Duluxgroup (DLX)

Shares / Stock Code

DLX

Stock Exchange / Sharemarket

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Duluxgroup (DLX) is a manufacturer and marketer of premium branded products that enhance, protect and maintain the places and spaces in which people live and work. The company demerged from Orica in July 2010. DLX has developed a high quality portfolio of brands and is a market leader across many of its product lines. Dulux is the flagship paint brand, which sits at the premium end of the market.

DuluxGroup's origins can be traced back to 1918 when the original business was formed in Sydney. In 1997, ICI plc sold its shareholding in ICI Australia, which became Orica in 1998. In the same year, Orica established the Consumer Products Group, the forerunner to DuluxGroup. Key brands acquired since that time include Feast Watson, Intergain, Yates and Cabot's. The company was listed on Australian Stock Market on 12 July, 2010.

DLX is a leader in the coating, home maintenance and garden care markets. It has a valuable brand portfolio including Dulux, British Paints, Selleys and Hortico. Management is experienced and well regarded. Although the company operates in mature markets there is the potential for expansion of the hardware market following the entry of Woolworths into the sector.

Coatings products enjoy wide distribution through hardware chains such as Bunnings, Danks (Woolworths) and Mitre 10 and paint specialists. Home Improvement and Garden Care ranges are sold through hardware stores, nurseries, grocery retailers (Woolworths, Coles), discount department stores such as Big W and Kmart and directly to commercial customers. Major paint competitors include Wattyl (likely to soon be owned by Valspar of South Africa), Taubmans (owned by PPG International) and Nippon Paint.