Berger Paints: Working Capital Management Essay
Introduction Berger Paints Bangladesh Limited (BLOB) is a renowned paint company in Bangladesh. The Company was introduced on June 1973 as a private co. Limited by shares registered under the Company Act. In December 2005, the company issued 5% shares to the public and listed with Dacha Stock Exchange (DES) and Chitchatting Stock Exchange (CASE). BLOB previously was known by Jensen & Nicholson O & N).
The name of the company was changed from J& N (Bangladesh) Limited to Berger Paints Bangladesh Limited on January 1, 1980. Currently Ball’s number of shares Is 23,188,940. Its Authorized capital Is Take 400 million and Its paid p capital is Take 232 million. Historical Overview Berger, the market leader In the Bangladesh paint market Is one of the oldest names in the paint Industry and the country major specialty paints business with products and ingredients dating back more than 249 years to 1760.
Louis Berger, a Germen national founded dye and pigment making business In England. Louis Berger and sons grew rapidly with a strong reputation for Innovation and entrepreneurship culminating in perfecting the process of making Prussian blue, a deep blue dye- a color widely used for the uniforms of many European Armies. Production
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The company grew rapidly by establishing branches all over the world and through mergers and acquisitions with all other leading paint and coating manufacturing companies. Berger has been Involved In the paint business In this part of the world since 1950, when paints were first imported from Berger UK and subsequently from Berger Pakistan. In 1970, Berger paints Bangladesh limited (BLOB), erstwhile Jensen and Nicholson, had set up its paint factory in Chitchatting at an estimated investment of TX 4 million.
The share holders were Jensen ; Nicholson (J ; N), Duncan McNeil : Co. Limited and Dada Group. Duncan McNeil subsequently sold their shares to the majority shareholder J;N group. The Dada group share was ultimately vested with the government of the Peoples’ Republic of Bangladesh after the independence of the country In 1971. The name of the company was changed from J&,; N (Bangladesh) Limited to Berger Paints Bangladesh Limited on January 1, 1 980. N August 2000, J& N Investment (Asia) Limited purchased Government shareholding. In December 2005, the company issued 5% shares to the public and sites with Dacha Stock Exchange (DES) and Chitchatting Stock Exchange (CASE). With the entry of Berger paints into Bangladesh market, the country has been able to benefit from more than 249 years of global paint industry experience.
Over the decades, Berger has evolved to become the leading paint solutions provider in this to Industrial, Marine and Powder Coatings. Berger is one of the leading companies in the global paint industry. They offer all kind of painting solution in decorative, industrial or marine segment for both decorative and protective purpose. Berger paint 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 milestone of Berger paints are given below: * Started operation in Bangladesh by Importing paint from Berger UK * Establishment of Chitchatting Factory 1950 – 1970- 1980 – Named as Berger paints (BAD) Ltd from Jensen & Nicholson 0&N) * 1991 – BEMIRE in Chitchatting Factory 1995 – Establishment of Double Tight Can Manufacturing Plant * 1999 – Establishment of Most modern State-of-the-art Paint Production Plant in Dacha * 2002 – Construction of own building for Corporate office in Dacha * 004 – Establishment of Powder Coating Plant Business Overview Berger has invested more in technology and Research & Development (R &D) than any other manufacturer in this market. It sources raw materials from some of the best known names in the world: MITOSIS, MOBIL, DUPONT, HOOCH’S and BASS, to name a few. The superior quality of Burger’s products has been possible because of its advance plants and strictly quality controls equal to the best international standards. Investment in technology and plant capacity is even more evident from the establishment of Powder Coating and Emulsion plants at the Dacha actors is an addition to Burger’s capacity, making it the paint giant in Bangladesh. With the strong distribution network, Berger has reached almost every corner of Bangladesh.
The nationwide dealer network , supported by seven (8) sales depots strategically located at Dacha , Chitchatting, Rajahs, Chula, Bogart, Sylphs, Camilla and Enmeshing has enabled them to strategically cater to all the parts of the country. The product range includes specialized outdoor paints to protect against adverse weather condition. Color Bank, superior Marine paints, roofing compounds, Epoxies and Powder Coatings. In each of these product categories, Berger has been the pioneer. Berger also provides customer support connecting consumers to technology through specialized Home Dcord service giving free technical advice on surface preparation , color consultancy , special color scheme etc.
To bolster customer satisfaction, Berger launched Illusion-the first designer paint solution. The company also launched Innovate wood Coating and Powerboat adhesive to cater the needs of customers. Due to Burger’s superior product quality and production efficiency with skillful productively in Bangladesh. As Berger spends a lot for Research and Development sector, they could be innovative and easily could attract the customer group that they targeted. By understanding the customer need Berger innovated a wide range of its product and expanded the product line according to diverse need. Thus Berger has been remaining in the paint industry in a sustainable manner holding a great market share over their rivals.
