1

A Report on Industrial attachment in

BERGER Paints Bangladesh Limited, Dhaka

Factory

Submitted By,

Jahangir Kabir Anik (1008002)

MD. Sabbir Hossain (1008003)

Imran Hasan Tusar (1008024)

Submitted to,

Dr. Abdullahil Azeem, professor. Dr. Shuva Ghos, Assistant professor.

Shourav Ahmed, Lecturer.

Department of Industrial and production Engineering (BUET)

Date of submission: 29/2/2016

i

Certificate of Approval

The report titled “Industrial Practice at “Berger Paints Limited, Bangladesh”

submitted by Jahangir Kabir Anik (1008002), Sabbir Hossain (10080o3) and Imran Hasan

Tusar (1008022) has been accepted as satisfactory under the course “Industrial Practice”

(Course No. IPE 300).

Approved By

Golam Mohammad Moinuddin

Head-Production, Berger Paints, Dhaka Factory.

PGDPM, MBA, B.Sc. Eng. (Chemical).

Dr. Abdullahil Azeem

Professor

Dept. of Industrial and Production Engineering, BUET

Dr. Shuva Ghosh

Assistantt Professor

Dept. of Industrial and Production Engineering, BUET Shourav Ahmed

Lecturer

Dept. of Industrial and Production Engineering, BUET

ii

Declaration

We hereby proclaim that the materials presented in this report are authentic except as

recognized in the customary manner. To the best of our knowledge, we have tried our heartiest

efforts to make this report vivid to the reader. Furthermore; we would like to guarantee that

we have understood the requirements and regulations regarding industrial training in partial

requirements of fulfillment of Bachelor of Science (B.Sc.) in IPE at Bangladesh University

of Engineering & Technology, we have also complied with the regulations as forwarded by

“Berger Paints Limited, Dhaka Factory, Bangladesh” during the course of the industrial

training in Nabinagar, Savar, Dhaka.

This work is completely open to the public domain. All the info and resolutions can be utilized

without noticing the authors. We’ll be happy if our work comes in favor for the development

of our country and for any part of the world.

iii

Forwarding Letter

February 27, 2016.

To

Golam Mohammad Moinuddin

Head-Production,BPBL, Dhaka Factory.

PGDPM, MBA, B.Sc. Engg (Chemical)

Taskur, Nabinagar,Dhaka-1340, Bangladesh

Subject: Submission of the Report on “Industrial Practice at Berger Paints Bangladesh Ltd,

Dhaka Factory”

Dear Sir,

It is our great pleasure to present you the report on “Industrial Practice at Berger Paints

Bangladesh Ltd, Dhaka Factory”. Through this report we have tried to reflector observation and

theoretical knowledge applied with some innovative ideas to the project we were assigned.

We would like to show our heartfelt gratitude in the regard of giving us the opportunity which helps

us to concentrate on the phases and components of the report. We have tried our best to follow your

guidelines in every aspect on our report which way you directed us.

We hope you will appreciate our combined effort put forth hereby.

Sincerely yours,

Jahangir Kabir Anik (1008002)

Sabbir Hossain (1008003)

Imran Hasan Tusar (1008024)

Level - 4, Term – 2

Department of Industrial and Production Engineering, BUET

iv

Acknowledgement

We wish to take this opportunity to thank Berger Paints Bangladesh Limited for making our

Industrial Training experience a distinct one. We are grateful to Mr. Golam Mohammad

Moinuddin, Production Manger – Dhaka Factory, whose constant guidance and support

encouraged us to delve deeply into the process details. We thoroughly enjoyed the assignments we

were given and those made our stay even more intriguing. We are also indebted to the officials of

the encompassing departments of Berger Paints Bangladesh Limited who provided us with timely

assistance and valuable guidelines that helped us traverse through the overall training duration

smoothly.

v

Abstract

This document reports on the 4 week long industrial attachment program that we underwent in

Berger Paints Bangladesh Limited (BPBL). The training program was the first ever training we as

students received. The program is a 3 credit course which is to be completed satisfactorily to

complete our graduation as Industrial and Production Engineers. The training was organized by

IPE Department of BUET with collaboration of BPBL. We started the program on 31 January

2016 and ended on 25 February 2016.

During our stay, we visited all the plants and facilities. We were introduced to different

machineries and processes. The supporting utility plants were also introduced to us in a very

descriptive way. We were also asked to perform analysis of some of the different process

machineries. This document includes the description of all the plants and the assignments that we

have completed over the time of our stay.

Table of content

Certificate Of Approval........................................................................i

Declaration..........................................................................................ii

Forwarding Letter................................................................................iii

Acknowledgement...............................................................................iv

Abstract..............................................................................................v

Table Of Content.................................................................................vi-viii

List Of Illustration...............................................................................ix

Chapter

no.

Chapter Name page

no.

1 BERGER PAINTS BANGLADESH LTD: AN

OVERVIEW

1.1 THE COMPANY

1.2 Berger Paint In Bangladesh

1.3 Burger Manufacturing Plants In Bangladesh

1-6

2 COMPANY PROFILE

2.1 Board Of Directors

2.2 Manpower Structure

2.3 Organization Positional Hierarchy

2.4 Berger Paints operates in three broad segments of the

paint industry

2.5 Plants of BPBL (Dhaka factory) we have visited

7-24

3 POWDER COATING

3.1 Products Of Powder Coating

3.2 Composition Of Powder Coating

3.3 Powder Coating Manufacturing Process

25-28

4 QUALITY ASSURANCE DEPARTMENT OF

SOLVENT BASED PAINT

4.1 Parameters Of Quality

29-33

5 RESIN PLANT

5.1 Main Product

5.2 Resin Production Process

34-38

6 SOLVENT BASED PAINT

6.1 Main Products

6.2 List Of Machineries

6.3 Supporting Systems And Equipment

39-44

7 WATER BASED PAINTING

7.1 Products

7.2 Raw Materials

7.3 Machine Used in WB

7.4 Working Principles of the Filling Machines

a) Gravimetric Filling Machines

b) Volumetric Filling Machines

45-53

8 EMULSION

8.1 Emulsion Polymerization Process

8.2 Manufacturing Process of Emulsion

54-56

9 MAINTENANCE DEPARTMENT

9.1 Work Procedures of the Maintenance Department

9.2 Power Transmission and Distribution

9.3 Compressed Air Utility of Berger Paints Bangladesh

57-59

10 FINANCIAL ANALYSIS

10.1 Last Five Years Financial Data Analysis of BPBL

10.2 Fundamental Ratio Analysis of BPBL

60-77

11 ASSIGNMENTS

11.1 CHARGING SECTION

11.2 FILLING SECTION

78-94

Conclusion...........................................................................................95

List of illustration

Figure no. Figure name page

number

1 Berger Paints Factory On Morning Lane In Homerton,

Hackey Borough London; Circa 1906

2

2 Organization Positional Hierarchy 20

3 Powder Coating Manufacturing Process 27

4 Hegmen Gauge

28

5 Manufacturing Process Flowchart For Resin Production 35

6 Schematic Of The Effluent Treatment Plant Of Bpbl 45

7 Batch Bead Mill

53

8 Manufacturing Process Flowchart For Solvent Based

Paint

67

9 Synthetic Ultramarine Blue Pigment 73

10 Reactor Kettle 74

11 Flowchart of manufacturing of emulsion 75

1

Chapter 1

BERGER PAINTS BANGLADESH LTD: AN OVERVIEW

1.1 THE COMPANY

Berger Paints was founded by a German named Louis Steinberger in the 18th century. Louis

Steinberger moved from his hometown Frankfurt to London in 1760 to sell a Prussian Blue color,

which was made using his own formula. He changed his name to Lewis Berger upon arrival to

London and by the end of 1870, Berger was selling 19 different pigments, including black lead,

sulphur, sealing wax and mustard. Louis involved his family into the business and eventually

changed the status of the company to Louis Berger & Sons Limited. The company grew and

expanded rapidly with a strong reputation for excellence in innovation and entrepreneurship. In the

initial years, Louis successfully refined the process of manufacturing Prussian blue, a deep blue

dye. This dye was widely used for the uniforms of many European armies of that time. Production

of dyes and pigments evolved into production of paints and coatings, which till today, remains the

core business of Berger.

In the figure shown here, we can see the Berger Paints factory in Homerton, Hackney Borough of

London. Berger moved his factory to this town at around 1780. At the Homerton factory different

pigments were manufactured and chemists continuously experimented to create new colors or

find better ways of making old ones. They used to keep formulations in a ‘Recipe Book’ much

like culinary cook books.

2

Fig 1: Berger Paints Factory on Morning Lane in Homerton, Hackey Borough London; Circa 1906

1.2 Berger Paint in Bangladesh

Berger Paints is now one of the oldest names in the paint industry, yet, it is one of the most

technologically advanced companies in Bangladesh. It is constantly striving for innovating

superior quality products and services. With more than 250 years of rich heritage, Berger

manufactures world class paints for all kinds of substrates and also provides unparalleled services.

Berger has been involved in the paint business in this part of world since 1950, when paints were

first imported from Berger UK and subsequently from Berger Pakistan. In 1970, Berger Paints

Bangladesh Limited (BPBL), erstwhile Jenson & Nicholson, had set up its paint factory in

Chittagong at an estimated investment of Tk. 4 million. The shareholders were Jenson & Nicholson

(J & N), Duncan Macneil & Co. Limited and Dada Group. Duncan Macneil subsequently sold their

shares to the majority shareholder J & N Group. The Dada Group’s share ultimately vested with the

Government of the People’s 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, 1980. In August 2000, J & N investment (Asia) Limited purchased

Government shareholding. In December 2005, the company issued 5% shares to the public and listed

3

with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). With the entry of Berger

Paints into the Bangladesh market, the country has been able to benefit from more than 245 years of

global paint industry experience. Over the decades, Berger has evolved to become the leading paint

solutions provider in the country and has diversified into every sphere of the industry – from

Decorative Paints to Industrial, Marine and Powder Coatings.

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 this

world: MITSUI, MOBIL, DUPONT, HOECHST and BASF, to name a few. The superior quality of

Berger’s products has been possible because of its advanced plants and strict quality controls equal

to best international standards. Investment in technology and plant capacity is even more evident

from the establishment of Powder Coating plant at Dhaka factory. The state– of‐the‐art of Dhaka

factory is an addition to Berger’s capacity making it the paint giant in Bangladesh.

With its strong distribution network, Berger has reached almost every corner of Bangladesh. The

nationwide dealer network, supported by seven (7) sales depots strategically located at Dhaka,

Chittagong, Rajshahi, Khulna, Bogra, Sylhet and Comilla has enabled them to strategically cater to

all parts of the country.

