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UACN WILL REMAIN A KEY PLAYER IN WEALTH CREATION- Cont'd
May 21, 2007
At the price of N32.37 currently in the market do you think the share price is okay?
I think pricing of a share, reflects a lot of things. Sometimes it is also a reflection of what happens generally within the economy; what is happening generally within the stock market itself and also to some extent the expectations of the various shareholders.
I remember even in the equity community, there are some people who take a longer-term view of some stock prices. There are those who take a shorter term view.
I like to believe that the price today, is the price, but I like to think that the price in the future will be much higher than the price of today.
What should be UACN's role in empowering indigenous executive manpower?
Our business model for instance allows for partnership, partnership in the sense that we allow people to bring in their capital bring in their know-how to also operate businesses jointly like our franchising scheme. That's part of developing indigenous entrepreneurship. To that extent, it helps in building capacity within the economy itself.
We also significantly have relationship with people, be they suppliers, and also be they customers of our various items. The fact that we are producing goods, which other people are trading in and which other people are customers to that way too, we are building capacity in the economy and we are also buying raw materials from various sources; be they producers or importers. Through that we are also enhancing capacity and entrepreneurship.
What are your major challenges and what do you intend to achieve in the next two years?
In the next two years, we would have repositioned UACN into a phase we call a renewal phase. We are quite clear in terms of what our strategies are. But we want to ensure excellence in the execution of strategies so that we can deliver enhanced shareholders' value and enhanced shareholder returns.
We hope to be in a position to pay significantly much more dividends than we are paying currently. We hope to get to the position that we'll deliver better returns on equity and return on capital than we are doing currently. That's the kind of expectation that I have. And then we are going to broaden our product category. We are also going to enhance innovation in our business and enhance the equity of UACN.
Appraise Federal Government economic reforms vis a vis the new political development in the country?
If you are looking at the perspective of returns within the economy, they have been good because the level of interest that has been generated by foreign direct capital investment is a reflection of the level of returns, which are available in the economy. I am not saying that the returns do not have risks, but certainly, the risks on returns on the balance shows that the returns must be very attractive for you to have a level of direct foreign investments we are having.
And we are quite aware of what happened in terms of investments in the banking sectors, investments in other sectors of economy from direct capital investment.
To that extent, our returns in our economy are much higher than what you even get elsewhere in the world.
I think Nigeria is on the move, the significant economic reforms taking place and I think that once we are in a position to ensure sustainability of those reforms then what we are seeing currently is a tip of the iceberg.
A lot of people are getting on to the bandwagon now, but like someone said, the day you see the bandwagon, it is already too late. So it is better to start right now and getting out there ahead of the crowd, I think we are doing well.
Message to customers?
We will ensure that we continuously improve on our brand offerings. We will ensure that we continuously deliver value to whatever we are selling to them. We'll add value whatever we are selling to them. We'll continuously bring fresh meals and excitement to our restaurants operations.
On sensitisation of the capital market?
We are going to give all the information that the capital market will require from us. In terms that we are a public quoted company. All statutory information will be given. And when it is necessary that people have clarifications or questions to ask beyond just what they read in the media, we are quite an accessible organisation and we would allow and hope that people can make that clarification or communication necessary.
Let me also say that we will be holding an Annual General Meeting (AGM) In Calabar and before then, our report will be out to our various shareholders and we will be reaching out to the various shareholders community on such relevant issues.
On strategies to reposition the brands within the group?
I have said elsewhere that the new management team which I have the onerous privilege of leading, has endeavoured to build emotional and inspirational equities for our various brands. We've tried to design appropriate brand architecture between the master-brands of our businesses. We've also been able to reposition our offerings into specialty niches. We've tackled innovation deficit in the business by creating new offerings which are specifically better defined customer segments.
What should be the focus of the incoming Federal Government Administration?
The new administration should revamp the educational system. It should give us a police force that is able to detect and also prevent crime. It must cultivate the political will to deal decisively with the Niger Delta problem.
The problems of unsteady power supply, poor transportation and infrastructures decay must be looked into.
Let me say for the umpteenth time that it behooves on all Nigerians to seek to build a country with political stability, economic stability, social cohesion and social justice. We must seek to build a country where there are not winners and losers. All of us must be winners.
How do you see CBN's effort at promoting the use of coins in business dealings?
I think that coins availability will lead to moderation in pricing change as quantum leap price points won't be necessary and competition will improve among similar offerings, thus making it possible for consumers to have choice and exercise same based on their perception of value offer.
Explain the unique contribution of GCOML to the group?
Grand Cereals & Oil Mills Limited (GCOML) is an integrated foods company whose primary activity is the creation of superior value from local raw materials, with leading brands in the cereals, Vegetable Oil and Animal Feed categories.
In 1997, UAC of Nigeria Plc acquired a major shareholding in Grand Cereals & Oil Limited, located on a 16-acre site at Kilometre 17, Zawan Roundabout, Bukuru, Jos South, Plateau Sate, Nigeria . The company which was incorporated in 1983, was originally designed to produce baking flour from imported wheat. Following the ban placed on imported wheat, GCOML modified its operation and production objectives, and today, this growing subsidiary of UACN Plc is steadfastly engaged in many value-added agricultural-based industrial activities.
The result is seen today in the current production and marketing focus of the company. GCOML consistently delivers to consumers, high quality cereals, oils and feed, via the careful application of internationally acclaimed techniques to manufacture premium products. The core activities being carried out by GCOML take place through the operations of the following production units:
A Cereal Mill capable of processing Maize into flour, grits and offal as bye product. The Cereal Mill also cleans sorghum for industrialize use.
An Oil Mill capable of processing Groundnuts, Soya Beans, Palm Kernel and Cotton Seeds into high quality Groundnut oil, Soya Oil, Cotton Seed Oil, Deodorized Groundnut Oil, Cakes, Soap Stock and Lecithin.
An animal feed plant capable of processing the bye-products (bran and cake) from the Cereal and oil mills respectively at 140 tonnes per day. The plant is also capable of processing palletised poultry feed, cow pig and fish feed on request; Incorporated in the feed plant is the concentrate remix plant. The feed plant has undergone a number of capacity expansion initiatives, the latest being the new ultra modern fully automated feed plant, ready for full activation by June 2004. This new plant will take the company's feed production capacity to 400 tonnes per day.
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