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Report on Berger Paints Bangladesh Limited

Prefetory Pary

Title Fly

Title Page

Report On
Berger Paints Bangladesh Limited

Prepared For
U

Professor Dr. M. Alimullah Miyan


Vice-Chancellor

Prepared by
U

Elora Yesmin
ID # 15304033
Program: MBA

IUBAT- International University of Business Agriculture and


Technology
July 10, 2016

ii

Report on Berger Paints Bangladesh Limited

IUBAT

Letter of Transmittal
10 July 2016
Professor Md. Lutfar Rahman
Professor on Practice
IUBAT- International University of Business Agriculture and Technology
4 Embankment Drive Road, Sector 10, Uttara Model Town,
Dhaka 1230, Bangladesh

Subject: Submission of Internship Report.

Dear Sir,
This is a great opportunity & immense for me to submit this report on the topic of Berger
Paints Bangladesh Limited. I have prepared this report as partial fulfillment of the course
MGT 501- Management of Organization.

I have tried my level best to prepare this report according to your prescribed standard. It was
certainly a great opportunity for me to work on this report to actualize my theoretical knowledge

I express my heart full gratitude to you to go through this report and make your valuable
comments. It would be very kind of you, if you please evaluate my performance regarding this
report.

Thank you
Sincerely Yours,

----------------------------Elora Yesmin
ID# 15304033ts
MBA

iii

Report on Berger Paints Bangladesh Limited

in the practical arena.

Table of Contents
PREFETORY PARY .......................................................................................................................... I
TITLE FLY................................................................................................................................................. I
TITLE PAGE ............................................................................................................................................. II
LETTER OF TRANSMITTAL ......................................................................................................................... III
EXECUTIVE SUMMARY ............................................................................................................................. VI
CHAPTER 01 - INTRODUCTION PART ............................................................................................. 7
1.1 INTRODUCTION.................................................................................................................................. 7
1.2 ORIGIN OF THE STUDY ........................................................................................................................ 7
1.3 PURPOSE OF THE STUDY ..................................................................................................................... 7
1.4 SCOPE OF THE STUDY .......................................................................................................................... 7
1.5 LIMITATION OF THE STUDY................................................................................................................... 8
1.6 METHODOLOGY................................................................................................................................. 8

2.1 BACKGROUND ............................................................................................................................... 9


2.1.1 Berger Paints Bangladesh Ltd: An Overview ........................................................................ 10
2.1.2 Berger Paints Bangladesh Ltd: At a Glance.......................................................................... 11
2.2 CORPORATE GOVERNANCE ................................................................................................................ 12
2.2.1 Board of Directors ................................................................................................................ 12
2.2.2 Management........................................................................................................................ 12
2.2.3 Corporate Address................................................................................................................ 13
2.3 ORGANIZATION ANALYSIS ................................................................................................................. 14
2.3.1 Strategic Posture .................................................................................................................. 14
2.3.1.1 Mission .......................................................................................................................... 14
2.3.1.2 Vision............................................................................................................................. 14
2.3.1.3 Objectives...................................................................................................................... 14
2.3.1.4 Strategy ......................................................................................................................... 14
2.3.2 Current Performance ............................................................................................................ 15
2.3.2.1 Market Share................................................................................................................. 15
2.3.2.2 Product .......................................................................................................................... 16
APPENDIX .................................................................................................................................. 18
BIBLIOGRAPHY ...................................................................................................................................... 18

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Report on Berger Paints Bangladesh Limited

CHAPTER 02 ORGANIZATIONAL PART......................................................................................... 9

List of Table
TABLE 1: LIST OF BOARD OF DIRECTORS ........................................................................................................ 12
TABLE 2: BPBL PERFORMANCE IN LAST FIVE YEARS ........................................................................................ 15
TABLE 3: MARKET SHARE OF DIFFERENT COMPANIES ....................................................................................... 15
TABLE 4: PRODUCT LIST.............................................................................................................................. 17

List of Figure

Report on Berger Paints Bangladesh Limited

FIGURE 1: ORGANOGRAM........................................................................................................................... 13
FIGURE 2: SOME PRODUCT LOGO ................................................................................................................ 17