The product range includes specialized outdoor paints to protect against adverse weather conditions,

Color Bank, superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compounds

and Epoxies, in each of these product categories, Berger has been the pioneer. Berger also provides

customer support connecting consumers to technology through specialized Home Décor service

giving free technical advice on surface preparation, color consultancy, special color schemes etc. To

bolster customer satisfaction, Berger has recently launched Illusion – the first designer paint solution.

It is an ISO 9001 certified company and has almost 65% market share in Bangladesh.

Berger has heavily invested in Technology and Research & Development (R&D) compared to any

other manufacturer in this market. Investment in technology and plant capacity is even more evident

from the establishment of Powder Coating and Emulsion plants at the Dhaka factory. The latest

4

inclusion in the diversified array of plants is the Coil Coating Plant which is being built with

collaboration of Becker, one of the leading manufacturers of such coatings. The state-of-the-art

Dhaka factory is an addition to Berger's capacity, making it the paint giant in Bangladesh. It

sources raw materials from some of the best known names in the world. The superior quality of

Berger's products has been possible because of its advanced plants and strict quality controls that

match international standards.

The product range includes specialized outdoor paints to protect against adverse weather conditions,

ColorBank, Superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compounds,

Epoxies and Powder Coatings. In each of these product categories, Berger has been the

pioneer. Besides, Berger offers illusions - the first designer paint solution in Bangladesh. The

company also launched Power Bond adhesive, lnnova Wood Coating in collaboration with Sherwin-

Williams, Vehicle Refinish in collaboration with world renowned PPG-USA, Texbond binder to

cater to the growing needs of the customer

1.3 Burger Manufacturing Plants in Bangladesh

Berger Paints Bangladesh Limited boasts two manufacturing plants in Bangladesh. The Chittagong

Plant was established in 1970 and the Dhaka Plant was established in 1999.

In Bangladesh the major milestones of Berger Paints are given below:

1950 – Started operation in Bangladesh by importing Paint from Berger U.K.

1970 ‐ Establishment of Chittagong Factory

1980 – Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N)

1991 – BMRE in Chittagong Factory

1995 – Establishment of Double Tight Can Manufacturing Plant at Chittagong

1999 – Establishment of Most Modern Sate‐of‐the‐Art Paint Production Plant in Dhaka

2002 ‐ Construction of own building for the Corporate Office in Dhaka

2004 – Establishment of Powder Coating Plant at Dhaka

2005 – Listed in Dhaka & Chittagong Stock Exchanges and issued 5% shares to the public

5

Corporate Office: ‘Berger House’, H # 8, R # 2, Sector 3, Uttara Model Town, Dhaka 1230

Two State‐of‐the‐Art Factories : Savar, Dhaka and Kalurghat, Chittagong.

Legal Status : Public Limited Company

Type of Shareholders : 2 types (Foreign & Bangladeshi)

Dhaka is for the bulk amount production for some specified colored paint mainly used as decorative

paint while

Chittagong factory handles decorative as well as industrial paint. From these two factories

paints are distributed nationwide through the depots and distributors. To support the distribution

process, Berger has 8 depots for storing paint. Dhaka factory is responsible to supply to depots

mainly in Dhaka, Rajshahi, Barisal and some parts of Sylhet division. The Chittagong factory

delivers to the Chittagong division and Sylhet division. Recently the Dhaka Factory Durocem Plant

has been shifted to a third party in Tongi. In the place of Durocem Plant, Coil Coating Plant is being

built. Another factory known as ‘Jenson & Nicholson’ supplies tin cans for paint filling.

The Dhaka factory is situated on Dhaka Aricha Highway, just beside the National Martyrs

Mausoleum. The main building is known as Paint Building which houses the production floors

of Water Based and Solvent Based Plants. It also houses the administrative offices of HR, production

manager and plant manager.

The Emulsion Plant and Powder Coating Plant are in one side of the paint building. Raw Materials

storage is behind the paint building. Resin and Coil Coating plant is on the other side of the

Paint Building. ETP is situated on one side of the resin plant.

Finished Good section is situated a bit far from the production buildings so that in case of fire or

accidents in that region, FG area will be secured.

A new incinerator is being built adjacent to the FG section. A new building for water based

paint is being built adjacent to the administrative building. Another building for extension of the

emulsion plant is being built near to the emulsion building.

6

Chapter 2

COMPANY PROFILE

2.1 Growth of Berger in Bangladesh:

The superior quality of Berger's products has been possible because of their advanced plants and

strict quality controls that match international standards. With the strong distribution network, Berger

has reached almost every corner of Bangladesh. Nationwide Dealer Network, supported by 8 Sales

Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Sylhet, Comilla and

Mymensingh has an unmatched capability to answer to paint needs at almost anywhere in

Bangladesh. In 2014 BPBL opened two new depots in Rangpur and Feni. Apart from business,

Berger Paints has added another dimension to the social responsibilities by contributing to the well-

being of the autistic children in Bangladesh from 2009.

Vision

“To be the most preferred brand in the industry ensuring consumer delight”

Mission

“We shall increase our turnover by 100 percent in every five years. We shall remain socially

committed ethical company”

Corporate Objective

“Our aim is to add value to life, to outperform the peers in terms of longevity, customer service,

revenue growth, earnings and cash generation. We will be the employer of choice for all existing

and future employees”

Strategy

“Our strategy is to build long-term partnerships with the customers/consumers. With their support,

we aim to maximize the potential of our business- through a combination of enhanced quality of

product, service, creative marketing, competitive pricing and cost efficiency”

7

2.2 Board of directors

Mr. Gerald K Adams

Chairman since 2004

Jerry Adams is a professional company director. His directorships include: Chairman, Berger Paints

Bangladesh Ltd.; Chairman, Bolix SA [a building materials company in Poland]; Director, Berger

Paints India Ltd; the University of Adelaide Business School Advisory Board; the Royal Society for

the Prevention of Cruelty to Animals, South Australia (as chair of the Finance, Audit and Risk

Committee); and Sundrop Farms Advisory Board [greenhouse technology and horticulture]. His

previous directorships include Axiom Energy Ltd and the Joint State of South Australia and

Carnegie Mellon University Advisory Board. His previous executive roles include: Managing

Director of Orica Consumer Products (Australia and New Zealand);and consultant, the Boston

Consulting Group (USA). He has also served as the interim Dean of the University of Adelaide

Business School and the interim CEO of the RSPCA SA. He was educated at the Harvard Business

School (MBA, 1979); and the University of Washington (BA, 1975).

He is a Fellow of the Australian Institute of Company Directors. Mr. Adams was born in 1953 in

the US and now resides in Australia.

8

Ms. Rupali Chowdhury

Managing Director since 2008

Ms. Rupali Chowdhury was born in 1960. She is an MBA from IBA, University of Dhaka, and

completed her Graduation with Honors in Chemistry from the University of Chittagong. She started

her career with the multinational pharmaceutical and chemical Company, ‘Ciba Geigy (Bangladesh)

Limited’, in 1984 and was Brand Manager while leaving Ciba Geigy (Bangladesh) Limited in 1990.

Ms. Rupali Chowdhury joined Berger Paints Bangladesh Limited in 1990 as Planning Manager and

during her tenure she worked for various departments such as Marketing, Sales, Distribution,

Planning and Systems under different supervisory capacities. Ms. Chowdhury was promoted to the

position of Managing Director of the Company on 1 January

2008. She is also Managing Director of Jenson & Nicholson (Bangladesh) Limited, a 100%

subsidiary of Berger Paints Bangladesh Limited and Director of Berger Becker Bangladesh Limited,

a joint venture between Berger Paints Bangladesh Limited and Becker Industrial Coatings Holding

AB, Sweden. She is an Independent Director of Marico Bangladesh Limited and a Director of Social

Marketing Company Limited. She is the President of Foreign Investors’ Chamber of Commerce &

Industries (FICCI). She is also a member of Prothom-Alo Trust.

9

Mr. K. R. Das

Director since 1992

Mr. K.R. Das was born in India in 1931. On completion of his graduation in science with honors, he

started his career with Gillanders Arbuthnot & Co. Limited in 1951. He was Head of Pigments

Division when he left Gillanders in 1965. He joined Jenson & Nicholson Limited in 1965 and left

the company in 1975 as General Sales Manager after a long 10 years of service. He joined Berger

Paints India Limited in 1975 and after 20 years of service retired in 1994 as Executive Director. Mr.

Das has been working as Management Consultant since 1994. He is a director of Berger Paints India

Limited, and Chairman of RDG Systems (Pvt.) Ltd, India. Mr. Das is the Regional Supervisory

Director of Berger Paints Bangladesh Limited, and Chairman

of Jenson & Nicholson (Bangladesh) Limited. He is also a member of the Audit Committee of Berger

Paints Bangladesh Limited.

10

Mr. Anil Bhalla

Director Since 1994

Mr. Anil Bhalla was born in India in 1946. He graduated in Economics (Hons) from the University

of Delhi and is a Fellow Chartered Accountant. He is the managing partner of JC Bhalla & Co., a

reputed Chartered Accountants firm of India. He has four decades of experience in professional

services in both India and abroad. He has a wide range of experience in auditing, joint venture

consultancy, tax consultancy, strategic business consultancy, business valuations, and mergers &

acquisitions. He was a Member of the Northern India Regional Council of the Institute of Chartered

Accountants of India (ICAI) from 1976 to 1979 and its Chairman from 1978 to 1979. He has served

ICAI as member of different Committees namely Company Law, Expert advisory and Auditing and

Assurance Standards Board. He was an Executive Committee member of the Income Tax Appellate

Tribunal Bar Association of Delhi. He was President of the Institute of Internal Auditors, Florida,

USA Delhi Chapter. He is a Director of Berger Paints

India Limited and Jenson & Nicholson (Bangladesh) Limited. He is also a member of the Audit

Committee of Berger Paints Bangladesh Limited.

11

Mr. Subir Bose

Director since 1995

Mr. Subir Bose was born in India in 1949. He is a Chemical Engineer from the Indian Institute of

Technology, Kanpur and completed his post graduation in Business Administration from the Indian

Institute of Management, Ahmedabad. He started his career with Asian Paints India Limited in 1974.

He was the Industrial Sales Manager while leaving Asian Paints India Limited in 1982. Mr. Bose

joined Abucon Nigeria Limited, Lagos, Nigeria in 1982 and worked there till June 1984. He returned

to India in 1984 and joined Berger Paints India Limited. He was elevated to the position of Managing

Director in July 1994 and has retired from the position in 2012. He is now a Director of Berger

Paints India Limited. He is also a member of the Audit Committee of Berger Paints Bangladesh

Limited.

12

Mr. Jean-Claude Loutreuil

Director since 1998

Mr. Jean-Claude Loutreuil was born in 1945 at Saint Laurant Sur Mer in France. He is an MBA

from the University of Paris. He graduated from Pharmaceutical and Chemical High School of

Anguerny, France. He was Managing Director in Janssen Pharmaçeutica (Flubenol), Belgium and

Managing Director (Veterenary sector) of Shering Plough. In 1988 he was in charge of U K Paint

France as Director in connection with Russia. He served U K Paint Russia as Managing Director in

Moscow and Krasnodar. He has been working for the last four decades mostly in Pharmaceutical

and Chemical sectors as consultant.

