Berger Paints Bangladesh to invest in packaging sector

Berger Paints Bangladesh, the country's leading multinational coatings manufacturer, has decided to expand into the packaging sector by forming a new subsidiary.

The decision was approved at a board meeting on 30 June, according to a price-sensitive disclosure published on the company's website.

As per the statement, Berger Paints will establish a new company named Jenson and Nicholson Packaging Limited (JNPL). The parent company will invest Tk5.10 crore to acquire a 51% equity stake in JNPL, while its wholly owned subsidiary, Jenson and Nicholson (Bangladesh) Limited, will contribute Tk4.90 crore for the remaining 49% stake.

JNPL will set up a new plant in the National Special Economic Zone, where it will manufacture various plastic-based packaging products.

The Berger board has also approved an amendment to the existing land lease agreement with the Bangladesh Economic Zones Authority (Beza) to allocate 1.16 acres of land to JNPL and retain 38.25 acres under Berger Paints Bangladesh. The total 39.41 acres are already under lease from Beza.

Speaking to The Business Standard, Khandker Abu Jafar Sadique, company secretary of Berger Paints Bangladesh, said, "We require both metal and plastic-based container packaging for our operations. That is why we are investing in plastic packaging production."

He added, "We plan to establish the new plant within the special economic zone to benefit from the tax holiday facility promised by the government. Initially, production will meet internal demand, but there is potential for commercial expansion in the future."

Currently, Jenson and Nicholson (Bangladesh) manufactures metal-based containers, which are used by Berger and also sold commercially.

Recommends dividend

Berger Paints Bangladesh has recommended a 525% cash dividend – equivalent to Tk52.50 per share – for the financial year 2024-25, which ended on 31 March. This is the company's highest dividend since FY17, when it paid a 600% cash dividend.

To approve the dividend and the audited financial statements, Berger will hold its Annual General Meeting (AGM) on 25 August via a digital platform. The record date has been set for 24 July.

Despite economic uncertainties stemming from political transitions and looming election-related tensions, the company reported a 4% year-on-year increase in consolidated net profit, reaching Tk336.97 crore in FY25.

Berger's consolidated earnings per share (EPS) stood at Tk72.66, up from Tk69.92 the previous year. Its net asset value (NAV) per share also rose to Tk333.42, compared to Tk309.53 a year earlier.

Its share price fell by 8.13% to close at Tk1,595 on Monday, following a rights offer adjustment after the record date.