Executive Summary
Berger is the pioneer in paint industry of Bangladesh and the major specialty
paints business with products and ingredients dating back more than 250
years. Berger Paints started painting Bangladesh since independence. With
the entry of Berger Paints into the Bangladesh market, the country has been
able to benefit from its global paint industry experience.
Over the decades, Berger has involved and transformed itself in becoming the
leading paint solutions provider in this country and has diversified into every
sphere of the industry- from Decorative Paints to Industrial, Marine and
Powder Coatings.
In this report I have tried to show managing director name, employee/staff,
production and organizational chart of BPBL. It is operating by far as the
market leader and currently hold 55% market share of the entire paint industry
of Bangladesh. My findings had both quantitative and qualitative figures

Report on Berger Paints Bangladesh Limited

obtained from secondary data.

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Chapter 01 - Introduction Part


1.1 Introduction
The Company was incorporated on 6 June 1973 as a Private co. limited by shares registered
under the Companies act. Subsequently the company converted to Public company. Limited by
shares vide extra Ordinary General Meeting held on 21 June 2005 and is listed both in Dhaka and
Chittagong Stock Exchanges of Bangladesh.

1.2 Origin of The Study


This report has been prepared as a part of course work for the subject MGT 501 (Management of
Organization) of MBA program under in the College of Business Administration, IUBAT
International University of Business Agricultural and Technology. This report Berger Paints
Bangladesh Limited was assigned by Professor Md. Lutfar Rahman, Professor on Practice,
College of Business Administration-IUBAT.

1.3 Purpose of The Study


The purpose of the study is to understand the practical things and have a practice for MBA
practicum. By this report I understand how to get preparation for defense and how to arrange the
data chronologically.

1.4 Scope of the study


The scope of this study was strictly confined to the annual report, web site and different report
what have been previously done on Berger paint Bangladesh limited. All data related to this
report was collected from web sites of BPBL & other related Document.

1.5 Limitation of the study


There were some restrictions to have access to the information confidential by concern
authority.
Time and cost constraints also other limitations regarding this analysis.
Lack of experience of the research.
Report part was based mainly on financial statements and personal work experience.

1.6 Methodology
For smooth and accurate study everyone have to follow some rules & regulation. The study
impute were collected from two sources:
Annual report of BPBL
Various publications on BPBL,
Website

Chapter 02 Organizational Part


2.1 Background
In 1760 a young color chemist living in London, Louis Steigen Berger,
was manufacturing Prussian blue using a secret process. He changed his
name to Lewis Berger on marriage, and his company began exporting to
Australia in 1850 in ships like the Catherine Shearer.
In 1916, the 150 year old Lewis Berger & Sons company began its
Australian operation at Rhodes, NSW, building the largest timber
structure in the Southern Hemisphere.
In 1923 Berger and other famous Australian brands, such as Berlei
Lingerie, Uncle Toby's and Tooheys, joined together to form the
Australian Made Preference League.
Also in the 20's, Berger paint was selected for aviator Charles Kingford Smith's famous Southern
Cross and Ford Motor Company started using the company's automotive finishes in 1925.
1932. The opening of Sydney Harbour Bridge was a proud moment for Berger. Berger had
supplied 60,000 gallons of paint to protect the bridge steelwork, thus providing work for many
hundreds during the Great Depression.
In the 1940's and 1950's Berger increased employment opportunities by establishing
manufacturing facilities in every state of Australia.
In 1974, 51.4% of Australians chose Advance Australia Fair as the national anthem to supersede
God Save the Queen. In the same year, the company changed its name from Lewis Berger &
Sons to Berger Paints.
In September 1988 Berger Paints was acquired by Dulux Australia. This provided a sound base
for the future by giving Berger access to the very best worldwide resources for research,
technology and marketing.
In the 1990's Berger was re-launched in Australia with the 'Made with People in Mind'
proposition, reflecting Berger's deliberate consideration of the human sensitivities when painting.

