Australian DuluxGroup seeks Asian growth opportunities
Australian paints, adhesives and garden care products firm DuluxGroup Ltd sees Asia as a key growth area for the company.
In an interview with ABC television, chief executive Patrick Houlihan said that while DuluxGroup will continue to grow the strong regional business in Australia, New Zealand and Papua New Guinea, it is also looking for opportunities in Asia.
The company is seeking new labels to take into the region and to expand its existing brands, as Dutch company AkzoNobel owns the Dulux brand in Europe, North America, Latin America and Asia.
"It's down to what is your strategy for international expansion, and ours is not to be a mainstream player but to establish strong, sustainable niche positions in premium segments," Mr Houlihan said.
DuluxGroup took over a leading Shanghai woodcare business in 2008 and is using that base to build positions for Selleys, woodcare, and niche premium paint products.
Mr Houlihan is hoping to expand the company's regional market share as well, despite its already large stake of 40 per cent, which Mr Houlihan says is not considered "terminal".
"We've had some fantastic growth in what is a relatively mature market, and we believe we've got the right fundamentals to continue strategically pushing on in that regard."
Orica Ltd, one of the world's largest explosives and chemicals supplier, received approval from the Supreme Court of Victoria to demerge DuluxGroup on Friday.
DuluxGroup is expected to start trading on the Australian Securities Exchange (ASX) at 1100 AEST today under the ASX code DLX.