East Africa leading paint manufacturer, Crown Paints Group has today announced its entry into the Tanzanian paint industry.
The Group, which was established in 1958, intends to invest USD$3.6million in the next 18months to build a market leading Paint Company that will transform the lives of Tanzanians. Crown Paints has also opened Tanzaniaâ€™s first ultra-modern paint showroom located in Dar Es Salaam.
Crown Paints, which has major operations in the Nairobi, Kigali, Kampala, Arusha, Mwanza and Juba also announced that Dar-Es-Salaam will become the headquarters of Crown Paints Tanzania, enabling the company to expand into other provinces in the country.
Listed in EA largest securities exchange, Nairobi, Crown Paints specialises in decorative paints, protective, automotive, and innovative products such as Amourcoat, Acryline, Flowcrete amongst others.
Rakesh Rao, CEO of Crown Paints Group, said: â€œThis is our second step into the Tanzanian paint industry, since we have already established a mini plant in Arusha and distribution depots in Arusha and Mwanza. We want to build a strong long-term partnership with the people and government of the Republic of Tanzania. We also want to help build a thriving paint industry that will transform lives of Tanzanian citizens. We have an ambitious vision for this business. We want to make it the leading paint company in Tanzania. And we will be making Dar, the hub for our Tanzania operations, providing a strong base for our expansion into other provinces in the country.â€
The Tanzanian construction sector is also among the very important sectors that contribute hugely to the Gross Domestic Product (GDP). Last year, it accounted for 11.9% of all the wealth that was generated in the country. The sector also employs about 9 % of the workforce in Tanzania.
The construction sector is expected to continue its strong growth path in the near future. This is backed by continued investments in the recently discovered natural gas reserves in Tanzania and the expansion in public investments (including the ongoing construction of USD 1.2 billion gas pipeline from Mtwara to Dar es Salaam), as well as the related investments aimed at stabilizing power generation in the country.
Crown Paints has grown to become a company with an annual turnover of USD 61.2million and is now producing 2.3 Million Liters of paint per month.
Speaking at the launch, Crown Paints Group Vice Chairman, Hussein Ramji revealed that the firm is set to expand into other markets. Mr Ramji explained that export market was a key contributor to the group sales volume. â€œOur export markets sales volume increased by 50pc in 2013. These export markets included Southern Sudan, Rwanda, Burundi and Tanzania. With a robust marketing and distribution in place, this year, we hope to maintain growth in these countries,â€ he said.
At the same time, Mr Rao disclosed that Crown Paints Tanzania, will be part of Crown Paints Group CSR programme, which will be enabling local employees to support and volunteer for good causes. The company has invested in education, health and environment.
Mr Rao added CSR has assumed a new meaning in today’s world. â€œIn recent years, CSR has become an increasingly important activity to businesses nationally and internationally.â€
Through Crown Paints CSR Program, he said we are supporting government directly and indirectly to better the society. 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 environment.
Dr. Abdallah O Kigoda, Minister for Industry & Trade said, â€œWe are excited to welcome Crown Paints Tanzania. Crown Paints Group is a highly rated company in EA. And the announcement made here today, will create job opportunity for our youthful population and offer training for painters across the country.â€