Home Decor of Berger Paints Bangladesh Limited
Subject: Management | Topics:

Home Decor of Berger Paints Bangladesh Limited

The Bangladeshi paint industry is binuclear in nature, with paint manufacturing centered chiefly on Chittagong and Dhaka. This industry has virtually grown more than doubled in size over the last ten years, providing employment for thousands of people today. Such growth echoes the ongoing urbanization, which is currently spreading at more than 6%. Considering the population of Bangladesh as 145 million, the annual per capita paint consumption in Bangladesh is around 357- 400 grams, which in value is Tk. 30.25 equivalent to US$ 0.44.

According to Bangladesh Paint Manufacturers’ Association the Bangladesh market provides high potential for growth as well as good opportunities for paint manufacturers to upgrade and expand their hold on the market. Currently, the paint industry is growing at an exponential rate of around 10% every year. One of the outcomes of such growth in paint industry market, according to the Real Estate and Housing Association of Bangladesh, has been the entry of local and foreign investments in the country’s paint industry.

The paint market in Bangladesh is highly competitive with more than 200 companies operating in the industry. However, only fifteen of them are national players with the rest operating only on a regional basis. Out of these players, only two are multinational companies including Berger Paints Bangladesh Ltd (BPBL).

The picture of the paint industry was a bit different until Asian Paints, an Indian Giant, entered with style in Bangladesh in 2002. For the first time in Bangladesh, the company introduced the concept of multiple shade choice to the customer in most of its emulsion paints. Such varieties in color shades were not offered by paint companies previously. Asian Paints’ invasion has shaken up a domestic market, competing with the Berger Paints Bangladesh Ltd, which was long seen as dominating the Bangladesh paint market. The fierce rivalry with the Indian giant has forced UK-based Berger Paints to hone its marketing strategy by introducing Color Bank, offering more than 5,000 shades in just 5 minutes.

As a leading company in the paint industry, BPBL is more customer-oriented and continuously investing in its manufacturing process to keep its supreme product quality and reliability compared to that of its competitors. BPBL is able to lead the market since the last twenty years in the decorative sector.

x1

At present Bangladesh paint industry has 5 companies who have significant market share. BPBL is operating by far as the market leader and enjoying 55% of the national paint market share according to the retail audit. The nearest competitor is Asian Paints who resides far below the market leader in aspect of the market share.

BPBL holds the lion’s share of the market in the paint industry in Bangladesh with a strong and very wide distribution network all over the country. With the development of the economy and its burgeoning population, the Bangladeshi paint market presents a threshold of opportunity and great potential. As the market has huge growth prospects, other multinational companies may wish to venture into the Bangladesh market and competition may get fiercer, in future.

HISTORY OF BERGER PAINTS BANGLADESH LIMITED

Berger is one of the oldest names in the world paint industry with a heritage of more than 249 years of paint business. In 1970, Berger Paints Bangladesh Limited (BPBL), erstwhile Jenson &Nicholson, had set up its first factory in Chittagong to manufacture products locally for Bangladesh market.

Berger Asian Others Elite Roxy Pailac

Over the decades, Berger Paints has become the leading paint solutions provider in Bangladesh. Berger has invested more than any other manufacturer in this industry in terms of research &development and advanced technologies like establishment of powder coating plant and emulsion plant. It sources raw materials from some of the best suppliers in the world. The superior quality of Berger’s products has been ensured through strict quality control equal to international standards and through state-of-the-art plants at the factories in Dhaka and Chittagong.

With its strong distribution network, Berger has reached almost every corner of Bangladesh. The nationwide dealer network, supported by eleven sales depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Comilla, Barisal, Mymensingh, Rangpur and Feni has enabled Berger to cater to all parts of the country.

The product range of Berger Paints includes Decorative Coatings, High Build Industrial Coatings, Marine Coatings, Powder Coatings & Pretreatment Chemicals, Adhesives, Wood Coatings, Vehicle Refinishes, Textile Emulsions, Construction Chemicals and Paint Accessories.

Berger Paints has collaborated with some of the world’s leading companies to introduce globally superior product ranges such as Innova – complete wood coating solutions and vehicle refinish brands like Bilux, Nexa Auto Color and V-Fleet.

Berger Paints and Becker Industrial Coatings Holding AB, Sweden, have jointly formed a new company, Berger Becker Bangladesh Limited, which is manufacturing coil coatings for the first time in Bangladesh.

One of the prime objectives of the company is to provide best customer support through Berger Home Decor service. Berger Paints is the first company in Bangladesh to offer a wide range of designer painting schemes for wall, inspiring imagination through Berger illusions.

