Transcript Asian Paints in Bangladesh

Asian Paints in Bangladesh
A brief presentation
By
Aroop Chatterjee
General Manager, Asian Paints Ltd. Bangladesh
Asian Paints Ltd. – a brief background
• Asian Paints Group started in Bombay (now Mumbai) ,India in 1942
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– a small ‘garage’ enterprise started by 4 friends, soon professionalized
• Have been market leader in India since 1960s – now controls over
55% of the Indian paint market
• Recipient of numerous international awards –
– widely admired for professionalism and corporate governance
• Ventured into International business in Emerging markets in late
90s –
– Now present in 18 countries across Middle East,Africa,South
Asia,South East Asia and Carribean and Pacific Islands.
• Over USD 2 bn. Turnover –
– 4th largest in the world in terms of architectural coatings
Asian Paints in Bangladesh…
• Journey started in 2002,
– with our local partner, Confidence Group.
• The co.’s largest green field venture outside India so far.
• Complete supply chain managed locally
– Completely manufactured in Bangladesh, by Bangladeshis, for
Bangladesh consumers.
• In 11 years,we have emerged as a strong no. 2 in the Industry with a
significant market share.
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A team size of over 500 direct and indirect employees
selling to over 1000 direct customers (dealers/projects),
being applied by lakhs of painters across the country
and beautifying uncountable homes and other premises across
Bangladesh
Why are we here in Bangladesh ?
• A fast growing emerging market – as identified in the
N11 list of Goldman Sachs
• Huge potential of growth in paint consumption – per
capita consumption lower than other South Asian
countries.
• A booming consumer base eager to upgrade in every
aspect of life - excited about better products.
• A growing real estate and infrastructure industry –
bellweathers of our business
• An immense opportunity to be a part of a
growing,vibrant economy.
Where we stand today…
• We manufacture and sell around 17000 Tonnes of
finished paints in a year
– One fifth of the overall paint market in Bangladesh
• We have grown faster than the market –
– because of fair and transparent dealing with all
stakeholders,
– an advanced set of products of better quality
• We are conscious of the environment and society
– taking up all required measures for environment friendly
products and processes (Lead Free since 2010).
– Doing our bit for the society as part of CSR,wherever
relevant.
What is our contribution ?
• The category of paints play a big role in a nation’s economy
– Apart from aesthetics, serves protective purpose.
– Saves huge money in terms of replacement of assets – assessed to
around 0.8-0.9% of GDP in certain studies
• Generate direct and indirect employment
– Apart from 2 managers,ALL in the team of 500 are local employees.
– Generate entreprenuership among thousands of dealers,
painters/contractors and vendors
– Skill development of painters through training,improves their earning
potential.
• Contribution to the national exchequer – always committed to
EVERY applicable law of the land – compliance taken very seriously.
– Overall contributed over BDT 200 crores in VAT/SD/Tax over last 5
years, at a healthy average annual growth of around 18-20%.
Business enablers – our experiences…
• We see relevant authorities as ‘enablers’ rather than
‘regulator’s
– BOI/Bangladesh Bank/NBR/DoE/Other offices
assisting us in various areas.
• We have seen positive response from most offices in
general,towards the co.
• Encouraging to see speed of approval improving in some
areas – will help if also happen for others.
• We don’t expect any special favours
• we JUST expect a FAIR attention and understanding of
our requirements – followed up with prompt action.
The path ahead…how we see the future
• We are going through exciting times
• Group focus on Bangladesh is extremely high
and there is a strong commitment to
investments in future.
• In about 3-4 years time we would need a
second plant since the current one won’t
support the growing demand for our brands.
• We will continue to invest in people,resources
and technology in our Bangladesh Unit .
Our expectations from the enablers…
• Help us with necessary approvals within reasonable timelines – if
documentation is followed as per guideline we should see faster
turnaround time
• If we need infrastructural support, please let us know how the
same can be enabled (electricity, gas connections)
• Let us help you understand better how we are following processes
to benefit the environment and the economy.
• Will appreciate a patient hearing on how removing some
roadblocks (duties on Raw Materials,Supplementary Duty) will
enable us contribute even more.
• Help us contribute even more …in ‘beautifying’ the nation
– Economy
– People
– Infrastructure
• Thank You…