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No two countries in Africa has opportunities as Nigeria – Singh

By on July 14, 2014

Mr Ajay Singh is a business technocrat with varied competencies in marketing and management functions, which spanned over three decades. He has plied his trade across Europe, Asia and Africa. Currently, he leads Somotex, a multi-dimensional business conglomerate in the Mohani Group established in 1966, as Vice President with major responsibility for growing the multi-million dollar company’s array of businesses across Nigeria, Ghana and a host of other countries. In an interview with Adedayo Adejobi, Singh touches on some knotty issues bordering on his incurable optimism about the Nigerian economy. Excerpts…

Tell us about Somotex?
Somotex Nigeria Ltd was incorporated in 1997 in Nigeria as an arm of the Mohinani Group that was established in 1966. The company  is into the marketing and distribution of electronics and machineries to industries and other customers.  For instance, it is the sole distributor of Midea Commercial Air-conditioning system in Nigeria, beyond this, the company  is also into packaging business and other diverse range of businesses across  different industries taking care of the needs of customers in different countries in Africa while creating jobs for thousands and impacting the local economies in positive ways. We have a Pan Nigeria presence through our six offices spread across – Lagos, Abuja, Kano, Ibadan, Ontisha and Port Harcourt.

In your recent presentation you talked about potential and opportunities in the Nigerian market, how do you mean?
Based on our recent research findings, we held trade partners, conferences in three locations namely Lagos, Abuja and Port-Harcourt. These were aimed at providing platforms to share the findings with our partners in the conference tagged: “Innovation for Creating new Possibilities”.  The crux of it was that Nigeria has enormous potential due to its size and population which is in excess of 160 million people mostly youth. Nigeria no doubt will perform better in near future, as the country is set to witness an immense growth in civil constructions and infrastructural development.
These facilities’ requirement for air-conditioning will grow exponentially. Hence we want our key dealers of Midea and users of commercial air conditioning (CAC) systems to be positioned for the opportunities which will begin to unfold very soon.

As an investor in the country with diversified business interests, what are the business challenges?
Every market or country has its own peculiarities, challenges are meant to be explored,  as a business you devise means of working around challenges. Challenges to business in the country are basically access to funds, paucity of infrastructures and project delays which eventually reduces the profit margins and delay in payments.  Despite these challenges, which now include the recent insurgence in parts of the North, it is interesting to note that the return on investment (ROI) in the country is one of the best in the world.  This directly infers that as conditions improve and normalcy returns to the troubled spots, local and foreign investors; and the citizenry in general will be the better for it.

What gives you this optimism despite the fact that some businesses are relocating out of the country?
Nigeria is one of the few most- sorted-after countries by businesses and investors looking for growth in frontier markets across the world.
It therefore baffles me why businesses relocate out of Nigeria. We find no reason why companies should relocate outside Nigeria because Nigeria has the highest business potential compared to any of the other African countries. Growth in infrastructure will fuel the economy, in the same token, businesses will experience good growth that is the assurance we seek to pass across to our trade partners across the country so that they could be better positioned for the benefits.

What is the relationship between Somotex and Midea?
Somotex and Midea commenced an alliance in 2007 to distribute the Midea brand of Air-conditioners in the country. As a strategy, we operate the HVAC business as a Special Business Unit (SBU) because it requires constant follow-up and touching base with sub-dealers, consultants and clients. We devote time and enormous resources to delight this set of customers by giving complete solution right from design stage to execution and after sales services. Midea is a market leader with large scales of projects spread across the world to its credit. Such include the Brazil 2014 World Cup stadium in Mato Grosso. Midea is reputed to have brought technological innovation to commercial air-conditioning on a global scale. We have an added advantage over other HVAC players whose presence is limited to Lagos and Abuja.
As corporate social responsibility (CSR), Somotex  operates the Devibhai  Mohinani Memorial Trust funds which is involved in major CSR activities like – sponsoring indigent students to colleges,  establishment of clinics and old age homes, children homes  and cataract operation camps.

 

[This Day]

One Comment

  1. Josiah Ilori

    July 14, 2014 at 11:22 pm

    I personally subscribe to Mr. Singh’s assessment of Nigeria’s retail and marketing industries. He has given an honest assessment of what is expected of a complex retail business. I can not believe why any business should check out of Nigeria at this crucial growth of the economy. There are problems particularly in the North East of the country, but that not withstanding, Nigeria is still very economically viable in terms of investments. No where in the world can an investor realize substantial return from their investments than Nigeria! It is hard to believe but it is a reality. Nigeria has a remarkable and marketable population coupled with cheap man power which is not attainable elsewhere in the world. Baring political instability and the Boko Haram insurgency, Nigeria, by now, should have achieved an unprecedented progress particularly in retail industries. I would have expected Mr. Singh to go a step further in his interview by encouraging prospects in the retail industries to encourage manufacturing of these retail outfits in the country. Initially, it could be in form of assembly plants and later graduated to manufacturing. What Nigeria badly needs now is outfits that will generate employments. Creation of jobs, eventually, will enhance incomes of individuals and that by itself, will propel demand for commodities and more profits for the investors.