Sustaining the giant efforts of Innocent Chukwuma, Chief Executive Officer of Innoson Vehicle Manufacturing Company (IVM), may be all that Nigeria requires to join the league of industrialised nations. Editor, Politics/Features, EMEKA ALEX DURU, writes.
Successive administrations in Nigeria have come up with policies indicating intention at industrialising the country. Often, these commendable ideals have not been actualised due largely to inadequate political will to see the plans through. In the process, even some of the established industries have gone under, while individuals and organisations wishing to go into the sector have been discouraged.
There are, however, some who have refused to give in to the unfriendly climate. These have weathered the storm and seemed resolute at staying the course. This is the story of Innoson Group, owners of IVM.
The Chairman, Innocent Ifediaso Chukwuma, identifies this spirit of resilience as a major factor that has propelled his organisation to its current enviable height.
His story is that of success borne out of hard work and perseverance. He had, at a time, told this reporter that when he made a bold move into industrialisation through the acquisition of former Eastern Plastics, it was an adventure fraught with uncertainties.
The factory, for example, was a shadow of its old self, with the account of its infrastructural facilities appalling.
“When we started, things were hard and the times were hard. When we started, there was no light, no roads and no water,” he recalled, adding that with time, some of the debilitating conditions were tackled.
His foray into the sector actually began with attempts at fabricating plastic components of motorcycles. Before then, his organisation had made its marks in expanding the volume of motorcycle imports in the country.
To realise this dream, the firm in 1994 entered into an agreement with some Chinese motorcycle manufacturers – a symbiotic partnership which was consummated with the establishment of a facility in Nnewi, Anambra State, where top quality motorcycles were produced.
However, the target of comparatively low prices and transfer of the production technology were only partially achieved because the assembly process was totally manual and did not make for high volume.
This challenge, Chukwuma explained, accounted for the company installing a fully automated assembly line at the Nnewi plant in 1995. The new arrangement, he said, witnessed a packing technique which made it possible to arrange as many as 240 completely knocked down (CKD) sets in one 40-foot container as opposed to about 80 fully built units of’ motorcycles hitherto imported in the same container.
He attributed the high cost of the imported motorcycles, then, to importers bringing in complete motorcycles, in containers. But the strategy he introduced into the business forced down the cost, considerably.
Against this background, Chukwuma, perhaps, rightly described himself as “the first person that introduced Chinese motorcycles into Nigeria”, stressing that the feat was motivated by his desire to save Nigerians from the drudgery of imported fairly used motorcycles, otherwise called Tokunboh or highly expensive new ones.
Even with the feat, there was still the pressing need to attain economy of scale in production, hence the drive to fabricate the plastic components of the motorcycles locally. This, Chukwuma stated, motivated him to acquire Eastern Plastics. The company, which was owned then by the old Anambra State Government, was, at the time of the acquisition by Innoson, replete with obsolete machinery.
But it was later re-equipped with state-of-the-art production facilities and transformed into its current form. At the last count, the firm had over 2,000 workforce spread in three shifts with over all 10,000 production capacity daily. It also makes more than 150 ranges of plastic products. Some of the products at the Emene site of the factory include PHCN meter boxes and accessories; PVC plumbing hoses, industrial dust bins, industrial tanks, PVC ceilings; motorcycle covers, shield and crash helmets. The firm, instructively, sources 80 per cent of its raw materials from Eleme Petrochemical Industries.
Chukwuma beats his chest on the quality of goods produced at the factory. He said: “Any item produced here, as far as plastic is concerned, remains the best. In fact, as at today, we are the highest ranking plastic industry (in Nigeria).” This feat notwithstanding, the company, he said, is not resting on its oars.
Part of what he attributed to the apparent success of the company is its clientele that cuts across all sectors of the market. Products of the company, he explained, are not customised for any particular clientele.
“We are here to make plastics for any one that needs our service. Ours is to make plastics,” he stated.
For him, this agenda aligns with the vision of the group which he disclosed is “to be a dominant and committed player in the plastic and automotive industries by manufacturing and making available to the citizenry brand new products of first class quality in Nigeria”.
The mission, he added, is to satisfy the automotive and plastic requirements of customers by using the highest technology with a well-motivated and trained indigenous work force.
