Crown Paints ups regional play with new
Mwanza depot
Regional
Presence
rown Paints regional presence is
getting stronger with the opening
earlier this year of a depot in
Mwanza, Tanzania, and a new plant
set to be launched in Dar es Salaam coming
February. This will see Crown Paints which
is listed on the Nairobi Securities Exchange
increase its market share in the region.
The firm is the largest paint manufacturer
in East Africa. “We plan to open several
mini-plants in the region as we expand our
manufacturing and distribution capabilities.
Regional integration is a major trade
opportunity for us hence the decision to
launch operations in Mwanza and soon in
Dar es Salaam,” explains Crown Paints CEO
Rakesh Rao.
The company’s turnover currently stands at
Kshs4.4 billion and it sells 2.2 million litres of
paint every month.
Although Kenyans remain its primary
market, Crown, which also trades as Regal
Paints in Uganda, has in recent years made
forays into new markets including Tanzania,
Democratic Republic of Congo and South
Sudan. Plans are to increase exports to
Somalia as peace slowly returns to that
country after two decades of civil war.
The launch of the Mwanza depot gives Crown
access to the growing northern Tanzania
market. The Dar es Salaam plant will beef
up the firm’s presence in East African
nation with a population of 47 million and
strengthen its quest to tap into the under-
served DRC market. Crown has a depot in
Arusha.
The paint maker posted an increase in profit
before tax of 11 per cent for the six months
ended June 30, boosted by a surge in
demand from the construction sector after
the March elections that saw the firm post
record sales of over Kshs.500 million in July.
Profits climbed to Kshs.121.8 million in the
first half of the year compared to Ksh109.6
million in a similar period last year.
Group revenues rose from Kshs.2.1 billion in
the same period compared to Ksh2.4 billion
in H1 2012, a 17% increase attributable to
improved performance by the paint maker’s
subsidiaries.
Profit after tax was up 12% from Kshs.76.4
million to Kshs.85.9 million. The company’s
assets grew 9% from Kshs.2.2 billion to
Kshs.2.4 billion in the same period. Rao said
Crown has recorded a spike in sales in its
premium category as it focuses more on the
increasingly fashion and style-conscious
consumer in the booming real estate market.
C
December 2013
9
KENYA
SOMALIA
UGANDA
RWANDA
BURUNDI
CONGO
TANZANIA
ETHIOPIA
SOUTHERN
SUDAN
Kenya is the accepted hub for East and
Central Africa, exports to the region are a
natural target. Every country has its own
national pride, it’s own culture and each
value it’s independence.
Crown therefore believes it should share
the vision of each state. By having a
presence and commitment. In every
nation, 2014 begins the roll-out of that
philosophy. The next issue will further
reveal the plans as each brick is placed.
The location listed aside shows we have
already begun that quest for regional
penetration and domination.
