Sustainable

Development
Goal (SDG)
&
Relevant strategy

i|Page

Strategic Analysis on

Sustainable Development Goal

for
Berger Paints Bangladesh Limited
Submitted to:
Dr. Syed Ferhat Anwar
Professor, IBA,
University of Dhaka

Submitted by:
1.
2.
3.
4.
5.

Subrata Paul (ID: 07-39)

Dipesh Roy Milton (ID: 07-29)
Gopal Biswas (ID: 07-26)
Faizul Piyas (ID: 07-21 )
Anjamin Ahsan Hema (ID: 07-61 )

Date: December 30, 2015

Advance Certificate in Business Administration (ACBA)

Institute of Business Administration (IBA)
University of Dhaka
ii | P a g e

Letter of Transmittal

December 30, 2015

Dr. Syed Ferhat Anwar

Professor, Institue of Business Administration
University of Dhaka

Dear Sir,
Here is our report on Strategic Analysis onSustainable Development Goal for Berger Paints
Bangladesh Limited that you have assigned us during your module in ACBA program of
Institute of Business Administration, Universtiy of dhaka

This report contains a third sector based strategy for Berger Paints Bangladesh Limited. We
have tried our best to show how the strategy will conribute to the tripple bottom line and how
outcome can be reported using SDG. This report is based on primary data and further analysis
of those primary data.

We are formally acknowledgeing your contribution in our learning as without your guidance
this would never been possible. We are really thankful for the opportunity to work on this
assignment as it allowed us to get an interesting fact and a brief understanding of Strategic
Mangement. We will be very happy to address any further queries in this regard.

Thanking you,
.....

Subrata Paul

Faizul Piyas

Gopal Biswas

Dipesh Roy Milton

Anjamin Ahsan Hema

ACBA, IBA
University of Dhaka
iii | P a g e

Executive Summary

The painting industry of Bangladesh is a Tk. 25000 million per year industry. Berger Paints
Bangladesh Limited is the market leader in the painting indurstry of Bangladesh with 58%
market share. The significance of this data can be better understood by the fact that the
closest competitor Asian Paints have only 15% market shre. However market is dealer
dependent and therefore dealers enjoy a lot power over industry. As a result the market is
very competitive.

Berger is very pofitable in the sharemarket with 1870 Tk per share for the face value of
TK.10 . However, profitability can no more be the only concern of a business. Business is
now all aobut serving people and planet while making profit. To make sure this tripple
bottom line every business has to create strategy that actually helps to achieve Sustainable
Development Goals.

Berger being a chemical manufacturer has adopt a strategy to become a socially committed
business. However to serve tripple bottom line it need a certain strategic reformation. The
strategy proposed here can be divided in to five phases. It includes becoming a pioneer in
emission control and waste management, launching media campaign for Lead free
Bangladesh, becoming a part of antipollution movement, launching intelligent CSR and
Implementing ISO 26000. Implementation of this strategy may start from 2016 and can be
continue until 2030. However the strategy has no core competency without the first mover
advantage. But if the strategy is imitated by competitor, the nature of the strategy may help
Berger get a stronger positioning.

Though the strategy will serve tripple bottom line, it can not touch all the goals of SDG. But
it will have some certain impact over goal 3, 8, 11 and 12. This will help Bangladesh to reach
its target by 2030.

iv | P a g e

Table of Content

Section

Topic

Page number

1.1

Back ground of the report SDG and Relevance with Berger

1.2

Objective

1.3

Scope of study

1.4

Methodology

1.5

Limitations of the report

1. Introduction

2. Industry Analysis
2.1

Glimpse on sector and Growth Analysis

2.2

Market Share

2.3

Competition approach and organizational diversifications

3. Portrait of the Organization

3.1

The company

3.2

History of the company

3.3

Current scenario

4. SDG and Berger Business Strategy

4.1

SDG modules and relevance with the Organization

4.2

SDG target and Organizational Strategy

4.3

Organizational Strategy and activity planogram

4.4

Impact of activity and financial aspects

10

4.5

Return on strategically SDG base alignment (ROI)