13

Mr. M. Azizul Huq

Non-Executive Independent Director since 2012

Mr. M Azizul Huq is the Managing Director of GlaxoSmithKline (GSK) Bangladesh Limited, a

subsidiary of GSK plc. UK, one of the leading pharmaceutical and healthcare companies of the

world. Mr. Huq joined GSK Bangladesh in 1998 and was appointed General Manager- Sales &

Marketing in 2000. Mr. Huq was appointed Marketing Director in 2001 and was called to the Board

of GSK Bangladesh before being appointed as Managing Director in January 2003. Prior to joining

GSK, Mr. Huq worked for Rhone-Poulenc (now known as Sanofi) for almost

9 years in progressively responsible marketing roles. A post graduate in Pharmacy from the

University of Dhaka and also an MBA from IBA of the same University, Mr. Huq has more than 25

years’ professional experience in the Pharmaceutical Industry in areas such as Sales, Marketing,

Distribution, Business Development and General Management and has been a Board member of

GSK Bangladesh for more than 12 years. He is also the Chairman of Burroughs Welcome & Co.

(Bangladesh) Limited. Mr. Huq plays an active role in the business community and is an Executive

Committee member of the Foreign Investors’ Chamber of Commerce & Industries (FICCI). He was

born in 1963. He is also a member of the Audit Committee of Berger Paints Bangladesh Limited.

14

Ms. Rishma Kaur

Director since 2013

Ms. Rishma Kaur (born 1972) holds a Bachelor of Science (Hons) in Business Studies from

University of Buckingham, United Kingdom. She was Chairperson of Paints & Allied Products

Panel of Chemicals & Allied Products Export Promotion Council (CAPEXIL), India from 1997 to

1999. She was a Director in Berger Paints India Limited from 1997 to 2003. Presently, she is

National Business Development Manager (since 2010) and Alternate Director (since 2012) in Berger

Paints India Limited. She is also a member of the Audit Committee of Berger Paints Bangladesh

Limited.

15

Mr. Abdul Khalek

Director since 2004

Mr. Khalek is a Fellow Chartered Accountant, and has his Masters of Commerce in Accounting

from the University of Dhaka. He joined ‘Proshika Manobik Unnayan Kendra’, a leading national

NGO in 1985 and was Chief Internal Auditor while leaving Proshika in June 1993. Mr. Khalek

joined Berger Paints Bangladesh Limited in 1993 and served the company under different capacities

and is presently holding the position of Director- Finance & Company Secretary. Mr. Khalek is also

a member of the Board of Directors of Jenson & Nicholson (Bangladesh) Limited, and Berger

Becker Bangladesh Limited. Mr. Khalek has been a member of the Taxation & Corporate Laws

Committee of the Institute of Chartered Accountants of Bangladesh for the last 18 years. He is

serving the Foreign Investors’ Chamber of Commerce

& Industries as a member of Trade, Tariff, Taxation & Company Affairs Sub-committee for the last

15 years and currently serving as convener of the committee. He is serving the Metropolitan

Chamber of Commerce and Industries as member of Tariff & Taxation Sub-committee for the last

5 years. Apart from his service, hehas been one of the faculty members of The Institute of Chartered

Accountants of Bangladesh for the last 19 years and has authored a good number of articles on trade

and commerce. He is a member of the Institute of Internal Auditors of Bangladesh and Intellectual

Property Association of Bangladesh. He is also a member

of the Audit Committee of Berger Paints Bangladesh Limited. He was born in 1959.

16

2.3 Manpower Structure

The positional hierarchy of the company is as follows:

1. Managing Director

2. Director

3. General Manager (Executive -1)

4. Executive -2

5. Senior Manager

6. Manager

7. Assistant Manager

8. Officer (i, ii, iii, iv) / Management Trainee

17

2.4 Organization Positional Hierarchy:

Fig 2: Organization Positional Hierarchy

18

2.5 Berger Paints operates in three broad segments of the paint industry

Decorative Paint

• 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 a dealer network

• Products fulfill the aesthetic value of the consumers

• Major revenue earning business area of BPBL

Industrial Paint

• Tailor made products to cater to the specific needs of customers

• Products give protection to the surfaces in extreme situations like severe

hazardous environment, high temperature, movement of heavy materials and

machinery etc.

• Direct marketing approach is being used to promote the Industrial Coatings

• Main customer groups: Garments Factories, Chemical Plants, Fertilizer

Manufacturing Plants, Consumer Durable Manufacturing Plants etc.

Marine Paint

• Products are being offered mainly through Direct marketing approach.

• Dock Yards, Bangladesh Navy, Passenger Ships are the main user groups.

• Market is mostly concentrated in Dhaka and Chittagong.

Product Portfolio

The products of BPBL are:

19

Marine

Textile

Adhesive

Industrial

Decorative

Breathe Easy

Auto Refinish

Wood Coating

Brush & Roller

Powder Coating

Pre-Treatment Chemicals

Mr. Expert Construction Chemical

Major departments

Like every other corporation BPBL has different departments for carrying out several activities.

The major departments of BPBL are:

Human Resource Department: The Human Resource Department is responsible for the

management of the employee in order to achieve organizational goals and coordinates with other

departments for the effective utilization of resources. This department works for recruiting,

training and evaluating employee performance.

Supply Chain Department: This department collects raw materials from the specific

vendors at suitable price and quantity. In addition to that this department also purchases required

machineries and stationery products for the organization. This department received the bills from

the third party and sends them to Finance and Treasury department.

Finance Department: Under finance department there are small units which are Budget and

Cost Control, Financial Accounting & Treasury, Audit and VAT. These sub units are inter

related and work together. Director Finance is the head of the department assisted by GM

Finance and Treasury and GM Budget and cost Control. Both internal and external audit

20

team perform auditing activities. External audit team is from A. Quasem & Co. and internal

audit team is from ACNABIN. VAT section calculates the VAT amount of the BPBL as well

as the third parties that has to be deposited to the Government and work with the Accounts

Manager for this purpose.

Marketing Department: BPBL opened the marketing department in 1993 thereafter BPBL

has been developing very rapidly in terms of market share and sales growth. After one year

of launching marketing department, in 1994 sales growth was 34% which was incredible.

Sales Department: This department has two categories Decorative and Industrial & Marine.

Decorative Sales unit headed by Director Operations who is assisted by GSM-D. There are

10 sales depots all over the country. Industrial and Marine unit is headed by Director

Operations, assisted by the Manager Industrial & Marine. Under this group paints are offered

to the customers divided into two categories premium products and economy products.

Information Technology Department: The Information Technology (IT) Department

develops and maintains an internal network of workstations, digital networking equipment,

operating systems and servers to tie the departments together. This department uses the

software programs to manage the information electronically.

Research & Development: BPBL‟s research and development department plays an integral

role. They find out whether the existing products need any change and upgrades according to

the requirements. New product research and development quality check etc. are the main

activities of this department.

21

2.6 Plants of BPBL (Dhaka factory) we have visited

Berger Paint is a renowned multinational company. For smooth running of business it has many

organized departments. For our internship at Berger Paint we were assigned to visit all the major

plants of Berger paint, Dhaka factory and finally we were given an assignment which is a major

concern of the factory. We were able learn many things about the production, distribution of paints

by visiting different departments of the BPBL

We visited the following department of BPBL

Day 1: Powder Coating (30.01.16)

Day 2: Solvent Based Plant Quality Assurance (QA) (01.02.16)

Day 3: Resin Plant ( 02.02.16)

Day 4: Distribution Warehouse (03.02.16)

Day 5 & Day 6: Solvent Based Production Floor (07.02.16 & 08.02.16)

Day 7 & Day 8: Water Based Production Floor ( 09.02.16 & 11.02.16)

Day 9: Emulsion Plant (15.02.16)

Day 10: Maintenance Department (19.02.16)

While visiting the plants we tried to take a detail operation and find out the problem. A brief

description of all the plants is given in the next section.

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Chapter 3

POWDER COATING

On the very first day we visited the powder coating plant of Burger paint, Dhaka factory. In the

Powder Coating (PC) plant products are in the form of powder. It is a new addition in the product

list of BPBL. Powder Coatings are very efficient mode of paint application as there is minimal

loss of paint. Powder coat also provides better paint life and wide range of surface textures as

well. For using this kind of paint a powder gun is needed and after spraying, proper heating of

the applied surface is mandatory. As heating is an important part of the job, it adds a limitation

in the application area. So oven size is an important factor. Durability of these paint are greater

than the usual paint. The production process is automatic, except manual raw material charging.

Total process is controlled by a PLC (Programmable Logic Circuit) board.

3.1 Products of Powder Coating

The products of powder coating plant are:

1. Supra Koat

2. Smart Koat

The products differ in their finish and texture. The same brand name of product can have

varying texture and finish as required by the client. Matt, Gloss, Gunmetal are some of the

variations in finish. The finish of the end product depends on the amount of resin used. Hot Melt

Road Marking (HMRM) is another of powder coating plants product. It is a white powder for road

marking and is produced on order basis. Generally resin, filler and additives are used in this

production process.

3.2 Composition of powder coating

a) Resin (60%)

26

b) Filler (30-35%)

c) Pigment (2-4%)

d) Additives (1-2)

Advantages

1. Powder coatings emit zero or near zero volatile organic compounds (VOC).

2. Powder coatings can produce much thicker coatings than conventional liquid coatings without

running or sagging.

3. Powder coating overspray can be recycled and thus it is possible to achieve nearly 100% use of

the coating.

4. Powder coating production lines produce less hazardous waste than conventional liquid

coatings.

5. Capital equipment and operating costs for a powder line are generally less than for

conventional liquid lines.

6. Powder coated items generally have fewer appearance differences between horizontally coated

surfaces and vertically coated surfaces than liquid coated items.

3.3 Powder Coating Manufacturing Process

At the first step of production process batch card is issued through SAP. The raw material is

reserved according to SAP. Then raw material is charged into pre- mixer. Then premixed raw

material is passed through holding tank and Flex wall. Metal separator is used to ensure that no

metal particle will pass to kneader. Kneader will transfer raw material into paste form. This paste

will pass through cooling belt. Cooling belt will convert the paste into chips. Chips will pass

through grinding mill for crushing, after crushing chips will be converted into powder form.

Powder will pass through AZO screen for filling

A flowchart of manufacturing process of Powder Coating paint is given below-

27

Fig 3: Powder Coating Manufacturing Process

3.4 Machine Components used in Powder Coating

a. Motor

b. Heater

c. Extruder

d. Side hopper

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3.5 Supporting Systems and Equipment

Every plant is supported by central utilities such as power supply, compressed air supply, water

supply and so on. The WB department has two systems of its own apart from the central systems.

