Khimji Paints Acquisition Boosts Hempel’s Presence in Middle East

The Middle East offers intriguing opportunities for paint and coatings manufacturers. As is the case in any region, having local brands, production capabilities and people on the ground is always ideal.

With an eye on all of these, Hempel recently acquired Khimji Paints LLC, the coatings division of Khimji Ramdas, an Omani conglomerate. Founded 36 years ago, Khimji Paints has an extensive history in Oman, and has 65 outlets in the country. Khimji is highly regarded for its quality and customer service.

“This transaction marks a significant milestone for Hempel in our global growth journey,” Joe Devitt, EVP of Decorative at Hempel, said in announcing the acquisition. “With this acquisition, I am thrilled to welcome the entire Khimji team – over 70 new employees – into the Hempel family and a production facility, enabling us to increase capacity in the region.”

The acquisition allows Hempel to expand its Omani operations and further establish itself as a leader in the Omani decorative paint segment. This is a key part of Hempel’s strategy to double its size by 2025. Hempel’s Double Impact strategy will be realized through acquisitions and organic growth, as well as investments in sustainability, innovation and digitalization.

Mark Rees, VP, head of Decorative Middle East at Hempel, said that Hempel sees the Middle East as an area of growth. He added that acquiring Khimji Paints has been under discussion for the past two years.
 
“Khimji Paints is a very respected paint supplier in the market, and our interest in Khimji Paints falls in line with our Double Impact strategy since, with this acquisition, we will significantly increase our market share in Oman,” Rees noted. “Furthermore, as a company, they share similar values as Hempel, making us a perfect fit and complementing our present existence in the market.”

Rees noted that Khimji Paints sell paints under the Permoglaze brand. Under the purchase agreement, Hempel has a limited time to use the Khimji name and brand and as such it will be removed and the Permoglaze name made more dominant.

“Coincidentally, the Permoglaze brand is owned by Crown Paints (a Hempel family member), which Khimji licensed from Crown,” Rees added. “Permoglaze is coming home.”

Rees noted that there are a number of benefits to adding Khimji, including new products and a stronger presence in the country.

“We are acquiring a significant market share with this acquisition, increasing our presence by 300%,” Rees noted. “We are also meeting the stringent local government requests when it comes to ‘In Country Value’, thus allowing us to access local government tenders which we could not do in the past. Furthermore, Khimji has developed some products that are tailormade for the Omani market, which will overall benefit the new company moving forward.
 
“Initially, Hempel customers will be benefited by a greater variety of products that might also be more competitive and in line with market requirements,” he added. “The overall market presence will also be more felt with an additional 65 outlets that will allow us to be closer to our customers and better serve them.”