Muddy processes on the market paints and varnishes

For seven months of this year, the official output of paint products in Azerbaijan amounted to 2,254 tons, which is 8.8% less than in the comparable period of 2013. Analysis of the market, where predominant is local produce, shows that local manufacturers of paints and varnishes hide from tax not less than 90% of the sales of goods.

Unlike many other areas of industry, in the production of paints and varnishes felt the presence of a certain competition. In Azerbaijan, there is, at least 30 companies whose main activity is the production of paints and varnishes. They employ about 1,000 people. Over the past 5 years, local producers out of the market actually hesitating imported products. According to some estimates, the entire share of imports does not exceed 20% of consumption.

State Statistics Committee on the results of 2013 reported on the production of the country's 4,172.7 tons of paints and varnishes. Recently, in a report on the activities of industrial enterprises in 2013, this information was slightly adjusted and the volume of production was announced in total 5200 tons. This is 48.5% more than in the previous year.

The State Customs Committee recorded in the first half of this year, exports about 720 tons of varnish, paint and emulsion. This is one third of production. The volume of imports is more than 2 000 tons.

The main players in the market are FAB Boya ve Kimya Senaye, Ankala, Al-Bil, YURD-F, NB, Euro-Inshaat, Caspi Marine Technologies, Karvan-L et al. Neither of these companies provides information on the volume of production and sales.

Given the volume of construction works annual consumption of paints and varnishes in Azerbaijan is estimated at 50,000 tons. Thus, the unaccounted turnover of this segment is approximately $ 70-100 million annually. --08B--