12

4.6

Reporting Outcomes in SDG

13

4.7

Recommendations

14

4.8

Conclusion

14

Appendices

v|Page

List of Figures
Figure 1 Market Size and Growth Rate .................................................................................................. 2
Figure 2 Market Size and Contribution................................................................................................... 2
Figure 3 Market Share ............................................................................................................................ 3
Figure 4 Porter's 5 Forces ....................................................................................................................... 4
Figure 5 ROI Using Investment and NPAT .......................................................................................... 12
Figure 6 ROI Using Sales Revenue and Gross Profit ........................................................................... 13

List of Tables
Table 1 Market Size and Growth Rate .................................................................................................... 2
Table 2 Company Milestones .................................................................................................................. 5
Table 3 Timeline and Summary of the Strategy .................................................................................... 10

List of Abbreviation
Abbreviation

Elaboration

3BL

Triple Bottom Line

APEO

Alkylphenol Ethoxylates

ATL

Above the Line

BAEA

Berger Award for Excellence in Architecture

BASAB

Berger Award Programmed for the Students of Architecture of BUET

BPBL

Berger Paints Bangladesh Limited

BTL

Below the Line

BYPAC

Berger Young Painters Art Competition

CSR

Corporate Social Responsibility

ETP

Effluent Treatment Plant

J&N

Jenson & Nicholson

MDG

Millennium Development Goals

MT

Metric Ton

NPAT

Net Profit after Tax

R&D

Research and Development

ROI

Return on Investment

SDG

Sustainable Development Goal

VOC

Volatile Organic Compound

vi | P a g e

1. INTRODUCTION
1.1 Back ground of the report:
The assignment is a requirement for ACBA to complete the Strategic planning and Leadership
module from Institute of Business Administration (IBA). Part of study students of 7th batch required
to submit group assignment on SDG and relevant strategy of the Organization where you have access
considering team member. Considering one of our teammate, we have considered Berger Paints
Bangladesh Limited and thus we have preceded this report considering the requirement of study. We
are assigned by our course instructor of this module Dr. Syed Ferhat Anwar Professor, IBA to
prepare this report; our honorable teacher has provided us necessary instructions about this report. We
have tried to collect relevant and useful data to prepare this report.

1.2 Objective:
The board objective of the report is to identify the potentiality of the organization through analyzing
the relevance of SDG impact on organization future. However, specific objective of this analysis is to
a. To be align with sustainable development goals
b. To be more acquainted with the people and planet
c. To be stronger in competitive scenario
1.3 Scope of study:
This report renders a close analytical look at the telecommunication sector of Bangladesh with a focus
on BPBL, in addition to its growth and development since inception. The report is written expected to
augment the market knowledge, economic situation analysis, and research & development
department.

1.4 Methodology:
Both primary and secondary data selected from basic research method conducted through discussion
with relevant members of BPBL. The analysis conducted based on my class room study on Strategic
Planning and Leadership module in ACBA.

1.5 Limitations:
The major limitation for this report was primarily the state of the Organization and relevant
confidentiality. And thus has forced mostly to be based on websites details as well as articles write up.
Furthermore, some information was withheld to retain confidentiality of the companies. Exact
verifications of some information could not be made owing to this.

