Crown Paints to introduce cheaper paints as prices soar

Manufacturers have warned of an imminent increase in prices of paint starting this year following a sharp rise in production costs in the past six months starting July last year.

Regional paint manufacturer, Crown Paints, experienced a shrink in demand last year during the electioneering period last year and will be eyeing to grow its premium products market share from 60 to 65% in 2018.

Crown Paints CEO Rakesh Rao, while outlining the firm’s 2018 strategy on Friday, said most clients in the real estate sector have indicated they would liquidate the current stock as the economy recovers from the effects of last year’s political crisis.

Rao exuded confidence that the sector would bounce back in the next two years to register full potential and boost the firm’s earnings. He, however, warned that the market should prepare for higher prices due to increased production costs.

“The prices of raw materials have gone high. Some have shot up by over 100 per cent since July. A tonne of titanium could go for US$ 1,900 and currently it is going for US% 3,600 per tonne and we do not have an option as it translates to increases in price,” said Rao.

 Last year, Crown Paints reported a 51.6% jump in the half-year profit reporting Ksh 60.4 million net earnings.  Rao said the company plans to launch a major campaign drive to educate and connect with the painters’ customers as a way of establishing a long-term partnership that will improve demand for its products.

 “We also intend to offer many new value added services for homes by engaging with customers for research in order to develop products and services that meet and even exceed their expectations to grow this segment of our business,” said Rao.

READ: KNH patients rape claims a bitter pill for Kenyans

He said since most clients choose compromising quality when paint prices rise, the firm will develop low cost paint for the housing sector. These, he said, will be availed at a lower prices than prevailing products in the market.

 Last year,  Crown Paints manufacturing plant in Kisumu was adversely affected as most of its suppliers in the Western Kenya region were unable to access and distribute its products due to post-election chaos. Most of the clients had works halted, a situation Rao said the company had no viable strategy to overcome given it was a repeat election.

The company had recorded highest product uptake in August last year, but business deteriorated as the country’s suck further into elections that were marred with protests.

Latest

Kenya Re New Awards to Stimulate Swift Premium Payment

The Kenya Reinsurance Corporation (Kenya Re) has launched an award scheme to recognise insurance companies that remit premiums on time. T

NSE Gets New CEO As Geoffrey Odundo Exits

The Nairobi Securities Exchange (NSE) has appointed Frank Mwiti...

Uhuru’s Newspaper Dresses Down Ruto, Calls Him ‘Small-minded’

People Daily newspaper criticises President William Ruto and his administration, arguing “the disdain by the Ruto administration for the media has never been disguised.”

Kenya’s Minimum Wage is the Highest in East Africa

Kenya is putting many thousands of shillings in the pockets of those at the bottom end of the pay scale than any of her counterparts, Uganda and Tanzania, in East Africa - it has the highest minimum wage.

Follow Us

Newsletter

Don't miss

Throwing The Girls Into Deep End: Single Kiasi S3 First Look

Nairobi’s dating scene is about to get messy: Single Kiasi...

Win New Year Crossover Mugithi Tickets With Odibets

The event has attracted prominent Kikuyu musicians who will be headlining the event including Samidoh and Muigai wa Njoroge.

For Coloured Girls is Theatre Production of the Year

The play ‘For Coloured Girls (who have considered suicide/ when...

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.
JOSEPH SOSI
JOSEPH SOSI
Joseph Sosi is a reporter with Business Today. He holds a Bachelor of Arts (Communication and Media Technology) degree from Maseno University. Previously, he was a sub-editor of Ureport and social media administrator at The Standard Group. He is passionate about politics, education and technology.

Kenya Re New Awards to Stimulate Swift Premium Payment

The Kenya Reinsurance Corporation (Kenya Re) has launched an award scheme to recognise insurance companies that remit premiums on time. T

NSE Gets New CEO As Geoffrey Odundo Exits

The Nairobi Securities Exchange (NSE) has appointed Frank Mwiti the new CEO effective May 2, 2024, to replace Geoffrey Odundo who exits the bourse...

Uhuru’s Newspaper Dresses Down Ruto, Calls Him ‘Small-minded’

People Daily newspaper criticises President William Ruto and his administration, arguing “the disdain by the Ruto administration for the media has never been disguised.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here