Chukwuma acknowledges that actualising the standard set by the group is a tall order. But he sees it as a commitment that can be met by having a devoted management team that has a wealth of experience in all areas, and that is able to take fast decisions on new developments which will always put the group a step ahead of its competitors.
How does the group cope with competition from organisations dealing on related products? Chukwuma’s response was sharp and direct: “I like competition. For me, competition brings out the best. I like competition in anything I do.”
Paradoxically, he sees the company as competing with its own standards. “Ours is to continuously strive to meet the standards we have set for ourselves. If we are really competing, it is with our standards and our desire to achieve perfection,” he added.
The perfection dream, perhaps, started yielding fruits with the Nnewi automotive plant of the group breaking new grounds in auto manufacturing. The organisation, in February 2007, embarked on what had appeared a daunting task when it incorporated IVM, to produce sundry commercial automobiles, utility vehicles and passenger cars, in collaboration with some Chinese auto makers.
The brave effort was followed with the public display of some of the vehicles at the 2nd Nnewi International Auto Trade Fair held at Gabros Sports Complex of the Beverly Hills Hotels, Nnewi in the last quarter of 2009.
With that successful outing, IVM made a bold statement about its readiness to achieve the mission of being the first indigenous auto maker to produce truly Nigerian vehicles that are affordable and reliable. The vehicles, incidentally, have high level of local content in every unit.
Chukwuma spoke on their quality at a recent award on him by a Lagos-based national daily, Vanguard. He said, “We believe in quality not quantity. I know an average person will like to entrust his/her money into something durable; we take this into consideration in all our services.”
Some state governments and organisations, TheNiche learnt, are already placing massive orders for the vehicles.
For a country that has been desperately searching for a way out of its current low industrial base and consequent unemployment, the feat by Chukwuma and his team comes as a refreshing window out of the situation.
Engineer Ben Okongwu, a former lecturer at Nnamdi Azikiwe University, Awka, saw the initiative by IVM as a viable path for Nigeria to join the enviable league of industrialised nations.
“I am particularly excited by the news of the young man coming up with a vehicle manufacturing plant. I quite appreciate what he may be passing through in terms of financing and expertise; but if he perseveres, he would be writing his name on gold. This is the only way Nigeria can break out of poverty and dependence on other countries and begin to consider herself as a truly independent nation. More people should be encouraged to toe this noble path,” Okongwu suggested.
The perseverance by Chukwuma seems to be paying off. Earlier in the year, the Nigerian Air Force (NAF) signed a Memorandum of Understanding (MoU) with IVM for research and production of spare parts for its fighter jets. The relationship, our reporter learnt, was occasioned by the success of the company in fabricating brake components of some of NAF’s grounded aircraft.
The enticing story from IVM could be enough for an average entrepreneur to go home and sleep. But not Chukwuma. In fact, for him, despite the feat so far attained, there is no rest. In his words, “until you are tired, you cannot claim to have hit your target”.
The journey, thus, continues. He somehow seemed set for greater heights from the beginning. Like the mustard seed, he started off as trader but has metamorphosed into big-time manufacturing.
It all commenced in 1978 when the young Chukwuma completed his secondary education. He had initial interest in studying engineering at the university. While waiting for his result, he decided to report to the patent medicine store of his elder brother, Gabriel, to occupy his time. It was in the process that his talent in trading began to unfold. With his result eventually not strong enough to carry him to university, he decided to settle for business.
Chukwuma served under Romanus Eze Onwuka. He later returned to his brother, who promptly registered Gabros International to trade on motorcycle spare parts. He was given N3,000 to start, and was allowed free hand to manage the seed money. It was the prudent management of the initial capital that gave rise to the octopus that IVM currently represents.
The group consists of: Innoson Nigeria Ltd, makers of motorcycles and spare parts; Innoson Technical and Industries Limited, makers of plastics and household items; Innoson Vehicle Manufacturing (IVM), auto makers and General Tyres and Tubes Company Limited, Enugu.
Born in 1961 in Umudim, Nnewi, Innocent Chukwuma hails from Uru village, Nnewi, in Anambra State. He is the last of six children born to Mr. and Mrs. Chukwuma Mojekwu.
Dr. Chukwuma loves playing tennis as a form of relaxation. He is married to Mrs. Ebele Chukwuma and they are blessed with children.