Crown Paints to promote the fashion industry
Crown Paints, has announced plans to promote the local arts and fashion industry through sponsorship deals.
Crown Paints CEO, Rakesh Rao, says the company’s strategy of transforming lives is in line with improving the fashion industry.
“At Crown Paints, we work with colours and colours and fashion go together. If you want to have a beautiful house or fabric you must have a great colour,” he said at the sidelines of the 3rd Trendz Kenya Fashion Festival at Tribe Hotel in Nairobi last weekend. Crown Paints was the event’s co-sponsor.
Now in its third year, the Trendz Kenya Fashion Festival has evolved to become the greatest Fashion Event in East-Africa
It is aimed at showcasing emerging and established talents and attracts top-flight international and regional fashion designers. It exposes Kenya as the emerging Fashion & Urban Lifestyle Capital of Africa & consolidates Brand Kenya.
The event also helps build enterprise image, promote of cooperation and trade, know of the latest trend of the industry, nurture brands and build a golden bridge between the Demand and Supply.
The Fashion Industry in Kenya is evolving at a rapid speed and a Major contributor to the growth of the Private Sector.
Trendz Kenya Fashion Festival has been a trendsetter and captured a new style which aims to make Nairobi a fashion capital of the world.
Crown Paints showcased their colours on white fabric draped like Greek goddesses on the ladies. The company’s models came in a special category during the show. Kenya’s Sharma and Jamil Walji and Tanzania’s Ally Rehmtullah also took part.
Crown Paints is targeting a 50 per cent market share in the Tanzanian premium paints segment.
The company will introduce decorative (water and oil-based), automotive, varnishes and specialized floor paints into the market.
It expects to leverage its superior brand quality supported by strong research and development department to successfully penetrate into the Tanzanian market.
“We are aware of the level of competition in the paints market in Tanzania and we are certain that through sharing product knowledge and educating customers on products uses and benefits, we shall create high demand for our brands,” said Crown Paints CEO, Rakesh Rao.
Mr Rao said since the Tanzanian market is economy-based; there will be a need to promote premium brands so as to raise national overall paints standards.
He, however, lamented the slow pace of clearance at the borders, saying this has impacted negatively on regional trade within East Africa.
The company plans to be in every country in East Africa by 2013 through strategic partnerships.
“2012 and 2013 will see Crown Paints emerge as a truly regional player, with plans to be in each country and supported by partners,” said Rakesh Rao.
The paint maker has already made inroads into the Ugandan market, where it is manufacturing under the brand name of ‘Regal’ and is looking for new investments with regard to manufacturing facilities.
It is also upgrading its manufacturing facility in line with ISO14001 and expects to be fully compliant by the end of 2012.
The company, which operates in Kenya, successfully weathered a difficult economic environment last year to post a pre-tax profit of Ksh200.5 million up from KSh169.4 million in 2010.
Crown Paints annual turnover also increased by 25.5 per cent from Ksh3.06 billion in 2010 to Ksh3.85 billion last year.
KCB Mortgages Division, through its offshoot S&L Developers Club, has today partnered with Crown Paints in an arrangement that will see developers in the region enjoy discounts of 20 per cent on decorative and industrial paints. Through the one-year agreement, S&L Developers Club members will now access a wide spectrum of paints and allied products at costs below the market price.
“This partnership with Crown Paints is another milestone in ensuring decent and affordable housing is accessible to an increasingly larger number of Kenya’s population,” said Joram Kiarie, KCB Mortgage Division Director.
“Under the partnership, club members who comprise developers, estate agents, architects, engineers, quantity surveyors will now purchase decorative and industrial paints as well as adhesives and thinners at affordable prizes,” said Rakesh Rao, Crown Paints Chief Executive Officer.
Currently, Crown Paints has distributors in Arusha, Rwanda, Sudan and Uganda, and will soon be setting a factory in Tanzania.
The renewable partnership is part of similar agreements that the club has forged with Assa Abloy for security systems, Climacento Green Technology for Solar Systems, Polytanks for tanks, toys & water dispensers and Foresight Interiors for fitted kitchens & office cabinetry.
“Our core objective is to provide affordable construction materials with a view of making housing affordable in the East African region,” said Mr. Kiarie. He explained that developers were increasingly demanding more services under one roof, and thus the need to offer centralized services under the KCB Mortgages Division.
S&L Developers Club was created to provide a platform for both established and upcoming players in the real estate industry network and share ideas. The club established in 2009 by KCB Mortgages Division, currently has 300 members. KCB Mortgage Division is a unit within the KCB Group which was born after KCB Group absorbed its lending subsidiary Savings and Loan (S&L).
The amalgamation of the mortgage business with the parent company has since strengthened its capacity to finance huge housing projects in the region and helped is annexe larger market share. Before amalgamation of S&L and KCB Bank, S&L Mortgages was a wholly-owned subsidiary of KCB Group. KCB has retained the S&L mortgage brand in the market and avails mortgages to all the customers within its extensive branch network in Tanzania, Uganda, Rwanda, South Sudan and very soon in Burundi.
