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 – – 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 – – 4 th 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.

– 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…