2020 is an important year for Finecoat Paints. The leading paint company is 25 years and it is celebrating that landmark year.
In the last quarter of a century that Finecoat has been in existence in Nigeria, it has contributed immensely to the economy of Nigeria; ranging from providing employment to adding to the beauty and value of housing, one cannot talk about the emergence of the paint industry without making mention of Finecoat Paints.
In this article, City People’s Brands & Products looks at how Finecoat Paints emerged as one of the top players in the market.
There is no development without infrastructures which include houses and no house can be fully completed without painting, to give it aesthetics and preservation of the building.
These and many more have brought about the growth Nigeria has witnessed in the Paint industry in recent times and despite the fact that the industry started basically on the importation, it has now been indigenised and has created a level playing ground for all the participants, both local and international. President Buhari’s zero tolerance for the importation of goods and services that can be manufactured here in the country has further strengthened the locally made brands.
Over the years, the Nigerian paint market has witnessed the emergence of small-scale brands battling for market share with the ‘Big Boys’ in the industry, some of which are listed on the Nigerian Stock Exchange.
The key drivers of the paint industry in Nigeria have always been in high demand for real estate properties and growing construction market and industrial production. However, the recent economic contraction dealt a big blow to the Balance sheet of some of the manufacturers, as most of them depend largely on importation for their raw materials.
THE PAINT INDUSTRY IN VIEW
In 2012, the Nigerian Paint and Coatings market was worth an estimated $200 million, with an estimated Compound Annual Growth Rate of 9.01%.
According to Chris Kiwanu, a consultant with the Bank of Industry, Nigeria’s Paint industry is projected to record 5 per cent growth rate from its present estimated $268 million to $377 million by 2025. He also projected that local paint consumption should grow from 391.75 million litres in 2020 to an all-time high of 1 billion litres by 2025, in an ideal operating environment. Some of the local paint companies have keyed into these statistics and are gradually benefiting from it.
BRANDS IN THE MARKET
The paint variants can be classified into the Decorative paints segment and industrial paints segment. While decorative paints are used for interior and exterior house paintings, industrial paints are used for industrial paintings. Variants in the decorative paint segment include emulsion, gloss, silk/satin, while variants of industrial paints include auto paints, marine paints, wood, road markings, bright aluminum, bituminous, etc. Notable brands in the Nigerian market include Berger Paints, Dulux, Caplux, Finecoat, President, Prestige, and Eagle, just to mention few.
A 2016 Data from the Standards Organisation of Nigeria (SON) reveals that there are 68 registered paint producers in Nigeria that meet SON requirement.
BIG PLAYERS IN THE MARKET
These are the manufacturers that laid the foundation of indigenous paint manufacturing in Nigeria and have continued to remain on top by refusing to compromise the quality of their products. They control the market and have been in existence for decades, starting as importers of paint products but moving to local production as demand increased. They include Cap Plc, makers of Dulux Paint, Berger Paints, Meyer Plc and the fast-rising kid on the block, Finecoat paints made by Chemstar Industry Ltd.
Chemical and Allied Products (CAP) Plc, a subsidiary of UAC of Nigeria (UACN) Plc, is in the paint and coat production business. The company was established originally as Imperial Chemical Industries, but later became ICI Nigeria Limited in 1965.
It has grown over the years to become one of Nigeria’s leading paint manufacturers. It has a wide range of paint variants that have continued to meet the various painting needs of Nigerians. Its major brand includes popular Dulux and Caplux brands.
BERGER PAINTS
Berger Paints has brands in different segments, ranging from the Luxol Emulsion, Fire Resistant Texcote, and the Luxol Gloss. The company was formerly known as British Paints (W.A.) Limited. It is the first paint manufacturing company to be quoted on the floor of the Nigerian Stock Exchange (1973).
MEYER PLC
Meyer Plc currently has brands doing well in the Decorative, Auto Refinishes, Industrial and Wood Finishes. Meyer Plc is an offshoot of former Hagemeyer Nigeria Limited, the manufacturer of Sigma Paints and Cosmetics. In 1994, Hagemeyer was bought over by Dunlop Nigeria Plc, which led to the change of both the corporate and brand names to DN Meyer Plc and Meyer Paints respectively.
In July 2003, Dunlop Nigeria Plc divested its controlling shares from DN Meyer Plc to ACIMS Limited and DN Meyer Plc ceased to be a subsidiary of Dunlop Nigeria Plc.
