Saudi Review

Focus on growth

Sigma ... textured paints and new tamperproof packaging

Exploring new markets, introduction of new products, training of applicators and increasing consumer awareness are the focus of Sigma Paints Saudi Arabia's growth strategy.

Sigma Paints is a leading company in the development, production and marketing of decorative paints and protective and marine coatings in the Middle East with an annual production capacity of 60,000 tonnes.

In the Kingdom, Sigma Paints claims to be the largest in its field. Established in 1980, with its own production, storage, research and development facilities in Dammam, the company offers Middle East customers high quality systems with paint and application solutions.

Sigma Paints operates two plants, one in Dammam's First Industrial Estate (13,000 sq m) and the other in Dammam's Second Industrial Estate (15,000 sq m).

Sigma realised a turnover growth in 1999 of approximately 10 per cent as a result of the launch of new products and a more aggressive sales and marketing programme, says Fred Aalbers, marketing manager.

Approximately 70-75 per cent of the production is sold to the local market and the rest is exported to other GCC states and countries in the Middle East.

Sigma has supplied to several prestigious projects in the Kingdom. A selection of recently completed projects include:

  • King Abdulaziz Historical Centre (value of contract - SR800,000);

  • Saudi American Bank Regional Office Building (SR750,000);

  • Gasco headquarters (SR500,000);

  • Gosi housing project - 160 villas in Yanbu;

  • Zakary apartment project - 144 apartments in Yanbu;

  • Hilton Hotel complex in Jeddah and Madinah;

  • Al Saad Hospital, Al Khobar (approximately 100,000 sq m); and

  • Contract for 37 schools throughout the Kingdom.

    Sigma Paints exports to all GCC countries as well as to Syria, Yemen and Lebanon.

    Sigma has a threefold focus in its future plans, says Aalbers.

    "First of all, we want to penetrate new export markets. This will allow us to strengthen the presence of Sigma Paints in the Middle East industry."

    The company has set an export sales target of 35 per cent of the total turnover within the coming two years.

    "We intend to increase the export sales not only within, but also outside the GCC. In fact, we have recently entered the Syrian paints market. This market shows good potential for growth, especially with the need for heavy infrastructure development. Our recent seminars in Syria were packed, as we took a major step to introduce a fresh concept in the paint industry for specifiers and contractors.

    "Secondly, we are implementing plans to increase consumer-awareness for quality paints and colour. If you look around in most cities of the GCC, a large majority of buildings and homes are painted white or in shades of white. There is an enormous potential for people to introduce colour to their homes, especially when you realise that the colour of your surroundings can play a very important part in the overall atmosphere of the place. This is again, where our retail marketing systems, our service and advice centres and our sophisticated IT systems, will play a crucial part in helping people understand these elements.

    "Finally, we want to be a true market leader in terms of actions, innovations and service to the market. This aspect runs all through, from the design of our range, all the way through to the end sales and after-sales service.

    "We were the first ones in the market to introduce re-sealable plastic drums, instead of the metal ones. We were among the first to introduce environmentally-friendly coatings and paints. And we are clearly the first to launch the Approved Applicator programmes and retail programmes so that end-consumers are aware that they have an important role to play in the selection of the paints," says Aalbers.

    In terms of IT, Sigma has invested significant resources into the development of technology specifically for the paint industry. SigmaStar, its sophisticated software, offers advice on paint-related issues.

    "We also introduced the Sigma Colour Wizard more than a year back, a computerised system that creates colour scheme simulations for any type of villa, building or construction project. And almost five years ago, we introduced the automated colour dispenser, to allow for even small quantities of paint to be made, in almost any colour and shade under the sun," says Aalbers.

    Sigma's R&D activities focus on human and environmentally-friendly products.

    "New products are to be expected in the sub-segment of multi-colour decorative paints, which require a higher level of application skills," Aalbers says.

    The company has begun launching new paint products designed to highlight the decorative potential of paints and how they could be used for different aspects. 1999 saw the launch of the Sigmulto Expression range, designed for use in decorative techniques. With a longer drying time of two hours, the paint gives applicators sufficient time to create special effects with paints. Examples could be ragging, sponging and combing, says Aalbers.

    There is also focus on the training aspect for applicators. "It would have been difficult for consumers here to understand quality paint applications and decorative techniques if we had not begun training schemes early on. After all, this is not a huge DIY (do-it-yourself) market and people prefer to outsource their application. As a result, Sigma launched a comprehensive training system for applicators, beginning with its largest territory of Saudi Arabia. Today that scheme is being made more comprehensive, so that we can work with the painting contractors to pass on our technical expertise down the line," he says.

    Sigma's support of industry conferences, such as the Architectural Congress held in Dubai last year, is part of its programme of raising awareness and playing a positive force in the development of the industry for the good of everyone, he says.

    Commenting on the market trends, he says: "The market for painting materials will remain very competitive, but there will be a concentration of suppliers because there is too much capacity in the market place. If the oil price remains at a level of $20-$25, the market outlook is positive."

    The majority of raw materials used by Sigma come from local suppliers, such as Saudi Basic Industries Corporation (Sabic).

    Sigma Paints was the first paint manufacturer in Saudi Arabia to obtain the ISO 9002 quality standard. Several of its products meet the Saudi Arabian Standards Organisation (Saso) standards, says Aalbers.

    Sigma's expertise is inherited from its association with Sigma Coatings Holland that was founded in 1722.

    Sigma Coatings is part SigmaKalon, the result of a merger in 1999 between Sigma Coatings and Kalon. The new entity is ranked as the fifth largest paints and coatings manufacturer worldwide. It has a sales turnover of $2 billion and employs 10,000 people in 40 countries across the world, says Aalbers.