Companies

Dura Coat maker eyes Uganda and Tanzania

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Basco Products managing director Kamlesh Shah (right) and the sales manager Thiagarajan Ramesh during the launch of a new paint product Dura Coat Fragrant in Nairobi on March 17, 2015. PHOTO | SALATON NJAU

Basco Paints on Tuesday said it will invest Sh800 million for expansion into neighbouring countries.

The paints manufacturing company intends to set up operations in Uganda, Tanzania, and Rwanda, employing an additional 700 workers.

The growth plan will be partly funded by Barclays Kenya and CFC Stanbic banks, which have been the manufacturer’s main financiers.

“We want to extend our operations in Eastern Africa to help in the distribution of our wide range of paints both in existing and new markets,” said Kamlesh Shah, the managing director of Basco Paints.

He spoke in Nairobi during the launch of new paints under the Dura Coat brand.

Basco launched a vanilla-scented paint that is available in vinyl silk, vinyl matt and soft stain varieties. The products will be available in quantities of one to two litres.

Construction of the new plants is expected to kick off in less than two months, with phase one set to be completed by June this year and the remaining factories expected to be done by October.

“We have identified growing opportunities in these countries where in some, we operate depots and the establishment of new plants will play a key role in distributing our products,” said Mr Shah.

Distribution depots

The paints maker will also be setting up distribution depots in Burundi and South Sudan and additional ones in Eldoret, Kisii and Kakamega in the next two months.

The need to expand, he said, was pushed by the exponential growth in the real estate sector where uptake has gone up.

The development of malls in Kenya and investors seeking to expand their operations in the country has also contributed to the expansion plans.

Basco Paints will now be competing with its main rivals that include Crown Paints and Sadolin Paints, which last year announced plans to set up a manufacturing plant in Rwanda.

The two companies have for long been relying on their Kenyan factories to serve customers in the region.

In October last year, The New Times of Rwanda quoted Kalim Amijee, the Sadolin Paints Rwanda country manager, saying its new plant will have the capacity to produce 250,000 litres of paint per month starting in March while Crown Paints said they will be spending Sh200 million to establish a new plant in the country.