Dust Collection System

A dust collector is a system used to enhance the quality of air released from industrial and

commercial processes by collecting dust and other impurities from air or gas. Designed to handle

high-volume dust loads, a dust collector system consists of a blower, dust filter, a filter-cleaning

system, and a dust receptacle or dust removal system. It is distinguished from air cleaners, which

use disposable filters to remove dust.

During the charging process of WB paint production, a lot of dust is produced as the powdered

raw materials are ground to smaller particles. The source of the dust is this powder and the

grinding. Dust issues generally in the charging phase only as in the other phases mixture is

already in a liquid/semi liquid form.

The dust collection system picks this dust up through duct ways and accumulates the dust into

storage containers. The collected dust is reused in the production process in a controlled way so

that it does not compromise the quality of the paint. So, the system ensures that the environment

around the TSD is dust free and safe as well as makes the otherwise wasted raw materials

reusable.

The system consists of several segments. There are duct ways from the TSDs to a hopper

unit where dusts are trapped on the surface of some very fine bags. Then there are some Rotary

Airlock devices which enable collection in to containers. The system is describes in short as

follows

29

Chapter 4

QUALITY ASSURANCE DEPARTMENT OF SOLVENT

BASED PAINT

Berger Paints Bangladesh has been known as the market leader for the paint related section and also

it holds the leading manufacturer position for many years. Berger doesn’t compromise with quality

of the product. Berger has very effective quality control department which is enriched with modern

quality control equipments. Quality control in terms of paint production consists of sampling at

regular intervals to ensure that the end product meets a set of target criteria, which include desired

yield and concentration levels. These criteria are determined by developing a model to accurately

represent the reaction kinetics of the system. With a highly accurate model of the chemical process

one can quickly identify and correct sources of error during the production process.

Berger utilizes an extensive array of quality control measures. A finished paint is inspected for its

density, fineness of grind, dispersion, and viscosity. Paint is then applied to a surface and studied

for bleed resistance, rate of drying, and texture.

In terms of the paint's aesthetic components, color is checked by an experienced observer and

by spectral analysis to see if it matches a standard desired color. Resistance of the color to fading

caused by the elements is determined by exposing a portion of a painted surface to an arc light and

comparing the amount of fading to a painted surface that was not so exposed. The paint's hiding

power is measured by painting it over a black surface and a white surface. The ratio of coverage

on the black surface to coverage on the white surface is then determined, with .98 being high-

quality paint. Gloss is measured by determining the amount of reflected light given off a painted

surface.

Quality control department also has to check the quality of raw materials. Raw materials have direct

impact on the quality of the final product. So quality control department always ensure the quality

of raw material. Packaging is also checked by quality control department.

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Quality control (QC) department is not only engaged with quality check but also with analysis.

Their analysis is based on two prime sectors. One is process analysis and other is financial

analysis.

Process conditions are the source of paint quality. Variations in the type of equipment used, time

of processing, and the machine setting are all factors in the development of paint quality. It

follows that change in the conditions of manufacture will be responsible for changes in the quality

of paint product.

Quality control department is responsible for documentation. They must have documents on each

batch of product. The documents should have product quality parameters, deviation from quality

standard parameters, raw material quality etc. Documentation is also necessary for ISO certificate.

4.1 Parameters of quality

Paint quality is measured by a series of tests. The qualities which are checked by QC department

are follows:

1. Fineness or grind check.

2. Color check.

3. Drying time.

4. Viscosity.

5. Specific gravity.

6. Hiding power.

7. PH check.

8. Gloss check.

9. Packaging check.

Fitness of grinding check

A Hegman gauge, sometimes referred to as a grind gauge or grind meter, is a device used to

determine how finely ground are the particles of pigment (or other solid) dispersed in a sample

31

of paint (or other liquid). The gauge consists of a steel block with a series of very small parallel

grooves machined into it. The grooves decrease in depth from one end of the block to the other,

according to a scale stamped next to them. A typical Hegman gauge is 170mm by 65mm by

15mm, with a channel of grooves running lengthwise, 12.5mm across and narrowing uniformly

in depth from 100 μm to zero.

Fig 4: Hegmen gauge

Color Check

Color is checked by an experienced observer and by spectral analysis to see if it matches a

standard desired color.

Drying Time

The time required for a paint to dry is determined by spreading a sample on glass plate placed

vertically in a well ventilated room or outside part of a window and making a quantitative

measurement of time required to dry as determined by finger touch of the surface. Generally

solvent base paint takes long time for drying. so emphasis is given by QC department on solvent

base paint drying time.

Specific Gravity

A pyknometer (from Greek: (puknos) meaning "dense"), also called pyknometer or specific

gravity bottle, is a device used to determine the density of a paint. A pyknometer is usually made

of glass, with a close-fitting ground glass stopper with a capillary tube through it, so that air

bubbles may escape from the apparatus. This device enables paint’s density to be measured

32

accurately by reference to an appropriate working fluid, such as water or mercury; using analytical

balance. Specific gravity is very important property of paint. It has a certain range for each type

of paint. QC use pyknometer for the measurement of specific gravity.

Viscosity Test

QC uses three types of instrument for measuring viscosity.

1. Flow cup is used for paint having very low viscosity.

2. Poise unit viscosity measurement device is used for high viscous paint (0-340 poise).

3. Krebs unit viscosity measurement device is used for low

viscuous paint (low viscous product).

Fig 5: Sheen Viscosity device

Hiding Power

Since hiding power of paint depends primarily upon the difference in refractive index of the

pigment and the medium in which it is ground, control of this property is exercised by

careful selection of the pigment and vehicles. The hiding power of pigment is inversely

proportional to the particle size until sizes of the order of wave lengths of light are reached. A

33

brush out on a panel composed of a checker board of white and black space is used to judge the

relative hiding power of paint. As with color the testing involves a comparison with a standard

sample by eye.

PH Check

PH is one of the most important parameter for paint. Generally paint should have pH around

(8-9).Most of the paint loose stability below pH 7.5. So QC takes special care to maintain the

pH of the paint within the range

Gloss Check

Gloss in paint is due to the smoothness of the surface formed. Gloss is judged from brush outs

and compared with a similar brush out of the accepted standard sample.

Effectiveness of Quality Control Department

The effectiveness of quality control program is measured by the number of batch rejects and

reworks. The annual losses are surprisingly small in Berger paints considering the high

dependence on human judgment involved in paint manufacture. Berger has three QC

departments. We have discussed about QC department of paint building. Powder coating and

emulsion plant also have their own QC department which looks over the production process

parameter checks in their respective plants

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Chapter 5

RESIN PLANT

Resin plant is very vital plant. Resin is used as binder for solvent base paint. So production of

solvent base paint entirely depends on resin. In resin plant also resin based adhesives are produced.

They are known as power bond.

5.1 Main Product

a) Binder

1. Resin -95/159

2. Resin -95/163

3. Resin -95/246

b) Adhesive

1. Power bond SR

Raw Materials Used

1. Soybean oil

2. Glycerin

3. Phthallic anhydride

List of Machines

1. Thermo pack reactor

35

2. Blender

3. Filling machine

4. Expansion tank

5. Storage tank

6. Load cell and pneumatic valve

5.2 Resin production Process

First process batch card is issued through software SAP. Then thermo pack temperature is

set to desired temperature by circulating heated thermo fluid through limpet coils of thermo pack

reactor. In resin production process charging is done in two steps.

First step

Raw material are measured by load cell and charged by pneumatic control valve. In this step

soybean and glycerin are used as raw material. Mono ester and mono glycerin are produced in this

step. Visual inspection and testing are carried out for checking monomer formation. Then thermo

pack reactor is cooled to a temperature around 180o Celsius by circulating cooled thermic fluid

through the limpet coil.

Second step

In this step phthallic anhydride is charged into the reactor. An exothermic polymerization reaction

takes place inside the reactor. In this reaction some water is produced. So this water is required

to remove from the reactor. To facilitate the water removal process xylene is used. It forms

azeotropic mixture with water and evaporates with a temperature lower than water evaporation

temperature.

Blending and storage

Then sample is tested for checking viscosity and acid value. If the tested parameters are within

range then the product is transferred to blender for thinning. In blender MTT is mixed with thick

resin. Then thinner resin is checked by QC department. The parameters checked by QC

36

department are viscosity and specific gravity. If all the parameters are within the range then resin

is transferred to bulk storage tank

A flowchart is given below:

Fig 6: Manufacturing process flowchart for resin production

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5.3 Effluent Treatment Plant (ETP)

Berger Paints Bangladesh limited boasts a modern ETP plant which treats the effluents from the

water based department. The process takes in all the effluents and after treatment, produces

environmentally safe water and sludge. The treated water is not harmful to the environment and can

be easily disposed off to earth. The water can even be used for irrigation purposes. The is burned

off in an incinerator. Currently, BPBL has a small incinerator although plans are underway to build

a high capacity and more environmentally friendly incinerator. It is to be noted here that effluents

from emulsion plant is treated in a small ETP beside Emulsion Plant. The mechanism and process

is basically the same as the ETP for WB department. Resin Plant oversees the ETP as it is situated

alongside the Resin Plant.

Fig 7: Schematic of the Effluent Treatment Plant of BPB

38

39

Chapter 6

SOLVENT BASED PAINT

Solvent based paint is usually used for metal surface coating as well as the wood cane goo hands. It

has fine decorative properties. The main difference from other paints is that here as solvent different

chemical based solvent is used. Average capacity of solvent based is 1,50,000 gallon per month if

the plant runs undisturbed.

6.1 Main Products

A. Enamel

1. Robbilac Synthetic Enamel (RSE)

2. Jhilik Synthetic Enamel (JSE)

B. Primer

1. Berger Marine Red Oxide Primer

2. Berger Anticorrosive Red Oxide Primer

3. Berger Marine Red Lead Primer

C. Innova

Raw material used

1. Pigments (Titanium oxide, Yellow oxide, Red oxide)

2. Extender and filler ( Chalk powder, micron TI)

3. Binder (Long oil alkyd resin, Medium oil alkyd resin)

4. Solvents (MTT, Kerosene)

5. Additives (Lead aphthanate, nuodex Cobalt)

6. Others (linseed oil , Xylene)

40

6.2 List of machineries

1. Attritor (ATR)

2. Sand Mill (SM)

3. Match Bead Mill (BBM)

4. Steel Ball Mill (SBM)

5. Filling machine

6. High Speed Dispenser (HSD)

Batch Bead Mill

The bead mill consists of a horizontal grinding chamber, which in turn houses the shaft and agitator

discs. The chamber is filled with zirconium grinding media and the material leakage is prevented by

the double acting mechanical seal. The material is pumped into the chamber using an air operated

diaphragm pump or screw pump.

