NAIROBI, Kenya: June 25 (Xinhua) — Regional paint manufacturer, Crown Paints, said on Monday that it will invest 3 million U.S. dollars in Tanzania as it seeks to widen its footprints in East Africa.
The Kenyan paint firm is targeting a 50 percent market share in the Tanzanian premium paints segment.
“We are aware of the level of competition in the paints market in Tanzania and we are certain that through sharing product knowledge and educating customers on products uses and benefits, we shall create high demand for our brands,” the firm’s CEO Rakesh Rao said in Nairobi.
Crown Paints will introduce decorative (water and oil based), automotive, varnishes and specialized floor paints into the market. Rao said since the Tanzanian market is economy-based, there will be a need to promote premium brands so as to raise national overall paints standards.
He, however, lamented the slow pace of clearance at the borders, saying this has impacted negatively on regional trade within east Africa. The company plans to be in every country in east Africa by 2013 through strategic partnerships.
“The 2012 and 2013 will see Crown Paints emerge as a truly regional player, with plans to be in each country and supported by partners,” said Rao.
The paint maker has already made inroads into the Ugandan market, where it is manufacturing under the brand name of “Regal” and is looking for new investments with regard to manufacturing facilities.
The company, which operates in Kenya, successfully weathered a difficult economic environment last year to post a pre-tax profit of 2.4 million dollars up from 1.98 million dollars in 2010.
Crown Paints annual turnover also increased by 25.5 percent from 36 million dollars in 2010 to 45 million dollars last year. (Xinhua)
Leave a comment