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Lucky fibre to spend N3bn on new production line
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Carpet maker, Lucky Fibre Nigeria Limited plans to invest over N3 billion in a new production facility as part of its expansion programme. This brings to N6 billion the company’s total investment so far under the expansion programme which started two years ago with the initial investment of N3 billion.
The helmsman of the Ikorodu, Lagos-based company, a member of the Tolaram Group of Singapore, told journalists that when the new plant becomes operational by the end of this year, it would revolutionalize carpet manufacturing in Nigeria and effectively launch the country on the global stage
Speaking during a media tour of the company’s factory in Ikorodu, Lagos, Thursday Dinesh Rathi, chief operating officer, said the Nigerian market was grossly under-carpeted for a country with huge potentials and opportunities to become a dominant player in the global economy.
Rathi said the progressive increase of Lucky Fibre’s investment in Nigeria was a firm demonstration of the group’s confidence in the nation’s economic rebirth, adding that the company, which was incorporated in 1986, would begin exports to the West African market with the coming on stream of the new plant.
While identifying power, finance, clearing and security as major challenges in the local environment, the COO said the company would continue to invest in the production of high quality products even as it plans to move full scale into the rugs market
In his speech, company chairman, Rasheed Gbadamosi, noted that such investment would go a long way in creating jobs, both in the formal and informal segments while helping to resuscitate the ailing real sector.
It was not immediately clear whether the company would be in the capital market to access funds for its expansion, going by the chairman’s non-committal response to a question to that effect. Gbadamosi simply said: “It will be our prayer”.
He noted that Nigeria’s capital market was growing and required further deepening through the collective participation of all stakeholders.
“Since there is a correlation between savings and investment, every productive activity leading to wealth creation should be encouraged,” he said.
The former chairman of the Nigerian Industrial Development Bank is of the view that seeking funding from the capital market would give the real sector the desired impetus for growth, especially for a country yearning for resuscitation of its manufacturing base.
Lucky Fibres, with a current workforce of over 400 people in various departments, started with the manufacturing and sale of yarn to carpet manufacturers in Nigeria, using polypropylene resins and other additives as raw materials.
In 1993, it added the manufacturing and sale of woven carpets by fully utilizing the in-house manufactured yarn. Later in 1999, the manufacture of woven carpets was discontinued and replaced with the production and sale of tufted carpets, a better quality carpet. With about 65 per cent market share, the company is the dominant player in the tufted carpets segment.
Last year, the company unveiled a state-of-the-art factory in Ikorordu, where its array of products including the Nobel flame retardant carpets, are being manufactured.
The helmsman of the Ikorodu, Lagos-based company, a member of the Tolaram Group of Singapore, told journalists that when the new plant becomes operational by the end of this year, it would revolutionalize carpet manufacturing in Nigeria and effectively launch the country on the global stage
Speaking during a media tour of the company’s factory in Ikorodu, Lagos, Thursday Dinesh Rathi, chief operating officer, said the Nigerian market was grossly under-carpeted for a country with huge potentials and opportunities to become a dominant player in the global economy.
Rathi said the progressive increase of Lucky Fibre’s investment in Nigeria was a firm demonstration of the group’s confidence in the nation’s economic rebirth, adding that the company, which was incorporated in 1986, would begin exports to the West African market with the coming on stream of the new plant.
While identifying power, finance, clearing and security as major challenges in the local environment, the COO said the company would continue to invest in the production of high quality products even as it plans to move full scale into the rugs market
In his speech, company chairman, Rasheed Gbadamosi, noted that such investment would go a long way in creating jobs, both in the formal and informal segments while helping to resuscitate the ailing real sector.
It was not immediately clear whether the company would be in the capital market to access funds for its expansion, going by the chairman’s non-committal response to a question to that effect. Gbadamosi simply said: “It will be our prayer”.
He noted that Nigeria’s capital market was growing and required further deepening through the collective participation of all stakeholders.
“Since there is a correlation between savings and investment, every productive activity leading to wealth creation should be encouraged,” he said.
The former chairman of the Nigerian Industrial Development Bank is of the view that seeking funding from the capital market would give the real sector the desired impetus for growth, especially for a country yearning for resuscitation of its manufacturing base.
Lucky Fibres, with a current workforce of over 400 people in various departments, started with the manufacturing and sale of yarn to carpet manufacturers in Nigeria, using polypropylene resins and other additives as raw materials.
In 1993, it added the manufacturing and sale of woven carpets by fully utilizing the in-house manufactured yarn. Later in 1999, the manufacture of woven carpets was discontinued and replaced with the production and sale of tufted carpets, a better quality carpet. With about 65 per cent market share, the company is the dominant player in the tufted carpets segment.
Last year, the company unveiled a state-of-the-art factory in Ikorordu, where its array of products including the Nobel flame retardant carpets, are being manufactured.
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