AkzoNobel India keen to start Bangladesh venture

Paint manufacturer AkzoNobel India has expressed interest in setting up a manufacturing unit in Bangladesh over the next two to three years, an official of the company said today.
"We had tied up with ACI Formulations of Bangladesh to distribute the Dulux brand of decorative paints in that country," Jayakumar Krishnaswamy, managing director of AkzoNobel India said here.
He said the Bangladesh market was growing at a CAGR of eight to nine per cent over the last three to four years and the size of the markets was 150 million litres per annum.
Presently, the company had entered into a tolling arrangement with ACI under which AkzoNobel India would supply the raw materials and formulations to be manufactured by the Bangla entity.

"Later when the market grows for AkzoNobel India there, the company would go for a manufacturing unit when there is a sizable economies of scale," he told reporters after the company's AGM.
He said the company had spent Rs 240 crore over the last three years for setting up a new unit an Gwalior and in other places like Bangalore and Hyderabad.
Chairman of the company Nihal Kaviratne said it was the intention of the company to step up its dividend pay-out in the coming years.