R.B
JF-Expert Member
- May 10, 2012
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Crown Paints is targeting a 50 percent market share in the Tanzanian premium paints segment. The firms chief executive Rakesh Rao said the manufacturing plant will be established within the next 12 months. We have commitment with the government to invest 250 million shillings in Tanzania, he said. Crown Paints expansion in the region boosted its profits for the first half of 2012. We are currently exporting to South Sudan and Rwanda-which is one of the most innovative and premium markets, Burundi and also getting good market responses in Democratic Republic of Congo, said Rao The firm posted a 46 percent jump in pre-tax profit to 110 million shillings ($ 1.3 million) for the six months ended June 30, up from the 75 million shillings ($892,000) it posted over a similar period last year. Though Crown Paints faces stiff competition in the Kenyan market, its subsidiaries ended a loss making streak to contribute to the firms overall performance. Our subsidiaries which have been making loss posted profit which improved our performance, and we hope to sustain this momentum to second half. said Rao. The firms turnover rose from by 16.5 percent from 1.8 billion shillings ($21 million) to 2.1 billion shillings ( $25 million), due to introduction of new products. The introduction of Teflon surface protector to Matt Emulsion has been very successful and during this period the company launched products into Tanzania, starting with Arusha, said Crown Paints in a statement to the Nairobi Securities Exchange. The firm is optimistic it will post positive results in the second half of 2012 as the macroeconomic environment improves. We are already seeing a fall in interest rates and a stable exchange rate, which provides a positive outlook for the rest of the year, said Rao. Increased road construction and real estate development in East Africa has boosted demand for paint in the region.
