GOING GREEN
Paint manufacturers in Oman are gearing themselves up to meet customer needs and the demand fuelled by numerous real estate projects. Visvas Paul D Karra checks out on the top three paint companies to find out what Oman can expect in the next few years

The economic boom over the past few years, which has buoyed the real estate sector beyond all expectations, has added a bright hue to Oman’s paint industry.

In this new found glossy veneer, emerges the picture of a vibrant paint industry. Paint companies have evolved themselves gradually from mere manufacturers of utilitarian products to more sophisticated and hi-tech players in line with changing customers’ needs.

Numerous projects coming up all over the Sultanate of Oman have fuelled a demand for paints both for exterior and interior protection.

Consequently, all the paint companies in Oman have shifted into an overdrive to meet the growing market demands by expanding production capacity and introducing new technology. Out of numerous paint producers like Jotun Paints; Sadolin Paints; Khimji Permoglaze; National Paints; and Berger Paints, the first three are the market leaders in Oman.

Rosy picture
The painting industry, apparently, has never had it so good, as the last two or three years wherein most manufacturers have achieved record sales and profits. This profitable trend continues this year too as most of them have achieved their targets in double quick time.

Although the captains of the industry were tight-lipped on the numbers for obvious reasons, yet hectic activity in terms of capacity expansion, renovation of factories etc suggest that the industry is indeed taking advantage of the sheen created by the economic boom. The ever increasing demand for all types of paints in various segments like decorative, furniture lacquers, industrial and retail, has made it imperative for the paint companies to expand or expend.

The typically prolongable sluggish season has since ended and the manufacturers have brushed themselves up into a frenzy to make hay while the demand for colours is still fresh.

“Sadolin Paints has the biggest plant of 20,000 sq ft and employs about 125 people, 46 per cent of whom are Omanis. We are also exporting to all the GCC countries and Yemen,” informs M M Khan, General Manager, Sadolin Paints. Sadolin started with a capacity of 1.23 million litres per year and has since grown from strength to strength. Today, Sadolin plant’s capacity has reached a mammoth 23 million litres and is equipped with the best technology in decoratives, wood protection and furniture lacquers.

Khan further says, “Oman is witnessing an immense economic growth and excellent market conditions are predicted for the next five years. With the shift of our headquarters to Rusayl and now with our single plant operation, we have increased our production capacity to over 20 million litres. We are now well equipped to cater to the increased demand as well as the changes in colour trends.” All the three companies have been witnessing an average year-on-year growth of 40 per cent.

Khimji Permoglaze, established in 1985, under the licence of Akzo Nobel Group had increased its capacity from the initial 2 million litres per year to 3 million litres in 2007. But this year, the company plans to surpass that figure and dramatically double it by 2010. “We have also begun exporting to Iraq, Iran, Africa and we see a good future in the next five to 10 years. We will be ready with a new modern plant in Rusayl within the next two months with automatic machines. We will also introduce new innovative products in Oman by tying up with European and or Asian companies,” disclosed M R Kamat, Works Manager, Khimji Permoglaze.

According to Kamat, in 2007 Khimji Permoglaze achieved 40 per cent growth in both volumes as well as value. And this year they are expecting to grow 40 per cent more as compared to 2007.

Incidentally, Akzo Nobel, the global giant in paints, has technical licence with Khimji Permoglaze as well as Sadolin Paints. In the high quality paints segment, Jotun Paints which was producing about a couple of 100,000 litres, ten years ago, is now filling up tins reaching a total of 3 million litres. “In 1985, we had capacity licence for only 5 million litres per year but today we have increased it to 22 million litres because of the high demand. In the last three years, we grew 40-50 per cent in our volume and value year-on-year,” said Vijay Kumar, Managing Director, Jotun Paints. This is being achieved by lean manufacturing techniques like automating the machines and reducing the cycle time.

Going green
Clearly, the main focus has been to deliver environment friendly paints that add value and reduce the impact on the environment. All three top paint companies have been harping on the ‘green’ products they have launched in the recent past. This has been made possible by marrying modern technology with raw materials that are easy on the environment, even though they are a bit expensive.

Sadolin Paints launched two new decorative concepts known as 36 whites and armour gloss emulsion, a water-based eco-friendly paint that comes with five different gloss levels. The armour gloss emulsion replaces the enamel thus reducing the solvents and making it safe for inhabitants.

Says Khan: “Our strategy over the years has been to continuously offer a range of products with distinct features and benefits so that consumers can make an informed choice. Today we are proud to be the first to launch the new range of 36 whites and the water based gloss emulsions.” According to Khan, enamel was being used in school classrooms because it is easy to clean. But in the bargain, when the paint was being applied, solvents in the room remained for days and people could not enter the room. “People do like water based paints but they got only matt finish. But now we are offering gloss emulsion, which is a much better and safer product,” says Khan.

Similarly, Jotun Paints has introduced two water-based products with modern technology to reduce volatile organic compounds (VOCs). The ‘Jotashield’ series is a high quality product for building exteriors while ‘Fenomastic’ series is for interiors. These two products have emerged as Jotun’s best-sellers.

The ‘Waterfine’ series is yet another paint from Jotun which is only water-based, right from primer, to undercoat and topcoat. Kumar of Jotun Paints points out that his company was one of the first to accord priority for environmental products. “Since 1985, when we entered this market with our factory in Rusayl Industrial Estate, we were always focused on introducing the most innovative technology to make environmental friendly products, keeping also the health and safety of our workers in mind,” says Kumar.

Jotun also has the Jotashield Thermo which reduces heat radiation in a building by 15-20 per cent thus reducing energy costs. Comments Kumar: “Jotun is a Norwegian company where there is high awareness on environment. In Oman, we received HM’s Cup six times – three times each as winners and runners up. And you know that one of the eligibility criteria for HM’s Cup is environmental protection.”

