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Making a Fortune From Paint Production - By Sulaiman Adenekan
Another paint manufacturer, Mr. Lawal Adebayo, the Managing Director of Amalux
Paints Nigeria Limited, says that paint manufacturing is a profitable business
in which the amount invested can easily be recouped in a shortest time.
He, however, notes that access to funds is the major constraint against the
business expansion of the small scale producer, and appeals to the government to
set up a microfinance scheme to support the small scale manufacturer.
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Paint production processes involves the storage of raw materials, water
measurement into the mixing machine tank, measurement of raw materials,
steering, pouring of paints into the plastics, products storage and finally,
sales.
He explains that pricing of paint products is dependent on demand.
He says, for instance, that producer’s price of emulsion paint is N400 and above
per gallon in the market, depending on the quality and the brand name of the
company.
Emulsion paints are packaged in plastics, mostly in four litres and 20 litres,
while gloss paints are packaged in steel cans.
Popoola says that the cost of purchasing and printing a four-litre plastic is
N95 and 20 litres is N380 while a four-litre steel package is between N220 and
N260.
He says that due to late payment by distributors, a development which ties down
capital, it is usually preferable for a producer to look for contracts. This can
be achieved by supplying directly to those in the process of painting their
buildings.
He lists some of the problems faced by the paint manufacturers as inadequate
capital, frequent breakdown of machines, incompetent employees, lack of access
to distribution channels, delay of payment by the distributors, lack of support
from the government and high number of paint producers.
On the opportunities available in the industry, he says that the business is
very profitable if there is availability of capital to invest in it and if
properly managed.
- Culled From Punch
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