Guardian

Ten years ago, the Managing Director of Raphgate Chemicals Nigeria Limited, Mr. Atere Raphael resigned from his teaching job to venture into paint manufacturing with just N28, 000 in his hand. Today, he is the proud owner of the Horse Paints brand, which effectively competes with major players in the paint manufacturing industry in the country. Atere, a Mathematics graduate from Adeyemi College of Education, Ondo, shares his story in this interview with ONYEDIKA AGBEDO.

BRIEFLY tell us about Raphgate Chemicals Nigeria Limited and the Horse Paints brand?

We started this business in 2003 as an enterprise. I studied Mathematics in the university; I am a trained teacher. But to the glory of God, in 1996, I worked briefly in a paint manufacturing company, Penguin Paints, after graduation. I worked with the company for about three years but unfortunately, it closed down. Meanwhile, I was a pioneer staff of the company and saw a lot of opportunities in the paint manufacturing industry. So, I started thinking about how to continue to play in the sector.

While I was still ruminating the idea, I took up a teaching job but I was not comfortable. In 2002, I told myself that I could do more than I was doing then. So, in June 2002, I went to Fate Foundation to undertake a six months study on how to run a business. Immediately after my graduation, a chartered accountant who was my course mate and whom I had told that I have an experience in painting gave me a job to paint his office. Although I was still teaching, I accepted to do the job. I went there with him that very day and we did the estimation and the cost came to about N80, 000 or thereabout. Immediately, he gave me an advance payment of N28, 000. When I got home, I told my wife that I had graduated from Fate Foundation and that I was thinking of establishing a business but that I would need some money to take off. I also told her of the painting job that I got and the N28, 000 advance payment.  She then told me that I already had money to take off if I were ready. So, the second day after that discussion, I resigned from the teaching job.

I started off on January 1, 2003, with the N28, 000. I went to the market to buy the paints; I hired the labour that I needed and before you knew it, we were on the job. The man was paying me in installments and we executed the job as the money was coming. Immediately we completed the job, we got another one and on and on we were getting busier by the day.

However, we didn’t do much in 2003 but we were able to buy a small machine in preparation for establishing a paint manufacturing company. We continued buying paints from the market to execute the jobs we were getting until 2004 when we started production.

The terrain was very rough when we started but we were so determined. There were mistakes here and there but I kept learning on the job. Fate Foundation really tried for me. I attended their monthly training workshops; I also attended other training seminars that I knew of and read a lot of books on business management and entrepreneurship just develop myself further.

In 2009, we registered the company as a Limited Liability Company.  But our breakthrough came in 2011. A friend informed me about the You Win programme of the Federal Government that is meant to support small and medium enterprises that are not more than 40 years old. I applied and the company was among the over 1000 businesses that got a N10 million grant from the Federal Government. That gave us the breakthrough and we have been able to establish firmly in the Nigerian paint making industry. Presently, we have 15 people on our payroll unlike before when we had only three staff and were struggling to pay them. We also have about 25 professional painters working with us but their payment depends on how we get painting jobs.

Ten years on, how would you value the business monetarily?

I have said that the Federal Government gave me N10 million although it is coming in tranches and we are yet to get the entire sum. But they have paid about 75 per cent of the amount. When we take stock of our own efforts, the business is worth over N20 million. And we keep expanding every day.

What initial challenges did you experience in the business?

Inexperience was a big challenge.  We did not really understand the nitty-gritty of the business and we made mistakes. There were times that we produced a particular paint and got it wrong completely. We didn’t have a laboratory to test the chemicals that we were buying. So, we were just mixing those chemicals expecting that we would get a good result. If the thing turned bad, we went back to it again. So, we lost money, reputation, customers, and valuable time, among others.

Generally, in the industry, there is the challenge of adulteration. People adulterate chemicals so you don’t get 100 per cent of what you want unless you understand the industry and have reliable sources that you buy from.

What really helped me were the trainings and workshops that I attended. I was able to define what I wanted; I was able to draw my vision very clearly which is to become one of the top players in the industry in Nigeria. So, when the challenges were coming, they were not too difficult to contain because I could see the end from the beginning. I believed that I can do it and that I can do attitude helped me a lot. But above all, I am a Christian; I believe that the God factor has been there for me.

What are your product variants currently?

We currently produce about 10 paint variants. We produce bright aluminum, dull aluminum, gloss (all colours), emulsion, gold, road marks, marine, floor paint, lawn and tennis paint. But some of these products are manufactured on request. We are very specialised in gloss, emulsion, texture and satin.

What about quality; have you been able to get it right?

We compete with top players.  That has been the vision and mission from day one. We have told ourselves that in the next five years, we want to be among the four top players in the industry. For you to be there, definitely you must compete with those who are occupying the slot currently. And you compete with them by ensuring that your product is not sub-standard.

Have your products got the certification of the necessary regulatory agencies like the Standards Organisation of Nigeria (SON)?

That is the area we are working on now. You know, in manufacturing, certification is just like someone is in the university; you need to graduate before you get the certificate. So, you have to start and then they have to see that you are in the market and the consistency in quality before receiving certification. But we are seriously working towards that.

How have you been coping with the antics of competitors?

One good thing about business is that if you don’t have competitors, you are not likely to grow. We know our competitors; they are the top players but we are competing with them. But one good thing about this industry is that it is a very wide industry. There is no price war in the industry. Our competitors charge very high on their products and we take advantage of that to endear our products to the consumers. However, we don’t compromise on quality and that has got for us a strong customer base.

How satisfying is the returns on your investment?

I believe that if started with N28, 000 and have been able to build the business up to this level, it is expanding. But this is not a Baba Ijebu business; it is not a business you invest in today and expect to reap returns tomorrow. It is a long-term investment that needs to be monitored to maturity and we are still doing that.

How would you assess the paint manufacturing industry in Nigeria?

The paint manufacturing industry in Nigeria is a very vibrant one. It keeps growing everyday because house building and other construction works keep coming up. When you talk about decorative paints, painting is one of the components of a standard house. Industrial paints, which we manufacture, also serve as raw materials to some companies without which they would not deliver their jobs. So, paint is one product that people would continue to need. You paint your car, house, ship, offices, church, etc. If you are not in the industry, you are most likely to think it is not vibrant but I can tell you that people buy paint like they buy sachet water in this country. The volume of cash that moves in the paint industry within a month is over N1 billion.

Do you see the industry as still open for future investors?

The industry is very open for investments. If 100 paint companies establish in Nigeria today, I can assure you that they will get good returns on their investments. But you must understand the industry. You must have the technical know-how, the capital outlay and knowledge about the market. I will even advise potential entrants into the industry to merge with existing ones and get good knowledge of the entire industry before going solo.

What are your plans for expansion?

With the grant we got from the Federal Government, we already have a permanent plant so we are settled on that issue. At the moment, our products sell in five states in the country—Lagos, Oyo, Ogun, Abia and Rivers. Our next plan is to have depots in all states of the federation and also create more job openings for Nigerians.