Fig 8: Batch Bead Mill

41

Steel Ball Mill

A steel ball mill, a type of grinder, is a cylindrical device used in grinding (or mixing) materials like

ores, chemicals, ceramic raw materials and paints. Ball mills rotate around a horizontal axis, partially

filled with the material to be ground plus the grinding medium. An internal cascading effect reduces

the material to a fine powder. Industrial ball mills can operate continuously fed at one end and

discharged at the other end. Large to medium-sized ball mills are mechanically rotated on their axis,

but small ones normally consist of a cylindrical capped container that sits on two drive shafts (pulleys

and belts are used to transmit rotary motion)

Fig 9: Steel Ball Mill

Sand Mill

In sand mill process a homogeneous mixture of a pigment / vehicle slurry (Mill base) is pumped

through a cylindrical bank of sand, which is being subjected to intense agitation. During passage

through the agitated sand / media zone, the mill base is caught and ground between sand and media

– a strong shearing action which effects the dispersion of pigment into vehicle.

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Fig 10: Sand Mill

Attraitor

Attritor is a machine where grinding of solvent based pigments and other raw materials are

performed. The operation of a batch attritor is simple and effective. The material to be ground and

the grinding media are placed in a stationary, jacketed grinding tank. Commonly used grinding

media types are stainless steel, chrome steel, tungsten carbide, ceramic, or zirconium oxide and so

on. The material and the media are then agitated by the shaft with cross arms, rotating at high speed.

This causes the media to exert both shearing and impact forces on the material, resulting in optimum

size reduction and dispersion. No premixing is necessary.

Fig: Attraiter

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6.3 Supporting Systems and Equipment

The supporting systems equipment of solvent base plant are:

1. Measurement system

2. Cooling tower

3. Chiller

Measurement system

Resin is the binder of solvent base plant. Resin is measured by load cell. The working principle

of load cell is same as we stated in water based department.

Cooling tower

In solvent based plant attritor is used for grinding. Grinding process generates lot of heat. For

efficient grinding this heat should be removed continuously. To remove heat from the attritor

cooling water is supplied. This cooling water is supplied from a cooling tower. The capacity of

cooling tower is 100 TR.

Chiller

Sand mill used in solvent based plant for grinding process. Grinding process produces lot of heat

due to friction inside the sand mill. To remove heat from the sand mill, chilled water is supplied

at about 8 to 10 degree Celsius.

Production Process of Solvent Based Paint

At the first step of production process batch card is issued through SAP. Then raw material is

reserved according to SAP. Then powder, pigment, resin and solvent are charged for dispersion.

The next step is grinding check. Grinding check is carried out with Hegman Gauge by QC

department. If tests results are satisfactory then QC passes the sample for next step. Slurry

obtained from dispersion process is dropped in suspension tank where addition is made to match

shade, specific gravity, viscosity, drying time etc. After the addition sample is sent to QC for

44

checking certain parameters. If QC passes the sample a batch card is filled through SAP. After

completing all these steps filling is done as per batch requirement.

A flowchart is given below-

Fig11: Manufacturing process flowchart for solvent based paint

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Chapter 7

WATER BASED PAINTING

Water Based Plant produces mostly decorative paints. Water is used as the solvent for the paint

and hence the name “Water Based Plant”. The plant produces the most amount of paint than

any other plant of the factory. The approximate capacity of the department is about 3,70,000

gallons per month and serves about 60% of the country demand.

7.1 Products

1. Emulsion Paints

Emulsion paint is a fast drying paint containing pigment suspension in acrylic polymer emulsion.

Pigments, fillers, additives are mixed with water and emulsion is added as binder. This paint is

usually used on wall surfaces for decorative purposes. Also, WB produces base paint for Berger

Color Bank applications.

a. Berger Robbialac Acrylic Plastic Emulsion

These are interior decorative paints. The painted surfaces can be washed upto a certain extent.

The paint is of high grade and quality.

b. Berger Roabbialac Easy Clean

Easy Clean is one of Berger’s Premium Quality Acrylic Plastic Emulsion. The paint is of a higher

quality than APE and is easily washable with soap water and washcloth.

c. Weather Coat

Weather Coat is an exterior decorative paint. The paint has enhanced weatherproof properties to

withstand the harsh effects of the elements and keep the exterior of the building protected.

50

2. Distemper

Distemper is comparatively a lower grade, lower cost interior paint. The paint has the most

coverage but is not washable.

a. Berger Robbialac SPD (Synthetic Polyvinyl Distemper)

This is the brand name of Berger’s distemper. The main difference in formation of distemper

with APE is the use of more filler materials and lesser amount of binder.

3. Berger Robbialac Wall Putty

Berger produces wall putty is its WB plant as well. Wall putty is a mixture of whitening powder

and linseed oil which are used to make wall surfaces smooth and plain. After the construction of

wall and plastering, the concrete surface is rough and wall putty can be used to form a layer on

the surface which makes the surface smooth and glossy. Wall putty is used to patch up gaps and

holes as well.

4. Berger Robbialac Water Based Sealers

Sealers are used where there is a probability of water leakage or intrusion such as roof, a wall

having pipelines inside and so on. Berger Produces Sealers to be applied on these circumstances.

7.2 Raw Materials

1. Pigments

A pigment is a material that changes color of reflected or transmitted light as the result of

wavelength-selective absorption. Pigments are granular solids incorporated with paint to

contribute color to the base paint. Pigments can be classified as either natural or synthetic

51

types. Natural pigments include various clays, calcium carbonate, mica, silica, talc and so on.

Synthetic pigments are engineered molecules, calcined clay, blanc fixe, precipitated calcium

carbonate and so on. Hiding pigments make paint opaque as well as protect the substrate from the

harmful effects of ultraviolet light. Hiding pigments include titanium dioxide, phthalo blue, red

iron oxide and so on.

Figure 12 : Synthetic Ultramarine Blue Pigment

2. Tinters or Stainers

Tinters or Stainers also contribute color to the paint mix. Unlike pigments, stainers are in liquid

form and are mixed with paint mix to get desired shade at the end portion of paint making process.

3. Extenders and Fillers

Fillers are granular solids which are incorporated in paint mainly to reduce cost, support paint

structure and increase its volume. Fillers do not change paint properties or shade, that is, it does

not have any negative impact on the overall quality of the paint if used properly. Some filler

materials impart toughness, texture and special properties to paint. Fillers are usually cheap and

inert materials, such as talc, diatomaceoues earth, lime, fine quartz and so on.

4. Solvents

For water based paints, water is the solvent. It help the powdered raw materials to mix and

form a homogenous mixture, that is, paint.

5. Binders/Emulsifiers

Binder is the film-forming component of paint. It imparts adhesion and strongly influences such

properties as gloss, durability, flexibility, and toughness. BPBL produces its own emulsion in the

emulsion plant and this emulsion is used as binder in water based paints.

52

6. Dispersing Agents

The raw materials are all in powdered form and after mixing the materials can solidify and

precipitate to bottom. To prevent this and to ensure uniform dispersion of raw materials,

dispersing agents are used.

7. Defoaming Agents

Defoaming agents are used during the mixing process to ensure that foam and bubbles do not

form. Foaming impedes the mixing process and has a negative impact on mixer performance.

8. Additives

Paints can have a wide range of miscellaneous additives, which are usually added in small

amounts, yet provide significant effect on the product. Some examples include additives

which modify surface tension, improve flow properties, improve finished appearance, improve

stability and spread and so on. Depending on the properties required, additives are formulated and

added.

9. Thickeners

Thickeners are used to modify the viscosity of the paint. Nitrocellulose, Benton powder are

some of the thickeners

10. Stabilizers

Stabilizers such as formalin are used with paint to increase the stability of the emulsion and

increase the shelf life of the product.

7.3 Machine Used in WB

1. Twin Shaft Disperser (TSD)

The twin shaft disperser has, as the name suggests, two shafts. One shaft holds the primary

impeller which imparts rotary mixing motion of the water and powder mix, while the other shaft

holds a grinding disk. The grinding disk makes the coarse granules of the powdered raw materials

in to fine particles. The grinding shaft rotates at high speed and the impeller rotates at lower speed.

With the TSD, the raw materials are ground and mixed and turned into slurry.

53

Fig 13: Twin Shaft Disperser

2. High Speed Disperser (HSD)

High speed dispersers are single shaft dispersers with a grinding disk. These are used as

intermediate steps. The HSD does not have any tanks unlike the TSD. A mobile pot is used instead

3. Mixing Tank

Mixing tanks are larger capacity tanks which have only one agitator or impeller to continually

mix the slurry.

Filling and Lid Press Machines

The filling machines are portable and small. Although these machines make use of different

sensors, they are semi-automatic in nature, as in the operator still has to push a foot-lever each

time before filling each bucket. These can be classified in to two groups

a) Gravimetric Filling Machines

54

The gravimetric machines measure the liquid being filled by a load cell installed at the bottom of

a plate on which the paint buckets are placed. There are proximity sensors in the machine as well

to sense whether a bucket is present or not.

b) Volumetric Filling Machines

The volumetric filling machines measure the paint to be filled with a cylinder. The swept volume

of the cylinder can be changed through a dial gauge by the operator and thus the amount of

paint pushed through the nozzle is controlled. The pistons are operated using compressed air and

the swept volume is designated using limit switches.

c) Lid Press Machines

Lid press machines use compressed air to actuate pneumatic pistons to press lids on top of buckets.

The lid press can be of different shape depending on the lid to be pressed. Some are of crimping

type to crimp the pail lid on the bucket or can.

Manufacturing Process in WB Paint

The production process of water based paint starts with the issuance of batch card. The R&D

department formulates the raw materials and processes to follow according to the requirement of

the marketing and sales department. This formulation is then issued through the batch card

through SAP. Accordingly, raw materials are indented and reserved through the same software

Charging in TSD

The raw materials for water based paints are all in powder form. At first, water is taken in the

TSD/HSD and then the raw materials are added one by one. The proportion and time of mixing is

maintained as per batch card. Dispersion is checked time to time to mark whether the dispersion

is satisfactory or not. Filler materials are introduces at certain intervals. The process ends when

satisfactory dispersion is achieved.

55

Transfer to Mixing Tank and Emulsion Addition

After successful completion of grinding, the mixture is transferred via pumps and pipes to the

mixing tank and emulsion is added with it. For a successful completion of the paint making

process, TSD is enough; that is emulsion addition can also be done in TSD. But mixing tank is

used because the capacity of the TSD is too small for batch production with emulsion. A typical

TSD in BPBL has 600 gallons capacity whereas a mixing tank has 900 gallons. Also, segregating

the process in two machines improves the productivity of the whole process.

