Asian Paints in Bangladesh

A brief presentationBy

Aroop ChatterjeeGeneral Manager, Asian Paints Ltd. Bangladesh

Asian Paints Ltd. – a brief background

• Asian Paints Group started in Bombay (now Mumbai) ,India in 1942 – – a small ‘garage’ enterprise started by 4 friends, soon professionalized

• Have been market leader in India since 1960s – now controls over 55% of the Indian paint market

• Recipient of numerous international awards – – widely admired for professionalism and corporate governance

• Ventured into International business in Emerging markets in late 90s – – Now present in 18 countries across Middle East,Africa,South Asia,South

East Asia and Carribean and Pacific Islands.• Over USD 2 bn. Turnover –

– 4th largest in the world in terms of architectural coatings

Asian Paints in Bangladesh…• Journey started in 2002,

– with our local partner, Confidence Group.• The co.’s largest green field venture outside India so far.• Complete supply chain managed locally

– Completely manufactured in Bangladesh, by Bangladeshis, for Bangladesh consumers.

• In 11 years,we have emerged as a strong no. 2 in the Industry with a significant market share.– A team size of over 500 direct and indirect employees – selling to over 1000 direct customers (dealers/projects),– being applied by lakhs of painters across the country – and beautifying uncountable homes and other premises across Bangladesh

Why are we here in Bangladesh ?

• A fast growing emerging market – as identified in the N11 list of Goldman Sachs

• Huge potential of growth in paint consumption – per capita consumption lower than other South Asian countries.

• A booming consumer base eager to upgrade in every aspect of life - excited about better products.

• A growing real estate and infrastructure industry – bellweathers of our business

• An immense opportunity to be a part of a growing,vibrant economy.

Where we stand today…

• We manufacture and sell around 17000 Tonnes of finished paints in a year– One fifth of the overall paint market in Bangladesh

• We have grown faster than the market – – because of fair and transparent dealing with all stakeholders,– an advanced set of products of better quality

• We are conscious of the environment and society – taking up all required measures for environment friendly

products and processes (Lead Free since 2010).– Doing our bit for the society as part of CSR,wherever

relevant.

What is our contribution ?

• The category of paints play a big role in a nation’s economy– Apart from aesthetics, serves protective purpose.– Saves huge money in terms of replacement of assets – assessed to around

0.8-0.9% of GDP in certain studies• Generate direct and indirect employment

– Apart from 2 managers,ALL in the team of 500 are local employees.– Generate entreprenuership among thousands of dealers,

painters/contractors and vendors– Skill development of painters through training,improves their earning

potential.• Contribution to the national exchequer – always committed to EVERY

applicable law of the land – compliance taken very seriously.– Overall contributed over BDT 200 crores in VAT/SD/Tax over last 5 years, at a

healthy average annual growth of around 18-20%.

Business enablers – our experiences…

• We see relevant authorities as ‘enablers’ rather than ‘regulator’s– BOI/Bangladesh Bank/NBR/DoE/Other offices assisting

us in various areas.• We have seen positive response from most offices in

general,towards the co.• Encouraging to see speed of approval improving in some

areas – will help if also happen for others.• We don’t expect any special favours • we JUST expect a FAIR attention and understanding of our

requirements – followed up with prompt action.

The path ahead…how we see the future

• We are going through exciting times • Group focus on Bangladesh is extremely high

and there is a strong commitment to investments in future.

• In about 3-4 years time we would need a second plant since the current one won’t support the growing demand for our brands.

• We will continue to invest in people,resources and technology in our Bangladesh Unit .

Our expectations from the enablers…

• Help us with necessary approvals within reasonable timelines – if documentation is followed as per guideline we should see faster turnaround time

• If we need infrastructural support, please let us know how the same can be enabled (electricity, gas connections)

• Let us help you understand better how we are following processes to benefit the environment and the economy.

• Will appreciate a patient hearing on how removing some roadblocks (duties on Raw Materials,Supplementary Duty) will enable us contribute even more.

• Help us contribute even more …in ‘beautifying’ the nation – Economy– People– Infrastructure

• Thank You…