1|Page

2. Industry Analysis
2.1 Market Growth Analysis
The current market size of the painting industry is above 12000 metric tons and the industry is
growing at an average rate of 5% to 7% each year.
Table 1 Market Size and Growth Rate

Year

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Volume
in MT

67,656

71,975

76,569

80,599

86,666

92,691

98,607

104,346

111,600

120000

6%

6%

5%

7%

6.50%

6%

5.50%

6.50%

7%

Growth% 4%

Volume in MT
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Figure 1 Market Size and Growth Rate

The market size of the industry is above TK. 3500 million. The market is divided in to 5 different
subsectors. Those are decorative, industrial, marine, powder coating and trading items. Though most
of the sales are coming from the decorative segment, in recent years industrial market for painting is
also increasing. However, decorative is leading the market with 87% the market share. Details are
given below:
Market Size in Million Taka

Categorical Market Size 2014 (Primary Sales Data)

Category
Decorative
Industrial
Marine
Power Coating
and Others

Value in
Million Taka
21250
2250
1250
250

Contribution

25000

100%

9%

5%

85%
9%
5%
1%

1%

Decorative
Industrial
Marine
85%

Power Coating
and Others

Figure 2 Market Size and Contribution

2|Page

Thinking from the growth cycle the industry is somewhere in its late growth stage waiting to become
mature. However, opening up of new market like rural market and industrial market may change the
size of the industry and status of the growth stage

2.2 Market Share

There are nearly 40 organized companies along with some informal companies in the painting
industry of Bangladesh. Though BPBL is the market leader, it has to face cutthroat competition from
the local competitors. At present Bangladesh paint industry has 6 companies who have significant
market share. Berger Paints Bangladesh Ltd. is operating as the market leader and enjoying almost
56% of national paint market share. The nearest competitor is Asian Paints whose position is far
below the market leader in terms of market share. The following Table shows the present market
share of different companies in paint industry of Bangladesh:
Company

Market
Share

BPBL
Asian

58%
15%
6.50%
6%
3.30%
3.30%

Roxy
Elite
Moonstar
RAK
Pailac
Others
Total

Market Share
3% 3% 5%
3%
6%

BPBL
Asian
Roxy
Elite

7%
58%
15%

3%
5%

Moonstar
RAK
Pailac
Others

100%
Figure 3 Market Share

2.3 Competition Approach and Organizational Diversifications

All the companies have dealers for distributing paint to the whole Bangladesh. But BPBL has a strong
distribution network to ensure regular supply to the dealers. In many cases dealers of BPBL are also
the dealers of the competitors. This makes forward linkage nearly impossible. Most of the raw
materials are imported from abroad making backward linkage impossible. Technological
advancements are moving towards operational effectiveness via automation and making ecofriendly
products. The industry has a relatively higher capital requirement. To understand the competitive
dynamics Michael Porters

3|Page

Threat of new entrants

High

Threat of supplier power

Low

Rivalry
High

Threat from buyer power

Low

Threat of substitutes
Low

Figure 4 Porter's 5 Forces

The above figure describes the Porters five forces competitive model. Each of the five factors is
explained below in details.
a) Threat of new entrants The threat of new entrants is extremely high, as Several global
giants in the paint industry are now coming to Bangladesh
b) Threat of rivalry Asian Paints is an aggressive competitor. It already has more than
1000 stores selling its products. Though Berger has more outlets associated with than
Asian, it is facing huge competition from other brands. Thus the threat of rivalry is high.
c) Threat of substitutes- It is low as very few products can replace paints.
d) Threat of supplier power- It is low as Berger Color Bank has their own Research
and Development unit but raw materials are flown in from abroad.
e)

Threat of buyer power- It is low as switching cost is moderate in terms of company

reputation, quality, and availability more shade availability.

4|Page

3. Portrait of the Organization

3.1 Company Profile:
Berger Paints is one of the oldest names in the paint industry, yet, it is one of the most technologically
advanced companies in the country. 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.
Bergers inception was laid out in 1760 by a German national named Louis Berger, who started dye
and pigment making business in England. 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.
The company grew rapidly, by establishing branches all over the world and through mergers and
acquisitions with other leading paint and coating manufacturing companies.
3.2 Company History:
In Bangladesh the major milestones of Berger Paints are given below:
Table 2 Company Milestones

Year

Milestone

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 SateoftheArt 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

3.3 Current Scenario

Berger Paints started painting Bangladesh since independence. Over the past few decades, Berger
has evolved and transformed itself in becoming the leading paint solution provider in the country with
a diversified product range that caters to all your painting needs.
5|Page

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 state-of-theart 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.
With its strong distribution network, Berger has reached almost every corner of Bangladesh.
Nationwide Dealer Network, supported by 12 Sales Depots with an unmatched capability to answer to
paint needs at almost anywhere in Bangladesh with the 2 factory unit at Chitagong and Savar.

