News Column

Crown Plans Growth to Paint East Africa

June 27, 2014

Nancy Agutu

CROWN Paints plans is investing Sh600 million in mini factories in Dar es Salaam and Arusha in Tanznaia and in Kisumu to grow its regional market share, chief executive Rakesh Rao told shareholders yesterday.

"The plants that we are putting up in the regions will bring in a capacity enhancement of decorative range by 100,000 litres per month with the operational cost of Arusha adding up to Sh28million," he said during the annual general meeting in Nairobi.

Rao said the plants may not show immediate short term significant improvement in profitability due to competition with established players in those markets.

"Our major focus is to establish manufacturing facilities in the regions to meet customer demand and fuel further Crown Paints growth this year onwards," he said.

Rao said the Kisumu plant should be complete by August adding that by 2015 they will establish a plant in Ethiopia at a cost $8million dollars and with a production capacity of one million litres per month.

The company's chairman Mhamud Charania, said the mini factories are aimed at feeding demand for specific regions.

"With growth in the construction sector averaging 15 per cent over the last six years, Crown Paints has positioned itself to reap from the increased demand in the region for its products especially in the premium category," he said.

Charania said following increased demand in regional markets like South Sudan, Rwanda, Burundi and Tanzania last year, they plan to increase exports to Rwanda and Somalia to further improve the sales.

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Source: AllAfrica

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