BD Paints invests Tk100cr in new Gazipur factory, eyes Tk250cr in annual revenue

BD Paints Limited is set to begin commercial operations at its newly built factory in Gazipur on 18 October, marking a major milestone in its expansion strategy aimed at boosting production capacity and strengthening its market position.

The company has invested around Tk102 crore in the new facility, financed through a mix of bank loans and its own funds.

According to a statement filed with the stock exchanges on Monday (13 October), the new factory has been established to meet the growing demand for both decorative and industrial paints across the country. With the new plant, BD Paints expects to significantly enhance its production efficiency, product range, and overall competitiveness in the domestic paints market.

The new facility, built on 914 decimals of land, has a daily production capacity of 110.60 tonnes of paints and 15,000 pieces of plastic containers.

The company said the new unit is a composite production facility that will manufacture a wide range of products, including water-based paints, solvent-based paints, industrial paints, thinners, chemicals, plastic containers, and printed materials.

SM Mamun Ar Rashid, company secretary of BD Paints, told The Business Standard that the company purchased the land in 2020 and began construction in 2022.

"The work is now almost complete, and the factory is ready for commercial operation on 18 October," he said.

He explained that the company had initially chosen not to disclose its expansion plans publicly but had informed the regulators in due course.

"Now that the project is near completion, we have shared full details with the stock exchanges," he added.

The management believes that the new factory will not only enhance production capacity but also contribute significantly to revenue growth.

"We expect the expansion to gradually raise annual revenue to around Tk250 crore, which will have a positive impact on the company's overall financial performance," the statement said.

Currently, Bangladesh's paints industry is largely dominated by multinational companies, with Berger Paints leading the market, followed by Asian Paints, Nippon Paints, and Kansai Nerolac Paints. However, local companies, including BD Paints, have been gradually expanding their footprint in the domestic market through capacity enhancement and diversified product lines.

The company's existing factory, located in the Barishal BSCIC Industrial Zone, sits on 68.70 decimals of land and produces both water-based and solvent-based paints with a capacity of 10 tonnes per day.

BD Paints, which is listed on the SME board of the Dhaka Stock Exchange (DSE), made its trading debut in 2022 after raising Tk12 crore through a qualified investor offer (QIO) by issuing 1.2 crore shares at a face value of Tk10 each.

As an SME-listed firm, the company is not required to publish quarterly unaudited financial statements.

In the fiscal year 2023–24, BD Paints declared a 12% cash dividend and reported a net profit of Tk8.84 crore, marking a 17% year-on-year increase.

At the DSE on today, the company's shares fell 1.74% to close at Tk50.80, with a price-to-earnings ratio of 35.52 and a market capitalization of Tk320 crore. Despite the recent correction, BD Paints' stock has soared by 161% between 29 May and 18 October, reflecting investor optimism surrounding its expansion plans.

As of 30 June 2025, the sponsors and directors jointly held 30.44% of shares, institutional investors owned 29.22%, and the general public held 40.34%.