Berger Paints raises investment by Tk167cr for third factory

Infographics: TBS

Berger Paints Bangladesh Limited has revised its investment plan for its upcoming third manufacturing plant, raising the total investment to Tk980 crore from Tk813 crore earlier. 

The company also extended the timeline for the commencement of commercial operations by two years to April 2027, according to a price-sensitive statement published on its website on 30 October.

The completion of construction work for the new facility is now expected by 31 March 2027. 

The third factory, which marks one of the largest expansion projects in the country's paint industry, is being developed at the National Special Economic Zone on a 40-acre site, according to the company's official. 

Berger Paints initially announced the plan for the plant in October 2022 with an estimated investment of Tk480 crore. The amount was later revised to Tk813 crore in January 2025 before the latest upward revision to Tk980 crore, reflecting the company's growing confidence in long-term market potential despite economic challenges.

The new facility will manufacture a wide range of products including decorative paints, industrial coatings, marine paints, wood coatings, construction chemicals, adhesives, and automotive paints. These product categories have seen steady demand growth as Bangladesh's infrastructure, industrial, and housing sectors continue to expand.

Currently, Berger Paints operates two manufacturing plants — one in Savar and another at the Kalurghat Heavy Industrial Area in Chattogram. The addition of a third facility is expected to enhance production capacity significantly, helping the company cater to increasing domestic demand while ensuring product diversification.

To finance the project, Berger Paints raised Tk300 crore through the capital market by issuing 27.28 lakh rights shares at Tk1,110 each, including a premium of Tk1,100. The remaining funds will come from the company's internal sources.

The company's board has also called an extraordinary general meeting (EGM) on 18 December to seek shareholder approval for the revised rights share utilisation plan, with the record date set for 20 November.

In its annual report for FY25, Berger Paints said the paint industry saw a modest recovery in 2024–25, growing by around 1% after a slowdown in the previous year. 

However, the sector continues to face challenges such as high inflation, increased taxes and duties, and delayed infrastructure projects. Real estate and private industrial developments have also decelerated, while disruptions in the supply chain, LC restrictions, and rising raw material costs due to currency depreciation have further affected the industry.

Despite these headwinds, paint manufacturers are focusing on innovation, introducing premium and technologically advanced products, and expanding customer service initiatives to maintain competitiveness, the report added.

During April–September 2025, Berger Paints reported a 4% growth in consolidated revenue to Tk1,333.97 crore. However, its consolidated net profit fell by 3% year-on-year to Tk148.63 crore, mainly due to higher raw material costs stemming from currency devaluation and an increase in the corporate tax rate.

The company's share price rose slightly by 0.18% to close at Tk1,425 at the Dhaka Stock Exchange on Thursday.