August 2014
4
Dear friends, colleagues and valued customers,
It has been an epic journey towards business excellence since the
beginning of the year. Our promise to deliver the best to our customers
and stakeholders is on course. This is notable through major projects and
initiatives that we have launched in the past six months. Following the good
performance in the first half of the year, we anticipate to have double digit
growth in the seccond half as well. In 2013, we registered Ksh 5.2 billion in
sales comprising a 20 percent growth and a 16 percent growth in revenues.
Successful devolution has given us a reasonable platform to improve our
overall business performance by widening our footprint nationally. At Crown
Paints, we are now benchmarking with the best international standards,
hence emphasising on the quality of the products to our customers.
This is notable with a partnership and distributorship deal we have inked
with India’s leading adhesive company, Pidilite Industries. Through this
partnership Crown Paints will distribute Fevicol adhesive locally, with an
aim of controlling 50 percent of the adhesive market in Kenya.
In the first quarter of the year, Crown showrooms in Nairobi, Mombasa and
Nakuru were established to educate, inform and evaluate by providing larger-
than-life service, be it consultation on colour or product. All the showrooms
have been equipped with digital touch screens to help customers choose
colour schemes from their own house and become specialists.
Our growth over the past 4 years has exceeded Kenya’s GDP four times and
we have become a national asset, eyeing the greater East African region. In
May, we commissioned our first satellite factory outside Nairobi in Kisumu.
The Kisumu plant, due for completion next year, will have a capacity to
produce one million litres of decorative paints per year. In August, we
commissioned a Ksh 400 million factory in Dar es Salaam and later in
the year, we shall be eyeing Ethiopia.
In the last six months, Crown Paints has been proactive in sponsorship
for destitute and underprivileged children through feeding programmes,
talent development, school fees support and transformation of learning
environments. In terms of our future outlook, we are heavily betting on
devolution. Government devolution and a new governance structure have
given us a framework to emphasise on infrastructure and continuous
development of the counties. Our major focus on regional expansion is to
establish manufacturing facilities in Tanzania, Uganda, Ethiopia and South
Sudan to meet customer demand and further fuel Crown Paints’ growth in
2014 and onwards. However, as regional market demand for paint is more
for economy brands, it may not show immediate significant improvement in
profitability in the short term, due to competition with established players
in the respective regions. To overcome this, our efforts will be put to engage
customers on knowledge basis so as to enhance both the knowledge and
quality aspects of our product.
As a forward looking professional company, we believe on planning for the
long term and have a well laid out HR policy for our employees. Our people
are the key to our success and we take measured steps to build skill and
efficiency in our staff to help them achieve their professional goals. I, along
with the entire team, invite you to the world of Crown Paints Kenya Limited!
Message from the
Rakesh Rao
We are proud to announce the availability of an innovative new product in our growing
product portfolio. Crown Paints Kenya Limited will now distribute Fevicol adhesive in
the local market in partnership with Pidilite Industries Limited, India’s leading adhesive,
sealants and construction chemicals company.
The rapid infrastructure growth in Kenya as well as significant market progression in
the building and renovation sector has prompted us to expand our portfolio to include
ranges that are relevant to the local market.
Rakesh Rao, Group CEO, Crown Paints Kenya Limited said, “We, at Crown, are always
looking for new and innovative ways to keep our customers happy and to provide for
their needs. Our association with Pidilite Industries allows us to meet the increasing
demand for adhesives in Kenya, providing a quality solution in the form of the
Fevicol product.”
Mr. Shankha Banerjee, President (Middle East & Africa region) of Pidilite Industries
added, “Kenya is a key market as there is a lot of underlying potential that needs to be
explored and scope of growth is massive. We believe in understanding the evolving
needs of the consumer and then designing special products for the market.”
Pidilite Industries will be introducing a wide range of specially designed products
based on consumer insights, material, weather conditions and application areas.
The company is confident that innovation spurred by robust R&D and aggressive
marketing will help it meet the demands specific to the Kenyan market.
In conjunction with Pidilite industries, we will also embark on a training programme
for carpenters across the country to introduce them to new trends in the market and
how they can expand and sustain their businesses to meet the growing demand in
their sector.
Fevicol Hi-Per, a premium high performance white adhesive with cellu-weld
technology which creates a weld like bond, is now available through Crown Paints
for the Kenyan market.
Brand Kenya CEO Mary Kimonye, Crown Paints Kenya CEO Rakesh Rao and President (Middle East & Africa region) of Pidilite Industries Mr. Shankha Banerjee,
display Fevicol, a new adhesive product which was launched in the Kenyan market at Serena Hotel.
Crown partners with Pidilite Industries
Key Features & Advantages
•
Aggresive tack to hold the substrates tight
•
Superior bond strength
•
Heat & chemical resistance
•
Toluene & benzene free - no carcinogenic
chemicals
August 2014
5
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