Crown Paints in Sh85 million investment to boost growth

By Jackson Okoth

DuPont Chemicals Brand licensing representative Johan Van Den Hemel (L) signs a partnership agreement with Crown Berger CEO Rakesh Rao. [Govedi Atsutsa/Standard]

 

Crown Paints Ltd has invested in an advanced surface protector. The new product estimated to cost the firm Sh80 million is an additional ingredient to its prime product range.

The firm claims the Crown Matt Emulsion with Teflon surface protector incorporates advanced technologies.

“Teflon is a surface protector against dirt and stains or any objects that spoils the wall’s colour. We have partnered with DuPont, one of the largest chemical companies in the World, to provide this additive and paint technology to local consumers,” Rakesh Rao, chief executive officer, Crown Paints Ltd told The Standard.

“This is a Sh85 million investment that has pushed up our costs by 10 per cent. We are, however, absorbing all the extra costs to enable customers get more value for money,” said Rao.

High cost of credit

The newly improved Crown Matt Emulsion with Teflon surface protector is based on the formulation development and collaboration with DuPont – the global science-based products and Service Company. It combines chemical and physical features to provide consumers with the ultimate internal decorative finish.

In the past few years, the paints industry has been thriving on an upbeat construction and growing economy.  Due to a past boom in the construction industry, the market for paints and coatings has been on a relentless upward march. But this robust growth is now under threat.

“High cost of credit has made things worse for us while the construction sector has also been on a slowdown. Many consumers have been hit and are cutting down on their purchases,” said Rao. The list of major players in the paints business includes Crown, Sadolin and Basco Paints.

The paints industry is also grappling with a long standing problem of counterfeit paints, finding into way into a market that does not have discerning consumers. “We have already imported special seals in addition to using protected bar codes on some of our fast moving products, to fight off counterfeits,” said Rao.

The technologies offered by Teflon enables users reduce their maintenance costs due to the fact that the paint used is able to have a longer life. The main features of the new and improved paint is ability to hide surface imperfections, providing a surface that is easier to clean and resistant to stains, dirt, spillages and so on.

The paint also requires minimum maintenance, lasts longer periods before redecorating and looks better for longer. It is available in over 3,000 shades and ideal for hiding surface imperfections. Regional paint manufacturer, Crown Paints, said in June that it will invest US$3 million in Tanzania as it seeks to widen its footprints in East Africa.