THE new Managing Director of Berger Paints Nigeria, Peter Folikwe, has outlined the company’s strategic growth plan aimed at enhancing shareholders’ value.
Folikwe, who assumed office in March, said Berger Paints has modernised and upgraded its production with the acquisition of new machinery that will position the Nigerian company as one of the best paints manufacturers in Sub-Sahara Africa.
He said recent investments in new production facilities, human resources and innovation were all aimed at enhancing the company’s earnings and shareholders’ value.
According to him, the new production facility is designed to produce top quality and innovative products at reasonable prices, which will help the company to reduce inefficiency and increase the company’s turnover and market share.
“Specifically, we are on the track to build the first automated paint manufacturing plant in the Sub-Sahara Africa. When completed, it will revolutionise our production and distribution processes, enhance product quality and delivery and reinforce our competitive edge,” Folikwe said.
He assured that Berger Paints would continue to uphold the sanctity of the post listing requirements of the NSE, which place premium on full disclosure at all times, adding the management of the company is committed to creating better returns for shareholders.
In his remarks, Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema commended the board and management of Berger Paints for sustaining a long legacy of corporate excellence.
He urged the company’s management to uphold the highest standard of corporate governance in order to be on the Exchange’s Premium Board Index for companies that excel in corporate governance.
Folikwe spoke during a visit to the NSE, during which he also performed the ceremonial ringing of closing bell for the stock market.
He had earlier assured shareholders of Berger Paints that the company would sustain its profitability, noting that the performance of the company in the first half of 2015 indicates that the company has been waxing stronger despite the harsh operating environment for manufactures in Nigeria.
He pointed out that the company is setting up a multi-billion Naira factory to expand its operations while working on innovative products that would not only appeal to Nigerian consumers, but the entire global markets.
Folikwe reiterated that his pre-occupation is to drive Berger Paints as a brand whose products would continue to define quality and acceptability in Nigeria.
In a related development, Folikwe called on the government to support the development of the Nigerian real sector by providing enabling environment for manufacturing companies to thrive.
He said Nigerian manufacturers are contending with several obstacles, which have reduced their competitiveness and limit their growth potential.
Folikwe urged the Federal Government to address the issues of foreign exchange rate, infrastructural deficit, multiple taxation and enforcement of enabling rules by the Standard Organisation of Nigeria (SON) in order to create the much-needed enabling environment for businesses to thrive.
“The real sector is the major sector that can drive economic growth and development. But in Nigeria, the sector has consistently suffered a setback in the scheme of things.
The sector is bedeviled with myriad of issues which include infrastructural deficits such as bad road, epileptic power supply, multiple taxation, Naira exchange rate volatility and the extent to which the Standard Organisation of Nigeria (SON) is actually tracking and sanctioning those who compromise standard in their product quality. All these increase production cost and force producers to pass the cost to consumers who are already struggling with weak purchasing power. Government should address these issues without further delay,” Folikwe said.
He added that efforts should also be geared towards instituting a virile consumer advocacy framework in order to promote culture of quality products among manufacturers.
According to him, quality products are necessary condition for competitiveness in the global market and it enhances consumers’ loyalty and higher turnover.
He said Nigeria would compete more favourably in the global market if the country leverage on consumer advocacy approach through which consumers of products are made to know that while inferior products appear cheap, they are actually more expensive than quality products in the area of durability and utilitarian value.