2003 Berger revisits its famous 'Keeps on keeping on' proposition and continues to deliver honest
results.

2.1.1 Berger Paints Bangladesh Ltd: An Overview


Berger is one of the oldest names in the world paint industry and the country's absolute market
leader and paint solution provider 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.
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 known names 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 eight (9) sales depots strategically located at Dhaka,
Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Comilla, Barisal and Mymensingh has enabled
Berger to cater to all parts of the country.
The product range of Berger Paints Bangladesh Limited includes Decorative Coatings, High
Build Industrial Coatings, Marine Coatings, Powder Coatings & Pretreatment Chemicals,
Adhesives, Wood Coatings, Vehicle Refinishes, Textile Emulsions, Paint Accessories (Paint
Brush). In each of these product categories, Berger has been the torchbearer.
Bergers one of the prime objectives is to provide best customer support through Berger Home
Decor service, which is available from Banani, Dhanmondi, Uttara in Dhaka and also from
Chittagong, Comilla, Sylhet, Khulna and Bogra.
Berger Paints is the first company in Bangladesh to offer a wide range of designer painting
schemes for wall, under the brand name - illusions. The company also offers Innova - complete
wood coating solutions and Power Bond adhesive. Berger provides world class vehicle refinish

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products such as Bilux, Nexa Auto Color and V-Fleet brands, in collaboration with PPG
Coatings. Berger Paints has introduced textile printing binder and finishing agents under the
brand name of Tex bond for the export oriented textile industry.
The companys newly launched products include Breath Easy Interior Emulsion, Jensolin Self
Leveling Epoxy industrial floor paint and Mr. Expert 3 in 1 Rust Blaster, Salt Safe, Water
Barrier.
Recently Berger has joined hands with Becker Industrial Coatings Holding AB, Sweden, a global
giant in manufacturing coil coatings. Under the joint venture agreement, a new company, Berger
Becker Bangladesh Limited will produce coil coatings for the first time in Bangladesh.
In recognition to its standard process management in all departments, Berger has achieved the
ISO 9001:2000 Certification.

2.1.2 Berger Paints Bangladesh Ltd: At a Glance


Berger Paints started its sailing into the sea of Bangladesh from pre-liberation era, to be precise
in 1950. The main business flourished in the post liberation phase. In Bangladesh the major
milestones of Berger Paints are given below:

1950 Started operation in Bangladesh by importing Paint from Berger UK


1970 - Establishment of Chittagong Factory
1980 Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N)
1991 BMRE in Chittagong Factory
1995 Establishment of Double Tight Can Manufacturing Plant
1999 Establishment of Most Modern Sate-of-the-Art Paint Production Plant in Dhaka
2002 - Construction of own building for the Corporate Office in Dhaka
2004 Establishment of Powder Coating Plant
2005 BPBL went Public.
2006- Marge with Haque and established a new small plant
2009 -Implementation of SAP across the company.
2011- Establishment of a joint venture company named Berger Becker Bangladesh Limited
(BBBL).

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2012- Berger paints teams up with Hempel


2012- Established a new paint plant for Tin industry.
Eight strategically located Sales Offices throughout the whole country. (The locations of
the Sales Offices are shown in a map attached in the annexure)
A wide distribution channel reaches the whole country with a network of almost 1000
dealers

2.2 Corporate Governance


2.2.1 Board of Directors
The list of Board of Directors of the company is given below:

Position

Name

Chairman

Mr. Gerald K. Adams

Managing Director

Ms. Rupali Chowdhury

Directors

Mr. K. R. Das, Mr. Anil Bhalla, Mr. Subir Bose, Mr.


Jean-Claude Loutreuil, Mr. Masih Ul Karim, Mr.
Abdul Khalek,

Company Secretary

Mr. Abdul Khalek, FCA


Table 1: List of Board of Directors

2.2.2 Management
The Company is operating through well-defined management structure headed by the Managing
Director. Under the Managing Director there are various departmental heads, senior and midlevel managers, officers and staffs. Managing Director and the policy makers meet with regular
interval to review various business, operational and administrative issues.

