Asian Paints (Middle East), which recently entered the competitive regional market from its Muscat base, is optimistic of performing creditably on the export front in 2002 after a couple of years of struggle to find its feet.

"Year 2002 promises to be bright for exports for our company as the products being exported have got established in the market and have started creating a pull of their own," said CEO Jaideep Nandi. "Coupled with extremely aggressive and supportive business partners in the export markets, the company has high expectations from exports this year."

Asian Paints (Middle East) is a joint venture between Asian Paints (India) Limited, a $320 million paint multinational from India with operations in more than 10 countries, and the Al Hassan Group of Companies of Oman.

The company has elaborate quality control systems at its factory in the Ghala Industrial Area in Muscat to ensure consistency in product quality and receives technology support from Asian Paints (India) Limited, which boasts of the largest R&D facility in Asia outside Japan.

Raw materials are procured from around the world, but a substantial amount is sourced in Dubai, the regional trading hub. But for raw material procured from the rest of the world, supply is definitely an area of concern, as it is both erratic and occasionally unreliable, commented Nandi.

In Oman, the company is an approved supplier at most ministries, municipalities and the Diwan of the Royal Court. Its products are also being regularly patronised by leading architects, consultants and contracting firms in Oman and the other GCC countries.

In overseas markets, Asian Paints (ME) supplies two categories of paints. In the decorative range of finishes, the main products marketed are Apcolite Emulsion, the first quality emulsion paints for walls (both exterior and interior); Decora Emulsion, the economy emulsion; Apcolite Textured range of wall finishes, Decora Enamel and a host of undercoat finishes such as putty and primer.

In the wood finishes segment, the main products going abroad are the nitro cellulose (NC) range of finishes, the acid curing range of finishes and the polyurethane (PU) range and their accessories.

"We mainly export to the other GCC countries. They prefer our products as they meet market demands for both quality and price," said Nandi.

"Since we started commercial production in 2000, we have been continuously introducing new products to stay competitive and to provide a complete range of products to the customer. Our endeavour in this area is expected to continue in 2002," said Nandi.

"Our first exports started in the year 2000, but for all practical purposes 2001 was our real significant beginning of exports.

"Given our experience in the existing markets, we are confident of carving out niches for ourselves and are looking actively at newer markets for penetration.

"Being a relatively new company, the market is full of opportunity and even though the market is not growing at a blistering pace, we are able to create one for our products."

The company prefers to deal directly with retailers in the home market, while in exports it operates through distributors. This practice is uniform across all overseas markets.

The company is also supported by its marketing team from Asian Paints (India) which makes frequent visits to the export markets and gives the Oman staff valuable inputs for market expansion.

Discussing its marketing philosophy, Nandi observed, "We follow a simple principle in our company: Do things right the first time. While servicing and satisfying the customer is obviously of paramount importance, we, at Asian Paints, firmly believe that only by ensuring continuous improvement in technology and internal efficiencies can we stay ahead in this competitive world."

Amongst some of the important jobs executed by the company are several projects with the ministries of Education, Environment and Regional Municipality, and Electricity and Water. The company is recognised by internationally renowned consultants and contractors and has supplied paints for the Sharqiya Power Transmission Tower project under the aegis of the Ministry of Electricity and Water in Oman.

Nandi had a word about competition and the returns in the region: "The net realisation in the Gulf is lower for a similar set of product profile compared to many markets across the world. In spite of such fierce competition, all major companies seem to survive the onslaught and look forward to a further reduction in prices to grab a larger share of the market.

"But since all companies play the same game under the same rules, one would tend to say that it is all fair and that the market will stabilise when only the long-term committed players remain, weeding out the weaker companies."