Crown targets low cost housing sector with cheaper paints

Crown Paints will introduce a new range of paints targeting the low cost housing sector as it aims to move into the segment that has witnessed the greatest growth in real estate.

The firm said it is seeking to improve its fortunes after a prolonged electioneering period last year that led to a slump in economic growth.

Chief Executive Rakesh Rao, who was outlining the firm’s 2018 strategy, said the construction sector was one of the hardest-hit last year, realising only seven to eight per cent growth.

He was however optimistic that the sector would bounce back in the next two years to register full potential and boost the firm’s earnings.

Niche markets

Mr Rao said the new range of paints will be priced lower than prevailing products in the market, adding that the firm will focus more on niche markets to improve market share from 60 per cent to 65 per cent in the premium sector.

Last year, Crown Paints reported a 51.6 per cent jump in the half-year net profit to Sh60.4 million.

Rao said the company plans to launch a major campaign to educate and connect with the painters’ fraternity as a way of establishing a long-term partnership that will improve the market needs and increase demand for its products.

“We also intend to offer many new value added services for homes by engaging with customers for research to develop products and services that meet and even exceed customer expectations,” he added. 

The company also intends to empower women enterpreneurs in painting and interior design as part of its strategy to increase brand loyalty and value-add services, the chief executive said.