Berger is also having a significant sales thought out the business span and due to its low cost structure and distinctive competency in quality products along with well recognized brand image; Berger has successfully achieved 27. 4% growth in 2008. Berger knows their customers better than their competitors. Therefore they have some unique strategies regarding the advertisement. By broadcasting their effective and well focused advertisements; Berger is also outperforming in the paint industry. Beside these to reach their customers properly Berger has set up Sales offices at different place of this country to make their product available and to ensure a proper distribution channel.
More over operating with two large factories equipped with state-of-art technology residing in Dacha and Chitchatting; Berger has got a well overage off their network though out the country. Vision and Mission of the company The vision and mission of Berger paints Bangladesh Limited (BLOB) is very transparent and tangible. Berger emphasizes highly on the ethical commitment to produce benchmark quality product. The vision and mission statement of the company is: We shall remain 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.
Mission: We will remain the number one/two in all the categories in which we operate. Corporate Objective: Burger’s corporate objective is to add value to life, to outperform the peers in terms of longevity, customer service, revenue growth, earnings and cash generation. Berger will be the employer of choice for all existing and future employees. Strategy: Burger’s strategy is to build long-term partnerships with the customers/consumers. With their support, Berger aim to maximize the potential of their business-through a combination of enhanced quality of product, service, creative marketing, competitive Berger pains operate in three major segments of the paint industry.
Decorative Paints * The objective is to beautify the surfaces with protection from corrosion and erosion * This business category mainly targets household segment * Products are being offered to the consumers through dealer network * Product fulfills the aesthetic value of the consumer * Major revenue earning area of BLOB Industrial * Tailor made products to cater to the specific needs of customers * Products give protection to the surfaces in extreme situation like severe Hazardous environment, high temperature, movement of heavy materials and machinery etc. Direct marketing approach is being used to promote the industrial coating * Main customer groups are Garment Factories, Chemical Plants, Fertilizer Manufacturing Plants, and Consumer Durable Manufacturing Plants etc.
Marine * Products are being offered mainly through direct marketing approach * Dock Yards, Bangladesh Navy, Passenger ships are the main use groups * Market is mostly concentrated in Dacha and Chitchatting Other segments of product of BLOB are: Innovate Berger Paints recently introduced complete wood coating solution under the brand name Innovate in collaboration with Becker Carom Italian SPA, leading wood coating elution provider in Europe. A launching program was held in Hotel Sheraton on May 27, 2008. With this strategic alliance, the furniture industry will get the opportunity to enjoy the European wood coating finish in Bangladesh. This brand will offer the complete range of PU based lacquer coatings for wood and MAD board. Berger Innovate products have all the characteristics of a high performance finish which includes superb film transparency, matt to high gloss finish, excellent protection against household chemicals (water, tea, coffee, etc. , high resistance to scratches and abrasion from daily use. They are suitable for use on a range of manufactured articles including: furnishings, chairs, kitchens, tables, doors, office furniture, etc. Power Bond SSH. Powerboat is a premier quality water based adhesive that gives the highest bonding strength suitable for furniture industries. This product is lacquer proof and resistant to heat and water, having high coverage which will add value to the related industries. Wall Putty Wall Putty is water based putty formulated with special binder, which makes the surface stronger. It covers the cracks and unevenness of surfaces and makes the reface smooth and well prepared for top coat applications.
Thermopile Quality road marks is one of the very important criteria to meet benchmarking excellence in road safety and smooth movement of traffic. THERMOPILE Road Marking Paint from Berger promises to ensure this quality in the countrywide network. Thermopile, the Hot Melt Road marking Paint from Berger, is another feather in Berger R&Ad’s long track record of developing high tech industrial coatings. In this venture, R;D often works in collaboration with the world’s leading manufacturers and know-how vendors. Vehicle Refinish BLOB recently added another segment in its wide range of product line. It is vehicle refinish. In this segment BLOB manufacture colors for automobiles.
Focus of Berger Paints Bangladesh Limited Berger Paints Bangladesh Limited focuses on the following things: * Commitment to achieve total customer satisfaction * Commitment to project the company as an ethical and socially responsible one * Commitment to continue as the market leader through consistent sales growth, increasing productivity and developing new products benefiting the customer needs * Ensuring continuous improvement in operation through utilization of highly repressions and dedicated team, proper process, management and participation of the stakeholders * Setting measurable targets at appropriate stages and continuously monitoring them. Budget and Cost Control Department (BANC) Budget and cost control department is one of the core departments of Berger Paints Bangladesh Limited. Every department has a link with this department, as BANC perform the overall budget for every department, monitor operations and try to find Departmental Goal Banc’s goal is to execute a excellent budget which will satisfy the financial need of every department and to minimize the cost of the whole company.