Yogender Singh India, Asia-Pacific Correspondent09.06.22
With a population of more than 5 million, Oman is the third largest country in the GCC region on the basis of population. The country has emerged as a key growth market for domestic and multinational paint and coating producers for decorative, marine and protective coatings. Coatings World presents an overview of Oman’s paint and coating market and major producers in the country in this feature.
In 2021, the industry registered growth of 5.9%. In the current year, the industry is expected to register growth of about 4.8%. The government’s programs to promote the development of affordable housing and other physical infrastructure are expected to continue to support the expansion of the industry in the coming years.
The demand will be further supported by growing population and evolving consumer preferences among the locals and expatriates alike. During the past two decades, Oman has experienced the most rapid urban growth in the Middle East region. Urbanization and modernization have dramatically changed the urban landscape in Oman, presenting a huge opportunity for paint and coating producers in the Sultanate.
The decorative market comprises 85% of the paint market in Oman. The other 15% is accounted for by the industrial sub-segment.
Steady population growth and high urbanization (in 2020, 86.28% of the total population of Oman was living in urban areas) are two of the most important factors behind the steady growth in the architectural segment.
In 2016, the company inaugurated its new, state-of-the-art factory in Rusayl Industrial Estate.
Built over an area of 60,000 square meters, the facility has a production capacity of 50 million liters of paints and coating products per year.
The new facility houses multiple departments such as production, warehouse and administrative offices, and has been constructed in compliance with the highest HSE standards and in accordance with Jotun’s environment-friendly policy “GreenSteps.”
Designed to emit less VOC emissions due to the reduced use of hazardous materials during construction, the facility has a low carbon footprint and contributes to greater energy savings.
Jotun has supplied its products to some of the leading buildings in the country such as Shangri-La Barr Al Jissah Resort and Spa, Grand Hyatt Muscat, Millennium Resort Mussanah, Salalah Rotana Resort, Sifawy Boutique Hotel at Jebel Sifah, Al Mouj, Oman Convention and Exhibition Centre, and Muscat Hills Golf and Country Club, among others.
Khimji Paints is a leading paint and coatings manufacturer in Oman, with a strong distribution network of more than 50 own and independent retailers. Khimji was one of the first companies to start its operations in the Rusayl industrial area in 1985 as a small unit with just nine people.
Over the years, the company has tripled its installed capacity from 2 million liters of paint per year to 6 million liters.
Commenting on the acquisition, Joe Devitt, executive vice president of Decorative at Hempel, said, “This transaction marks a significant milestone for Hempel in our global growth journey. We will now be better equipped to meet the needs of our customers with an extensive offering of products and services. 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. This gives Hempel a much bigger foothold in the Omani market.”
Hempel has been supplying premium-quality decorative, marine and protective coatings in Oman since 1988 through an agency agreement with Samco Trading and Contracting Company.
The company claims to have the fourth largest share in the domestic market. Asian Paints Berger, the subsidiary of Asia Paints, set up its first plant at Ghala in 2000 in a joint venture with Al Hassan Group of Oman.
The company started commercial production from its second manufacturing unit located in Sohar Industrial Estate in early 2016.
As part of the collaboration, Nippon Paint will work closely with Karwa Motors, which is a greenfield project for bus assembly and manufacturing, to address the growing demand in the GCC and wider Middle East region.
Sharad Malhotra, director, Nippon Paint Middle East, said on the occasion of inking the partnership, “Nippon Paint, with its expertise in the commercial vehicles business, is happy to associate with Karwa Motors and shall add value to the partnership through its innovative and best in class product and technical solutions. The Middle East has been a critical market for us and this collaboration augers well for our long-term plans in the region.”
in 2008.
Overview of Paint And Coating Industry in Oman
Oman’s paints and coating industry witnessed a slowdown during 2017-2020. The industry registered a CAGR of 2.6% during these years. The COVID-19 outbreak aggravated the weakness in the industry, as it contracted sharply in 2020. The industry struggled with the challenges that emerged due to the outbreak, including lockdowns, low oil prices, production cuts owing to OPEC guidelines and the impact of sovereign credit rating downgrades.In 2021, the industry registered growth of 5.9%. In the current year, the industry is expected to register growth of about 4.8%. The government’s programs to promote the development of affordable housing and other physical infrastructure are expected to continue to support the expansion of the industry in the coming years.