Berger's one of the prime objectives is to provide best customer support-connecting

consumers to technology through specialized services like free technical advice on surface
preparation, color consultancy, special color schemes etc. To bolster customer satisfaction,
Berger offers Home Decor Service from where one can get an array of services pertaining to
painting.
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,
Epoxies and Powder Coatings. 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 PPGUSA, Texbond binder to cater to the growing needs of the customers.
Apart from business, Berger Paints has added another dimension to its social responsibilities by
contributing to the wellbeing of the autistic children in Bangladesh from 2009. Berger Paints
Bangladesh Limited has been promoting the young and creative talents of the country through Berger
Young Painters Art Competition (BYPAC), Berger Award for Excellence in Architecture (BAEA),
Berger Award Programmed for the Students of Architecture of BUET (BASAB), Scholarship
Programmed for the students of Architecture Discipline, Khulna University.

6|Page

4. SDG and Berger Business Strategy

4.1 SDG modules and Relevance with the Organization
The sustainable development goals (SDGs) are a new, universal set of goals, targets and indicators
that UN member states will be expected to use to frame their agendas and political policies over the
next 15 years. The SDGs follow and expand on the millennium development goals (MDGs), which
were agreed by governments in 2001 and are due to expire at the end 2015. The goals include end
poverty in all its forms everywhere, end hunger, achieve food security and improved nutrition, and
promote sustainable agriculture, ensure healthy lives and promote wellbeing for all at all ages, ensure
inclusive and equitable quality education and promote lifelong learning opportunities for all, achieve
gender equality and empower all women and girls, ensure availability and sustainable management of
water and sanitation for all, ensure access to affordable, reliable, sustainable and modern energy for
all, promote sustained, inclusive and sustainable economic growth, full and productive employment,
and decent work for all, build resilient infrastructure, promote inclusive and sustainable
industrialization, and foster innovation, reduce inequality within and among countries, make cities
and human settlements inclusive, safe, resilient and sustainable, ensure sustainable consumption and
production patterns, take urgent action to combat climate change and its impacts, conserve and
sustainably use the oceans, seas and marine resources for sustainable development, protect, restore
and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat
desertification and halt and reverse land degradation, and halt biodiversity loss, promote peaceful and
inclusive societies for sustainable development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels and strengthen the means of implementation and
revitalize the global partnership for sustainable development.
As discussed earlier SDGs are made for governments so that they can create policy for ensuring
global development up to 2030. As such any organization can do very little to do anything that can
help its government to reach the SDG. However it must be also remembered that business within a
government work as input to implement policy and achiever goals.
BPBL is a profit oriented company. Its decisions are taken based on the fact that the existence of this
business is to earn profit. Again the nature of the business has great impact in developing a socially
sound strategy. The disadvantage of developing a Third Sector Based Strategy for this company is
that the BPBLs business is in inorganic chemical sector and therefore not leaving many options to
become a social enterprise. The advantage of developing such a Strategy for BPBL is that the
company is already committed to remain a socially committed ethical company and it is declared in
its mission statement.

7|Page

So developing a Third Sector Based Strategy for BPBL will not require any major reformation of the
company or its strategy. While maintaining the objective for profit to survive as business the company
has to add some additional activities in to its view on society to become a profitable social enterprise.
4.2 SDG Target and Organizational Strategy
To achieve the 17 goals SDG there are predefined 169 targets which need to be completed. An
organization by its nature cannot create a strategy that will help to achieve all the 169 targets.
However a strategy can be created which can help to fulfill some or most of the targets.
To have a strategy that helps to fulfill the targets of SDG may require strategic reformation which
may not be possible all the time.
4.3 Organizational Strategy and Activity Planogram
As a good competitive business is always vision driven, some change in the vision statement is
recommended. The current vision statement is as follows:

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

However to incorporate the Third Sector Based strategy in to the current vision statement following
vision statement is recommended.

