MAN Seeks Remodeling of Eleme Petrochemicals Plant

Source from:  Vanguard (Lagos) Posted to the web January 5, 2006 Franklin Alli 01/06/2006

MANUFACTURING firms who are in Food, Beverages and Tobacco, Pharmaceuticals and Healthcare sectors will outperform in 2006, for various reasons. This expectation is based on their performance in 2005 in terms of robust turnovers, profits and dividends declaration, new investments and new products that were introduced last year as well as their huge budget for research and development cum corporate spending on promotional activities. Vanguard's year-end analysis of businesses that will continue to be strong in the manufacturing sector this year showed that Food, Beverages and Tobacco, Pharmaceuticals and healthcare sectors dominate the list. Also included in this category are Fast Food, and Brewery sectors. Findings revealed that companies in the multinational category that will do better in 2006 are Unilever Nigeria PLC, Nestle Nigeria PLC, and GlaxoSmithkline Nigeria PLC, PZ Industries PLC, Cadbury Nigeria PLC, UACN PLC; and Friesland Foods WAMCO Nigeria PLC as well as British America Tobacco Nigeria (BATN). In order to drive their businesses in 2006 and beyond, Nestle, PZ, and gsk, for instance, it will be recalled, invested huge amount of monies on new factories and new products line. Nestle, started its Pure Life water factory valued at about a billion Naira, PZ Industries floated its N5.440 billion Nunu Milk factory which was commissioned by President Olusegun Obasanjo himself, and gsk also reintroduced its Macleans toothpaste brand with an N1.5 billion new factory at Agbara, Ogun State. Further, positives impact of the ban on some 17 (OTC) Over The Counter medicines by the Federal Government last year, will begin to manifest this year in the health sector. New businesses would likely be floated by companies such as May & Baker PLC, Neimeth International Pharmaceuticals Nigeria PLC, Fidson Drugs, and Emzor Pharmaceuticals. Conversely, 2006 also looks promising for SMEs companies. Spotlighted firms in this category are Chi Limited, Doyin Group of companies, Dangote Group, Flour Mills Nigeria PLC and Reals Group. "Through expansion of our current business activities, Chi is being repositioned to become a multinational firm. In fact, in the next five years, Chi will be transformed from its current SMEs status to a multinational one. We foresee being a global force to be reckoned with in Nigeria," said Mr. Vipul Chander Beri, Managing Director/CEO, Chi Ltd. "We want to give the multinationals a good fight. Our focus is competing with multinationals, and we are going to over take them. We are there already, and we are not coming down. We are not going to compromise quality and if we don't compromise quality standards, the sky will not only be our limit, we will also reach the stars. Currently we are inching higher and higher. When we give consumers the real value for their money they wont switch loyalty to other competing brands, thus the group will be growing while consumers will be satisfied with getting value for their money. To us, customers' satisfaction is truly important to us," said Group National Sales Manager, Doyin Group of Companies, Oluwatoyin Biodun Onwukwe However, the brewery sector also looks favorable as beer consumption by Nigerians will continue to increase because whether they are happy or not they find solace with the bottle. As such companies such as Guinness Nigeria PLC, and Nigeria Brewery PLC will declare better performance in all ramifications. What are promising companies in the Fast Food sector? Analysts say they are Mr.Bigg's, UACN PLC's subsidiary, and Tastee Group (comprising Tastee Pot Limited and Tastee Fried Chicken) Enditem