Berger Paints has taken a drive towards complete product offerings that are lead free and health and environment friendly. The company’s newly launched products include Breathe Easy Eco Series: Water Based Enamel, Breath Easy Interior Emulsion, Sealer& Putty.

In recognition to its standard process management in all departments, Berger has achieved the ISO 9001:2008 Certification.

MISSION & VISION OF THE ORGANIZATION:

The vision and mission of Berger Paints Bangladesh Ltd. (BPBL) is very transparent and tangible. Berger emphasize highly on the ethical commitment to produce benchmark quality product. The vision and mission statement of the company are:

VISION:

‘To be the most preferred brand in the industry ensuring consumer delight.’ Being an innovative and technology driven Company consistently delivering world-class products ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team.

MISSION:

‘We shall increase our turnover by 100 percent in every five years. We shall remain socially committed ethical company.’

Berger paints not only seeks for profit to retain the leading position in the industry but also cares about the environmental and the ethical aspects that a good organization should follow.

ORGANIZATION STRUCTURE OF BERGER PAINTS BANGLADESH LIMITED

Berger Paints Bangladesh Limited, BPBL has a conventional organization structure. Generally six board meeting are called in BPBL during a year where chairman of the board of Directors presided over the meeting .In BPBL several committees like the Audit committee, Risk committee, Remuneration committee, Executive committee and the Purchase committee are formed along with Managing Director (MD) and other Executive & non-Executive Directors. These committees sit at least once a month to approve various proposals brought by the management prior to implementation. All the proposals are initiated by the mid- level managers and then forwarded to the Managing Director (MD) through the head of the divisions or departments. The company has also a legal problems faced by the company and external auditors to conduct audit activities of BPBL.

There are four Non-Executive Directors, two Executive Director and ten Managers work under the Managing Director (MD) of the company. Among the ten managers three directly report to the Executive directors and other report to the Managing Director. The Managers of each department monitor the work activities of subordinates, convey top management decisions and provide necessary feedback to reach organizational goals and objectives. In response the bottom level managers perform their responsibilities sincerely and report regularly to their immediate superiors.

OWNERSHIP OF THE COMPANY:

In 1970,Berger Paints Bangladesh Limited (BPBL), erstwhile Jenson& Nicholson, had set up its paint factory in Chittagong. Theshareholders were Jenson & Nicholson (J & N), Duncan Macnei l& Co. Limited and Dada Group. Duncan Macneil subsequentlysold their shares to the majority shareholder J & N Group. TheDada Group’s share was ultimately vested with the Governmentof the Peoples’ Republic of Bangladesh after the independenceof the country in 1971. The name of the company was changedfrom J & N (Bangladesh) Limited to Berger Paints BangladeshLimited on January 1, 1980. In August 2000, J & N Investment(Asia) Limited purchased the Government shareholding. InDecember 2005, the company issued 5% shares to the publicand listed with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

 

Distribution of share:

95% belongs to the Jenson & Nicholson ( J & N)

5% belongs to the public

PRODUCT OFFERINGS OF BERGER PAINT BANGLADESH LIMITED

Production of paints and coatings is the core business of Berger paints. Besides the exceptional quality of Berger Paints products, BPBL is also well-known for its diversified range of paint products manufactured for various purposes including decorative/architectural paints, industrial coatings, marine paints and powder coatings.

The product range includes specialized outdoor paints to protect against adverse weather conditions, Color Bank, superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compounds and Epoxies, in each of these product categories, Berger has been the pioneer. Berger also provides customer support connecting consumers to technology through specialized Home Décor service giving free technical advice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently launched Illusion – the first designer paint solution.Berger Paints has collaborated with some of the world’s leading companies to introduce globally superior product ranges such as Innova -complete wood coating solutions and vehicle refinish brands like Bilux, Nexa Auto Color and V-Fleet.

The Product and Service range of Berger Paints Bangladesh Ltd. are as follows:

  • Regular Coatings
  • Industrial Paints
  • Marine Paints
  • Outdoor Paints Protective
  • Color Bank
  • Textured Coatings
  • Heat Resistant Paints
  • Roofing Compounds and Epoxies
  • Powder Coatings
  • Auto Refinish and Textile
  • Home Décor

Others Decorative Products:

Illusions: Berger ‘illusions’ is not just a paint it’s a whole new lifestyle for walls. It is a premier brand for fashion and design for walls which is offered by Home décor. It has a range of designer wear for walls with thousands of color options.

Robbialac Aluminium Paint: RobbialacAluminium Paint is a superior 2- pack aluminum paint with a brilliant silver-like luster. It is ideal for application on the exteriors of storage tanks for water, petrol, oil.

Robbialac Damp Stop: This specially formulated two-pack compound is based on selected binder system incorporated with inert pigments’ and fillers, which seals the surface by eliminating the permeability of moisture and water that actually cause dampness.