Addition to Match Specific Properties

After emulsion addition, further additions are made to ensure proper shade, specific gravity and

viscosity. Stainers are used to match shades whereas thickeners are used for viscosity. Different

types of additives are also added. Stabilization is done with stabilizers. The Quality Control

department checks for the properties and shade at certain intervals and when proper properties

are gained

Filling

Filling batch card is issued after QC pass and filling buckets and cans are indented. Filling is done

in the ground floor of the production. First, buckets go through an inkjet printer which prints batch

information and manufacturing and expiry dates on the body of the buckets. Filling is a semi

manual process. The machines are hydraulically operated.

56

Fig 14: Manufacturing Process Flowchart for WB paint production

7.4 Working Principles of the Filling Machines

a) Gravimetric Filling Machines

Gravimetric Filling Machines measure an amount to be filled from directly measuring filled

weight. In this case, a worker first leaves a empty paint bucket on the platform of the machine and

notes down the weight value displayed on LED panels. He then sets amount to be filled according

to the bucket size and filling batch card. When the worker starts the machine the controller first

checks whether there is a bucket place on the platform through a proximity sensor. If it senses the

bucket it opens the paint out valve. As the bucket gets filled the load cell starts to give more output

signal voltage and when the set weight value is reached the control panel shuts off the paint out

valve. When a new bucket is placed, the proximity sensor picks up the change and starts filling

again.

57

While the bucket is being filled, if it is removed, the controller immediately shuts of the outlet

valve stopping spillage and waste of paint. The paint level is maintained at a constant level in the

hopper by a level sensor as shown in the schematic.

Fig 15: Gravimetric Filling Machine

b) Volumetric Filling Machines

Volumetric Filling Machines measure an amount to be filled by the variable swept volume of

cylinders. The worker rotates a crank which moves a limit switch on a screw. The movement is

calibrated with the swept volume and is shown in dial gauge. The piston has two cylinders as

shown in the schematic. One is for compressed air and another is for paint. The process of filling

starts when the worker pushes a foot pedal. The valve checks whether there is a bucket placed

under the nozzle via a proximity sensor. If a bucket is there, compressed air enters through the air

in valve as shown. The piston pushes the paint in the paint cylinder out through the nozzle. The

push stops when limit switch is reached and the air flow reverses to bring back the piston on the

starting position. This enables the paint cylinder to suck in more paint from the hopper. The

58

proximity sensor works in the same way as the gravimetric machines sensor. If the bucket is

removed during the process, the process is stopped avoiding accidental wastage and spillage.

Fig 16: Volumetric Filling Machine

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Chapter 8

EMULSION

The Emulsion plant of BPBL is tasked with producing emulsion for its Water Based plant.

Emulsion is used as a binder in water based paint. The Emulsion Plant (EP) produces

emulsion from different monomers through emulsion polymerization and stored in storage tanks.

WB plant uses emulsion as required from these tanks. BPBL used to import emulsion, but now

its Emulsion Plant is self sufficient for the entire demand of emulsion. EP also produces industrial

glue and textile bond.

An emulsion is a mixture of two or more liquids that are normally immiscible (un-blendable).

Emulsions are part of a more general class of two-phase systems of matter called colloids.

Although the terms colloid and emulsion are sometimes used interchangeably, emulsion is used

when both the dispersed and the continuous phase are liquid. In an emulsion, one liquid (the

dispersed phase) is dispersed in the other (the continuous phase). Examples of emulsions include

vinaigrettes, milk, and some cutting fluids for metal working. The word "emulsion" comes from

the Latin word for "to milk", milk being (among other things) an emulsion of milk fat and water.

Emulsions, being liquid, do not exhibit a static internal structure; the droplets dispersed in the

liquid matrix (the “dispersion medium”) are assumed to be statistically distributed.

8.1 Emulsion Polymerization Process

Emulsion polymerization is a type of radical polymerization that usually starts with an emulsion

incorporating water, monomer, and surfactant. The most common type of emulsion

polymerization is an oil-in-water emulsion, in which droplets of monomer (the oil) are emulsified

(with surfactants) in a continuous phase of water. Water-soluble polymers, such as certain

polyvinyl alcohols or hydroxyethyl celluloses, can also be used to act as emulsifiers/stabilizers.

The name "emulsion polymerization" is a misnomer that arises from a historical misconception.

Rather than occurring in emulsion droplets, polymerization takes place in the latex particles

that form spontaneously in the first few minutes of the process. These latex particles are typically

55

100 nm in size, and are made of many individual polymer chains. The particles are stopped from

coagulating with each other because each particle is surrounded by the surfactant; the charge on

the surfactant repels other particles electrostatically. When water- soluble polymers are used as

stabilizers instead of soap, the repulsion between particles arises because

8.2 Manufacturing Process of Emulsion

Aside from producing emulsion for WB plant, emulsion plant also produces industrial and textile

glue. These products are branded as:

a. Power Bond DDL

b. Power Bond SH

c. Tex Bond PD

d. Tex Bond FA

The production process of these products is almost the same, although the formulation and time

differs. At first batch card is issued according to R&D formulation and requirement. Raw materials

are indented and weighed. Raw materials are first taken at a pre-mixer and thoroughly mixed. The

mix properties are checked by the EP QC department and passed when satisfactory mixture is

found. Emulsion polymerization is an exothermic reaction. After that the kettle needs to be cooled

so that the temperature remains constant at a preferable temperature (750-850C). The first heating

is achieved by running steam from a boiler through the limpet coils. The cooling is done with

cooling water from Cooling Towers. When the polymerization process stops, the emulsion is

vigorously cooled from a temperature of about 900C to 400C using the same cooling water from

the tower. The monomers used are volatile and evaporate very fast.

The mixture is then transferred into the blender and checked for various properties. When passed

the products are okayed for filling. Power Bond products are filled with the semi-automatic filling

machines

in plastic cans, whereas Tex Bond products are packaged manually on plastic bags and drums.

WB emulsion is transferred to storage tanks.

56

Fig 17: Reactor Kettle

57

Fig 18: Flowchart of manufacturing of emulsion

57

Chapter 9

MAINTENANCE DEPARTMENT

9.1 Work Procedures of the Maintenance Department

Maintenance department is very vital department for an industry. Berger has its own maintenance

department. But a general culture is practiced here that each plant will solve its own problem by

using their trained workers. If they fail to solve the problem then maintenance department will take

over the problem. Maintenance department will send their technicians and engineers to the

respective plant. After the observation they will decide whether they will go for third party or they

will solve it by using

Fig 19: Maintenance department working procedure flowchart

58

9.2 Power Transmission and Distribution

Power is consumed from distribution line. Distribution line voltage is around 11 KV. Distribution

line is connected to HT (high transmission switch) gear. HT switch gear separates transformer

side from distribution line. Transformer lowers the voltage of distribution line to 415 V.

transformer is connected to LT switch panel. LT switch panel separates plant side from transformer

side. Then the line passes through ATS. A connection from generator also comes to ATS. A PFI

(power factor improver) is used to improve power factor of the line. PFI generally balance inductive

load of the plant by using reactive load.

Fig 20: Set up of power transmission

9.3 Compressed Air Utility of Berger Paints Bangladesh

Compressed air from screw compressor first goes to air reservoir. Air reservoir is required to

uniform the pressure of compressed air. Then uniform air goes to pre filter. Pre filter can filter

particle size around

0.1µm. From pre filter air goes to air drier. Air always contains some moisture if compressed air

is not dried properly then moisture can cause corrosion to the equipment. Dried air then goes to

post filter. Post filter can filter particle size around 0.01µm. After fine filtration compressed air goes

to the plant. Screw compressor in Berger paints can compress air to 10 bars. Generally that much

pressure is not required. Pressure of compressor is set to around 7 bars. When the reservoir pressure

exceeds this limit compressor automatically shut down.

Fig 21: Compressed Air Utility of Berger Paints Banglades

60

Chapter 10

FINANCIAL ANALYSIS

Last Five Years Financial Data Analysis of BPBL

Table 1: Five Years (2009-2013) Financial Data of BPBL

The table above indicates that changes occurred gradually during last five years in Turnover,

Profit before and after tax, Shareholders equity, Current assets and liabilities of BPBL. Turnover

has an increasing trend but the percentage fluctuates from 2009 to 2013 and in 2013 the

percentage decreased by 4.8%. BPBL‟s mission is to increase turnover by 100% in every five

year where the actual res60 | P a g e ults are very far from that. (Annual Report, 2009-2013)

61

Chart 1: Trend Analysis of GP, PBT, PAT

The trend analysis shows that gross profit, profit before and after tax are upward sloping.

However, the growth are not that much satisfactory. For example, growth rate percentage of

profit after tax fluctuated over the last five years and decreased almost by half in 2010 from 2009

which were respectively 21.55% and 44.68%. It further reduced to 2.35% in 2011. After one year

it increased by 9.98% in 2013 from 2012. Growth rate of shareholder’s equity was 45.84% in

2009 and in 2011 the rate declined by 2.5 times may be because of share price reduction in 2011.

Growth rate decreased continually from 2010 to 2012 may be due to share market crash and

increased slightly in 2013. (Annua Report, 2009-2013)

Fundamental Ratio Analysis of BPBL

Short-Term Solvency or Liquidity Ratios

The key concern of the liquidity ratios is the firm‟s ability to meet the short-term financial

obligation without undue pressure. These ratios emphasize on the current assets and current

liabilities to quickly convert the assets to cash. (Liquidity ratios, 2014)

Current Ratio

The current ratio compares a company‟s liquid assets with short-term liabilities. That means the

ability of the company to pay the short term liabilities with the current assets such as accounts

62

receivables, cash etc. The higher the current ratio, the more liquid the company is. The ideal

current ratio is 2:1. (Roman Weil, 2014)

BPBL‟s 2009 to 2013 Current Ratio

Table 2: Current Ratio

Interpretation

BPBL‟s current ratio was 1.57:1 in 2009 and it increased slightly to 1.58 in 2010. The ratio

improved by 0.64% because both the current assets and current liabilities went up. However,

there was a greater increase in current assets than the current liabilities due to which the current

ratio improved. In 2011 and 2012 the ratio increased to respectively 7.59% and 17.64%. Liquid

assets increased in 2011 and 2012 but short term liabilities went down in 2012 from 2011 may be

because of reduction in accounts payables and short term debts. Current ratio increased in 2013

by 2% in comparison to 2012, as it stood at 2.04:1. The current liabilities has increased from the

previous year but as the current assets experienced a greater increase as against the current

liabilities, the impact on the current ratio was not that negative. Since the current ratio remained

above 1 throughout the five years, it can be assumed that BPBL did not face any problems

meeting their short term liabilities. And it was in 2012 that BPBL reached the ideal current ratio

of 2:1, which is regarded as desirable for a healthy business.

