Japanese company Kansai Nerolac will invest Tk 16 crore on its country subsidiary, Kansai Nerolac Paints Bangladesh (formerly referred to as RAK Paints), to expand its business and grab a larger piece of the growing Southern Asian market.
Having entered the Bangladesh marketplace in mid-2018, the East Asian paint maker on Friday released to have subscribed to at least one 1.65 crore equity shares of the subsidiary.
According to Indian press, the shares possess a face benefit of Tk 10 every single.
Vishal N Mothreja, chief executive officer of Kansai Nerolac Paints Bangladesh, told The Daily Superstar that the persons of Bangladesh have accepted their product.
"We are receiving a positive response from the people here and also have launched a variety of new products," he said.
This consists of marine coatings, powder coatings, construction chemicals, auto coatings, anti-virus paint and multiple protective coating measures.
"All of this requires investment therefore, later on we is only going to increase our expenditure and bring different goods," Mothreja added.
He said simply the paint market of Bangladesh was increasing significantly over the years, which encouraged Nerolac to increase the investment to supply quality products to customers.
How big is Bangladesh's decorative paint market was about Tk 4,000 crore in 2019 although it was Tk 3,500 crore in 2017, according to several paint producers and the Bangladesh Paint Manufacturer's Association.
However, during the April-June amount of 2020, the sector witnessed the most detrimental during the past decade as product sales plummeted to nearly nil.
Around 40 neighborhood and multinational firms are actually in operation available in the market, which includes been witnessing an average expansion of around 8 to 10 per cent within the last 10 years.
At present, the twelve-monthly demand for paint stands at almost 200,000 tonnes. The local market for decorative color is not enormous however the future is very good as intake is increasing with economic development.
The marketplace was mainly dominated by foreign companies because they had capital and distributed products among retailers on long-term credit, that was not really a possible option for regional companies.
The future of ornamental painting is bright as the marketplace has been increasing rapidly, which encouraged various foreign companies to purchase the sector.
Berger may be the market leader in Bangladesh with a 55 % share. The other key local companies happen to be Asian Paints, Roxy Paints, Elite Color, Pailac Paints, Moonstar Paints, Ujala Paints and Al-Karim Paints & Chemicals.
Akzonobel of the Netherlands, Nippon Color of Japan and Jotun Paints of Norway want to grab a show of the market as well.