Vitafoam partners Ogun State on industrialisation

Ogun State Government has endorsed the proposal by Vitafoam Nigeria Plc to partner with the state on industrialization in what has become a new strategic business opportunity for corporate growth and development.

Besides, the state government has also given a nod to the request by Vitafoam Board and management to patronize its diversified products.

Addressing the Vitafoam’s team, during a courtesy visit to his office recently, Ibikunle Amosu, Governor Ogun State commended the Board and Management of Vitafoam for their foresight and unalloyed goal of adding value to the society through introduction of innovative products.

Amosu expressed delight that Vitafoam would soon commence work on its multi billion Naira factory to be established on a large expanse of land along Lagos Ibadan Express Way.

He noted that the state government was desirous to partner with the private sector operators for enhanced industrialization as a way of reducing unemployment.

According to him Ogun State government would continue to create an investor -friendly environment where business could be done with ease.

Earlier in his speech, Bamidele Makanjuola, Chairman Vitafoam plc expressed gratitude to the state government for its provision of land for Vitafoam at a substantial discount.

Makanjuola who explained that Vitafoam was ready to take possession of the land noted that the company had also diversified into building construction with its production of heavy insulation for houses.

Corroborating him, Taiwo Adeniyi, Group Managing Director, Vitafoam plc stated that as part of Vitafoam’s strategic plan, the company had six subsidiaries whereby each produces distinct products with that serve as synergy for one another.

Also on Vitafoam’s team at the courtesy visit were a Director, Florence Seriki, Executive Directors, Tunji Anjorin , Abbagana Abatcha and the Head, Administration and Legal, Olalekan Sanni.

At the company’s recent Annual General Meeting in Lagos, Makanjuola assured the shareholders that  the manufacturing firm  had almost concluded arrangements to commence production of oil filters and allied motor spare parts through its newly established subsidiary,

He explained that the on-going inclement operating environment had forced the company’s Board and Management to embark on cost saving initiative in order to sustain the company’s competitive edge.

Makanjuola who reviewed the current challenges facing manufacturing firms in Nigeria noted that Vitafoam was able to remain profitable due to the prudent approach towards management of human and material resources:

“The foam business is operating in a very competitive environment. There are over 300 manufacturers. It is stressful to operate in the foam industry. As professionals, we have tried to keep administrative and financial cost under control. This prudent approach enabled us to generate profits and declared dividend of 25 kobo per share in an environment where many companies are closing business. We were able to achieve this feat despite the high cost of operation because of our careful management practice.

“As we try to control our cost, we have decided to limit our exposure to our subsidiaries to a maximum of 40 percent. This is expected to relieve us of financial burden of 100 per cent ownership. We can always raise 60 percent equity through private placement.

“We have almost concluded plan to commence production of oil filter in our new subsidiary. As for Vono Products, we shall keep the brand. We have gone to the Corporate Affairs Commission (CAC) to ensure that the brand is not taken away”, Makanjuola said.

Corroborating him, the Group Managing Director, MrTaiwo Adeniyi said that the decision to float a new subsidiary, Vitaparts Nigeria Limited was to provide products for motor spare parts which is in high demand. We shall enjoy pioneer status in the country as there is no manufacturer of these parts yet in the country.

Adeniyi who assured the shareholders of higher value lamented the effects of forex scarcity and imported raw materials on the production of foams in Nigeria .He however expressed optimism that Vitafoam would continue to operate optimally as measures have been put in place to strengthen the company’s operations with cost saving approach.

Many shareholders commended the company’s board and management for the good performance in spite of the tough business environment while some advised for more cost control measures.

In giving assurance of continuous improved performance, the Makanjuola declare that:  “Despite this uncertain disturbing outlook, our company will remain resolute in the implementation of nascent strategies that will enable the harvesting of low-hanging opportunities in the economy to improve growth prospects across several markets.

“Innovation and new products development will be the key drivers of our corporate strategy. We shall stay committed to the company’s brand reposition of “much more than mattress” by broadening the scope of our products offerings across the Vitafoam group.”

By the company’s profile, Vitafoam Nigeria Plc is a leading manufacturer of flexible reconstituted and rigid foam products. It has the largest foam manufacturing and distribution network which facilitates just in time delivery of finished products throughout West African Sub region.