‘We control 15-20 per cent of the industry market in Nigeria’ – Kontz Engineering
In this chat with BusinessDay Start-Up Digest team, Akin Mustapha the CEO of Kontz Engineering, leaders in automated security, comments on how he ventured into industrial electronics, the state of the automated security industry in Nigeria and the challenges faced by industry operators.
Can you tell us about how you ventured into this business area?
Going into the business of industrial electronics is interesting but the story of the idea is what I cherished most. I started at a time when I just finished my secondary school; we were actually waiting for the release of our result and then, the Federal Govt. just introduced Introductory Technology as a subject in secondary schools and I saw that as an opportunity to sell something; to sell a book and technological materials that are new to a new market.
So, I registered a small company and I started going from one school to another talking to the Introductory Technology teachers that I could supply needed materials. And that was the first major supply I did and I can say that was my first major business. Since then, I made up my mind that I would not earn a salary.
Moreover, because I had a dream that I would be an engineer, I went to a roadside technician to learn rewinding of electronic motor and when I was doing my National Diploma, I also went to another technician to learn how to repair and design electronics. I actually thought of it that we had a lot of engineers in this country but the problem is that they lack practical knowledge, they only know the theory. So, because of what I had learnt and the people I had worked with, it was easy for me to start the industrial electronics business after my National Diploma; together with my colleagues in Larry Akin Engineering Limited, we noticed that many new companies were coming into Nigeria with a lot of equipment and when these equipment developed faults, they had to fly in engineers from abroad to come and repair them.
So, we tried to get this skill locally and apply it together with lot of research work and the knowledge we had in school. We started approaching different companies to persuade them that we could meet their repair needs locally. And that was the first major business I did with my partner and that was how I ventured into the business that has grown and developed to Kontz Engineering Limited today. It was a very wonderful but challenging experience.
What really motivated you?
God has been very faithful in giving direction because, for everything I do I tend to have this question fly back at me, “why are you doing this?” I have this personal principle that anything I am doing that is not adding to me financially, spiritually or in any other form, I would drop. I always create time and enjoy freedom to analyze what I do and ask myself what the value added thereon. So, if there is no value addition positively I tend to let go. Most importantly, whenever I realized that there was a high level of insecurity in my country, the Italian saying comes to mind, ‘If you are selling rice look for people who are hungry; if you are selling security, go to where people are insecure’. This is one thing that led me into focusing on how developed countries secure their environment despite the crime rate there and I believe that same can be replicated here in Nigeria.
What products does your company offer? And what unique value do these products bring to the market?
Our uniqueness has to do with our belief and resolve in providing best security materials to the market. We went abroad to bring international security practices down here as a way of assuring Nigerians that whatever security they have over there , it is also possible here and we have been doing that for close to fifteen years now. We recruit locally and ninety per cent of our engineers are internationally trained; hence our profitability is very thin because we spend a lot on training. We are the pacesetters for automated security equipment because we have a research department that looks for the latest security equipment in the world which we bring here and get our people trained on. We are highly rated and regarded when it comes to workability of equipment, knowledge or availability of the latest security equipment; and all the equipment we sell happen to be the best in the world. This is because we go into research and do a comprehensive analysis before we make a decision on what to sell and who to sell or distribute to. That has made us to be very proud of what we do and I am sure that was what has earned us so many accolades and awards locally and internationally including awards and recognition by IIPS.
How well have your company penetrated the Nigerian market?
Our Company has capacity and resources to cover and operate in all cities and states in Nigeria. The company is fast expanding and extending her services to some other countries in African especially West African Countries. Our customers and clients include individuals, corporate bodies, institutions, government parastatals, government agencies and establishment. Our company controls 15 to 20 percent of the industry market in Nigeria bringing new innovation and modern high-tech security equipment to the market. We have also brought new franchise; expand the market and broken new barriers through hominization and domestication of security equipment. Through our resourcefulness, diligence and commitment, the company had won several awards and accolades both locally and internationally as mentioned earlier. These awards and recognition include but not limited to the followings:
Do you have an existing oversea technical partner?
There is no existing oversea partner at the moment. We have franchise and distributorship with some of the best companies abroad where high tech- security equipment is manufactured. This allows us to exchange and share expertise, knowledge and exposure. Our staffs are trained abroad in the circumstance.
How would you assess the industry in which your company operates?
The industry is still emerging with lots of works to be done for the industry to realize its full potentials. The industry is in a state of flux. Day by day we are confronted with new innovations, developments and inventions that are being informed by new ideas and challenges pose by high rate and methodology of crimes.
While some of us in the industry are working hard at providing atmosphere of peace and security in the country, some other people are also busy at frustrating the efforts by supplying inferior and lesser quality materials that cannot effectively serve or meet nowadays crime rate or level. The most challenging and worrisome condition is the way people in high places give patronage to quacks and inexperienced hawks in the industry. This no doubt does not help the desire growth of the industry. As of now some of us who are damn serious and committed at what we do can adequately provide all that are required to effectively secure and police the entire country from the spate in insecurity we find ourselves. This only requires right patronage and support from government at all level and corporate individuals. Some of the corporate bodies that have tried our products can attest to this position as they taken the advantages and benefits which our expertise and exposure have introduced to them. We have indeed brought to their door-step what hitherto to spend a lot of investible income to get abroad.
What are your projections and aspirations for your company and the entire industry?
We are steadily growing our company and invariably propagating the industry especially in Nigeria and all other African countries. For Kontz Engineering, our projection is to maintain our stand as a pace-setter in the industry and we are projecting being a manufacturer of these world class security solutions in the nearest future; Yes this might be a bit hard but we believe that we will get there especially considering our experience. Like I said our engineers travel for training on these solutions and some of the trainings are done even at the production stage, which give them the privilege of witnessing how the various machines are been coupled by these manufacturers. Our only problem is just the Nigerian economy which does not encourage manufacturers but I believe we will get there some day. For the industry, our projection is that it will become one of the leading industries in Nigeria.
Any challenges limiting your company’s growth and market penetration plans?
– The present situation, being experienced in Nigeria today has adverse effects on our operations. It seems the country did not effectively plan and organized the mode and method of doing business generally. It is a common knowledge that every business in the economy has to provide and cater for itself in term of infrastructure, power and energy to be able to survive. Our company is not isolated from these challenges. These challenges have strain on our cash flow which invariably is impacting on our desired growth. With lot of franchises from reputable companies abroad and our capacity, we should have flux the market with high-tech security products at reduced price but the challenges pose by high tariffs, taxes and other levies by the government is really affecting the business.
What advice do you have for government in the area of providing a clement environment for business growth?
What we need actually is to create a secure environment, and how do we do it? We create a databank to be able to have information on every individual and update continuously. We also need an adequate surveillance system; we need adequate access devices to let people know that if I commit a crime, I will be caught, that I am being monitored, my record is there if I have a criminal record I have something to lose, I tend more to make sure that my record is good. But if I know that immediately I steal and I buy one Range Rover everybody will clap for me, big man has come, why should I stop doing it? We need to change the orientation generally by changing the environment and putting some things in place and let us change the minds of our youth, our younger ones that hard work pays.
Criminality never pays. If you ask young guys what they want to be, they will say ‘I want to become a senator, I want to become whatever’ because they see them as big guys. Nobody wants to be a doctor or an engineer again because doctors and engineers are roaming the streets in Nigeria looking for jobs. Government can achieve a crime free environment in Nigeria if experts and professionals in security management are patronized.