Manufacturers explore new revenue routes to beat tailback
Nigeria’s tough economic terrain has forced local manufacturers to explore new revenue routes to hedge against closures and bankruptcy.
More than 25 manufacturing companies have gone into the export market in the last six to eight months to raise revenue and scarce foreign exchange. Companies such as Erisco Foods,Aristocrat Industries, Grey De Koroun Nigeria, Louis Dreyfus Commodities Nigeria Limited, Deekay & Sons (Nig) Limited, Dag Motorcycle Industries Nig. Limited, and Givanas Industry Nigeria Limited, among many others, are now exploring the West African market. Several others have recently gone into the processing of cocoa, cashew, animal skins (into leather) and have found their markets in China and the European Union, BusinessDay gathered from manufacturers.
A number of manufacturers have innovated new products to expand their lines. Cadbury, FrieslandCampina WAMCO, Dangote Group and Coca-Cola, among many others, have recently innovated new products to stay ahead of competitors. In fact, apart from tomato paste production, Erisco now has 16 new lines for the packaging of sugar, milk, tea, coffee and other products.
“We have launched into the area of affordable packs—N20 proposition and Three Crowns N40 and N50 propositions, including evaporated milk of both Three Crowns and Peak,” said Rahul Colaco, managing director, FrieslandCampina WAMCO Nigeria told BusinessDay.
Also, many manufacturing companies have gone into mergers and acquisitions within the last six months. While Coca-Cola has acquired 40 percent stake in Nigeria’s Chi Limited, Vita Foam is merging with Vono Products, just as Suntory is offering to take over the bottling and distribution of GSK’s flagship drinks- Ribena and Lucozade- as well as part of Agbara manufacturing plant.
Lafarge Africa has increased its stake in the United Cement Company of Nigeria (UniCem) from 35 to 85 percent, while also proposing to completely take over Ashaka Cement to ensure profitability of the Gombe-based cement maker.
The equity interest is currently held by Egyptian Cement Holdings B.V (ECH), an entity that is jointly owned by LafargeHolcim Group and Lafarge Africa plc
Fidson Healthcare has also announced partnership with three United States’ firms for the marketing and distribution of its drugs in the Nigerian and ECOWAS markets.
“Fidson is truly excited about this collaboration with Immune Therapeutics and GB Pharma/AHAR. We know that success in this industry going into the future will be dependent on having the right partnerships, and we could not have asked for better partners at this stage of our growth,” said Fidelis Ayebae, managing director, Fidson Healthcare plc, in a statement.
ODINAKA ANUDU