dufa Deutek, held by American investment fund Advent international, saw a 20% increase in varnish and paint sales in the first five months of the year compared with the same time last year, in the wake of rapid growth in the constructions sector.
"The biggest sales were registered by water-soluble and decorative paint. The accelerated growth rate in the constructions sector, coupled with the population spending more money on decorating or renovating their homes led to a significant increase in the paint sales. We forecast the 20% growth rate seen in the first five months will continue throughout the entire year," said Adrian Ion, dufa Deutek's marketing manager.
The company estimates turnover worth around 36 million euros this year, up by around 20% on 2007.
According to dufa Deutek representatives, sales could be hurt this year by an increase in the cost of substances that paint is made from, with 90% potentially affected by the oil crisis. Sales could also be hurt by a potential real estate crisis.
The varnish and paint market is one of the most competitive in the constructions sector, due to the large number of local players and to the increasingly strong presence of international players, which have so far been involved exclusively in imports.
"According to our own estimates, the paint market amounted to around 200 million euros in 2007. For this year, we expect the market's growth rate to remain at around 12 - 15%. The accelerated growth rate of the constructions sector and the demand for homes will be major contributors to this growth," explains Ion.
dufa Deutek's brands include Super! Brand (varnish and paint for home decorating), Danke! (practical solutions for home renovating) and Deutek Profi/Oskar (a complete decorating system). The company has an annual budget of around three million euros to promote its brands, both through TV advertising, outdoor advertising, and in-store promotion.
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