Bangladesh’s marine paint industry, valued at approximately Tk 600 crore, is struggling to gain traction despite a resurgence in the domestic shipbuilding sector as exorbitant import duties and taxes on raw materials are crippling local manufacturers, leaving over 98 per cent of the market dominated by international brands.
The shipbuilding industry, once hampered by the pandemic and global economic downturn, has rebounded strongly since 2022, with Bangladesh exporting 44 vessels to date, including 33 from Western Marine Shipyard alone, generating nearly $100 million in revenue.
This revival has spurred demand for high-performance marine coatings essential for ship durability, including anti-fouling, anti-corrosion, epoxy, and polyurethane-based paints.
However, local paint producers remain sidelined.
According to the Bangladesh Paint Manufacturers Association (BPMA), domestic firms produced only 4,053 tonnes of marine paint in FY2024-25, valued at Tk 160 crore, accounting for just 2 per cent of the total market.
“Our production costs are inflated by over 100 per cent due to layered taxation,” said Arun Mitra, General Secretary of BPMA and Assistant General Manager at Nippon Paints Bangladesh.
“We pay up to 75 per cent in customs duties on raw materials, plus 26 per cent supplementary duty and VAT. That pushes our input cost beyond Tk 2.10 per unit, making it impossible to compete with duty-free or low-cost imported alternatives,” he said.
Compounding the issue, marine paints imported for government projects often enter duty-free but later flood the open market, undercutting local producers who bear the full tax burden.
Industry veterans are urging policy reforms.
Dr Nuruzzaman, Chairman of Imperial Paints, emphasised that “Bangladeshi manufacturers possess the technology and capacity to produce world-class marine paints, but without a level playing field, many are on the brink of shutting down.”
Key international brands, particularly Norway’s Jotun and Denmark’s Hempel, dominate the sector. Jotun’s local presence through its Malaysian subsidiary has further entrenched its market position, with shipyards like Western Marine and Shah Amanat Dockyard citing these brands as client-mandated choices.
“Buyers specify Jotun or Hempel in their contracts,” confirmed Abdul Quader, Executive Director of Western Marine Shipyard. “Even though we source many materials locally, paints are still imported via LC due to quality and compliance expectations.”
Mohiuddin Bakul of Shah Amanat Dockyard echoed this sentiment: “Domestic paints haven’t yet met international certification standards, so reliance on imports remains high.”
In response, BPMA and local manufacturers are calling for immediate measures: Reduction of import duties and supplementary duties on raw materials; preferential treatment for local paints in government and public-sector tenders; and a comprehensive review of the tax structure to ensure affordability and competitiveness.
A senior official at the National Board of Revenue, speaking on condition of anonymity, acknowledged the concerns: “We engage with industry stakeholders monthly and are committed to addressing legitimate grievances while safeguarding local industry.”
As Bangladesh aims to expand its maritime exports and reduce import dependency under its Vision 2041, stakeholders argue that supporting domestic marine paint production is not just an industrial necessity but a strategic imperative for self-reliance in shipbuilding. Without urgent policy intervention, however, the Tk 600 crore opportunity may remain out of reach for homegrown enterprises.