To be the leading socially committed brand in the industry ensuring consumer delight.

Current strategy of BPBL is to build longterm partnerships with the customers/consumers. With their
support, BPBL aim to maximize the potential of its business through a combination of enhanced
quality of product, service, creative marketing, competitive pricing and cost efficiency. The strategy is
good for a first sector business. However the strategy misses social elements to become Third Sector
based strategy.
The proposed strategy is to create a social revolution to use lead free paints and other products to
decrease air pollution and other forms of pollution while maintaining its current strategy.
This strategy will require increased CSR activities and additional promotion. It can be implemented
using 5 phases.
Phase 1
At the phase one BPBL has to get rid of all kind of pollutant from its production process. Special
attention required if there is any kind of emissions and waste management. This is because the
strategy will make BPBL one of the pioneers in pollution free business. It will not be possible to
become pioneer if there is any kind of contamination done by BPBL itself.
8|Page

Current situation: BPBL is already using state of the art ETP plant and incinerator for emission
control and waste management. So the implementation of phase 1 will not require any additional
capital investment. However, to be totally environment friendly in current advances of modern
science BPBL is required to produce APEO (Alkyl-phenol Ethoxylates) free and low VOC (Volatile
Organic Compound) paint. Current product facilities are capable of doing that. However using APEO
free and low VOC raw material is costly and that will increase the cost of production.
Employee health is to be checked regularly to ensure that no employees become ill form the chemical
exposure during the production process. A state of the art work place condition is to be maintained to
get everyone on board with the strategy.
Phase 2
At this phase of strategy BPBL will launch media campaign via social media and other BTL media
(like radio where presence of youth is relatively high). However, the main objectives of this media
campaign should create awareness about the harm caused by using lead in various products. To
become successful in the media campaign, it has to be pretested using relevant research. It is very
important that during his campaign BPBL can never ask customers to buy their lead free products
using this campaign. However use of media campaign has to be clever enough to so that the existing
and potential customers may associate BPBL with the lead free Bangladesh movement.
During this time if any new product is launched by BPBL which will require media campaign that
may also be continued simultaneously. However the media campaign for lead free Bangladesh must
be kept separate from any other campaigns.
Phase 3
At this phase BPBL will start to associate itself with any kind of antipollution movement. The
association may start with anti-air pollution movement and so on. The content made in phase 1 should
be reused in social media to remind customer about the BPBLs position about pollution.
Phase 4
Phase 4 will include intelligent use of CSR. For example BPBL could start to paint government
schools that require paint job but suffer from bureaucratic red tape. The choice of school could be
associated with the customers of BPBL. Customers could ask BPBL to paint schools that they think
require paint job. BPBL could asses if the customer chosen schools really require paint job and start
painting those schools that really require paint job.
Phase 5
BPBL should implement ISO 26000. All 7 core subjects are compatible with BPBL. This will
increase accountability and transparency. Implementing of ISO 26000 should be start as soon as Phase
1 is done.

