Michael Owolabi, is the Chief Executive Officer CEO of the Black Pelican Group, a firm operating in the multi-billion Naira interior decoration industry. In this interview with Tony Ailemen of BusinessDay, the CEO gave insight into plans to diversify into production of local interior decoration products in Nigeria, with the recent acquisition of 67 hectares of land, at Abeokuta, Ogun State…. Excerpts
How have you been able to survive over the past 20 years, despite the harsh business environment?
What you are seeing is indeed the result of hard work. The work is non-stop, seven days a week, without time for pleasures, even for the family. That’s the lonely life of an entrepreneur. So, when I come to Abuja, I live in the office. But there is also the fact that we have diversified our business. When we started, it was only with the bathrooms, but we discovered that our clients needed more; we started doing kitchens and then doors. When we built our Lagos office, it deepened our product base. When people came for the launching, they demanded some of the things they saw in our building. They will say, I need this, and they were, at that time, not even part of what we were selling. Some people came and carried our chairs because they liked them. So, we started doing more. The MD of a bank came to our office and saw the chairs my staff were using and asked us to do a design for his office that looked exactly the same. That was how we got the contract to supply furniture for all the bank’s branches across the country.
For instance, when COVID-19 came, our sales of gym equipment increased.
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My team is well motivated. From my background at the GTB, I learnt that you can hire one person and pay him or her the salary of three people. So we pay our staff well. If you are a manager and you serve with us for ten years, we will buy you a house. Not just any house, or anywhere, but a house on the island. Some have two houses bought by this company. So people are committed. We feed our staff for free daily while at work. They enjoy free insurance, overseas training, etc. It took me three years to get my wife to join me here from her job at the GTB. She has been here now for about 12 years. Honestly, without her support, I wouldn’t be here.
The truth is that for two decades now, the Black Pelican Group has been at the forefront of Nigeria’s interior design industry, consistently delivering high-quality solutions that have transformed homes, offices, and communities. We have been fortunate because the success we have achieved is not by me alone; it is by me and my team. If you surround yourself with a good team that shares the vision with you, I think that most of the problems of the country can be surmounted.
We were to provide exceptional interior design services, and the company has evolved from a bathroom fittings provider to a total interior solutions provider, offering a wide range of products and services that cater to diverse customer needs. As the company celebrates its 20th anniversary, it is evident that Black Pelican Group’s impact on the industry has been timeless.
How would you rate the company’s performance, despite the economic challenges?
Our commitment to excellence, innovation, and customer satisfaction has earned us a reputation as a market leader in the industry. Our success is a product of painstaking hard work, a competent team of experienced professionals, and the control of its entire service value chain by offering other support services through its fully established subsidiaries.
We are deeply committed to the standard we established for interior design services in Nigeria. We also have a strong ability to adapt to changing market trends and customer needs, which has been key to our success.
From its humble beginning as a bathroom fittings provider, Black Pelican diversified its product and service base, giving birth to five notable subsidiaries: IL Bagno, Bathrooms Direct, BPLogistix, Bagno Technik, and BPL Wellness. IL Bagno specialises in the sales and distribution of high-end interior finishes and exclusively represents the leading manufacturing companies in Europe. Bathrooms Direct is the business unit of BPL, distributing low-priced but high-quality sanitary wares, kitchens, tiles, and doors targeted at meeting the demands of middle-income earners. Bagno Technik is the installation and maintenance arm of the business with a team of trained engineers and installers. BPL Logistix, the logistics arm of the business, is responsible for pickup in over 100 countries to quality packaging and freight to customers clearance at the border to delivery at the client’s door.
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Like every other business, there must be challenges. Maybe you would like to speak to us about those?
Talking about challenges, there are lots of them. Infrastructure is a big one—road network, absence of rail—then when we go to the ports, we talk about the process of clearing goods, etc. We also have access to foreign exchange and the volatility in the exchange rates. These are some of the major factors impacting negatively on the business environment. But we are optimistic that the current administration will address all of them.
These challenges notwithstanding, we have been able to make a significant impact in the industry through BPL Wellness, its final piece in the hospitality and wellness business. We represent the number one wellness company in the world, “Technogym.” The collaboration has enabled us to deliver top-notch fitness centres and wellness spaces, catering to the growing demand for healthy living and wellness in the country.
How have these affected the business and what is the future of the business?
Yes, obviously, sales will be affected when prices go up. To tackle the challenges, we are working on expanding our customer base. We are right now very strong in Abuja. To help increase the base, we are looking at regional expansions into the far north, the south east, and other areas where we are needed.
We are also going to strengthen our operations by going into local manufacturing of the products that we sell. As we speak, we already have 67 hectares of land in Abeokuta, in Ogun State. But we are looking at access to capital. Also, one of the biggest challenges is the availability of skilled staff to run those places. Manufacturing is not for the fainthearted. Power is key. To manufacture tiles, you need an oven that will be on 24 hours, seven days a week, non-stop.
As we look into the future, it is apparent that Black Pelican Group’s effect on Nigeria’s interior design scene will be continually timeless. With plans to expand its operations and introduce new products and services, the company is poised to remain a market leader in the industry.
We learnt that the industry is worth about N30b. How do I intend to compete?
Our focus is on the customer. We represent brands like Nobilia, which offers a 10-year warranty on their kitchen products. If a product is damaged after 9 years, Nobilia will replace it at no cost. We prioritise customer satisfaction and support, ensuring our clients’ businesses thrive. Our well-trained staff provides expert service, building trust and loyalty. This customer-centric approach keeps us at the top.
How have you also given back to the economy over the years?
Our success can be attributed to our focus on developing our managers, a principle I learnt from my time at GTB. Many of my staff have left to start their own businesses, which we proudly support. Our CSR efforts are well documented and include school renovation, NGO partnerships, and sanitation projects. We’ve made a significant impact, renovating facilities like the Ikoyi Golf Club and supporting numerous institutions. With 200 full-time and 100 contract staff, we’re committed to giving back to the community, particularly in areas lacking basic amenities like running water.
In terms of the CSR activities as people know it, part of it includes interventions in school projects; we go to schools and do toilet renovations every year. We look at NGOs that operate in places like Ajegule, and we support them in their school projects. We have a budget that we dedicate towards that annually. We have done renovations for the Ikoyi Golf Club, the IBB Golf Club, etc. We like to give back to the society, especially in the areas of sanitation. Many of the schools do not have running water. There are very few institutions that have not felt our touch.
Here, we have a staff of about 200 on our payroll and another 100 contract staff. For example, those that provide food for our staff are not our staff.
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What is the Black Coffee Table Book all about?
It is just a book that contains what we have done in the 20-year history of the existence of the Black Pelican, which we have turned into a book. It contains everything from our origin till date and even talks about our future. It is about 200 pages, which shows our humble beginnings at Lekki in Lagos. It tells you in the minutest details what we have done, our history, and where we are headed.
