Jotun Paints Oman, Yemen's HSA Group JV to start production
A joint venture (JV) paint company in Yemen, which was promoted by Jotun Paints Oman and HSA Group, will start commercial production in July 2005.
Vijay Kumar, Managing Director of Jotun Paints, told Oman Observer that his company and the Yemen-based HSA Group have equal ownership in the $5 million joint venture, which boasts an annual installed capacity of 5 million litere of paint.
He also said that there is a plan to set up a similar joint venture in India, which is an important export market for the Omani company. Jotun Oman exported some 1 million liters of paints to India last year.
According to Kumar, Jotun Paints Oman has been exporting to two other regions - Yemen and East Africa. Jotun Paints, which has an installed capacity of 15 million liters per annum, produced 10 million liters last year and the average growth in sales was some 10 per cent.
Vijay Kumar added that better demand for housing in the Sultanate, liberal housing loan policy and the new infrastructure projects aided better demand for various types of paint. "We have 75 per cent market share in protective coatings and 50 per cent share in decorative paints", he noted.