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Empils to Become Major Player in Ukrainian Paint Market by 2008

Published on 2004-05-13. Author : SpecialChem

The leading Russian paint manufacturer Empils, based in Rostov-on- Don, is planning to increase its sales volume in the Ukraine up to 30,000 tons annually within the next five years. It was announced at the conference for the distributors that took place at the President Hotel in Kiev. The officials said they would obtain at least 10% share of the national market by 2008. The plans for the current year are to achieve the sales volume of 5.5 thousand tons in the Ukraine and to own approximately 3% of the country market.

According to the statement of Vyacheslav Beloborodov, Empils' CEO, "the company has all the manufacturing, marketing and financial resources to start trade expansion into the Ukraine". By the present moment Empils has already enlarged production volumes (70 500 tons in 2003). These figures are more than twice as much as those of Dnepropetrovsk Coatings plant (DC), the largest Ukrainian manufacturer. Besides, the production growth (24% in 2003 and 41% in the 1st quarter of 2004) exceeds the capacity growth of both the Ukrainian and Russian paints and coatings markets. As V. Beloborodov emphasized, Empils is ready to transfer its successful technologies of working with distributors and product promotion to retail outlets in the Ukrainian paint market.

The establishing of company's affiliate Empils-Ukraine in Dnepropetrovsk this April has become one of the most important events. Ilea Radchenko, who has been in charge of the Internal Quality Control and Standardization Department of JSC Empils in Rostov-on-Don office, was appointed the head of Empils-Ukraine. At the Ukrainian subsidiary basis was already built the warehouse complex containing the full range of products manufactured by Empils. The company produces alkyd enamels paints, water-based paints and auxiliary materials. Each of company brands Oreol™, Empils™, and Rastzvet™, are developed for a certain consumer segment.

The opening of Empils-Ukraine office will let the Ukrainian distributors get full access to the plant's assortment and will also shorten the time of delivery to two days. Empils provides the sellers with advanced technologies of creating distributor chains and promotion of products to store shelves. Regional managers and trade representatives will help local distributors to develop activity in the Ukrainian paint market. Moreover, Empils is guaranteeing free delivery, which, in company's opinion, will prove to be a significant economic mean to avoid uncontrolled trade of products between regions and prevent local distributors competing.

During the conference was also presented the new advertising campaign that would start in the Ukraine in 2004. But unlike Russia where Oreol™, - brand belonging to de luxe group, is mainly being advertised, in the Ukraine Empils will promote Rastsvet™, specially designed for middle-income customers. New advertising campaign includes advertisements on Ukrainian radio, billboards, advertising in public transport, and promotional events at sales outlets.

Empils' officials believe that the situation in the Ukrainian paint market is rather optimistic. The growth opportunities here are more promising than in Russia. According to specialists' forecasts for 2004, average consumption of paints and coatings in the Ukraine (6.1 kg per capita) will be higher than in Russia (5.5 kg per capita).

Source: JSC Empils


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