Manaksia arm plans minerals, coal foray to expand in Africa

LAGOS: MINL, the Nigeria-based wholly-owned subsidiary of Manaksia Ltd, a supplier to the consumer goods industry, is planning expansions in other African countries.

MINL plans to diversify into minerals and coal. It is exploring a possibility of a thermal plant in coal-rich Emugu areas in Southeast Nigeria.

As of now, the company manufactures and exports aluminium ingots to auto ancillary firms in Europe, West Asia and Japan to be used by carmakers such as BMW and Toyota.

It produces aluminium ingots by recycling metal scrap, which is abundant in Nigeria. It has a unit that extracts copper and aluminium from waste. Following the success of this, it is now setting up lead extracting unit as well.

This has helped the company to service its overseas clients. Its exports have steadily risen from under $ 1 million in 2004 to around $ 18 million last year. By 2008, the firm hopes to achieve an export turnover of $ 30 million per annum.

“Geo-political situation and export incentives by the Nigerian government have helped us grow faster,” said MINL managing director Koch Purkayastha.

The company posted a turnover of Rs 283 crore and earned a profit of Rs 43 crore compared with a profit of Rs 20 crore on a turnover of Rs 192 crore for the previous year.

MINL, that started off as a four-men unit in Nigeria, has set up its own continuous galvanising line, aluminium alloy ingot plant, and aluminium value-added products along with colour coating lines and aluminium rolling lines. Now it is eyeing other parts of Africa. “Soon we will emerge as a significant supplier of non-ferrous alloys to automobile industries in Europe and Asia,” Mr Purkayastha said.

The company is looking for a greater role in the continent. “Plan to set up unit in Chad is underway,” said MINL executive director Ashok Guha. Besides, it is toying with the idea to have independent units in neighbouring Niger, Togo and Benin.

MINL has set up a separate unit for roofing and metal fabrication business. “With booming housing sector there is a rise in demand for roofing sheets in Nigeria,” Mr Guha said.

The company has round-the-clock galvanising line to produce corrugated aluminium sheets along with embossing rolling mill and colour coating line. “High-end houses in Nigeria use colour coated roofing,” Mr Guha explained.

Set up by the Agarwals, whose ancestors came to West Bengal in 1926 from Manaksas, the village in Rajasthan from which the group derives its name, Manaksia Limited (formerly Hindusthan Seals, incorporated in 1972) has around 17 manufacturing plants in India and abroad. In the fast moving consumer goods segment, the company makes mosquito repellents for Mortein (owned by Reckitt Benckiser India) and Maxo (owned by Jyothy Laboratories).