As many Nigerians delve into both small and medium scale manufacturing, in the midst of current challenging economy, an entrepreneur, Mr. Ademola Ajala who is the Managing Director of Demol Aluminium Industry Limited, Ilorin, Kwara State, Nigeria says that incentives from the government as well as loans from the Bank Of Industry, his company and others will operate profitably with high return on investment. Excerpts…
Which year did you establish Demol Aluminium Industry Limited and what motivated you to establish the business?
I thought of establishing a business that would contribute to the development of my immediate environment as far back as 2012 but it was in 2014 that my small scale business which I named AJ-Demol Enterprises which was into contracts and buying and selling later transformed into Demol Aluminium Industry Limited which was registered with the Corporate Affairs Commission (CAC) as a business concern into Aluminium products manufacturing and installation of Stone coated Tiles, Step tiles profile, Gemini gate motor, Staircase rails, Box and window profiles.
How profitable is manufacturing and installation of Aluminium products in the current economic situation of the country and how did you source for the fund to commence the business?
For now, because of the not so encouraging economic situation of the country, the expected Return On Investment (ROI) is not as profitable as many manufacturers would want. Meanwhile, if all the necessary structures and incentives are on ground for businessmen, there are chances that the business will yield very high profitable returns on investment.
You will agree with me that in as much as Nigerians are still building houses, shopping malls, industries, housing estates as well as big or small shops, then our own business would still attract customers. And I want to confirm to you that we are making profit but with an improved economy, there are expectations that the business would yield more profit.
On how we sourced for the fund to commence the business, we were very lucky that the moment we informed some stakeholders and prospective customers in Ilorin and its environs, many deposited funds for our products even before we rolled out the first set of aluminium products.
What incentives or encouragement do you think the government can offer to assist manufacturers and industrialists?
In order for manufacturing businesses to grow in Nigeria, I think the government should give us five year tax free holiday as well as very moderate rate on the clearing of equipments and engineering parts that we use in producing our finished products.
I want to appeal to the Bank Of Industry to devise means where loans would be made available for manufacturing industries to function profitably. These measures would in no small way assist us to operate profitably.
Who are your major clients or customers and can you tell us whether you have enough human and industrial capacities to satisfy the needs of your customers?
Our factory which is on 1, Abdulrazak O. Wopa Street, Off Pilgrimage Board Road, Gerewu Road, Ilorin, Kwara State has been a beehive of activities because so many of the end users of our products always patronise us. Most of them are residential building owners and factory builders. We also have patronage from the government ministries and parastatals.
From our own end, we have the required human and industrial capacity to satisfy the needs of our clients and customers from Kwara, Kogi, Niger States as well as from the Federal Capital Territory, Abuja.
Tell us the projection for your company in the next five years?
Our vision is to be the leading aluminium manufacturing brand in Nigeria. We foresee that our company would grow bigger and bigger till we establish branches in Abuja, Lokoja, Minna and Kaduna while we also plan to establish warehouses in Ibadan, Lagos and Benin City in the next five years. We also see the need to employ sales representatives in many states of the federation.
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