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Managing
Director

Director
Finance

GM Supply
Chain

GM Mfg
& Project

Manager
GM System

Manager
HR

GM
Finance

Manager
FG & Dist

Manager
Planning

Manager

Manager

Deputy
Finance
Manager

Officer FG
& Dist

Planning
Officer

Assistant
Manager

Assistant
Manager

System
Officer

H.R.
Officer

Assistant
Manager
Finance
Officer
Marketing
Manager
Assistance
Manager
Officer

Plant
Manage

Production
Manager

Officer

Officer

Q.C.
Manager
Officer

GM R&D

Develop.
Manager

General Sales
Manager
Branch
Manager
Officer

Regional Sales
Manager
Area Sales
Manager

Manager
Water Base
Officer

Manager
Solvent Base
Officer

Officer
Figure 1: Organogram

2.2.3 Corporate Address


Berger House, House # 8, Road # 2, Sector # 3
Uttara Model Town, Dhaka-1230
Phone : 02-48953665
Fax : 02-48951350
Email :info@bergerbd.com,coatingsolution@bergerbd.com
Website : www.bergerbd.com

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2.3 Organization Analysis


2.3.1 Strategic Posture

2.3.1.1 Mission
We shall increase our turnover by 100% in the next five years. We shall remain socially
committed ethical Company.

2.3.1.2 Vision
We shall remain as the benchmark in the Paint industry by:
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.

2.3.1.3 Objectives

To continue being the market leader by working in Harmony with Customers, Employers
and Employees.
Consistent sales growth, increasing productivity and developing new products befitting
consumer needs.
To achieve total consumer satisfaction by ensuring higher quality with reasonable price.
To bolster customer satisfaction from which one can get an array of services pertaining
to painting.
To project itself as an ethical and socially responsible company.

2.3.1.4 Strategy
Our strategy is to build long- term partnership with the customer/consumers
With their support, we aim to maximize the potential of our business through a combination of
enhanced quality of product, service, creative marketing, competitive pricing and cost efficiency.

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2.3.2 Current Performance


Berger Paints Bangladesh Limited Performance in Last Five Years
Particulars

Turnover
Value Added Tax ( VAT)
Turnover (NET)
Gross Profit
Profit before Tax
Profit after Tax
Shareholders Equity
Total Assets
Total Bank Borrowings
Total Current Assets
Total Current Liabilities
Current Ratio (Time)

2015
2,872,447
389,783
2,482,664
943,586
434,297
796,393
1,301,275
45,000
817,325
428,250
428,250
1.91

2014
6,599,190
1,115,571
5,483,619
2,087,964
905,555
704,636
1,684,464
2,951,182

2013
5,333,002
737,098
4,595,904
1,881,063
779,772
579,681
1,327,662
2,428,256

1,907,441
1,167,533
1.63

1,592,419
1,014,828
1.57

(Taka in 000)
2012
2011
4,499,206
3,527,759
617,431
480,087
3,881,775
3,047,672
1,349,966
1,138,528
540,867
466,557
400,660
339,351
910,304
880,667
1,734,193
1,639,332
150,000
1,059,892
1,054,927
753,214
687,962
1.41
1.53

Table 2: BPBL Performance in Last Five Years


2.3.2.1 Market Share
At present Bangladesh paints industry has 6 companies who have significant market share.
Berger Paints Bangladesh Ltd. is operating as the market leader and enjoying almost 45% of
national paint market share. The nearest competitor is Sagar Chemical and Paint Industry Ltd.
who resides far below the market leader in aspect of market share.
The following Table shows the present market share of different companies in paint industry of
Bangladesh:
Companies
BPBL
Sagar Chemical and Paint Ind. Ltd.
Elite
Asian
Pailac
Roxy
Moon Star Paint Chemical Ind.
Others