Quick Ratio

63

A reliable test of liquidity is the quick ratio test that excludes inventory from current asset. It

considered the ability to use its quick assets to pay its current liabilities. This approach can be

acceptable since inventory of many companies cannot be quickly converted into cash. The ideal

quick ratio is 1:1. (Roman Weil, 2014)

Chart 2: Quick Ratio

Interpretation

From the above table, it can be seen that the quick ratio of BPBL varied time to time. The quick

ratio was 0.962:1 in year 2009 and it reduces in 2010 to 0.775:1 leading to a drop of 19.44%.

There had been an increasing trend in current assets, current liabilities and inventory yet massive

increase in inventory affecting more for the huge percentage decline. Inventory might be

increased as a result of customer demand of the product in the market. It dropped further in 2011

by 11.22%. The ratio was 0.961:1 in 2012 and again it improved in 2013 by 14.26%. In 2012 and

2013 BPBL had enough cash and bank balance in comparison to 2011 and 2010. However, in

2009 and 2012 BPBL‟s quick ratio were almost close to the ideal quick ratio 1:1, which

indicates BPBL was not highly dependent to pay their liabilities on inventory and they were

efficient to manage their cash. On the other hand, in 2013 the ratio increased from the ideal one

that happened because the company may kept huge amount of cash on hand or had a problem in

inventory management or accounts receivable management.

64

Long-Term Solvency or Financial Leverage Ratios

Long-term solvency ratios are used to assess the firm‟s long-term ability to meet the long term

debt obligations such as interest payments on debt, the final principal payment on debt, and fixed

obligations like lease payments. (R. Charles Moyer, 2011)

Debt to Equity Ratio

The debt to equity ratio compares a company's total liabilities to the total shareholders' equity.

This is a measurement of how much suppliers, lenders and creditors have committed to the

company against the shareholders have committed. The standard debt to equity ratio is 1:1. The

lower the ratio, lower the debt and higher the equity of shareholders. (Debt to equity ratio, 2014)

Table 3: Debt to Equity Ratio

65

Chart 3: Debt to Equity Ratio

Interpretation

The table shows that the debt to equity ratio of BPBL had a decreasing trend from year 2009 to

2012 which are respectively 0.81, 0.75, 0.72 and 0.54 times. Both the debt and shareholder‟s

equity went up in these years but there were greater improvement in shareholder‟s equity

compare to debt. That means BPBL had been efficient in financing its growth with its

obligations. In 2013 the ratio was 0.55 which increased by 1.2% than the previous year since

BPBL borrowing cost increased in 2013 from 2012. Though 1:1 debt to equity ratio is preferable,

BPBL‟s debt to equity ratio is decreasing so their capacity of debt financing is being increased.

Nevertheless, it can be assumed that most of BPBL‟s debts consist of creditors and accruals so

BPBL‟s borrowing cost is insignificant as a consequence BPBL is in good position.

Debt to Asset Ratio

Debt to asset ratio shows the proportion of the assets that are financed with short term and long

term debt rather than equity and the ideal ratio in percentage is 0.4 to 0.5 times. Long term debt

can be deferred tax liabilities and short term debts are trade and other payables, bank overdraft,

provision for royalty etc. Lower the ratio, lower the amount of debt and most of the financing are

being covered by equity.

66

Debt to asset ratio, 2014

Table 4: Debt to Asset Ratio

Chart 4: Debt to Asset Ratio

Interpretation

Like every other company BPBL‟s debt to asset ratio includes both long-term and short-term

debt. It also contains the company‟s tangible assets and intangible assets. Property & plants,

inventories etc. are tangible assets and software, trademarks etc. are the intangible assets of

BPBL. The debt to asset ratio of BPBL fluctuated over the last five years. Since BPBL‟s debt to

asset ratio was 0.45 times in 2009 which was higher than any other year it can be said that they

took higher financial risk. From 2010 to 2012 the ratios were respectively 0.41, 0.42 and 0.35

times which has a fluctuating trend due to continuous improvement in assets value and

irregularity in debt value. The debt to asset ratio remained constant from 2012 to 2013. However,

the debt to asset ratio is close to the standard ratio.

67

Asset Management or Turnover Ratios

The turnover ratios describe how effectively a firm uses assets to generate sales revenue. High

asset turnover ratios are desirable since they mean that the company is utilizing their assets

strongly to produce sales. The higher the asset turnover ratios, the more revenues the company

can generate from the assets. On the other hand, low asset turnover ratios mean assets of the

company is not properly utilized. (Jain, 2007)

Inventory Turnover Ratio

Inventory turnover ratio measures how many times a company's inventory is sold and replaced

over a period. This ratio evaluates the liquidity of the firm's inventory. It also helps to determine

how sales can be increased through inventory control. The standard inventory turnover ratio is

4:1. Generally, a low turnover ratio involves poor sales therefore end up with excess inventory.

On the contrary, a high turnover ratio implies company is very strong in selling inventory or

ineffective buying. (Inventory turnover ratio, 2014)

BPBL‟s 2009 to 2013 Inventory Turnover Ratio

Table 5: Inventory Turnover Ratio

68

Chart 5: Inventory Turnover Ratio

Interpretation

Here from the above mentioned table, BPBL‟s turned their inventory 8.6 times in 2009 and the

turnover rate started to decline in 2010 and 2011 which were respectively 5.3 and 4.7 times. This

happened because they had more inventories piled up than the sales proceeds which indicate the

company over spent by buying too much inventory. Furthermore, the turnover ratio again

improved to 6.4 and 6.7 times in 2012 and 2013 due to effective sales of the inventory they

bought. Over the last five years the inventory turnover ratios were fluctuating from the standard

ratio.

Accounts Receivable Turnover Ratio

Accounts receivable ratio is an activity ratio that measures how many times a firm can turn

accounts receivable into cash during a period. It measures how many times a company can

collect average accounts receivable during a year. An efficient company‟s collection period is 30

days. The lower the amount of uncollected cash, the higher this ratio will be and if a company

has more of the proceeds awaiting receipt, the lower the ratio will be. (Accounts recevable

turnover ratio, 2014)

BPBL‟s 2009 to 2013 Accounts Receivable Turnover Ratio

69

Table 6: Accounts Receivable Turnover Ratio

Chart 6: Accounts Receivable Turnover Ratio

Interpretation

BPBL‟s accounts receivable turnover has a changing trend year to year. In 2009 BPBL‟s

accounts receivable ratio was 17 days that means it was very efficient in collecting outstanding

sales and reinvested the sales proceeds. Collection period increased during 2010 to 2013 and the

ratios are respectively 21, 24, 23 and 24 days. It might be happened because of the change in

cash collection process that leads to an increase in average accounts receivables every year. Yet,

the collection period is below the standard ratio which is a positive factor for the company.

Accounts Payable Turnover Ratio

Accounts payable turnover ratio measures the speed of any company to pay its suppliers. The

70

ideal accounts payable ratio is between 45 to 65 days. On the contrary, if the turnover ratio drops

from one period to the next, this indicates that the company is paying its suppliers more slowly

which can badly affect the company’s financial position. (Accounts payable ratio, 2014)

BPBL‟s 2009 to 2013 Accounts Payable Turnover Ratio

Table 7: Accounts Payable Turnover Ratio

Chart 7 : Accounts Payable Turnover Ratio

Interpretation

The ratio of BPBL was 75 days in 2009 and increased in 2010 to 94 days since they might be

71

facing problems to pay the debts to the suppliers. Again, the ratio improved in 2011 and 2012

which were respectively 66 and 61 days. That may indicates, they were paying their suppliers

timely and they were taking advantage of early payment discounts. However, the ratio again

increased to 67 days in 2013 may be because of delay in payments. The turnover ratio went up in

the previous year that can weaken the company‟s negotiation power with the vendors in terms of

credit terms and discounts in the future.

Profitability Ratios

Profitability ratios evaluate a firm's overall efficiency and performance. Profitability ratios are of

two types, one is margin and another is return. A higher value is desirable than a lower one and it

indicates company is making profit from their operations. (Eugene Brigham, 2011)

Net Profit Margin

The net profit margin ratio directly indicates what percentage of sales is made up of net income.

This ratio also evaluates how well a company manages the expenditures relative to the net sales.

The standard ratio is 10% to 20%. Companies can achieve higher ratios either by producing more

incomes while keeping expenditures constant or keep revenues constant and lower expenditures.

(Net profit margin)

BPBL‟s 2009 to 2013 Net profit Margin

Table 8: Net Profit Margin Ratio

72

Chart 8: Net Profit Margin

Interpretation

The net profit margin of BPBL was 9%, 13%, 13%, 9.89% and 9.79% from 2009 to 2013

respectively. It rose by 4% in 2010 compare to 2009 may be because they minimize their expenses

and generated more revenues. Yet, the ratio decreased in 2012 and 2013. The reason of this fact

either might be high selling and administrating expenses, high tax rates and other operating

expenses or low income from operations. BPBL should concentrate on how to increase

net profit margin in near future.

Return on Asset (ROA)

The return on assets ratio measures the net income produced by total assets during a period. In

other words, ROA measures how efficiently a company can manage their assets to generate

incomes during a period. (Return on asset)

73

BPBL‟s 2009 to 2013 ROA

Table 9: ROA

Chart 9 : ROA

74

Market Ratio Analysis of BPBL

Earnings per Share (EPS)

Earnings per share (EPS) are the values of earning from each outstanding common shares of a

company. Generally, EPS is calculated on a per share basis. The higher the ratio, higher will be

the earning from the common shares. (Carl Warren, 2012)

BPBL‟s 2009 to 2013 EPS Ratio

Table 10: Earnings per Share (EPS)

75

Chart 10 : EPS

Interpretation

Over the last five years EPS has an increasing trend. EPS of BPBL gradually improved year to

year. Per share income was only Tk. 25 in 2009 and in 2010 it increased by almost Tk. 5 leading

to an EPS of Tk. 30.39. Furthermore, it went up in the next three years respectively Tk. 31.10,

32.46 and 37.13 that indicates positive result for BPBL‟s shareholders. This increase occurred

only due to rise in net income since the common shares of the company stood constant throughout

the five years.

Price-Earnings Ratio

Price-earnings ratio measures whether market is willing to pay for the company‟s earnings. In

addition, it shows whether the share price of a company is fairly valued, undervalued or

overvalued. The higher the P/E ratio is, the more the market is interested to pay for the company‟s

earnings. Companies with high P/E ratio takes more risk than those with low P/E ratios because a

high P/E ratio signifies high return. (Carl Warren, 2012) BPBL‟s 2009 to 2013 Price Earnings

Ratio

76

Table 11: Price-Earnings Ratio

Chart 11: P/E Ratio

Dividend Payout Ratio

The dividend payout ratio is the amount of dividends paid to the company‟s stockholders relative

to the amount of EPS. The amount remaining after paying the dividend is called retained

earnings and held by the company for future growth. (Dividend payout ratio)

77

Table12: BPBL‟s 2009 to 2013 Dividend Payout Ratio

Chart 12: Dividend Payout Ratio

Interpretation

The dividend payout ratio of BPBL was 60% in 2009. That means they were paying a huge amount

of dividend in spite of experiencing only four years in the share market. Although in 2010 it

reduced a bit due to change in dividend percentage and EPS but changes in EPS was greater.

