The managing director of Chemical and Allied Products Plc (CAP), Mr. David Wright, said the company has targeted growth in its industry market share to about 25 per cent in the next three to five years.
CAP and Portland Paints and Products Nigeria (PPPN) Plc, both subsidiaries of UACN have merged to become the largest paints company in Nigeria, in terms of market share.
Wright noted that the business combination between CAP and Portland Paints will create value for the shareholders and has earned the mega firm 15 per cent market share.
Speaking to journalists in Lagos, Wright said the target will be achieved by broadening the company’s footprints geographically with the latest colour technology that will drive the future of the paint industry in Nigeria.
He stated that the strategy is to create significant presence in Nigeria and become the major player that the big global companies want to deal with.
“The paint industry in Nigeria is not massive. It is about $3 million and there are only a handful of players in the industry. CAP is about 12 per cent in market share and Portland with about three per cent in market share, so when you bring the two together, we have 15 per cent market share as at when the merger was finalised,” he explained.
The chief marketing officer, Mrs Ifeoma Chuks-Adizue, noted that in the decorative space, CAP is already a leader in the premium market because of its leadership brands such as; Dulux, Caplux, Sandtex, Hempel, among others.
Chuks-Adizue further said that in terms of return on investment, CAP has been the best performing company in the stock exchange with the highest share price and generally the best dividend paying stock, noting that, “bringing the two firms together will increase the size of the business and growth in earnings.’
Chief finance officer, Mr Yomi Adenson, said with the successful merger, shareholders should expect improved value on their investment.