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Market Engineering Research

South African Industrial Paint and Coatings Market

Chemicals, Materials and Food (CMF)

Research Service Code: M383 - 39

Completion date: 20-December 2008

Content

� Background to Study Slide 03

� Research Aims and Objectives Slide 04

� Scope of Research Slide 06

� Methodology followed Slide 09

� Respondent Scope Slide 08

� Research Deliverables Slide 10

� Benefits of Research Slide 14

� Frost & Sullivan Company Information and Contacts Slide 15

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Background to Study

This research service examines the South African industrial paint and coatings market over the observed

period, 2004 to 2014. This market is a highly fragmented market with local manufacturers and MNC’s

operating in all the product segments. Paint manufacturers and suppliers will immensely benefit from this

service as it presents the current market structure at individual product level.

In certain product segments companies are in direct competition with one another in the same end user

industries they are operating. The South African industrial paint and coatings market is growing at a normal

pace, although the construction industry is experiencing robust growth. Approximately five companies

controlled eighty percent of the market share.

Due to the current economic crisis globally automotive manufacturers have reduced the production output

considerably. But the automotive refinish market is picking up momentum and paint suppliers have

opportunities for supplying their products into this market. Suppliers who are able to forge strategic

partnerships / alliances with automotive manufacturers would be well positioned as a market leader

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To identify, analyse and discuss key growth

opportunities within this market. Further, company Best

Practices will be discussed.

To provide a comprehensive analysis of the South

African industrial paint and coatings market

1

To analyse and provide market trends for industrial paint

and coating prodcuts, market dynamics, challenges

faced by suppliers and the supply chain structure2

To analyse and provide revenue forecasts for the

product segments of industrial and exterior paints,

protective industrial coating, automotive OEM and

refinish and other industrial paint and determine the

competitive structure3

4

To identify opportunities that exist across product

segments in South Africa

To provide strategic recommendations and conclusions for

manufacturers to evaluate specific opportunities

5

6

Project Aim:

The aim of this research service is to analyse the South African industrial paint and coatings market, determine the market trends of the products in various end-user markets, market structure, evaluate opportunities for paint manufacturers and provide strategic recommendations and conclusions

Research Aims and Objectives

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Scope of Research

GEOGRAPHIC SCOPE

The South African Industrial paint and coatings

industry is growing at a normal pace, although

the infrastructure and construction industries are

experiencing robust growth. The South African

industrial paints and coatings sector is primarily

dominated by multi-nationals.

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Frost & Sullivan conducted in-depth interviews with industrial paint suppliers and end users across South

Africa using a structured questionnaire. This questionnaire contained both opened ended and ranking scale

questions aimed at gaining enough information to meet the said aims and objectives. The respondents

included end-user at different level so as to gain a holistic view of the end-users.

Organisation Type Target Designations Type of Information

Multinational and Local

manufacturersNational sales and marketing managers, Sales Directors & Managers, Business Development Managers, Product Managers

Market Demand Volumes, Supply chain strategies, Key Competitive Issues, Revenues, challenges, drivers & restraints, Products, Etc.

End-usersEngineering managers, Procurement managers, Technical managers

End user insights into industrial paint purchases, pricing trends and overall demand dynamics

Industry Associations Association President and members Industry Data, Supplier Information and forecasted volumes of various product lines

Research and Respondent Scope

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Methodology Followed

This Research Service provides a strategic overview of the South African market for industrial paint and coating suppliers and follows the principle of Frost & Sullivan's Market Engineering research methodology. This measurement-based methodology focuses on market measurement, analysis, forecasting, strategy development and monitoring.

Data retrieved from the secondary and primary research regarding the industrial paint market was compiled, tested and engineered to provide a market structure and market forecasts

This Research Service provides a strategic overview of the South African market for industrial paint and coating suppliers and follows the principle of Frost & Sullivan's Market Engineering research methodology. This measurement-based methodology focuses on market measurement, analysis, forecasting, strategy development and monitoring.

Data retrieved from the secondary and primary research regarding the industrial paint market was compiled, tested and engineered to provide a market structure and market forecasts

This study is based on thorough secondary and primary research principles. Extensive interviews were conducted with key stakeholders. Industry associations also provided key market information allowing for a thorough, top-down analysis of the industrial paint and coating market in South Africa.

This study is based on thorough secondary and primary research principles. Extensive interviews were conducted with key stakeholders. Industry associations also provided key market information allowing for a thorough, top-down analysis of the industrial paint and coating market in South Africa.

Frost & Sullivan’s

Market Engineering Research Methodology

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Research Deliverables 1/3

Competitive and Market Share Analysis

� Analysis of key competitive factors

� Detailed Market Share Analysis per Product

Segment

� Product trend Analysis

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• Total Industrial Paint and Coatings

Market

� Introduction

� Market Engineering Measurements

� Total Revenue Forecasts

� Revenue Trends by Product Type

� Revenue Trends by End User Type

� Competitive Analysis

Research Deliverables 2/3

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• Product Segment Analysis

� Introduction

� Revenue Forecasts

� Revenue Trends by Product Segment

� Revenue Trends by Product Type

� Competitive Analysis

Research Deliverables 3/3

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Research Deliverables (Cont’d…)

Key Industry Challenges:

�Increasing raw material prices

�Current economic situation

�Raw material imports

Key Market Drivers:

�2010 FIFA World cup deadline

�Demand for white goods to increase

�Oil and gas sector expected to drive demand

Key Market Restraints:

�High price sensitive customers

�Less demand in automotive sector

�Low brand awareness

Introduction Growth Saturation Decline

Industrial Paint and Coatings Market: Market

Life Cycle Analysis (South Africa), 2007

Source: Frost & Sullivan

DRIVING FACTORS

• The following were identified as being key to

effective market development:

� Booming construction industry is fuelling demand for industrial paints

� Increasing demand for industrial paint in

infrastructure and related projects

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Provides a detailed competitive analysis & strategic recommendations

Provides insights into the industry layout

Research Benefits

Provides South African specific analysis

Key market drivers, restraints and challenges

for industrial paint and

coating market

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3

4

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8

1

Benefits of Research

Comprehensive revenue forecasts by product

segment and product

type

Analysis of the industrial paint and coating market

structure in South Africa

Analysis of the key market players within

each product segment

Identifies growth opportunities

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Frost & Sullivan Contacts

Phil Howarth

Operations Director

Frost & Sullivan Africa

+27 21 680 3269

phil.howarth@frost.com

Guillaume de Bassompierre

Account Manager

Frost & Sullivan

+27 21 680 3286

+27 71 684 0011

guillaume.bassompierre@frost.com

Kate Howarth

Sales Manager

Frost & Sullivan Africa

+27 21 680 3261

kate.howarth@frost.com

Mani James

Programme Manager

Chemicals, Materials and Food

+27 21 680 3208

mani.james@frost.com