Paramount hunting property to consolidate operations, entering retail market

Manufacturing and distribution company Paramount Trading Jamaica is hunting for a single-campus home to consolidate three operating units.

This, as it prepares itself for taking on the domestic retail market with products that before now were only available to large clients or made to satisfy co-manufacturing contracts.

Paramount CEO Hugh Graham says he has made headway regarding acquisition of a property for the consolidation but that the deal was not yet at the stage where there can be an announcement.

The company needs about five to 10 acres to bring three business lines spanning five premises in Kingston under one roof, having described the current set-up as tolerable but a significant drag on the company’s budget.

Paramount presently operates at 39 and 391/4 Waltham Park Road, housing its lubes and food-grade chemicals plants; 44 Waltham Park Road, used for warehousing; and 6 and 8 East Bell Road for production of household, industrial and construction chemicals. Graham says he’s ready to make the move since the five premises are bursting at the seams.

“It depends on what we get, if it’s 10 (acres) then we consolidate everything but if it’s five then we may have to just consolidate a part of it. The fact is that we’re out of space at every location,” Graham said at the company’s annual general meeting.

The plans for consolidation represent a major plank of the company’s expansion programme, called ‘Eight in Four’, according to Graham. Paramount’s stated goal is to achieve a revenue target of $8 billion and profits of $800 million in four years, by May 2027.

It would require the near tripling of revenues that performed at $2.46 billion at year ending May 2023. And similarly for net profit which amounted to $245 million.

One path to do ‘Eight-in-Four’ is diversification of revenue streams. And that has led the company to enter the retail market for the first time in its history.

“There are two ways to do that. We can do packaging retail for clients, that is to say, big movers like a PriceSmart or a MegaMart; and we can use the Klean Klean brand which we own, having acquired it from Lascelles,” Graham said as he ran down the list.

“Generally, we’re talking cleaning and sanitising products like laundry detergent, dish washing liquid, all-purpose cleaner, hard surface cleaners, bleach and bathroom cleaners,” Graham added.

Samples of the retail products were given to shareholders at the annual general meeting on Saturday. Graham plans to roll out the product on consumer shelves by May 2024. In the meantime, the company will continue executing large contracts.

“We’re adding, not subtracting,” he said.

The diversification into retail, he added, has given the company even more impetus to wrap up the search for a headquarters. Paramount is looking for space anywhere between the industrial belt in Kingston and neighbouring St Catherine.

“This retail initiative is exactly why we have to even consider renting additional space. Even if we get the five or 10 acres now, it’s another two to three years between planning, approvals and construction. The search is on,” Graham said.

As for the properties to be vacated, Graham was confident that there would be ready takers. The plan is to sell them all as Paramount is not interested in becoming a landlord, he said.

business@gleanerjm.com