Moreover, it was enough to satisfy the investors as they were getting high yield from dividend and

they could have capital gain since prices of the shares increased in 2010. However, the dividend

payout ratio continued to fall in 2011 and 2012 and the percentages were respectively 57.88% and

55.45%. This incident occurred because yearly dividend per share was constant but EPS increased

in these two years. Three years after the continuous decline the ratio again went up in 2013 due to

increase in dividend per share and EPS.

78

Chapter 11

Assisgnment

We are assigned to do the following assignment.

“What low cost ideas/automation can be imposed in charging and filling Machineries to improve

productivity without capital investment? Explain in details??”

We have proposed some ideas about charging and filling section. The proposed ideas are described

to the next page.

79

11.1 CHARGING SECTION

Slurry lifting with pump

Present set-up

We observed 4 ATRs and 1 BBM in the production floor of solvent based paint. Presently, slurry

produced in ATRs and BBM is collected in the ground floor from the bottom of the ATRs and

BBM with movable port which is then transferred manually to the lift which is elevated with the

help of a lift to the 1st floor. Then it is taken to the desired mixing tank/s. A simple schematic

diagram of the present floor set up is given in the next page. (All ATRs and BBM are not given in

the figure)

ATR

Lift Movable port Tank

Fig 22: Present set up of lifting slurry

Problems identified in current set-up

1. Excessive worker involvement during material handling.

2. The whole process is time consuming.

3. Restricts free movement of workers.

4. Makes the whole process less efficient.

5. It is not very cost effective.

6. It requires good communication between the workers involved in the whole process.

80

Fig: Present layout of transferring slurry

knat

23

2200

G

knat

21

2200

G

knat

11

2200

G

knat

1

2200

G

knat

22

2200

G

knat

31

2200

G

knat

01

2200

G

knat 2

0011

G

knat

12

2200

G

knat

41

2001

G

knat 9

2200

G

knat 3

0011

G

knat

20

2200

G

knat

15

2200

G

knat

8

2200

G

knat 4

2200

G

knat

19

2200

G

knat

61

2200

G

knat

7

2200

G

knat 5

0011

G

DSH

(BW)

DSH ( ) DS

ADSLOL)

DSH (

HSD

1

knat

81

2200

G

knat

71

2200

G

Wnlna

ec

knat 6

0011

G

y

k

y

h

k

tniak

34 33

32

Skccl Wnll

Oill

-2

Skccl Wnll

Oill

- 1

BB

M 1

A

TR

2

AT

R 1

AT

R 3

A

TR

4

30 29 26 25

31 28 27 24

SM 4 SM 3 SM 2 SM

1

81

Recommended set up

We have thought that the process can be made more efficient with the help of the pump which will

be used to lift slurry collected from the ATRs to the 1st production floor. The slurry will then be

distributed with to the desired tanks with the help of pipes. Our proposed detail schematic diagram

is given in the next page.

Benefits of the proposed design

1. It will require no lift, moveable port which can be used for other purposes.

2. The set up will cut the cost to a great extent as it requires less human involvement.

3. The whole process will be very time and cost efficient one because a huge amount of time

is wasted in the total material flow in current set up.

4. The change from the current set up to the recommended set up will not require so much

capital investment.

5. It will facilitate free movement of material and workers.

6. It will save the valuable space of the production floor reducing the use of movable ports.

The saved space can be used to store other materials near to desired location.

7. We think the set up will increase the productivity to a great extent.

82

ATR 1 - 8, 14, 15, 21

ATR 2 - 11, 22, 23

ART 3 - 3, 12, 13, 20

STEEL BALL MILL 1 – 24, 27, 28, 31

STEEL BALL MILL 2 – 2, 9, 10, 34

BBM and SM 1 – 1, 4, 16, 17, 18, 19

SM 2 – 7, 32

SM 3 – 5 ,6, 33

SM 4 – 25, 26, 29, 30

Fig: Proposed layout of pipeline for transferring slurry

knat 23

2200 G

knat 12

2200 G

knat

11

knat

1

2200

G

knat 22

2200 G

knat 13

2200 G

knat

01

knat 2

0011

knat 12

2200 G

knat 14

2001 G knat 9

2200

knat 3

0011

knat 20

2200 G

knat

15 knat

8

knat 4

2200

G

knat 1t

2200 G

knat

61

2200 G

knat

7

2200

G

knat 5

0011

G

DSH

(BW)

DSH ( ) DS

ADSLOL)

DSH (

HSD

1

knat 18

2200 G

knat 17

2200 G

Wnlna

ec

knat 6

0011

G

tniak

34 33

32

Skccl

Wnll

Oill -

2

Skccl

Wnll

Oill -

1

BB

M 1

A

TR

2

AT

R 1

AT

R 3

A

TR

4

30 29 26 25

31 28 27 24

SM 4 SM 3 SM 2 SM

1

Pipeline from

ATRs, SBMs,

BBMs and SMs to

desired tanks

83

Flow of thinner from main line to all ATRs and tanks

Present set-up

We observed that at present condition the thinner (Terpentine oil) is collected from the main line

with the help of movable ports that is then moved to the desired ATRs and tanks for mixing.

A simple schematic diagram of the present floor set up is given in the next page-

Problems identified in current set-up

1. The process is time consuming.

2. Excessive worker involvement during material (thinner) handling.

3. Restricts free movement of workers as it requires use of movable ports

4. Makes the whole process less efficient.

5. It is not very cost effective.

6. It requires drum lifter.

84

Recommended set up

Main line of thinner and the ATRs can be connected with the help of pipes the A flowmeter will

be used to mix the desired the amount of thinner to the desired location. Our proposed detail

schematic diagram is given below.

Benefits of the proposed design

1. It will require no moveable port, weighing machine and drum lifter which can be used for

other purposes.

2. The set up will cut the cost to a great extent as it requires less human involvement.

3. The whole process will be very time and cost efficient one because a huge amount of time

is wasted in the total material flow in current set up.

4. The change from the current set up to the recommended set up will not require so much

capital investment.

5. We think the set up will increase the productivity to a great extent.

6. As the oil will be flowed through pipes it will not waste the oil through spontaneous

evaporation (though very little amount)

7. The proposed set up will require a flow meter which may incur some cost. But it will be

cost effective compared to the cost that will be saved from direct manual movement.

85

Product Layout of BBM, Sand Mill 1 and HSD

Present set-up

We observed that both the BBM and sand mill 1 are dedicated for white paint which requires

premixing that is done in the HSD. The premix produced in the HSD is then taken to the sand mill

1 and BBM manually (using movable port) with the help of movable port. We also observed that

BBM, sand mill and HSD are far from each other.

A schematic diagram of the existing set up is given below-

Fig: Current set up of BBM, Sand mill and HSD in the production floor

Sand

Mill 1

BBM

HSD

86

Problems identified in current set-up

1. As the above mentioned mixers are far distant to each other a huge amount of time is

wasted during the movement of mixer.

2. It makes the material handling process inefficient.

3. Unnecessary dispersion of the system.

Recommended set up

As the BBM, sand mill 1 and HSD are dedicated for white paint production these can be set up

close to each other as like the product layout. After completion of the premixing in the HSD the

premixer can easily be moved to the BBM and Sand mill 1 easily without unnecessary movement

of the material.

Fig: Proposed product layout of Sand Mill, BBM and HSD

Sand

Mill 1

HSD

BBM

87

Advantages of the proposed design

1. As the mixers are close to each other a huge amount of time can be saved during the

movement of mixer.

2. Some human labor can be eliminated

3. Increases the productivity by saving the human labor time and increasing output

88

Rearrangement of ATRs and Tanks

If solvent based production floor is transferred to another building like water based in the future

then ATRs and Tanks can be arranged in such a way so that slurry can be directly dropped from

the ATR to the tank without using pump (using gravitational force)

A schematic diagram of present-up:

A recommended set up for ATRs and Tanks for future :

ATR

Floor Partition

TANK TANK TANK TANK

89

11.2 FILLING SECTION

Joining printing and filling machine together

Existing setup of filling and printing machine

At present printing and filling machine are far away from each other. Here goes the setup

schematic diagram:

Fig: Existing set up of printing and filling machine

90

Problems in present setup

1. It is a lengthy process as worker carry printed can from the printing machine to the filling

machine which is located far away from printing machine.

2. Wastage of time.

3. Hinders free movement of workers and materials.

4. It requires trolley which makes incurs money and most importantly makes the production floor

clumsy.

5. Overall decrease productivity.

91

Recommended setup

A schematic diagram of the proposed layout is given below-

Fig : Modified set up of printing and filling machine

92

Benefits of modified setup

1. Reduction of 4 worker (In figure worker 2,3,4,5 )

2. Saving a huge amount of money yearly.

3. Keep the production floor less clumsy.

4. Handling less number of worker is easier for the manager and manager can use his/her extra

time in planning for improvement of product and system.

93

Introduction of automatic lid placing system in existing two head

filling machine

We observed that in two head filling machine one worker is dedicated only for placing lid on top

of the filled can which can be done easily using sensors.

Present setup

A schematic diagram of filling machine is given below

Fig: Present setup of filling machine

Problems in present set up

One full time worker is assigned just to place the lid.

94

Recommended Setup

Fig : Modified set up of printing and filling machine

Benefits of modified setup

1. It saves a large amount of money yearly by reducing a worker.

2. It will make the process faster.

3. Chance of error is lower than manual lid placing.

4. Overall increase of productivity.

Declaring incentives for filling workers

Filling rate can be improved by declaring various types of incentives and bonuses per filling

(SKU). It will cost a little but it will have great positive impact on productivity.

95

CONCLUSION

We observed the production floor of water based and solvent based painting for several days and

found the above mentioned problems in the charging and discharging section. We tried our level

best to find out the economically feasible solution to the problems. All solution we provided here

may not be the best solution but we think from our point of view that the implementation of the

solutions or modification of the solutions will have positive impact on productivity of the factory.

List of References

1. http://www.bergerbd.com/

2. https://en.wikipedia.org/wiki/Paint

3. https://en.wikipedia.org/wiki/Acrylic_paint

4. https://en.wikipedia.org/wiki/Paint_thinner

5. http://www.gemini-techniek.com/filling/applications/paint_coatings/

6. https://www.youtube.com/watch?v=f-99YjEahOg

7. http://www.fillers.com/complete-lines/paint/

8. http://www.thomasnet.com/products/paint-filling-machinery-47791405-

1.html

9. http://www.fillers.com/paint-industry/