Generator manufacturing giant, Mikano international Limited, is set to leverage on the local content and backward integration policy of the Federal Government to further diversify its product offerings in the Nigerian market.
The company already notable for its premium generating set is currently looking to veer into the production of several other products crucial to supporting the value chain of Nigeria’s reviving power sector.
Mofid Karameh, chairman, Mikano International Limited, who disclosed this new business rethink during a facility tour of the firm’s production plants by Olusegun Aganga, minister of industry, trade and investment, recently in Lagos explained that the despite the good mileage currently enjoyed by the company, the firm is also keen on contributing its quota in boosting the country’s power sector.
“At the initial stage we were only utilising 10 percent of local content in our assembly plants but with several support from the government we are close to attaining the 40 percent mark and we look to leverage on this to diversify our offerings in Nigeria market,” Karameh enthused.
According to him, the company’s backward integration policy have also enabled it leverage on some local raw materials to build components to buoy its assembly plants and consequently export these ready-to-use components to other neighbouring West African countries such as Cameroon.
On the current market response on its generating sets, Christian Faren, managing director, Mikano International Limited stated that the company has continued to receive good mileage.
“However we expect that government’s effort to improve the power sector will have an impact on products sooner or later, hence, this has informed our decision to diversify into other products such as the building the electric panel, which conveniently act as a compliment to generator sets or to medium voltage electric distribution,” Faren said.
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According to him, the firm has also signed a Memorandum of Understanding (MoU) with Schneider Electric to drive a stronger and broader diversification in energy and automation management in the new power sector.
“The diversification will also include the launching of an assembly plant for transformers, compact sub-station to install controller equipment to distribute energy across the country,” he said, adding that the company will also manufacture its customised Street pole lighting.
On the company’s intention to veer into power generation in the future, the managing director noted that the international brand will explore its experience in captive power generation to contribute its quota in boosting the power sector.
Commending the company on its ability to successfully leverage on the local content and backward integration policy, Olusegun Aganga, Minister of Industry, Trade and Investment noted that the present administration remains committed to availing investors with a conducive business environment.
Aganga further revealed that the Jonathan led administration has been proactive in also attracting investors into other complementing sectors such as transportation and logistics.
“We are also attracting investors in transportation, warehousing and logistics. These investors will offer sophisticated ways of moving goods around the country, which includes warehousing to support companies. They will also invest in rails, ships and other forms of logistics to ease movement of goods to different parts of the country,” he said.
According to him, these investments will help in reducing the cost of transporting goods across the country, adding that the federal government in its part have also deepened its effort in building new functional railway systems.
“We now have a functional rail system from Lagos to Kano, conveying more than 5 million passengers and goods and before mid-year, the rail from Kaduna to Abuja will be completed,” he added.