Rust Blaster: Very effective liquid which can able to clean Rust from any Metal Elements.

Power Bond: This product is basically the Glue which is use for join the wood and ceramic based product.

Besides Berger has different wall putty, primer, sealer, damp stop ,stainer , roofing compounds, etc of Robbialac and Breathe Easy for internal and external wall and paint care. According to thinner/ solvent usage paints can be divided into two categories:

  • Water-based
  • Solvent-based

PRODUCT DEVELOPMENT& DIVERSIFICATION

Interior Product Development:

Keeping in line with other developed countries, Berger uses the latest technologies to fulfill consumer demands over the years, which have always strived to be environmentally friendly. It always emphasized on the consumer’s needs and desires, thus creating a product range that is completely consumer centric. As the world is tackling various issues on climate changes, Berger too has been an earnest participant towards this cause, solemnly vowing to stop the environmental degradation so that they can give the next generation a decent place to live. Rooting from the same thought, Berger introduces a new interior emulsion ‘Breathe Easy’.

 

Product Details Breathe

Easy is a unique paint and the first of its kind in Bangladesh that will completely change customers impression towards paints. Breathe Easy will provide houses with a healthy environment with a touch of nature for walls. Breathe Easy Emulsion is a specially formulated environmentally friendly low VOC (Volatile Organic compound) interior paint.

It’s especially VOC free resin control minimum air pollutant and has an extremely low /nil odors during application and drying. Rooms painted with Breathe Easy Emulsion can be used within couple of hours without any lingering smell usually associated with freshly painted rooms using conventional paint. Its characteristic additives improve its clean ability & provide water repellency which helps cleaning of all sorts of stains and dirt from the wall and gives the walls evergreen appearances rich & shiny look. Breathe Easy Series of paints contains:

  • Breathe Easy Sealer
  • Breathe Easy Putty
  • Breathe Easy Emulsion Paint
  • Breathe Easy Enamel

Product diversification

Berger Paints (BD) Limited, the absolute market leader in Bangladesh Paint Industry with more than 50% market share, has been maintaining the leadership resulting from diversified conventional and technology driven offerings, relentless efforts for product diversification, strategic alliance with world reputed organizations in different areas, investment in infrastructure development, wide distribution network to reach every nook & corner of the country and commitment to the stakeholders. As a part of diversification plan, Berger has signed an agreement with PPG Industries, USA for exclusive distributorship of PPG products in Bangladesh. This accord has inspired and opened up a great opportunity for the vehicle owners and users to experience world class Auto colors.

PPG Industries is a leader in its markets; is a streamlined, efficient manufacturer; and operates on the leading edge of new technologies and solutions. PPG enables the uncompromising collision center to gain competitive advantage in its local market by implementing state-of-the-art repair process solutions that incorporate innovative technology and repair processes, support services and tools.

Features/Benefits:

  • Repair process excellence – fast cycle times
  • Superb product and color consistency
  • Color leadership
  • Global benchmark in technical training & process expertise
  • Universal toners for basecoat/single layer
  • Fast, simple compact system
  • Spectral grey undercoats
  • Engine bay repair Process
  • Minor repair system

BERGER HOME DECOR SERVICES AT A GLANCE

The Berger home decor services is a vital unit of the Berger Paints Bangladesh Limited. It’s primarily involved in generating business for the company by offering a wide range of color based services to its clients. The home decor services acts as an intermediary between the company and all its clients. It provides all kinds of color related solutions to its customers.

The unique feature about home decor is that it gives the opportunity to its clients to interact directly with the color consultants & seek for any color based advice. The experienced color consultants guide the customers to give their dream a shape. They provide important information about the right color, shades & designs for their client’s home. The consultants also assist the customers in choosing the desired design, paint from a diversified range of colors, shades for the illusion. Their customized color bank software helps the customer to choose from over a thousand of different color shades. The home decor deals with all sorts of customer complaints and inquires. It focuses on long term customer relationship by sustaining not only the existing customers but also attracts the new customers of the market segment. Each home décor branch is monitored by a branch manager who is in charge of regulating & evaluating the overall performance of the branch. The color consultants, senior color consultants are all liable to report directly to the respective branch manager. On getting started with the job, the color consultants had to go through an on the job training program where they get to learn about the latest imaginative mix of colors, textures, shades, techniques and application. The Illusions service of home décor is spread throughout the country across the key districts i.e.- Dhaka, Chittagong, Sylhet, Rajshahi, Khulna, Bogra, Comilla and their latest addition is in Cox’s bazar.