9|Page

Here is timeline and summary of the strategy taken,

Table 3 Timeline and Summary of the Strategy

Phase

Strategy

Personnel

Year

Completion Evaluation

2016

2016

Responsible
1

Become a pioneer in emission Manager

control and waste management

Factory

After

success,

maintain

the

status
2

Media Campaign for Lead Free Head

Bangladesh

Become

part

of 2017

2020

Marketing
of

antipollution Head

movement

Marking

Intelligent CSR

Manager

Implement ISO26000

Head

continue

after 2020
of 2020

2025

May

continue

after 2025
2016

2025

CSR
5

May

May

continue

after 2025
of 2016

2018

Operations

After successful
completion
maintain

the

status

4.4 Impact of Activity and Financial Aspects

Implementation of these 5 phases of strategy will make the company a socially committed enterprise.
Contribution towards Triple Bottom Line
The strategy could contribute to the triple bottom line in following way,
Environment
1. Emission/Discharge: Phase 1 of the strategy will ensure that there is no pollutant emitted or
discharged.
2. Waste: Phase 1 of the strategy will ensure that wastes are properly disposed of without
harming the environment.
3. Stakeholder Engagement: ISO 26000 will ensure stakeholder engagement.
Society
1. Employee health: To implement and become successful using the above strategy employee
good health condition is a must and will be ensured by phase one of the strategy
2. Workplace Condition: As the factory will become state of the art to decrease emission the
workplace will become better to suit the requirement of phase 1 of the strategy and therefore
increase the committed output to society.
10 | P a g e

3. Human rights: Implementing ISO 26000 will increase the scope of accountability and
therefore develop the human rights condition.
4. Community Impact: Community impact will be the highest contribution of this strategy.
However it may not be possible to find exact size of impact from the strategy. However the
strategy will create mass awareness about Lead pollution.
5. Business ethics: BPBL is already an ethical company. However this strategy will strengthen
the ethics practice by implementing the ISO 26000.
Economic
1. Financial Performance: Historically the financial performance of BPBL is good. The
company is giving more than 100% cash dividend from 2006. Implementing the new strategy
may require some promotional budget, for which the net profit may decrease a little.
However, as the previous strategy will remain working to ensure profitability decrease in the
profit margin while ensuring the growth will not be a problem.
2. Corporate Governance: Implementing ISO 26000 will increase corporate transparency. This
in terms will increase the scope of corporate governance.

Financial Aspect of the Strategy

1. Phase 1: Phase one will not need any additional capital investment. However it may require a
change in policy.
2. Phase 2: The media campaign will use Social Media and Radio to promote the campaign.
Though social media is BTL (below the line), radio is ATL (above the line) and therefore will
not require much budget.
3. Phase 3: To become associated with any kind of antipollution movement, BPBL would
require sponsoring some of those movements. Arranging sponsorship will require additional
expenses.
4. Phase 4: Intelligent use of CSR will cost the major portion of the budget. This is a cost which
will not provide any immediate revenue, however it is important for the company to build
image to become a socially committed company.
5. Phase 5: Implementing ISO26000 will not require any additional budget plan.
Historical advertising budget is almost 6% - 7.5% of the sales report. However for the propose
implementing the strategy we are recommending 1% of total sales each year as the budget.
Pitfalls of the Strategy
1. Any good strategy is based on core competencies that cannot be imitated. But this strategy is
based on a core competency it can be imitated easily. However BPBL will continue to enjoy
the first mover advantage. BPBL has to remember that the strategy is a social one and if
imitated will ultimately help social causes.
11 | P a g e

2. To make budget either historical or market survey data is needed. The budget made is more of
a logical one.
4.5 Return on Strategically SDG base Alignment (ROI)
Return on investment (ROI) is the benefit to the investor resulting from an investment of some
resource. A high ROI means the investment gains compare favorably to investment cost. However
there is no uniform rule to calculate ROI. And calculating ROI from a future cash flow stream is even
more subjective. Here following assumptions are made to calculate the ROI after incorporating the
strategy:
I.
II.
III.

Cash flow streams will follow historical trend

Historical data from year 2009 -2014 is enough to predict the outcomes up to 2020.
ROI is calculated two formulas accepted by GAAP.

