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.
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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