Guardian

THERE is a perception in Nigeria that when an entrepreneur dies his business goes with him. But Chairman of Fatgbems Nigeria Limited, Mr. Kabir Gbemisola, says the assumption does not apply to his firm.

Gbemisola who took over from his father, Fatai Gbemisola, who passed on in April, said he has recorded moderate improvement barley two months he has taken charge of the company just as he unveiled plans to steer the company to greater heights.

Gbemisola, a turn around manager, lamented that petroleum products’ adulteration and under-dispensing have become serious challenges in petroleum retailing. He said unscrupulous individuals have inflicted pains on Nigeria through adulteration of products such as diesel. He, however, said his company has distanced itself from such unwholesome practices. He said stiffer penalties and closer monitoring would help to reduce the tide.

Noting that he is at home with the history of the company, he said: “Prior to my coming on board as the Chairman, I had always operated as Executive Director (Operations) while my late dad was in charge of administrative issues.”

The new chairman disclosed that his major objective is to diversify the oil marketing firm and improve on its customer service delivery. He said the company would want to play in the upstream segment of the industry in the nearest future.

“Those who met us at the recent Oil Technology Conference (OTC) in the United States wondered why we were there. But the truth is that oil and gas business is a huge area that has lots of opportunities for all operators. Essentially, the thinking is that OTC is an upstream affair. That is not true.  It is about being exposed to new technologies in the area of oil production and exploration. And for every refined petroleum product, the ultimate target is to get to the end-users. And we, in the retail market, are the link between producers and consumers. Hence, we also need the latest technology to dispense petroleum products just as exploration and refining do. We were the first indigenous downstream operator at the conference because we want to get necessary technology to move to where we want to be,” Gbemisola noted.

He said the conference gave him opportunity to establish contacts with manufacturers of fuel dispensing machines who have expressed willingness to partner with the company. Through the partnership prospects, he said, Fatgbems could emerge franchise holder for fuel dispensing machines in West Africa since the manufacturers “don’t have any presence in Africa” yet.

He faulted the assumption that marketers make abnormal profits during scarcity, arguing that they have to contend with middlemen who double prices as well as activities of vandals. “And we do everything to ensure that our customers get fuel to buy even to our detriment,” said Gbemisola, who argued that the tension created by scarcity rather impacts negatively on companies’ bottom line.

On expansion drive, he said the company has drafted several plans to turn Fatgbems into a conglomerate, saying growing the company into a diversified entity is his “my primary mission.

“But before that can be done, we need to consolidate on the gains of the founding father. At the moment we have 24 outlets, I was able to add one more outlet to the existing 23 before my father died. My plan is to increase by two or three yearly. We shall be adding another one before 2013 ends.

“We operate more in the Southwest but the plan is to go beyond that and become a leader in the sub-Saharan Africa. Many of the major players in the upstream and midstream sectors started as downstream operators. For us, part of the plan is to evolve into a major player in upstream operations. And we are working towards achieving that already,” he continued.

Gbemisola disclosed that the company has concluded arrangement to embark on major rebranding to firm up its identity.

On this, he said: “Very soon, our filling stations will be wearing new logos and colours. We want to develop a new work environment, which will culminate in courteous dedication of staff to the highest level of customer service delivery. We will retrain the old staff to fit into the new vision of the company. Though, you will agree with me that people are always resistant to change, especially if they are so fixated on the old order.

“I believe in growing an entity with people that have stayed with you to build an institution during the premature stage. I equally believe in a reward system that is fair to all.  I see a new Fatgbems run as a world-class business organisation. And to achieve this dream, I would be open to fresh ideas from consultants or joint venture partners.”