ROI: Formula One

Here ROI is calculated as the percentage of working capital, which is investment, converted in to Net
Profit after Tax. The result found using this formula is as follows
ROI
ROI

100%
95%

77%
59%
66%

60%

51%

44%

65%
55%

48%

42%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 5 ROI Using Investment and NPAT

Using this formula ROI is showing a decreasing trend. This may be because the data is forecasted or
business is reaching its maturity.
ROI: Formula Two
Here ROI is calculated as the percentage of cost of goods sold that is converted in to gross profit. The
result found using this formula is as follows
12 | P a g e

ROI
ROI
75%
70%
65%

69%
65% 66% 65% 64%
63% 62%
61%
60%

61%

60%
55%

51% 50%

50%
45%
40%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 6 ROI Using Sales Revenue and Gross Profit

It can be seen that however ROI is calculated its always showing positive values. Current share price
of BPBL also reflect the findings.
4.6 Reporting Outcomes in SDG
I.

Target 3.8: By 2030, substantially reduce the number of deaths and illnesses from hazardous
chemicals and air, water and soil pollution and contamination. Outcomes may be reported by
the gradual decrease of diseases from Lead pollution and other forms of pollution.

II.

Target 8.8: Protect labor rights and promote safe and secure working environments for all
workers, including migrant workers, in particular women migrants, and those in precarious
employment. Outcomes may be reported by the safety measures taken for labors and staffs
and decreasing trend of accidents in BPBL.

III.

Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for
participatory, integrated and sustainable human settlement planning and management in all
countries. Outcomes may be reported as net decrease of Lead in the air.

IV.

Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all
wastes throughout their life cycle, in accordance with agreed international frameworks, and
significantly reduce their release to air, water and soil in order to minimize their adverse
impacts on human health and the environment. Outcomes may be reported by the impact of
emission control and waste management.

All the targets could not be directly touched by the strategy. However, some other targets will be
touched by the strategy indirectly. For example, when the strategy will be successful, it will directly
impact on how competitors are looking at business. To achieve the point of parity they will try to have

13 | P a g e

similar achievement. Thus other targets will be touched by those competitors because of BPBLs
strategy for a pollution free earth.
4.7 Conclusion
Becoming a social business that has the ultimate goal of serving people, planet and profit is the
demand of time from all business. This strategy is developed for transforming BPBL into such a
business. Due to the character of the business, it cannot be transformed into a social business that can
touch all the goals of SDG. However a strategy to serve the need for a pollution free environment can
be created. The main concept is to create a social revolution to make the environment free of Lead.
The strategy touches at least 4 goals of SDG.
4.8 Recommendation
Following are the recommendation for future actions
1. To use this strategy, further research is needed.
2. The current model of business involves dealers as middleman. Promotional campaign should
be undertaken to convert the B2B business into B2C business.

14 | P a g e

Appendices
A) Data for calculating ROI (amount in Million TK)
Particulars
Turnover (Net of VAT &
SD)
COGS
Gross Profit
Profit Before Tax
Profit After Tax
Shareholders Equity
Total Assets
Total Current Assets
Total Current Liabilities
ROI (Formula 1)
ROI (Formula 2)

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

4595

5483

6321

7611

8796

10881

12572

14835

17506

20657

24375

28763

2714
1881
779
579
1327
2428
1592
1014
100%
69%

3396
2087
905
704
1684
3055
2011
1271
95%
61%

4192
2129
894
721
1988
3424
2264
1333
77%
51%

5087
2524
1022
752
2323
3568
2291
1146
66%
50%

5482
3314
1228
860
2767
4282
2828
1382
59%
60%

6586
4295
1488
1097
3354
5346
3534
1851
65%
65%

7560
5012
1681
1223
4000
6148
4064
2018
60%
66%

8986
5849
1900
1364
4000
7070
4674
2199
55%
65%

10680
6826
2147
1521
4000
8131
5375
2397
51%
64%

12691
7966
2426
1696
4000
9350
6181
2613
48%
63%

15079
9296
2742
1891
4000
10753
7108
2848
44%
62%

17914
10849
3098
2108
4000
12366
8174
3104
42%
61%

B) Formula for calculating ROI

I.

II.

1|Page

1|Page