The two companies are targeting the high-end property market notably shopping malls, homes and office blocks and the deal is expected to lead to the manufacture of the flooring materials in Kenya.
The partnership will give the UK firm a piece of the Kenyan market while diversifying Crown Berger’s product offering that has largely remained in the competitive homes paints market that has not profited fully from the current real estate boom.
“The products will give us a competitive edge with clients whose products need strict health and safety precautions like hospitals, airlines, food and drinks manufacturers such as brewers,” said Ian Harrison, Flowcrete managing director for Africa.
Rakesh Rao, the managing director of Crown Berger, said the deal will minimize the risk of relying on a single product line—paints.
“Crown Berger is expected to start manufacturing the products locally if sales of the Flowcrete products grow above Sh80 million annually,” said Mr Rao.
The NSE listed company is betting on Kenya’s booming property market to grow sales and cushion its earnings from the competitive paints market that is faced with rising production costs.
The Flowcrete’s flooring products will cost at least Sh3,000 per square meter.