Crown Paints banking on growth of the construction sector to boost its earnings
By Irene Atieno
- The listed company eyes growth in the construction sector to boost its earnings.
- The construction sector was one of the hardest hit last year realizing only 7 to 8 percent growth
- Product innovation will continue to be the firm’s main priority while focusing more on niche markets to improve market share from 60% to 65% in the premium sector
- Crown to introduce paints for the low cost housing sector to support the growth of the sector
Regional paint manufacturer, Crown Paints has exuded confidence in an improved performance despite the country witnessing a prolonged electioneering period last year that witnessed a slump in the economic growth.
The listed company Chief Executive Officer Rakesh Rao who was outlining the firm’s 2018 strategy said the construction sector was one of the hardest hit last year realizing only 7 to 8 percent growth though he was buoyant that the sector would bounce back in the next two years to register full potential and boost the firm’s earnings.
The CEO said product innovation will continue to be the firm’s main priority while focusing more on niche markets to improve market share from 60% to 65% in the premium sector.
Last year Crown Paints reported a 51.6 percent jump in the half year net recording a KSh 60.4million net profit. Rao said the company plans to launch a major campaign drive to educate and connect with the painters’ fraternity as a way of establishing a long-term partnership that will improve the market needs and increase demand for its products.
“We also intend to offer many new value added services for homes by engaging with customers for research in order to develop products and services that meet and even exceed customer expectations, to grow this segment of our business”, Rao added.
He also mentioned that Crown will be introducing paints for the low cost housing sector to support the growth of the sector. The company plans to offer these products at a lower price than prevailing products in the market.
The Company also intends to promote women entrepreneurship programme by empowering women in the areas of painting and interior designs as part of its strategy to increase brand loyalty and value addition services.
Since 2014, the firm has been proactive in launching innovative products that meet the market demand as part of its strategy to wade off competition and further drive growth in revenues and company’s overall profitability.