Crown Paints in Ethiopian factory plan

Corporate News

Co-op Bank managing director Gideon Muriuki. Photo/FILE 

Co-op Bank eyes Ethiopia joint venture

 

By HERBLING DAVID

Crown Paints has announced plans to build a Sh701 million ($8 million) factory in Ethiopia next year, having started production at its Arusha plant in January.

The Nairobi bourse-listed paint maker invested Sh300 million in the Tanzanian factory as part of a strategy to grow income from the regional market and cut reliance on Kenyan, which accounts for 92 per cent of total sales.

 

The Ethiopian plant will have a production capacity of one million litres of paint per month and will be funded through debt.

Crown Paints will from August establish a manufacturing plant in Kisumu at a cost of Sh263 million ($3 million) to supply the Great Lakes market with economy grade paints.

“We want to establish a large plant in Ethiopia. It’s a special market and we’re talking to the government there,” said Rakesh Rao, group chief executive at Crown Paints AGM held yesterday. “We want to consolidate our presence in the regional market with the plants in Arusha and Kisumu.”

Mr Rao said high-end premium brands make up 75 per cent of Crown Paints’ sales in Kenya while economy brands account for 70 per cent of regional turnover, hence the decision to manufacture this line of paints in Kisumu and Arusha.