The demand will be further supported by growing population and evolving consumer preferences among the locals and expatriates alike. During the past two decades, Oman has experienced the most rapid urban growth in the Middle East region. Urbanization and modernization have dramatically changed the urban landscape in Oman, presenting a huge opportunity for paint and coating producers in the Sultanate.
The decorative market comprises 85% of the paint market in Oman. The other 15% is accounted for by the industrial sub-segment.
Steady population growth and high urbanization (in 2020, 86.28% of the total population of Oman was living in urban areas) are two of the most important factors behind the steady growth in the architectural segment.
Major Producers in Oman
Oman has emerged as a key battleground for regional and international paint and coating producers in recent years. A number of multinational paint and coating producers have entered into Omani’s market through acquisition or joint ventures.Jotun
Jotun was the first multinational paint company to set up a production facility in Oman when it commenced operations in the country with an installed capacity of 1 million liters of paint and coating products. Over the next 30 years, the company increased its production capacity to 25 million liters per annum.In 2016, the company inaugurated its new, state-of-the-art factory in Rusayl Industrial Estate.
Built over an area of 60,000 square meters, the facility has a production capacity of 50 million liters of paints and coating products per year.
The new facility houses multiple departments such as production, warehouse and administrative offices, and has been constructed in compliance with the highest HSE standards and in accordance with Jotun’s environment-friendly policy “GreenSteps.”
Designed to emit less VOC emissions due to the reduced use of hazardous materials during construction, the facility has a low carbon footprint and contributes to greater energy savings.
Jotun has supplied its products to some of the leading buildings in the country such as Shangri-La Barr Al Jissah Resort and Spa, Grand Hyatt Muscat, Millennium Resort Mussanah, Salalah Rotana Resort, Sifawy Boutique Hotel at Jebel Sifah, Al Mouj, Oman Convention and Exhibition Centre, and Muscat Hills Golf and Country Club, among others.
Hempel
Danish paint major Hempel has acquired the coatings division of the Omani company, Khimji Ramdas, to expand its Oman operations in February 2022. This is Hempel’s first acquisition in the decorative segment in the Middle East Asia.Khimji Paints is a leading paint and coatings manufacturer in Oman, with a strong distribution network of more than 50 own and independent retailers. Khimji was one of the first companies to start its operations in the Rusayl industrial area in 1985 as a small unit with just nine people.
Over the years, the company has tripled its installed capacity from 2 million liters of paint per year to 6 million liters.
Commenting on the acquisition, Joe Devitt, executive vice president of Decorative at Hempel, said, “This transaction marks a significant milestone for Hempel in our global growth journey. We will now be better equipped to meet the needs of our customers with an extensive offering of products and services. 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. This gives Hempel a much bigger foothold in the Omani market.”
Hempel has been supplying premium-quality decorative, marine and protective coatings in Oman since 1988 through an agency agreement with Samco Trading and Contracting Company.
AkzoNobel
AkzoNobel expanded its presence in the country after acquiring a 50% stake and management control of Sadolin Paints Oman SAOC in 2013. The company signed a joint venture agreement with Omar Zawawi Establishment LLC (promoter and shareholder of Sadolin Paints) which involves the manufacture and sale of decorative paints and performance coatings in the country.Asian Paints Berger
Asian Paints, India’s largest paints and coating producer, is among the leading producers of paints and coating products in Oman.The company claims to have the fourth largest share in the domestic market. Asian Paints Berger, the subsidiary of Asia Paints, set up its first plant at Ghala in 2000 in a joint venture with Al Hassan Group of Oman.
The company started commercial production from its second manufacturing unit located in Sohar Industrial Estate in early 2016.
Nippon Paints
Nippon Paint Middle East has partnered with Karwa Motors, a strategic investment initiative by Qatar and Oman for assembly and manufacturing of buses in the country.As part of the collaboration, Nippon Paint will work closely with Karwa Motors, which is a greenfield project for bus assembly and manufacturing, to address the growing demand in the GCC and wider Middle East region.
Sharad Malhotra, director, Nippon Paint Middle East, said on the occasion of inking the partnership, “Nippon Paint, with its expertise in the commercial vehicles business, is happy to associate with Karwa Motors and shall add value to the partnership through its innovative and best in class product and technical solutions. The Middle East has been a critical market for us and this collaboration augers well for our long-term plans in the region.”
National Paints Company
UAE-based National Paints Company is one of the key stakeholders in Oman’s paint and coating industry. Originally from Jordan, the company opened its production facility in the countryin 2008.