Manish Mundra who has over 15 years experience leading international businesses currently sits atop the Indorama Eleme Petrochemicals Limited, Nigeria, the largest producer of Polyolefins, fertilizers among other range of products in Sub-Saharan Africa. In this interview with Ibrahim Apekhade Yusuf he speaks on the giant strides recorded by his company in the fertilizer production vis-à-vis ongoing training of Nigerian farmers in the application of fertilizers among other issues. Excerpts:
The Presidential Committee on Fertilizer Initiative (PCFI) led by the Jigawa State Governor, Alhaji Mohammed Badaru Abubakar was on a facility tour of your fertilizer plant in Port Harcourt recently and expressed satisfaction with the participation of Indorama Eleme Fertilizer & Chemicals Limited (IEFCL) in the programme aimed at supplying NPK fertilizer to farmers nationwide at cheaper cost. Do you think Nigeria can be self-sufficient in the production of fertilizer?
Sure, Nigeria can be self-sufficient in the production of fertilizers, and that is our vision and commitment. Our vision is to make Nigeria the petrochemicals and fertilizer hub of Africa. There are cogent reasons why Nigeria can be self-sufficient in fertilizer production.
Firstly, Nigeria has large reserve of natural gas resources that can provide gas needed by as many fertilizer plants as possible. Gas is the major raw material needed in the production of fertilizers. Nigeria has a large quantum of gas. Secondly, at the moment, Indorama’s world-class fertilizer plant has capacity for 1.5 million metric tonnes of Urea while the entire domestic consumption of Urea in Nigeria is about 500,000 metric tonnes.
Indorama agronomists are now working hard to train and enlighten Nigerian farmers on the best use of fertilizers to increase food production in the country. Thirdly, Indorama through the Federal Government fertilizer initiative is supplying 360,000 metric tonnes of Urea to fertilizer Blending plants to enable them produce NPK fertilizers which can be sold to farmers at cheaper price.
The point I have made is that Nigeria has capacity to be self-sufficient in production of fertilizers for both domestic consumption and for exports to earn huge foreign exchange for the country. Government should encourage investment in this sector of the economy as part of strategy to grow the agricultural sector and to generate employment and earn foreign exchange.
It’s been eleven years since your company acquired Eleme Petrochemicals Limited. Are there plans to go public now or in the nearest future?
Yes, an IPO (Initial Public Offer) is being planned to give the public the opportunity to invest in our operations. Many Nigerians have seen that an organisation can be managed profitably. Indorama Eleme Petrochemicals Limited (IEPL), being the best success story of the Nigerian privatisation programme has shown everyone that there are big possibilities in Nigeria. We at Indorama are always proud of Nigeria and committed to the socio-economic development and industrialisation of the country.
What do you consider the major milestones of your company thus far?
In the past ten years of Indorama’s operation in Nigeria, we have recorded many milestones. Firstly, we have achieved import substitution in the petrochemicals sector. Nigeria used to import more than 95% of its petrochemicals (polymer resins) at huge forex cost. Today, we have polyethylene and polypropylene manufactures in-country by Indorama.
Secondly, we have built a PET plant, which is supplying all the PET needs of Nigerian industries. Thirdly, we built a world-class fertilizer plant, which is the largest single-line Urea facility in the world. We also completed an 83-kilometre gas pipeline and a state of the art port terminal at Onne Port Complex. Fourthly, we created an excellent public private partnership model that enables the host community to own 7.5% shares in the company and the employees, 2.5% of the shares, including Federal Government and Rivers State Government also owning equity shares in the company. This model of PPP is being copied by organisations.
Furthermore, Indorama has created thousands of employment opportunities for many Nigerian youths from different parts of the country. Our milestones are too many to enumerate. I can say that in the past ten years, Indorama has contributed immensely to the economic development of Nigeria.
What is your share of the petrochemical industry/market in Nigeria and beyond?
The petrochemicals or polymer sector has different segments. Many types of polymers are used worldwide as well as in Nigeria. For example, PE (Polyethylene), PP (Polypropylene), PVC (Polyvinyl Chloride), PS (Polystyrene), and others. Within these polymers, there are various grades as per end use application.
We at IEPL have facility to produce HDPE, LLDPE & PP types of polymers. All our products, grades are most preferred industrial raw materials in their respective segments. We command more than 85% – 90% market share in all PE grades we produce. In Polypropylene, however our market share is a little lower due to shortfall in our feedstock, which further limits our capacity utilization. As we get more gas, we endeavor to supply more PP into the market and further limit importation. .
Given the prevailing harsh economic situation in the country today is Indorama’s proposed plan to grow your investment from $2b to $4.2b by 2020 still feasible? If not what is the alternative?