Crown Paints held a Painting Competition that was aimed at reviving the African Culture through graffitti at the University of Nairobi. The theme for the competition was Graffitecture
In recent times there has been an emergence of an expressive culture among the youth. This fiercely outspoken culture has manifested itself in music, clothing and in terms of built form, graffiti. For the sole reason of depicting and celebrating this creative phenomenon that Architecture students have seen the need to step in make it a home of free-spirited expression that is through painting.
The art of graffiti is one that is here to stay and architecture should embrace and nurture it. Of late there have been cases of vandalism on walls and other surfaces by spray painting. This is a cry for an outlet for this medium of art.
Crown paints provided the following paints for the competition.
- Cotillion red
- Suray Yellow
- True blue
- Kiwi green
- Cider brown
- White
- Black
The picture shows the winner showing her work to Crown Paints CEO Mr. Rakesh Rao
Leading paint maker, Crown Paints plans to increase its grip on the regional paint market by boosting its premium and economy market shares by between 10 per cent and 15 per cent respectively.
Currently, the company commands 65 per cent of the premium market and 10 per cent of the economy segment.
“We project that by 2015, we shall consolidate about 75 per cent of the Premium market and 25 per cent of the economy segment,” said Group CEO Mr. Rakesh Rao.
The paint maker has experienced mixed performance in both ends of the market for the last ten years due to high costs of production and raw materials.
Crown Paints introduced the economy paints into the market in the early 1990s which has continued to generate some revenues for the company.
According to the Marketing Manager, Mr. John Hadley the premium market share has experienced mixed performance since the 1990s due to market dynamics.
Hadley said the premium market hit an all-time low of 55 per cent in 2004 but has since risen to 65 per cent with a projected performance of about 75 per cent by 2015.
“Our economy paints have had steady growth since we introduced them into the market. From a 5 per cent growth in 1995 we are now estimating a 15 per cent market share in this segment,” said Hadley.
He attributed steady growth in the market share to robust construction industry growth and increase in sales.
The marketing manager said Crown Paints had already introduced several international innovative technologies and wider plans are already in place.
Crown Paints has since 2009 been aggressive with the meaningful customer a loyalty scheme which has allowed growth at all sizes of dealership, principally by widening the customer base.
Dealers who preferred to stock brands, as alternatives to the brand leader, have now begun to realize that they must have the Crown Paints available or lose sales, alternatively stocking the brand leader, gives them credibility, and is an attraction to extra sales Hadley concluded.
Crown Paints has joined hands with the International School of Kenya (ISK) by providing paint which will be used by students of all ages to paint a mural of some 300 metres in length and 3 metres high.
This initiative is in line with the ISK School’s plan to undertake one of the biggest expansions in their history with the main feature being the building of a new library and 40 houses on an adjacent site.
The hoarding to be painted by the students separates the existing buildings from the new. Currently, the school has over 800 Students from 80 different countries.
Crown Berger’s Rakesh Rao (right) and South African Flowcrete MD Ian Harrison after signing the deal in Nairobi. Photo/FREDRICK ONYANGO
The five-year deal with Flowcrete will see the firms target the high-end market notably shopping malls, homes and office blocks and it is expected to lead to the manufacture of the flooring materials in Kenya.
Read more at Business Daily
Clients targeted by the South African company through the partnership include the aviation industry, hospitals and hotels within East Africa.
“A number of multinational companies have to conform to some European standards and lack of that has seen us lose out the market share,” said Crown Berger group Chief Executive, Rakesh Rao.
Read more at Nation.co.ke
Crown Paints Kenya PLC and Flowcrete South Africa signed an agreement in which the Kenyan company will supply resin floors.
The partnership includes making floor products and training Crown Paints staff, Rakesh Rao, the CEO of Kenya’s only publicly traded paint-maker, told reporters in Nairobi today.
“This initial partnership commits both companies for five years and will see Crown Paints cover Kenya, Uganda, Rwanda, Sudan, Tanzania and Burundi on behalf of Flowcrete,” Rao said.
Read more at Bloomberg
Paint Maker, Crown Paints has announced a pre-tax profit of Sh169.4 million for the year ended December 31, 2010.
This is a 29.6 per cent increase compared to Sh139.8 million posted a year earlier.
Turnover reached Sh3 billion as volumes grew by 21.5 per cent indicating growth from Sh34 million to Sh79 million. Net profit grew to Sh91.4 million from Sh86.3 million in 2009.
“During the final quarter, rapid escalation of raw material prices was evident, although for 2010 gross margins where improved by three per cent, with net profit being 5.52 per cent of sales, previously 3.48 per cent,” said chief executive Rakesh Rao.
