Dearth of Infrastructure, Additional Burden On Manufacturers - Boss [interview]

Jun 01, 2009 (Vanguard/All Africa Global Media via COMTEX) -- PZCUF | Quote | Chart | News | PowerRating -- PZ Cussons Nigeria Plc have been present in the country for over 100years as mainly FCMG manufacturer with participation in the categories of personal care, home care, health, beauty and nutrition. The annual turnover of the company exceeds US $400m. In this interview Mr.Tunde Oyelola, Vice Chairman, PZ Cussons Nigeria Plc, and member of PZ Cussons Foundation speaks on how the company is repositioning for better performance especially at a time where world economics is at the verge of breaking down.

THE global economic crisis has continued to pose a serious threat to industrial growth, What steps has PZ Cussons taken to weather the storm?

Well, we cannot be isolated from the global economic downturn. We have been in Nigeria for a long time and being here has made us to be able to understand the terrain. So, we have been very pro-active by designing strategies to make sure that we are able to survive the difficult times and position ourselves to take benefits when things improve. So, we are positioning ourselves, to make sure that we have very good survival strategy hoping that we would reap the fruits when the economy turns around for the better.

Specifically what survival strategies have you adopted to remain afloat and how would you measure the results recorded so far?

As you know , we are a very big conglomerate. So, our survival strategy ranges from industry to industry. We have devised a lot of strategies which involves a lot of cost savings measures. We have to re-brand our products and so many other things. So, it is numerous but like I said we understand the terrain and that is one advantage for us. So, if you are going anywhere, you know where we are going to, ans your chances of survival..

What kind of interventions would you suggests to the government to help struggling industries come out of their difficult times without having all their fingers burnt?

To me, our biggest problem is infra structure. So, the whole thing is putting a lot of additional burden on the manufacturers. So, once we can get the infra structure right especially power, it would solve a lot of problems. That is the biggest problem for the manufacturers.

What should your numerous customers look out for from the company in the coming years?

Yes, they want to be satisfied. So a responsible organisation must ensure that you have efficient customer service unit to give the best customer satisfaction. So, you have to check your total system to be sure that you package it in a way that ensure that your customers are given good satisfaction for patronizing you, otherwise they would not come back. You can only deceive your customer once. So, we always make sure our customer derive pleasure from using our products so that he would happily come back for more.

How has the issue of multiple taxation and inconsistency in government policies affected your business?

We are not isolated. So many tax levies are imposed on us. Sometimes it is not only multiple taxes but unknown taxation. So, we don't even know what we are supposed to be paying for as tax. So, these are the unknown factors. Taxation shouldn't be hidden. It should be open and something every citizen should know . It is only then that people would be proud to pay it.

Most companies are cutting down the number of their staff to cope with the effect global economic down turn, Is PZ planning to toe the same line?

No company would go out and want to cut down its workers. That is not the solution to the problem. It is circumstances that forced you to do that because if you plan your strategy well and suddenly you are not selling, then you can't keep producing . So, it not a question of forcing people to layoff workers. What you need to do was to attempt how you can increase sales thereby continue to produce at your current level or you reduce your production, otherwise you would be over producing. So, when you strategize, you think of what does the market want and you quickly make sure you gear your system to be able to responds to the market demands and taste.

The market taste is changing, most of the people are getting poorer and their purchasing power keep decreasing. So, the companies should be positioned to carter for all segments of the markets.

You Founation recently commissioned the newly completed PZ beatification park. What inspired you to embark on the project?

It is what we have been doing before. We have been here for over hundred years but we felt is better now to set up a foundation where these things would be better coordinated. We have executed such projects in Aba, Ikorodun, Lagos, Minna, and recently in Ilupeju also in Lagos. The park is one of the take off projects embarked upon by PZ Cussons Foundation. The foundation is a non-profit organization formed and fully sponsored by PZ Cussons Nigeria Plc as a vehicle through which it can implement its corporate social responsibility programmes. PZ Cussons Nigeria Plc has always on a voluntary basis integrated social and environmental concerns in its business operations and integration with its host communities.The formation of the foundation is however informed by the decision to leave the policy formulation and implementation of the sponsor's social responsibility programmes in the hands of an independent entity.

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