CHEMSTAR INDUSTRY NIGERIA LIMITED
Chemstar Paints Ind. (Nig.) Ltd was incorporated on 23rd May 1995 and immediately commenced manufacturing and marketing of good quality paints & allied products from a rented single room and shop apartment at No. 26, Kayode Street, Ijaiye, Ogba, Lagos and in 1998, the company moved to a bigger location at No. 1, Bodunrin Caulcrick Close, Caterpillar Bus-Stop, Ogba.
Chemstar Industry Nigeria Limited, makers of Finecoat and Shield Paints, has grown from a small beginning in 1995 to a huge player in the market. To meet increasing demands for its products, Chemstar Paints, in the year 2000, moved its production line to No. 114, Oba Akran Avenue, Ikeja, leaving the sales and administrative offices at Bodunrin Caulcrick Close.
In 2003, it witnessed the introduction of high-quality car paints, branded as FinecoatAutomel. Finecoat POP Emulsion was added to the array of products produced by Chemstar Paints.
In 2005, Chemstar Industries Ghana Ltd was established to manufacture Finecoat Paint Product for the West African market. -Finecoat Adhesives product (Hi-Bond) was introduced to the public. In 2008, Shield Paints, the company’s Premium brand was unveiled to cater to consumers in that category. The brand comprises of Shield Excel, Shield Easy Living, Shield Gloss, Shield Satin Finish, Shield Industrial and MARINE products.
On May 1st, 2010, Chemstar Paints Industry Ltd, manufacturers of Finecoat& Shield Paints commissioned her ultra-modern corporate headquarters at Km32 Caaso Bus Stop, Lagos-Abeokuta Expressway, Alagbado Lagos State. In 2013, CPIN Industries, Plastic Division started operations. The company was set up for the production of all the plastic containers for the paint products. CPIN INDUSTRIES, Chemical Division was set up for the importation of all chemical raw materials for Paint, Cosmetics, Polyurethane and Food Industries.
In 2018, Finedecor Wallcoverings was set up washable Vinyl wall coverings, 3D Wall panels, Paintable wall coverings, etc. Right now, Chemstar Industry can boast of having distributors across the 36 states of the federation and this became more pronounced at the annual meeting with its distributors and customers nationwide held a few months back.
FINECOAT PRODUCTS IN HOT DEMAND
Finecoat Acrylic Textured Paint is a high build heavily textured product, guaranteed to give a beautiful and protective finish. Because of its special build and pigments contained therein. It is alkaline and weather-resistant and offers long-lasting protection for concrete and masonry. You can touch this paint without being heavily stained within 1-2 hours of spreading and it takes only about 3-4 hours for it to be well dry. You could also achieve a hard dry overnight, depending on the weather condition.
FINECOAT ACRYLIC EMULSION PAINT
Finecoat Acrylic Emulsion is an Emulsion Paint for internal and external uses. It is fortified with lightfast and weather stable pigments and guaranteed to give a very smooth finish. It is resistant alkali because of its build and the pigments contained therein. To be able to touch this after spreading, you will need only 15-30 minutes while drying only takes about 2 hours. Hard dry can be achieved overnight. The 20 litres drum is sold between N4,500-N4,800 depending on the colour.
FINECOAT P.O.P EMULSION
Finecoat P.O.P. Emulsion Quality is a high-quality emulsion paint for internal and external uses. It is fortified with lightfast and weather stable pigments and guaranteed to give a very smooth finish. It is resistant to alkali because of its special build and pigments contained therein.N4,500-N4,800 depending on the colour.
At the 22nd City People Awards for Excellence held at the Lekki Coliseum on Sunday 31st March 2019, Finecoat Paints won the Paint of The Year Award. Finecoat Paint is one of the leading paint companies in Nigeria produced under the parent name Chemstar Group which is the flagship of the group. This and many other feats made City People’s Brands & Products carry out a market survey in the paint industry and here are excerpts from the survey.
How do you determine the cost-effectiveness of any paint brand?
City People’s Brands & Products probed further on what to look out for in quality paint and a good number of experts including builders, painters, quality control experts and engineers revealed the following; DURABILITY: Can it withstand the harsh weather conditions of Nigeria without fading or losing its qualities. SPREADING RATE: How many square meters can the paint cover per gallon. HIDING POWER: Number of coats that will sufficiently cover a given surface, an industrial painter told Brands & Products. After due consultations, CP Brands & Products found out that all Finecoat paints alongside other top brands met this standard and it’s one of the reasons Finecoat is on top of the ladder in the industry.
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