BusinessDay

Manufacturing outfit Mamuda Group leverages gas to generate own power

The Mamuda Group, one of the largest manufacturing groups in Northern Nigeria is ramping production and diversifying its product lines on the strength of their ability to generate their own power using gas.
“We already forecasted our power consumption for the near future and have decided to go for an in-house power generation plant that will help us to reduce the load on the grid so that others can benefit from it,” said Nemr Hammoud, Vice Chairman & COO, Mamuda Group of Companies.

According to the Manufacturing Association of Nigeria, over 40 percent of the cost of business of most manufacturing companies goes to power, therefore companies who can generate their own power at cost-effective rates have a competitive edge.

Mamuda Group currently has a 22MW power plant capacity which it is seeking to upscale to 30MW installed and maintained by Clarke Energy, a multinational specialist in engineering, installation, and maintenance of distributed power generation solutions.

Hammoud said Clarke Energy designed the power solution from technical drawing, engine delivery, installation, commissioning and even maintenance of the equipment.
“Clark Energy has been very competent and reliable by providing solutions to our energy problems”
He said the benefits have been enormous, prominent of which is cost savings which has made the company’s product competitive in the market. It has reduced their carbon emissions and guaranteed uninterrupted power which bodes well given the sensitive nature of the factory machines.

Yiannis Tsantilas, the managing director of Clarke Energy in Nigeria said the company has keyed into the FG’s renewed gas push and investments in the gas value chain to increase industrialisation in the northern part of Nigeria.
“They have invested in a 22 megawatts (MW) power plant and an upscale to 30 megawatts (MW) in the later phase of the project. This demonstrates their commitment to improving productivity and expansions that will transform the region into a manufacturing hub for affordable and export-ready products.”

Hammoud said the company has a long-term agreement with one of the largest LNG companies in Nigeria, who are able to sustain their gas needs by trucking it to their site.
He said the completion of the Ajaokuta-Kaduna-Kano pipeline infrastructure would improve gas availability in the north and further bring down the cost of gas.

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Mamuda Group is a diversified business conglomerate convened into five main sectors: beverages, sacks, mat, foods, and leather.
To ensure the sustainability and success of each business unit, we are committed to providing every entity with the tools and resources together with the central functional support to enable development and growth,” said Hammoud.
The company recently started a new line of carbonated drinks, Pop Cola and energy drinks, Infinite Power, and said the reception has been fantastic.

“The Nigerian market is very promising as consumers are always willing to try new things. In the beverage sector Nigeria ranks No. 5 in the top 5 carbonated drink consumable countries so this can clearly show how many opportunities we have here,” Hammoud said.

“Growing businesses in different sectors face a range of challenges. As a business grows, different problems and opportunities demand different solutions – what worked a year ago might now not be the best approach. All too often, avoidable mistakes turn what could have been a great business into an also-ran,” he said
To serve the international market, Mamuda Group has positioned itself to export finished leather to Europe and China and is currently the second-largest non-oil exporter in the country.

The company says it is adding value to the Nigerian economy by increasing employment opportunities, for skilled and unskilled workforce and by export and encouraging foreign exchange flow back to Nigeria which helps stabilize the economy. It currently hires over 11,000 employees.
“Sustainability is at the heart of what the company does,” he said.
“Driven primarily by consumers who want healthier food that doesn’t damage their surroundings, sustainability is having a profound effect on the global food supply chain.
“In both our facilities we have the best-in-class machines from the industry which makes sure we have the desired results which can lead to increased efficiency and a better bottom line,” he said.
Hammoud said the group is eager to add more value to the economy while the government helps to improve the conditions of the transportation systems and provides more special intervention facilities to businesses at competitive rates.

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