Crown Paints Eyes Infrastructure Projects to Grow Revenues

Paint manufacturer, Crown Paints is targeting infrastructure projects to increase the uptake of its road marking and reflective paint products.

Addressing the Company’s shareholders during the 59^th AGM, Group CEO Rakesh Rao said, “The road annuity programme aims at constructing 500 kilometres of roads. Added to this are the massive infrastructure projects underway and the robust construction industry that are all key markets for Crown Paints. Further, the Government’s commitment to support local producers gives us confidence to forecast a healthy business growth for the Company, especially for our road marking and reflective paint products.”

The company’s turnover registered a 12% revenue growth to Sh6.7 billion from last year’s  Sh6 billion. At the 59^th Annual General Meeting of the Company held today, the Directors recommend the payment of a dividend of 12% or Ksh 60 cents per share for the year ended 31 December 2015.

Adding a note of caution to the optimistic outlook, Mr. Rao drew attention to the devaluation of regional currencies in East Africa which has been affecting the company’s performance, saying, “The devaluation of our local currencies has been a major threat to the financial performance of our business. We hope that this doesn’t continue for long so that we can manage the costs of raw materials and overall business margins.”

Read: Crown Berger Carries the Day at the NSE

Crown Paints recently rolled out its Zero VOC range of eco-friendly paints in line with its commitment to offer innovative products. The Company has been manufacturing low VOC paint ranges for some time but after years of research, they were the first company in the region to manufacture and offer Zero VOC paints that do not contain harmful chemicals. Zero VOC paints help to create more environmentally friendly and healthier interior and exterior spaces after paint work.

“We will continue to innovate products and services that meet market demand, as part of our strategy to drive up growth in revenues and the Company’s overall profitability. In the year past, we have introduced innovative products such as Ultraguard with Silicone – Africa’s first water repellent and self-cleaning paint; Timber Master and Cement Putty for exterior finishes and Sparkling Glass Plaster for architectural coatings and are continuously bringing new solutions to the market,” added Mr. Rao.

Early in the year, the Nairobi Securities Exchange listed Company commissioned a new factory at a cost of Kshs. 400 million in Kisumu to increase its paint production capacity from 2.3 million litres to 3.6 million litres per month. The new facility is 70% automated to ensure consistent quality and the ability to produce higher volumes at a lower cost. It will also enable the firm to take advantage of reduced logistics and transportation costs for reaching Kenya’s Western region, Tanzania and Rwanda, facilitating servicing of the ever growing demand for its products at a more competitive rate.