Investment triples Düfa market share

DA1fa Romania, one of the leading players on the varnish and paint market has tripled its market share on the alkyd paints (used for wood and metal) retail segment, following the launch of the Danke brand in May this year, the company representatives say. Danke is a paint for wood, metal and walls, aimed at the DIY clients, and the demand for this kind of paint is going up, all the more so since the investments in new homes and home improvement are increasing.
“The launch of Danke by DA1fa Romania cost up to 300,000 euros. This product has enabled DA1fa to jump from the fifth place and a 4% market share early in the year to second place, right behind KA¶ber, whereas the market share practically tripled,” Bruno Negoita, DA1fa Romania CEO told Ziarul Financiar. He would not go into details about the sales of this product, though.
DA1fa saw the highest growth of the three major players for the above-mentioned market, competing with KA¶ber and Policolor.
KA¶ber, a Romanian producer, accounts for 38.47%, DA1fa for 12.77% and Policolor for 10.67% of the market for wood enamels and paints (as the alkyd paints are called), according to the latest retail audit conducted by market research company Daedalus Consulting throughout August-September this year.
The total varnish and paint market, which sources in the industry estimate to be worth 110-120 million euros is comprised of decorative paint – 50-60%, followed by automotive, industrial, furniture paints, powders, resins, inks, wood enamels etc.
“I believe the decorative paint market has gone up 6 or 7% this year from 2002, due to the relaunch of the construction works, while the growth of the entire varnish and paint market is 5-6%,” the DA1fa official says.
The market growth both in terms of value and quantity was backed by a quality gain over the last few years, with the emergence of local brands as one factor. The first paint brand on the Romanian market was SPOR, launched by Policolor in March 1999.
DA1fa Romania estimates turnover to reach more than 18.5 million euros this year, up 12% from the previous year, according to Bruno Negoita. The growth in volume is of 20%. The profit rate is about 10 percent, which is actually the average of this industry in Europe.
The company was established as a joint venture set to import and distribute varnishes and paints in 1997 and is held by Meffert AG – 50% and two Romanian shareholders Marius Ivan and Liviu Stan – 50%. DA1fa Romania’s productive capacity amounts to some 35,000 tonnes a year and the company has a staff of 108.
adrian.mirsanu@zf.ro