War erupts in paint companies

All is not well at Regal Paints Uganda as most workers have quit following the uncertainty surrounding the Sadolin-Regal Paints merger that was announced recently.

Sources close to the management have informed us that ever since word started going around that Sadolin was re-entering the market and using Regal Paints as a temporary partner while they set up here, the Sales staff have been uncomfortable with the arrangement and have been interviewing for jobs at the competitor paint companies including Plascon, Peacock and Dura Coat.

“The issue is that management is asking their sales and field staff to sell both Regal Paints and Sadolin Paints, which the sales people are finding hard. Many Distributors are unsure of the quality of the new Sadolin Paint Vs the old one now known as Plascon and they have been unwilling to stock it like before.” said our source who preferred anonymity.

In early August, Plascon bought out the Sadolin operations in Uganda, which means they maintained the quality paint that Ugandans were used to, took over their Namanve manufacturing plant and also maintained the staff and distribution networks still giving them a 60% market share of the paint market.

Beyond the sales men, Regal Paints which is in a marriage of convenience with the new Sadolin, is worried that the same issues that forced the former Sadolin paints here to shop around for a new partner Plascon might seep into their marital bed as well.

It emerged that Arkzo Nobel was threatening Sadolin to increase license fee from 5% to 10%, forcing the former to separate from the alliance and sign a deal with Kansai Plascon.

With sales men now scared to touch and sell Sadolin and Regal Paints, the Paint wars might have just come to an end even before they started.

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