Market Share
44.7%
13.6%
6.8%
4.2%
5.9%
4.8%
3.7%
16.3%

Total
100%
Table 3: Market share of different companies

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The Table shows that Sagar Chemical and Paint Industry Ltd, who are mostly known a Romana
Paints manufacturer, enjoying a market share of 13.6% and Elite Paints market share is 6.8%. A
very mentionable point about the national market share of different companies is, recently the
market share of the local companies are declining whereas the market share of Berger Paints
Bangladesh Ltd. is increasing. Added here, very recently giant India based multinational paint
company Asian Paints has entered into this market under joint venture investment with
Confidence cement Inc Ltd. Another local company Aqua has launched recently. Asian Paints
market share in 2011 is 4.2%. Though the share is not very high but being new entrant their
growth is significant. The market shares of the major paint category are given below:

2.3.2.2 Product
Brand Name
Interior
ROBBIALAC SYNTHETIC ENAMEL
ROBBIALAC SYNTHETIC ENAMEL GOLD
ROBBIALAC ACRYLIC PLASTIC EMULSION
ROBBIALAC EASY CLEAN
ROBBIALAC ACRYLIC PLASTIC EMULSION
CLASSIC
LUXURY SILK EMULSION
LUXURY SILK SPLENDOUR
ROBBIALAC ACRYLIC DISTEMPER SPD
ROBBIALAC SPD SUPER
JHILIK SYNTHETIC ENAMEL
RADIANCE ACRYLIC PLASTIC EMULSION
ROBBIALAC PLASTRON SEALER
ROBBIALAC WATER SEALER
ROBBIALAC WALL PUTTY
ALUMINIUM
RED OXIDE PRIMER
ROBBIALAC ANTICORROSIVE RED OXIDE
PRIMER
ROBBIALAC SYNTHETIC CLEAR VARNISH
ROBBIALAC DAMP STOP
SILICONE WATER REPELLENT
WOOD KEEPER FINISH

Exterior
ROBBIALAC SYNTHETIC ENAMEL
ROBBIALAC SYNTHETIC ENAMEL GOLD
JHILIK SYNTHETIC ENAMEL
AUTO COAT PRIMER SURFACER
ALUMINIUM
RED OXIDE PRIMER
ROBBIALAC ANTICORROSIVE RED OXIDE
PRIMER
ROBBIALAC DAMP STOP
FLEXIBLE ROOFING COMPOUND
WEATHER COAT SMOOTH
WEATHER COAT LONGLIFE
WEATHER COAT SMOOTH CLASSIC
RADIANCE EXTERIOR EMULSION
SILICONE WATER REPELLENT
ROBBIALAC THINNER
DUROCEM

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WOOD KEEPER
WATER BASED STAINER
ROBBIALAC THINNER
BreatheEasy Sealer
BreatheEasy Putty
BreatheEasy Premium Interior Emulsion
Table 4: Product List

Figure 2: Some Product Logo

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Appendix
Bibliography

1. Arefin, S., Jafar, K. A., & Ahmed, M. Berger Paints Bangladesh Limited. F. Elahi,
Interviewer. February-April 2012.
2. Ltd., Berger Paints Bangladesh. Berger Annual Report 2007. Dhaka: Berger, 2015
3. Ltd., Berger Paints Bangladesh. Berger Annual Report 2008. Dhaka: Berger, 2014
4. Ltd., Berger Paints Bangladesh. Berger Annual Report 2009. Dhaka: Berger, 2013
5. Ltd., Berger Paints Bangladesh. Berger Annual Report 2010. Dhaka: Berger, 2012
6. Ltd., Berger Paints Bangladesh. Berger Annual Report 2011. Dhaka: Berger, 2011
7. Ltd., Berger Paints Bangladesh. http://www.bergerbd.com/company _profile/history.
Company Profile. July 05, 2016
8. Ltd., Berger Paints Bangladesh. http://www.bergerbd.com/company_profile/subcomp.
Subsidiary Company. July 05, 2016
9. Ltd., Berger Paints
Bangladesh.http://www.bergerbd.com/company_profile/socialcom. Social
Commitments . July 05, 2016
10. Ltd., Berger Paints Bangladesh. http://www.bergerbd.com/news_blog. Dhaka: Berger
News, April 22, 2012:
11. Ltd., Berger Paints Bangladesh. Internal Official Records of Market Share Analysis,
Berger Paints Bangladesh Limited. 2015

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