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Chemical and Allied Products Plc (CAP Plc), a manufacturer of premium paints and coatings in Nigeria, has emerged as a market leader with the fastest-growing market share in the industry, according to BusinessDay analysis.
In a competitive environment dominated by legacy Nigeria’s paintmakers players and new entrants, CAP Plc recorded a significant expansion in market share amounting to 72 percent in 2024 the highest among listed peers, including Berger Paints, and Meyer Plc.
This growth comes despite inflationary pressures, fluctuating raw material costs, and currency volatility that plagued manufacturers throughout the year.
According to David Wright, former managing director of CAP Plc, the company was projected to control 25 percent of market shares of the Nigerian paint industry in 2021 within the next three to five years.
Read also: Shareholders see returns growth as CAP Plc boosts earnings
“The transaction for the merger of both companies had been in the works for more than one year. Executing the merger will give rise to Nigeria’s biggest paint and chemical company by market capitalisation,” he said.
Also, analysts attribute CAP Plc’s growth to its aggressive retail strategy, product innovation, and digital transformation initiatives. The company launched two new paint variants under the Dulux and Caplux brands, targeting mid-income and budget-conscious consumers.
While CAP Plc surged ahead, rivals like Berger Paints and Meyer Plc reported modest market share movements accounting for 21.4 percent and 6.37 percent, respectively.
Market share is the percent of total sales in an industry generated by a particular company.
It is calculated by dividing the company’s sales over the period by the industry’s total sales over the same period, giving an idea of the size of a company to its market and competitors.
Read also: We’re addressing a critical need while empowering homeowners – CAP Plc
The Nigerian paint and coatings market, estimated at $2.58 billion in 2024, faced several challenges such as exchange rate instability significantly impacted the import-dependent supply chain, while consumer purchasing power remained under pressure.
Yet, CAP Plc reported a 53 percent revenue growth year-on-year, reaching N36.3 billion, and a net profit of N3.8 billion, a 52 percent increase from the previous year. The company’s operating profit margin improved by 1.5 percent, a testament to its robust cost optimisation strategy and increased local sourcing of raw materials.
Berger Paints on the other hand grew its profit to N610 million from N445 million with revenue amounting to N10.8 billion. While Meyer Plc reported a turnover of N3.12 billion from N2.16 billion during the period.
