Nippon Paint Bangladesh's business grows around 20% yearly
Rajesh Sircar, deputy general manager at Nippon Paint Bangladesh, recently shared his insights on the paint market, the company's current position, future plans, and challenges during an interview with The Business Standard.
Nippon Paint Bangladesh, a Japan-based coating company, has been operating in Bangladesh since 2014. In a relatively short time, it has managed to capture a significant 5% share of the country's coating market by delivering high-quality products to its customers.
Rajesh Sircar, deputy general manager at Nippon Paint Bangladesh, recently shared his insights on the paint market, the company's current position, future plans, and challenges during an interview with The Business Standard.
Can you tell us about your company's presence in Bangladesh?
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Nippon Paint commenced its commercial operations in Bangladesh in 2014, establishing a manufacturing facility in Manikganj. Our primary focus has been on architectural coatings, also known as decorative paints, and coil coatings used on corrugated sheets. Our major clients for coil coatings include prominent steel companies like Jalalabad Steel and Alif Steel.
In addition to this, we supply paints to the motorcycle and automobile industries. We already supplying paint to Honda, Yamaha motorcycle. As a multinational corporation, we have the capability to produce a wide range of paints, including industrial, marine, waterproofing, and innovation-based paints tailored to various client needs.
From our modest beginnings in 2014, Nippon Paint has grown to capture 5% of the total coating market in Bangladesh. We have been consistently achieving an impressive annual growth rate of approximately 20%. Currently, we operate with eight depots and have over 2,000 dealers and more than 600 CCM throughout the country, ensuring our presence in every Thana. Our customer-centric approach allows us to provide paints that meet specific demands.
Additionally, our managing director inaugurated a central warehouse during his visit to the country, enabling us to distribute finished products across the nation efficiently. We also produce paints with different price points to cater to a diverse customer base. Importantly, our products prioritize customer health and safety, with absolutely no harmful chemicals like formalin used. While the use of formalin in the paint industry is not illegal, we have opted for alternative and safer chemicals. We are also pioneers in introducing antiviral and antibacterial paints to the market.
What are your plans for Nippon Paint in Bangladesh?
Recently, our managing director visited Bangladesh and outlined an ambitious plan: to secure the second position in the Bangladesh coating market within the next three years. The decorative paints segment dominates the market, accounting for approximately 70% of the total market share. We intend to strengthen our foothold in the country by expanding our presence in this segment with new & innovative products and subsequently exploring other segments such as Waterproofing, Marine, Automotive and Industrial coatings. In addition to paint coating solution, we are also looking at beyond paint categories to capitalize our group strength.
To achieve this goal, we are gradually increasing the production capacity of our factory in Manikganj and have acquired additional land for future expansion.
What motivates Nippon to invest further in Bangladesh?
Bangladesh is experiencing significant development as an emerging nation. A high rate of high-rise building construction is going on due to limited land availability. Therefore, the demand for paints has consequently surged. Moreover, there is an increased awareness among people regarding the protective attributes of paints. Painting was once seen merely a way of beautification which is now shifting to a layer of protection.
Over the past decade, the country's paints market has grown at an annual rate of 10%, with current domestic market sales exceeding Tk 5,000 crores. Nippon recognizes Bangladesh as a promising market to foster its paints business.
When we initially established our factory, our annual production capacity was 2000 metric tons. In response to growing demand, we have expanded our capacity to 24,000 metric tons annually.
What are the challenges in the coating market?
The coating market in Bangladesh is highly competitive, with both national and foreign companies vying for market share. Surviving in this competitive market, which is largely controlled by foreign firms, requires delivering innovative, technology-based products and strong supply chain management.
Nippon Paint Bangladesh capitalizing on the unique opportunities presented in the Bangladeshi market, which is characterized by economic growth and relatively weaker competition from Manufacturer compared to neighboring countries. Effective strategic planning and execution will be crucial for the company's success in this environment.
With 142 years of experience in the paint industry, we are a leader in Asia and have a significant global presence by offering innovative products and services to clients. We are known as Total Coating and Construction solution (TCCS) worldwide, providing comprehensive solutions in building construction and painting.
Additionally, the renowned Japanese technology we employ sets us apart in terms of quality. Our company's name, Nippon, which means the "Land of the Rising Sun" in Japanese, reflects our commitment to establishing a strong presence in the Bangladesh market by delivering world-class service and innovative, sustainable products to our customers.
