'Within 7 years, we managed to ascend to the top among local players'

How have economic growth, construction and housing sector boom, and megaprojects fueled the growth of the paint industry?

The growth of the paint industry in Bangladesh has been significantly driven by the country's thriving construction and housing sectors, characterised by rapid urbanisation and increased disposable income. This surge in demand for residential and commercial properties has created a substantial need for paints and coatings, both for interior and exterior applications. 

Additionally, the development of mega infrastructure projects, such as bridges, highways, ports, and industrial zones, has further propelled the paint industry, as these projects require large quantities of specialised coatings for corrosion protection and aesthetics. 

Bangladesh's sustained economic growth has improved the living standards of its citizens, leading to increased interest in home improvement and decoration and consequently boosting the demand for decorative paints.

How has the size of the market grown over the decades?

The history of the paint industry can be traced back to the 1950s in Bangladesh. According to recent findings, the Bangladesh paints and coatings market is set for decent growth in the upcoming period. This is because Bangladesh uses around 180,000 tonnes of paint every year, mainly due to fast urbanisation, leading to more construction work. 

However, with the Covid-19 pandemic and the subsequent economic recession, the construction industry has been significantly affected. Over the past four years, the market has experienced substantial challenges, and these difficulties have had a growing impact on the paint industry. Profit margins in the paint industry have been consistently declining over the last four years.

There is potential for this sector to grow further in the future. Right now, the average person in Bangladesh uses only 1.1 kg of paint, whereas in India, it is 4.2 kg, and in China, it is nearly 9 kg. So, there is room for increased paint consumption in Bangladesh.

How are local companies doing in a market dominated by foreign companies?

According to the Bangladesh Paint Manufacturers Association (BPMA), there are 40 registered companies, including local and multinational companies. While the MNCs are growing, many local ones are facing challenges. 

They often struggle because of a lack of long-term plans, innovation, specialisation, research, or enough funds. Interestingly, some local companies produce paint equal to or even better in terms of quality and standards than the MNCs.

What role did Rainbow Paints play in megaprojects such as the Padma Bridge, the Dhaka Elevated Expressway and Karnaphuli Tunnel?

Rainbow Paints takes immense pride in its role as a supplier and applicator of road marking paints for the prestigious Padma Bridge project. The inauguration of Padma Bridge last year marked a significant milestone for our nation, showcasing the resilience and capability of the Bangladeshi people. Our journey began in 2017, and it has been an honour to not only meet our customers' demands but also contribute to the success of this national megaproject.

This year, we had the privilege of participating in the construction of the elevated expressway, where we successfully supplied the required road marking paint. As a united team at Rainbow Paints, it continues to amaze us that we are not only part of the development of Bangladesh but also actively contributing to the making of history.

Why has the rise of new coating technologies taken 40 years?

Over the past four decades, the coatings industry has undergone a significant transformation through the adoption of innovative coating technologies. In the 21st century, the coating industry has streamlined its operations to minimise their environmental impact. Substantial progress has been made in this regard over the last 50 years, with notable achievements such as the elimination of lead carbonate as a pigment and the discontinuation of mercury as a preservative.

Furthermore, there have been substantial reductions in the use of volatile organic solvents (VOCs) through the introduction of high-solids coatings, waterborne formulations, 100% nonvolatile coatings, radiation-curable coatings, and powder coating technologies. These advancements have significantly contributed to making the industry more environmentally-friendly.

What differentiates your products from those of other companies?

From the very beginning, our priority has been the uncompromising quality of our products, especially when the MNCs are the most dominant in the local market. Our commitment to quality has been the cornerstone of our strategy to compete effectively with these industry giants.

In addition to our core product offerings, we have also extended our commitment to quality by providing painting services to our valued customers. To ensure the highest level of service excellence, we took a strategic step by establishing a network of chain shops throughout Bangladesh.

What role has your company played in the development of the country's paint market?

While the paint industry in Bangladesh has a history spanning 70 years, the dynamics of market leadership have evolved significantly over time. Initially, local companies held the leading position, but the landscape shifted around the 1990s, with MNCs emerging as dominant players.

When we started our journey, our primary concern was to capture a substantial share of the market by focusing on a comprehensive product range that could compete effectively with the market leaders. Additionally, we implemented a strategy of backward integration to enhance our operational efficiency.

Remarkably, within just seven years, we managed to ascend to the top position among local companies in the industry. Now, our ambition is to further strengthen our position in the local market.

What are your predictions about the future?

According to data from the Bangladesh Bureau of Statistics, over the past two decades, the urban population in the country has surged from 28.61 million to nearly 42 million. 

Before 2019, the paint industry had experienced a robust growth rate of approximately 10–12%. The market size was approximately Tk4,000 crore per year in terms of value. However, due to the Covid-19 pandemic, economic recession, and rising raw material prices, it has become increasingly challenging to make accurate predictions about the current market situation.

What is the total segment you are working on?

Currently, Rainbow Paints boasts a diverse product portfolio, encompassing over 90 distinct segments, ranging from decorative and industrial paints to automotive, wood coatings, and marine applications. Each of these segments comprises a unique assortment of SKUs.

Notably, within our product range, we produce certain items that are entirely imported, such as spray paints, paint brushes, and rollers. Our strategic objective revolves around minimising the reliance on imported finished goods in Bangladesh.

How can the government help in the growth of local paint firms?

Local companies are the backbone of economic growth and development at the community, regional, and national levels. Supporting and nurturing local businesses is essential for creating robust and resilient economies.

In Bangladesh's paint industry, locals and MNCs are subject to the same supplementary duty. However, our expectation was that the government would prioritise and provide support to the local industry.