There are many paint manufacturers in South Africa. It was necessary to divide the sector into three but we found it impossible to separate companies on a Product basis as nearly all of them produce the full spectrum of products. We thus elected to divide into Large, Medium and Small players. Plascon s manufacturing activities cover the whole range of products in the sector and smaller players are trying to do the same which seems to be an inhibiting factor to profitability. Those companies which focus on a narrow range of products appear to be more successful.
Market shares supplied by the companies tend to reflect their share of a portion of the industry.
The following table illustrates estimated market share as percentages of the entire industry which we find to have an annual turnover in the region of R4bn.