Cuma, Mart 29, 2024

Paint Industry Assessment

Paint Industry Assessment

The beginning of the restrictions in social life in the first half of 2020 negatively affected the economy, and some industrial companies stopped production. As DYO, we accelerated the works we always do, and our first goal was making safe production and creating safe working conditions. As a result of our exercises, we have ensured the continuity of production and employment during the pandemic period and closed 2020 with an annual
growth of 30.5% in turnover. In 2021, we learned to live with the pandemic. 2021 was spent struggling with increases in all raw material and transportation costs on the basis of origin. By effectively carrying out the R&D, purchasing, sales, logistics and planning processes, we have not left any of our customers without a product.

This period, like every crisis environment, taught us a lot. By adding our new experiences to our existing ones, we will successfully pass over another turn in carrying our company to the future. As DYO, we base our planning for the coming years on providing effective, fast, efficient and on-site services. We continue to strengthen in the global arena. We continue to invest in R&D. With our belief in innovation, we produce different product groups and bring them together with our customers. We certainly do not intend to suspend investments. Developing products for health and hygiene areas, Zero Waste and Safe Production for the environment are among our priority issues.

We export to more than 50 countries with the products we offer to Asian, European and African markets with our business partners abroad. At the same time, we continue
to maintain our effectiveness in the Russian and Eastern European markets with the products we produce in our factory in Krasnodar, Russia. The pandemic has taught
us to stay at home and produce. While the demand for do-it-yourself products increased during the closure periods, the demand for paint exceeded expectations. We have produced a paint under the name of Hobilux that can be used on surfaces such as ceramics, metal, wood, plastic, marble, glass, furniture and stone in almost every space, from kitchens to bathrooms, from bedrooms to living rooms. Hobilux, which can be used to renew old surfaces and items that can be easily renewed or to change their colors, adds innovation and vitality to the surfaces on which it is applied. We continue to offer solutions to
the market by shaping our plans according to the trends of the day and the supply of consumers.

Mehmet Mutlu Uysal

Mehmet Mutlu Uysal
General Manager
DYO

 


 

While the paint consumption on the decoration segment in Turkey was 408 thousand tons in 2019, this figure raised to 517 thousand in 2020 despite the pandemic conditions. In 2021, this activity continued to increase. Turkish paint market; as of the first nine months of 2021, has grown by 24% compared to the first nine months ofthe previous year. As Polisan Kansai Boya, our revenues increased by 48.7% in the first nine months of 2021and
we concluded the year in line with our targets.

While the disruption in the global supply chain and logistics problems and increasing raw material costs suppressed operational profitability in the entire paint industry, we reduced our costs with Kaizen Technique; and from production to logistics, from planning to stock management we made continuous improvements with the principle of operational excellence. Compared to our peers operating in the sector, we have successfully managed the pressure on our profitability. With our production that respects the environment and focuses on meeting consumer expectations; we continued to bring our innovative, creative and high-performance products to consumers.

The demand for water-based and antibacterial paints is increasing on a global basis. Thanks to their antibacterial and anti-fungal properties, products that provide extra hygiene by preventing the formation of bacteria and fungi stand out. In addition to meeting this expectation of consumers with the products in our product range, we added our artistic hobby paints to our product range in 2021, and these paints attracted great interest from consumers who want to easily renew the objects and furniture in their homes.

In addition, by carrying out our R&D studies, we developed the ‘PROFessional Solutions’ series and Turkey’s pioneering interior paint effective against viruses and bacteria. 2021
was a year in which we achieved new successes with our sustainability efforts. Polisan Holding and Polisan Kansai Boya have been involved in the Carbon Disclosure Project
(CDP) for nine years. We raised our CDP grade to “B” at the global level, due to our efforts to support sustainable development in the Climate Change Program and Water Security Program of the Carbon Disclosure Project (CDP). In the fight against climate change, we reduced the Scope I-II emission intensity by 49 percent in 9 years. In 2022, we will continue to increase our product and service diversity, take place in new markets, and add new products to our high value-added product range. Our five-year plan is in place and our goal is to continue profitable revenue growth.

A. Cemal Drahor

A. Cemal Drahor
Managing Director & Board Member
Polisan Kansai Boya

 


 

From the previous year, we were able to predict that 2021 would not be an easy year. The continuation of the pandemic conditions, the ongoing worldwide problems in raw materials supply, the uncertainties in the Turkish economy and the increasing exchange rates
were quite challenging for all of us. We think that, we managed to overcome these fluctuations with our experience from the past, our strong strategy and our ability
to quickly adapt to the conditions of the day. Thanks to the measures we have taken since the beginning of the pandemic, our production has never stopped.

Thanks to the precautions we have taken, we have not had any serious cases so far.
There was no decrease in our company’s efficiency, and we concluded the year with results above the growth rate in the paint market. We are glad to achieve such results during the crisis and I am proud of my colleagues. At Jotun, we continued to use the advantage that is allowed by always operating in 4 segments as Decorative Paints, Performance Coatings, Powder Coatings, Marine Coatings. Thus, we had the opportunity to analyze the paint market from a broader perspective and eliminate the risks that may arise in any segment.

We concluded the year 2021 with growth, with our dealer network that is getting stronger and growing day by day, our retail quality, the superior service we offer to our customers
and our new products that bring us growth through differentiation. By empowering each other with our dealers and customers, which we define as our extended family, we grew profitably this year, and we will continue to grow. We know that 2022 will present us with similar challenges. However, whatever the circumstances would be, I am confident that we will close this year with growth, by joining hands with our large Jotun family of employees, dealers and business partners.

şükrü ergün

Şükrü Ergün
Vice President / Eastern Europe and Central Asia Region
Jotun

 

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