The Hindu Business Line : Manaksia group charts big biz plans for Africa

MINL Ltd, the wholly owned overseas entity of Kolkata-based Manaksia Ltd, a Rs 1,400-crore group, is now seeking a larger manufacturing presence in Western Africa and is accordingly re-strategising its core business of metals packaging.

Having by far the largest capacity for making aluminium closures in West Africa, MINL has emerged as the preferred supplier to companies such as Guinness and Nigerian Breweries.

Among the first to recognise the potential of using galvanised steel sheets as roofing material in Nigeria, the company has established a market for corrugated aluminium, and has set up a new coil-to-coil continuous colour coating line (commercial production already on) for further value-addition to all its roofing products and also reduce cost of imports.

The Lagos-based outfit, which started as a 4-man company in 1995, has now blossomed into a multi-location large manufacturing enterprise in Nigeria, with plants in Isolo and Sango Ota (two greenfield units) with fresh forays planned in nonferrous ingots and aluminium wrought products, besides galvanised corrugated sheets, copper and lead. The products are exported to Europe, Japan and West Asia. Exports have steadily risen from a modest $1 million in 2004 to around $18 million in 2005-06.

Speaking to a visiting group of Indian journalists here recently, Mr Koch Purkayasta, Managing Director, MINL, recognised as an old Africa hand having served with Alcan in the region, said, "This is where our new colour coating line will come into play in a highly competitive field, where value-addition really separates the boys from the men."

Lead extraction

Pointing out that work was in progress on a lead extraction plan, Mr Purkayastha said: "we have been highly successful in recycling aluminium from the abundantly available scrap in Nigeria."

MINL's aluminium ingots are used for automotive castings by suppliers to leading car manufacturers such as Toyota and BMW, he added.

The company's alloy plant uses advanced metallurgical techniques including computerised spectrography to control specifications.

He said non-ferrous foundry products based on recycling scrap was chosen for exports mainly because raw material was available plentifully in the form of scrap as was energy from gas.

The success in recycling and exporting of aluminium, according to him, has led MINL to replicate it with copper and lead.

Copper exports have begun, and the lead recycling plant is nearing completion.

Mr Purkayastha said the company was also exploring opportunities in minerals, particularly coal, and power.

Nigeria, the sixth largest oil producer in the world with substantial reserves of gas, abounds in principal minerals such as gold, lead, barytes, lead, tin, zinc, columbite, tantalite and gem stones.

According to Mr Ashok Guha, Executive Director, Finance, at MINL, the Group was reasonably well equipped to take the plunge that may require major investment in both working capital and fixed assets.

The strategy always, he said, was to build on strengths such as in-house technologies, capability of raising overseas capital at low interest rates and 10-year experience in Nigeria in managing and growing businesses.

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