The plan for further investments is quite possible and feasible. We are committed to our proposal or plan. We are going to invest in Natural Gas Liquid (NGL) plant, a methanol plant, and expansion in capacity of existing plants, etc. My short answer to this question is that we are committed to investing in excess of 4 billion dollars in Nigeria in the next few years. We can only ask for government support, and a peaceful business environment.
Your company prides itself as the largest producer of olefins or synthetic fibre in West Africa, yet the prices of these products appears priced out of the reach of the common man compared to those from China. What effort is being made by your company to stabilise the price of fibre products in the country?
With due regards, we would like to correct the terminology used in the question. Our products are in granule form, and in turn used by various downstream industries for producing end-products such as Nylon bags, Plastic furniture, Jerry cans, ropes, pipes, Industrial crates and various other articles.
Because of indigenous raw material availability and the world-class quality of our products, the Nigerian plastic industry is able to survive the onslaught of substandard imported products. Even during this tough time of forex scarcity, Nigerian plastic firms are surviving due to raw material available in Naira, that too at very competitive prices.
Your company commenced PET production in July 2012. What is the capacity of that plant?
The capacity of the Indorama PET plant is 86,000 metric tonnes; and this serves all the PET needs of Nigerian industries and the surplus is exported to earn foreign exchange. There are only two PET plants in sub-Saharan Africa. Nigeria used to import all its PET resins. Indorama achieved that import substitution in 2012.
What is the local content utilisation of your company? Could you be specific on that?
Local content is high in our operations. Indeed our achievements are the product of team work between Nigerians and expatriates. The Indorama world-class fertilizer plant that was completed in record 36 months saw great synergy between Nigerian and expatriate engineers. For the host communities, we also have MOU that dictates employment of indigenes in various cadres of the company.
Given the fact that your operation could likely impact the environment, what are the preventive measures you have in place in case of any eventualities?
At Indorama, we exercise the highest commitment to environmental regulations and best practices. We place high priority on the need to preserve the environment and provide better quality of life for the communities where we operates. Environmental concerns have become an integral part of the development process within Indorama.
Indorama has drawn up extensive plans to protect the environment. Minimising waste, recycling and reusing effluents, monitoring and controlling quality of air emissions, expanding green spaces as well as conducting environmental impact assessments and obtaining various environmental certifications are amongst the top environmental priorities that Indorama observes in existing complexes and new projects.
Indorama is determined to keep its environmental performance at international levels and stringently follows all international safety and protection regulations. Most of our plants are ISO 14001, ISO 18001 and ISO 9001 certified. We follow World Bank and local government environment standards for water and air emissions.
Our textile products have been tested against harmful substances by the International Association for Research and Testing in Textile Ecology. Our textiles have been awarded the prestigious Oeko-Tex Standard 100 for several consecutive years and are Oeko-Tex compliant.
For Indorama, safety and health of its people is of principal importance. Indorama invests significant resources to reduce workplace accidents and ensure a safe working environment. The Group protects the interests of its employees by providing them with appropriate and up-to-date training and access to development programs.
As a part of its commitment, Indorama has taken several measures which have contributed to a large extent to reduce lost man-hours and accidents at the workplace. All employees are provided with knowledge, awareness of any hazardous surrounding conditions and procedures to protect themselves and to enable them to undertake their assigned responsibilities safely and efficiently.
Our companies provide medical facilities for employees and their families by way of on-site clinics, medical insurance and regular health check-ups. Our companies strictly follow no child labour policy.
By adhering to world safety standards, promoting product and operational safety, and encouraging the active participation of every employee, the Indorama Group creates a conducive work environment.
Still talking about best practices, I can tell categorically that Indorama Eleme Petrochemicals complex has been built with the best of the engineering designs that a Petrochemicals complex should have to last for many decades. The operating plants employ world class and process technologies from international engineering companies.
With a strong engineering and technology foundation, in its journey towards being world class, IEPL has been continually developing its processes and people, through innovation and adopting best practices. Examples of some best practices are as follows: Oracle ERP – Commercial, Marketing, Accounting and HR processes are transacted and controlled efficiently through our ERP system to ensure effectiveness of business transactions and manufacturing operations.
Others include the Indorama Computerized Maintenance System (ICMS) – Implemented as part of best engineering practice to initiate, execute, monitor maintenance activities including specialist jobs, inventory and spare parts management.
As a company, what is your growth projection in the next five years?
I have somehow answered this question earlier. Through innovation, we are expanding existing plants. WE are also building new plants for LNG, methanol, etc. We are committed to increasing our investment to 4.2 billion dollars in the next few years because we are pursuing our vision of building the largest petrochemicals and fertilizer hub of Africa in Nigeria by the year 2020.
