Berger Paints to invest Tk10cr in new packaging subsidiary

Berger Paints Bangladesh Limited and its wholly-owned subsidiary, Jenson and Nicholson (Bangladesh) Limited, have decided to jointly invest Tk10 crore in a newly formed entity, Jenson and Nicholson Packaging Limited (JNPL).

According to a price-sensitive statement filed with the Dhaka Stock Exchange (DSE) recently, the country's leading multinational coatings manufacturer is expanding its footprint into the packaging sector to support its core operations and leverage emerging industrial opportunities.

The statement said Berger Paints will inject Tk5.10 crore in JNPL and the remaining Tk4.90 crore will be contributed by Jenson and Nicholson (Bangladesh) Limited.

Earlier, Berger Paints formed Jenson and Nicholson Packaging by acquiring a 51% stake through an investment of Tk5.10 crore, while Jenson and Nicholson (Bangladesh) invested Tk4.90 crore to acquire the remaining 49% stake in the packaging company.

JNPL is set to establish a manufacturing plant within the National Special Economic Zone to produce various plastic-based packaging products. 

Berger officials noted that the company currently requires both metal and plastic containers for its paint products. While Jenson and Nicholson (Bangladesh) already manufactures metal containers for both internal use and commercial sale, the new venture will specifically address the growing demand for plastic-based packaging.

To facilitate the project, the Berger board has earlier approved an amendment to its land lease agreement with the Bangladesh Economic Zones Authority (Beza). Under the revised arrangement, 1.16 acres of land will be allocated to the new subsidiary, JNPL, while 38.25 acres will remain under the parent company out of the total 39.41 acres leased from Beza.

The company stated that setting up the plant within a special economic zone allows the venture to benefit from government-mandated tax holiday facilities. While the initial production is intended to meet Berger's internal requirements, the management envisions potential commercial expansion in the future.

The strategic move comes on the heels of a strong financial year for the paint giant. For the fiscal year ended 31 March 2026, Berger Paints Bangladesh reported a consolidated net profit of Tk372 crore, up 10% year-on-year. Buoyed by this robust performance, the company's board has recommended a 525% cash dividend – equivalent to Tk52.50 per share – for its shareholders.