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In Pakistan, Looking Out for No. 1

Friday, June 6, 2014

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Jotun Pakistan has been ordered to stop calling itself the “No. 1 paint in Pakistan” after complaints by competitors bearing superlatives of their own.

The order, announced May 23 by the Competition Commission of Pakistan, follows a hearing triggered by objections from Diamond Paints Industries (Pvt) Ltd. and AkzoNobel Pakistan Ltd.

Jotun Pakistan

Jotun Pakistan is part of the world's ninth-largest coatings company. However, it may not call itself No. 1 in the country.

A three-member commission panel ordered the world's ninth-largest paint and coatings maker to withdraw all marketing materials bearing the claim, including print advertisements and billboards, from the public domain within two weeks.

Jotun, based in Sandefjord, Norway, must also "issue directions to all of its retailers, vendors, distributors and dealers not to use the aforesaid claim in any marketing or promotional material," the panel said.

Jotun Pakistan
Jotun Pakistan

About two-thirds of Jotun Pakistan's business is in marine, protective and powder coatings.

The privately owned coatings manufacturer was also told to file an undertaking/comprehensive compliance report within two weeks.

Jotun Pakistan’s CEO Per Arne Langnes "has assured the CCP to issue the report within the stipulated time," the commission said.

About 55 percent of Jotun Pakistan's business is in protective and marine coatings. An additional 10 percent is powder coatings; the rest is decorative paints.

Competitors' Complaint

The case was prompted by complaints filed by Diamond Paints Industries (Pvt) Ltd and AkzoNobel Pakistan Ltd. under Section 10 of the Competition Act, 2010. The goal of the act is to "enhance economic efficiency and to protect consumers from anti-competitive behavior," according to the commission.

Diamond Paint Industries
Diamond Paint Industries

Diamond Paint Industries, which complained about Jotun's "No. 1" claim, bills itself as Pakistan's "Largest Selling National Brand."

Diamond Paints and AkzoNobel alleged that the Jotun was "disseminating misleading and false information to the consumers that Jotun Paints are No. 1 paint in Pakistan, which lacked reasonable basis and is capable of harming the business interest of the complainants," the commission said.

Who's No. 1?

Meanwhile, Jotun's Pakistani competitors are making similar-sounding claims of their own.

AkzoNobel Pakistan says on its website that its industrial coatings "are the number one choice for industrial customers in Pakistan."

Meanwhile, Diamond Paint Industries (formerly known as Millat Industries) says that it "has come a long way to enjoying the privilege of being Pakistan's 'Largest Selling National Brand.'" The company sells a wide variety of industrial finishes and powder coatings, as well as decorative paints.

AkzoNobel Pakistan AkzoNobel Pakistan
AkzoNobel Pakistan

AkzoNobel Pakistan, recently named the global coatings maker's "Most Colorful Workspace" (left), boasts on its website that its industrial coatings "are the number one choice for industrial customers in Pakistan."

Jotun Pakistan did not respond to a request for comment. The day after the order, the company billed itself on its site as "a leading supplier of paints and powder coatings."

   

Tagged categories: AkzoNobel; Coatings manufacturers; Industrial powder coating; Jotun; Marine Coatings; Market share; Marketing

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