Khimji Permoglaze, which manufactures decorative and high performance coatings among other paints, has got ‘Sterilite Coating’ as a major eco-friendly product for interior paintings. Nukote Coatings is another paint from Khimji Permoglaze which is a high performance environment-friendly coating used for exteriors including bridges and car parks. Kamat says that his company has also launched another eco-friendly product ‘Thermilate’ which is a heat reflective paint and reduces energy consumption. “We are aggressively marketing all these products now,” he adds.

Pastel perfect
Of late, the concrete structures – domestic as well as commercial – that were once awash in only the staid white paint seem to have changed colours. A quiet glance around us also reveals that many buildings are now ‘coloured’ with beautiful adornments of various hues of pastel giving a welcome relief to the eye. Is it changing mores or changing norms? The representatives of the paint industry have duly credited the citizens of the country for the ‘acquired taste’ to experiment with new shades and new products.

According to Khan, the market has changed tremendously. Earlier it was just white and shades of white. But now people have begun to demand not only a choice of colours but also a choice of beautiful colour combinations. In this regard, Sadolin Paints, which is celebrating 30 years of its operations this year, has launched the “Sadolin Colour Collection” which consists of the music range and the wildflower collection, designed by the Sadolin Colour Lab – a group of expert technicians who work with some of Europe’s best designers and fashion companies.

Sadolin comes up with a new palette every four to five months. Further, it has beautiful brochures innovatively designed to show a particular paint on one page and a room having that colour combination on the opposite page, so that the customer knows exactly how it would look. “Since our display brochures are done this way, the moment a customer sees a particular colour combination, they immediately want it,” informs Khan.

Kumar of Jotun says that his company’s objective is make paint a lifestyle product. “Jotun is the only company which created a great change in the consumer behaviour by introducing high quality paint products. Our Multi-colour Centres which are more like five star hotel lobbies have raised quality awareness among the consumers,” says Kumar. “We are the only company which has started the ‘Lady’ series of paints after an extensive research which showed that 60 per cent of the villa painting decisions are taken by women,” Kumar points out.

Khimji Permoglaze has also realised that people are demanding high quality paint products. “We have 50 varieties of paint products. You name it and we have it,” says Kamat. As part of its service orientation, Khimji Permoglaze recently introduced the “Paint a Home Service”, a unique offering for its customers. This has been a tremendous success in Muscat and it is being extended to Sohar and Salalah, says Kamat.

“As part of this service, all that a customer has to do is make a phone call and we will take care of the rest. Our expert consultants will come to your home and once you decide the right colour combination, everything else will be done by us,” Kamat disclosed. This service has been a hit especially because women don’t want to go to the paint shop to look for a complete solution.

Paint position
Meanwhile, both Sadolin Paints and Jotun Paints gave competing claims of being the number one. Admittedly, Khimji Permoglaze is behind the market leaders in the third position.

Says Kumar, “We are the leaders with more than 50 per cent market share in all the three segments together, that is decorative, building industry and heavy duty coatings for oil and gas; steel production and marine paints for all offshore and onshore projects.” Jotun is also the second biggest marine paint producer in the world with a huge number of marine clients in its kitty. For the last 10 years, the Royal Navy of Oman projects have been done by Jotun.

Kumar says that around 90 per cent of five star hotels; 70 per cent of big and medium projects; and 95 percent of the flyovers in Oman have come under the Jotun brush. Jotun’s list of clients includes Oman LNG, Sohar Aluminium, Sohar Refinery, the Barka and Sohar independent power projects etc.

Project-wise, Khimji Permoglaze undertakes surface coating projects for the Ministry of Health which builds primary and secondary health centres all across the country. Other notable projects of Khimji Permoglaze include Oman Development Bank’s, CBD branch; Sultan Qaboos University; Sultan Qaboos Private School; Dream Resort; Muscat Trade Centre; and Indian School Wadi Kabir.

Khan of Sadolin points out that one has to look at relative strengths because of the wide market segmentation. He says, “If you look at the market share, everybody is not present in every segment. Our strength is in the retail market. Likewise we are dominant in furniture lacquers and industrial paints. But in totality, we are by far the number one.”

Projects executed by Sadolin Paints include Barr Al Jissah Resort and Spa; and Samail Jail among others. Recently, Sadolin also bagged The Wave project’s Phase I and Phase II.

‘Reach’ rewards
Jotun’s brand visibility is also very high reflecting their leadership position. “You cannot drive anywhere in Oman without seeing Jotun,” says Kumar reminding us about the familiar penguin logo seen on many hoardings and bus stops.

Sadolin Paints is working towards increasing its brand awareness and make an emotional connect with its customers to get that extra edge which it could not gain merely on the strength of its longer presence in Oman. “We have started an advertisement campaign using bus stops, hoardings etc and we will build up on this,” admits Khan.

All the three players have a strong retail reach with Sadolin Paints and Khimji Permoglaze each boasting of over 150 dealer outlets all over Oman which gives them visibility and easy access to customers.

“We want to bolster our presence in the retail market by strengthening our dealer network as this is where the customers ultimately go,” says Kamat while saying that Khimji Permoglaze is supported by many other divisions of Khimji Ramdas Group like the infrastructure division.

Jotun Paints has 86 different showrooms throughout the country known as the Multi-colour centres. Kumar calls them as the trump cards of the company while adding that Jotun was the first company to introduce this concept. This is where customers can come and choose the colour combinations to match their tastes, curtains, carpets etc.

The overall optimistic note has been extended by Jotun and Sadolin beyond the shores of Oman by setting up manufacturing plants in India as well.

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