With strong confidence in the Nigerian economy, the most populous nation in Africa, management of Jaro Industries and a subsidiary of Deekay Group has invested a total of $12 million about N4.3 billion into carton manufacturing to enhance packaging business in the country.
Read Also: Struggling packaging industry mirrors Nigeria’s cash trapped consumers
According to the company, 30% of the investment is family shareholders equity while 70 % is sourced from banks. Packaging is an unavoidable part of the manufacturing sector and it cuts across various industries and it enhances branding and marketing.
The Jaro factory which was opened last weekend for business by Ogun State governor, Dapo Abiodun; alongside the Ceo/managing Director of Deekay Group, Kavine Vaswani; and other dignitaries is sitting on a 28 Acre of land in OPIC’S New Makun Industrial City of Ogun State along Lagos-Ibadan Express road.
Kavine said the company relies on 70% local source of its materials and presently employs about 250 people directly and 350 contractual workers. He said the employment level will likely increase to about 800 people when the efficiency rate of the company builds up
Kavine said “the completion of this project is to further demonstrate the Group’s commitment and belief in the Nigerian economy. I must say, there is a lot of potential for economic growth in Ogun State and that is why we have decided to take this bold initiative by citing the factory in this state, with the help of special partners”
While declaring the factory opened, the Ogun State Governor, Dapo Abiodun, represented by Managing Director of OPIC, Yemi Adesoye expressed delight on the project. “We are indeed very pleased to have you plant your factory in Ogun State; it shows we are doing certain things right, which has attracted you to our state”. He assured investors all the necessary support they require for smooth operation in the state.
Also speaking, Director-General of Manufacturers Association of Nigeria, MAN, Segun Ajayi-Kadir said all nations that want to sustain their economy must pay attention to manufacturing as it is the only sustainable way to banish poverty.
While commending Deekay for building the factory in just 9 months, which will contribute to the creation of jobs, Ajayi-Kadir said the factory will also increase the manufacturing sector’s contribution to GDP.
He called on the government to partner with the private sector to grow the economy as the government is not good in business, stating that the responsibility of government is to provide the right environment for business.
The MAN director also told the government to rescind its decision on the recent increase on VAT. He describes VAT as a tax that punishes the poor. He criticised the decision for the VAT increase that it was designed to empower the states to pay the minimum wage. “You cannot give something with right hand and take it with left hand and that is what the increase in VAT means”, he said.
