Nippon Paint: From Singapore Slums to Asian Paint King!

From Slum to Empire: The Story of Wu Qingliang and Nippon Paint

This is the story of Wu Qingliang, a boy born in a Singapore slum who rose to become a billionaire, and Nippon Paint, a Japanese company with a military-industrial past. This is a tale of ambition, perseverance, and a half-century-long power struggle.

The Humble Beginnings of Nippon Paint

• Origin: In 1881, a Japanese painter named Mokichi Chōjūrō opened a small paint workshop in Osaka, Japan.

• Adapting to the Times: Chōjūrō recognized the shift from wood to steel in construction and industry. He focused on developing rust-resistant paints for factories, ships, and railways.

• Early Success: He initially targeted small contractors and gradually gained larger contracts with railway bureaus and arsenals, ultimately becoming a supplier for Japan's expanding infrastructure.

• Rebranding and Expansion: In 1911, Chōjūrō renamed the company Nippon Paint, signifying his ambition to become Japan's leading paint manufacturer.

• Colonial Expansion: As Japan's colonial ambitions grew, Nippon Paint followed, supplying paint for military and infrastructure projects in Taiwan, Korea, Manchuria, and Southeast Asia. Nippon Paint’s products were often used on military infrastructure.

Wu Qingliang's Rise from Poverty

• Early Life: Wu Qingliang was born in 1927 into a poor family of Chinese immigrants in Singapore. His father worked as a laborer at the port.

• Education and Interruption: Despite the family's financial struggles, Wu's parents sent him to a Chinese school. His education was interrupted by the outbreak of World War II and the Japanese occupation of Singapore.

• Early Ventures: After the war, Wu started a small soda factory, which failed. He then worked as a paint salesman, gaining experience in the industry.

• The "Stinky Paint" King: He started a side business recycling discarded paint from construction sites and surplus military supplies, earning him the nickname "Stinky Paint" King. This allowed him to start his first paint business.

• Pigeon Brand Paint: In 1949, he founded his own paint workshop, producing "Pigeon Brand" paint, which was adapted to Singapore's humid climate.

• Building a Reputation: He built his business through hard work, customer service, and adapting to the local market.

A Partnership is Born: Wu Qingliang and Nippon Paint

• Post-War Japan: After Japan's defeat in 1945, Nippon Paint faced a crisis as its military contracts disappeared. They began to explore overseas markets, particularly Southeast Asia.

• Southeast Asia Strategy: Nippon Paint sought a local partner in Southeast Asia who understood the market and had a sales network. They found that partner in Wu Qingliang.

• Joint Venture: In 1962, Nippon Paint and Wu Qingliang formed a joint venture called Nipsea Group. Nippon provided the brand, technology, and raw materials, while Wu managed operations.

• Local Control: From the start, Wu Qingliang maintained control over the joint venture by strategically placing his people in key positions. This also insured a better outcome for his company.

• Adapting to the Market: Wu further adapted Nippon Paint's products to better suit Southeast Asian climates and preferences. His business thrived by offering service and quality.

A Struggle for Control

• Expanding the Empire: Wu Qingliang expanded the Nippon Paint business throughout Southeast Asia, using the Singapore model as a template.

• Japanese Frustration: Nippon Paint headquarters realized that they had lost control of their Southeast Asian operations, despite the financial success.

• First Attempt to Reclaim Control: In 2006, Nippon Paint's parent company attempted to bring Wu's Asian businesses under its full control.

• Countermove: Wu Qingliang's son, Wu Xueren, countered by increasing the family's stake in Nippon Paint's parent company.

• Compromise: By 2012, Nippon Paint agreed to acquire controlling stakes in Nippon Paint's China and Southeast Asian operations, but on the condition that Wu Xueren become CEO.

The Wu Family Takes Over

• Wu Xueren at the Helm: Wu Xueren became the global CEO and a board member of Nippon Paint Holdings, shifting the company's center of power to Singapore.

• Increasing Ownership: The Wu family continued to increase its ownership stake in Nippon Paint Holdings, eventually becoming the majority shareholder in 2020.

• A Singaporean-Controlled Multinational: Nippon Paint, while still legally a Japanese company, is now effectively controlled by a Singaporean Chinese family.

• Quiet Transition: The change in ownership was achieved through a series of share issuances, marking the end of a decades-long power struggle.

Returning to His Roots

• Philanthropy: In his later years, Wu Qingliang returned to his ancestral village in Chaoshan, China, and invested heavily in education, healthcare, and infrastructure.

• Legacy: He funded the construction of schools and hospitals, emphasizing the importance of education and community development. Wu Qingliang never forgot his humble beginnings.

• A Lasting Impact: Wu Qingliang's story is a testament to the power of hard work, entrepreneurship, and a commitment to one's community. His impact is felt both in the business world and in his ancestral homeland.