Asian Paints starts operations in Bangladesh
Our Corporate Bureau
04 September 2002
Mumbai: Asian Paints, India's largest paint company, has begun its operations in Bangladesh. The entry into Bangladesh marks Asian Paints 11th joint venture in international markets and its largest green-field venture in overseas markets.
The inauguration of the operations of Asian Paints (Bangladesh) Ltd was done by Bangladesh Minister of Industries M K Anwar and Asian Paints (India) Ltd vice-chairman and managing director Ashwin Dani. M Rahman, executive chairman, Board of Investment, Bangladesh, and M L Tripathi, High Commissioner of India to Bangladesh, were the other distinguished dignitaries at the inauguration.
Said Dani: "The opportunities that the Bangladesh market provides for Asian Paints are immense. The experience that we have gained from operating in three out of six countries in the SAARC [South Asian Association for Regional Cooperation] region has armed us with excellent expertise to operate in this region. We would like to provide value for money and the complete range of products for the Bangladeshi consumer".
He further said that low per-capita consumption of paints, vast potential to upgrade the market, limited product range, increased urbanisation and consistent GDP growth of around 5-6 per cent have been some of the reasons for Asian Paints entering into this market. Moreover, this venture will help the company consolidate its position in the SAARC region.
Asian Paints (Bangladesh) Ltd is a joint venture between Asian Paints (India) Ltd, India's largest paint company, and Confidence Cement Ltd, one of the largest cement producers in Bangladesh. Asian Paints will hold 51 per cent stake in the company, while 49 per cent will be held by Confidence Cement. A fully-integrated paint manufacturing unit has been set up and is situated in the Ghazipur district, north of Dhaka, which will service the entire Bangladesh paint market.
Asian Paints will introduce the Apcolite range of products, which is its premium quality range in international markets, and the Decora range, which is its international brand for economy products. Under the Apcolite and Decora brands, many product segments will be covered in the initial phase.