The core services of Berger home décor are:

  • Advice on surface preparation
  • Right paint selection
  • Color scheme
  • Dealer selection
  • Experienced painter

 

Recent Developments and Extensions of BPBL

Constant innovation and diversification into different sectors have been a priority for Berger Paints in recent years. The company has introduced textile printing binder and finishing agents under the brand name of Texbond. Construction chemical is another new avenue in which Berger has come forward, products include: Mr. Expert 3 in 1 Rust Blaster, Salt Safe, Water Barrier, Crack Filler, Latex Plus, Tile Grout, Cement Mix. Berger Paints and Becker Industrial Coatings Holding AB, Sweden, have jointly formed a new company, Berger Becker Bangladesh Limited, which is manufacturing coil coatings for the first time in Bangladesh.

ACHIEVEMENTS OF BERGER PAINTS BD LTD.

Berger was honored with “The Top Tax Payers Award” in 2003 and 2011 by the Income Tax Authorities of the Government of Bangladesh.

Additionally, the company received the “Channel-I Performance Award 2004” for its efforts in promoting the young painters and architects of the country through the Berger Young Painters’ Art Competition and Berger Young Architects’ Award. This award recognizes the role of BPBL as a Responsible Corporate Citizen.

In 2011 Berger achieved “Best Paint Brand Award” arranged by Bangladesh Brand Forum and Nielson. In 2012 Berger Paints achieved “ICMAB Best Corporate Performance Award”.

CSR & MISCELLANEOUS ACTIVITIES OF BERGER PAINTS BD LTD.

In the increasingly conscience-focused market places of the 21st century, the demand for more ethical business processes and actions is increasing day by day. Berger Paints Bangladesh Limited marked out CSR policies that ensure business operations that follow ethical standards. They just do not strive for making money but do business in keeping the 3 Ps in mind -people, planet and profit.

Berger Paints Bangladesh Limited has been patronizing art for more than a decade. In continuance of its commitment, Berger Paints has been organizing Young Painters’ Art Competition (BYPAC) since 1996. This particular initiative of Berger Paints has highly encouraged the young aspiring artists of Bangladesh. For the past two years Berger Paints has also been giving Lifetime Achievement Award to venerated artists for their enormous contribution and influence in the field of art of Bangladesh.

Contribution in the field of Architecture

Berger Paints Bangladesh Limited contributes in the field of Architecture by arranging Berger Award for Excellence in Architecture. Berger introduced the Berger Young Architects’ Award back in 2003, the first of its kind in Bangladesh. To widen the horizon, in 2007, the award was classified into two categories, namely “Berger Award for Excellence in Architecture” and “Berger Young Architects’ Award”, so that the award can inspire the mature as well as the young architects. The winners are selected by a jury board with eminent architects as its members. The event is arranged bi-annually. Berger Paints also arranges exhibitions showcasing the projects submitted in the competition.

 

Scholarship program for BUET students

As part of its corporate social responsibility, Berger Paints introduced Berger Award Programme for the Students of Architecture BUET (BASAB) in 2006, in collaboration with the Department of Architecture, BUET to promote the young architects, to give them a real life experience and inspire them to go further. Awards are given in four categories, these are:

  • Berger Best Design Award
  • Berger Best Portfolio Award
  • Promising Designer Award
  • Berger Travel Grant

Scholarship Programme for Khulna University

From 2011, Berger Paints provides scholarship for the students of Architecture Discipline of Khulna University. Besides, Berger will also contribute to the KUAD-BERGER Resource Corner of Khulna University where all the latest learning resources of architecture will be added.

 

Aid in Natural calamities

In an effort to contribute to the infrastructure restoration of the Sidr affected area of MajherChor, Berger Paints had provided free paints. Berger Paints also contributed TK. 10 lakhs in the government fund in 2007 for flood affected victims to help rebuild lives.

Social work for Autistic Children

In Bangladesh, an approximate of 10percent of the population suffers from various disabilities. Amid them, a large number of children are autistic. Being committed to the society, Berger Paints Bangladesh Limited (BPBL) contributes to the well-being of the physically and mentally challenged people of Bangladesh giving focus on autistic children.

Recently BPBL has selected some organizations namely as SEID Trust, Autism Welfare Foundation (AWF), Society for the Welfare of Autistic Children (SWAC), Scholars Special  School, Tauri Foundation, Deepalay etc. who are working with autistic children to facilitate them with better infrastructural support.

Contribution in ProthomAlo Fund for Acid victims

Berger Paints has provided a donation of Taka Three Lakhs to the ProthomAlo Trust for Assistance of Acid Victims, as a part of the company’s corporate social responsibility. The Daily ProthomAlo, the leading national daily newspaper, has founded the trust as an initiative for support and assistance for women who have been victims of acid violence.

Related Management Paper: