Making fortune from paint manufacturing

THE PUNCH Newspaper-Sulaiman Adenekan

There is no gainsaying that construction of a building without befitting paint work, considering the aesthetic and protective function of paint could be a waste of time and effort.

The important role of paint products has, however, made their commercial production a profitable venture, especially in Nigeria where construction business is making waves owing to continuous massive investment in real estate.

The Managing Director, Askar Paints Nigeria Limited, Mr. Hakeem Adebayo, says establishing a paint manufacturing plant is capital intensive.

He says to produce paint products, there is the need to get machineries, raw materials, laboratory for chemicals preparation and quality control, storage units, marketing team and other workers. He adds that quality paint products will have an edge in the market.

He says a small scale paint manufacturing plant that is capable of producing 10,000 units of 20-litre bucket of paint per day will require about N50m to set up.

He adds that a large scale paint manufacturing plant that is capable of producing 50,000 units of 20 litre bucket of paint per day will cost N100m to N200m.

On the space of land required to set up the plant, he says about two plots of land are needed for small scale operations, while about two hectares of land are required for a large scale paint manufacturing plant.

On the number of employees required for the large scale paint business, he says about 40 qualified employees or more is needed for a large scale plant while about 10 is required for a small scale paint manufacturing plant, adds that qualified people will aid the growth of the business.

On the type of machine required, he says slow mixer machine and big pot are needed to be able to produce large volume of paint among others equipment.

On the raw materials needed, he says, calcium carbonate is largely needed and is locally available in Nigeria, in addition to resin.

He says paints products are not exported out of Nigeria, adding that a lot of well known paint companies in Nigeria have branches and franchise out of Nigeria, as the export tariff will definitely increase the price of the products, noting instead that it is better to set up plant in those countries.

He says a paint manufacturer must also look at the logistics of moving the products to customers where they are needed at the appropriate time because of the competitiveness of the industry.

He says the best way to fight the prevalent rate of faking of paint products in the market is for paint manufacturers to produce quality products, adding that training is also essential in that respect.

On the development of the sector, he says, ”Proper regulation for raw materials acquisition and financial support whether government rebate for manufacturing site, tax holidays for the development of the manufacturing sector will also be helpful.

”Also the local government, can provide land for the manufacturers to build their factories. There should also be investment in the educational process to help bring the level of technical knowhow to the level of the Asian and European countries and United States of America.”

Speaking in the same vein, The Chairman, Premier Paints Plc, Chief Ogooluwa Bankole, says paint is a derived product, as it is used for decorative, protection or aesthetic value, also for iron and steel and in ship building.

He says paint products can be categorised into architectural paints; industrial paints and marine paints used in the oil and gas industry, for protection rather than decorative purposes.

He says, ”If you have a pipe that is buried several metres below the ground level, you are not likely to have access to that structure throughout the life of that product. Which means you must protect it virtually forever, because to even get access to the product for repairs will not be cost effective.”

He says paints that are designed for such protective purposes have to be balanced in terms of quality and cost, as in most cases people are not even worried about cost, they are more interested in the quality of that protection, adding that paint is so important that no value can be attributed to a building unless it is painted.

He says Nigerians should imbibe maintenance culture, adding that about 80 per cent of paint should be for existing structure, while about 25 per cent should be for new structures, but reverse is the case in the country because once people put up structure in Nigeria, they forget about maintaining them until they decay.

He urges the government to put in place the necessary infrastructure to engender the development of the nation‘s paint industry, as it is an essential sector for the construction industry.


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