mirsarai Economic Zone (EZ) last year, according to data available with the Bangladesh Economic Zones Authority.
Berger paints is also preparing to establish its new factory in the same EZ. Jotun Bangladesh, another foreign company, began production in its factory in Meghna Industrial EZ last year.
Another MNC, Kansai Nerolac, grabs the third largest share of the market, and it has been continuing growth since entering Bangladesh in 2009.
Shamim Ahmed Chowdhury, a general manager of the company, said it is planning to expand production capacity further, especially targeting the automobile sector.
"We've recently provided paints to the first locally-made three-wheelers."
He also said paints are used not only for aesthetic purposes, but also for protection of structures and things.
The sector is now facing various difficulties, like higher cost in import of raw materials, dollar crisis, and sluggish global economy, added Mr Chowdhury, also the BPMA treasurer.
Insiders said while the MNCs are expanding their operations, most of the local companies are struggling to sustain, as they mostly lack long-term planning, innovation, specialisation, research, and fund shortage.
"Product quality and standard of the local makers are even better than those of the international market players," a top official of a local paints factory said, acknowledging that its full capacity now remains unutilised.
Manufacturing of paints for the domestic markets began in 1952 by Elite Paints, followed by Roxy Paints in 1953. Other local renowned brands are Ujala, Pailac and Rainbow.
Romana Paints, once a renowned home-grown brand, suspended its production several years ago, while some local companies are shrinking their operations.
BPMA General Secretary Arun Mitra said the sector has been making a good contribution to the national economy. It is yearly paying revenue worth Tk 7.0 billion to the public exchequer while creating direct and indirect employment for more than 1,00,000 people.
Untapped opportunities await the sector in the coming days, as per capita paint consumption in the country is still limited to only 1.1 kg, while it is 4.2 kg in India and nearly 9.0 kg in China.
Despite the potential, the sector is now facing several challenges, including LC opening, high duties and taxes, and customs-related hassles in clearing imported raw materials.
"Nowadays it is a big challenge to open LCs because of considering paints as luxurious products," said Mr Mitra, who is also head of plant and operations at Nippon Paints Bangladesh.
The BPMA treasurer said there is an issue of presence of lead in colours, which needs to be addressed.
As high as 90 ppm (parts per million) of lead is allowed for the paint makers - as per the Bangladesh Standard and Testing Institute (BSTI) directives.
Mr Chowdhury suggested increasing tax on the raw materials containing lead along with lowering tax on the ingredients without lead.
"It is a must to make the products having lead at accepted limit," he said, adding that there is no scope to consider paints as fancy items.
Identifying lack of skilled manpower as a barrier, both of the trade-body leaders suggested introducing dedicated skill development courses for the human resources working in manufacturing units as well as for the painters.