Start-up makes brisk business out of car wrecks

“By using the colour code from a car’s manufacturer, we can reproduce a paint that matches the original colour of the car, unlike some garages that approximate different aspects of colour.”

Crown Berger has similar arrangements with other garages.

It has also managed to bag General Motors, a major motor dealer.

Analysts say that the company’s traditional house paint business that is tied to the construction industry appears to have matured while competition has intensified, forcing the company to diversify its operations to expand revenue and market base.

Due to the difficult business environment in the wake of post-election violence and the global cash crunch, Crown Berger posted a pre-tax profit of Sh77.7 million for the year ending December 31, 2008, a 45 per cent shrink from Sh140.22 million recorded in 2007.

The company has expanded to Uganda and Rwanda, and diversified into the properties market.

The CEO, Rakesh Rao, told a press briefing that he is optimistic the new investments will help in turning around Crown Berger’s fortunes.