Monday, September 10, 2012

Innoson As Emerging Brand In Chinese Technology Transfer

 

HARD work does not kill. The seed of success is sometimes best sown in the field of despair. And so, when Chief Innocent Chukwuma set out to form a business name  ‘Innoson,’ little did he know that something incredible was ahead of him. Even in 1982 when Innoson Nigeria Limited was incorporated to merely sell Tyres and Motorcycle spare parts at Nkwo Nnewi, Anambra State, the real message was yet unknown.
However, being the first indigenous company, after Leventis and Boulous Enterprises, to
bring motorcycles into Nigeria, it was an eye-opener and a strong signal that he was destined to be great. Then, two years after, in 1984, when the voyage to China began, little did he know that he was embarking on a mission that would give the Nigerian economy a boost.
Chukwuma, a determined and unassuming man of vision delved into the business with two strong business ideas: “Invention and innovation,” the former simply to create a unique idea that would usher in a breakthrough in motorcycle spare parts, while the latter was to make positive changes in efficiency, productivity and quality. Thus, Innoson became the first Nigerian to import Completely Knocked Down (CKD) motorcycle parts and in that way bring in 240 motorcycle units instead of the 40 units of built-up machines in a container that older importers were used to doing. In this way, he succeeded in crashing the prevailing market price down to N50, 000 from N100, 000.
Six years later, in 1990, his desire of being a dominant player in the industry was unfolded. His mission was to satisfy the yawning gap in the sector, particularly the industrial and household plastic requirements of clients by using the highest standard technology. He then assembled well-motivated and trained indigenous workforce as well as technical partners from China. Innoson motorcycle in no distant period became a strong force in the Nigerian market. The brand became a must demand for private and corporate organizations.
According to Chief Chukwuma, “The joy of contributing towards the economic development of Nigeria by way of technology transfer, employment generation and competitive pricing of motorcycles, plastics and automobiles became the motivating factor for me.” In 1995, a fully automated motorcycle assembly plant was established in Nnewi, Anambra State. Thus, Innoson became the first fully indigenous motorcycle maker to join A.G Leventis Plc and Boulous Enterprises.
Buoyed by the success of Innoson motorcycle, Chukwuma enlarged his industrial coast by going into plastic and allied products. That was in 2002, the year Innoson Technical and Industrial Company was incorporated. And the objective was to manufacture first-class plastic products for household use, industrial applications and export. With state-of-the- art facilities, the plant eventually became the largest plastic factory in West Africa, with over 150 product lines.
In February 2009, the first made-in-Nigeria vehicle emerged! Under another subsidiary, Innoson Vehicle Manufacturing Company Ltd. (IVM), the dream became a reality at Nnewi, the industrial town in Anambra State. It was an ultra-modern auto plant producing intra and inter-city buses of various capacities, trucks and pick-up vans, tricycles and sports utility vehicles (SUV) with at least 70 per cent local content. Already, Auto Star Company, Ekeson Motors, Orizu Motors, God is Good Motors, Eastern Mass are among transporters using Innoson buses, while Enugu, Anambra and Imo state governments have patronized the auto manufacturing company.
Chukwuma enthused: “I am sure we have not left anyone in doubt that we are set to surpass records and re-write the history of automobile industry in Nigeria as we earlier did in the motorcycle and plastic sub-sector. I am also aware that some of our initial critics are being stunned and dazzled.”
Chukwuma’s innovative spirit shifted to tyres and tubes manufacturing under another subsidiary, General Tyres and Tubes Company Ltd. Located at Emene on the outskirts of Enugu, the huge factory in collaboration with his Chinese partners decided to fill the vacuum created in tyre manufacturing in Nigeria.
The pull out of Dunlop and Michelin from the industry gave Innoson a leverage to prove some critics wrong. Indeed, Chukwuma certainly used this establishment to demonstrate to Nigerians that human principles are like the stars: while we cannot reach them, we can, however, like the mariners of the sea, chart our course by them. In other words, he demonstrated that once he was determined to venture into a project, nothing would stop him from achieving the desired goal.
The emergence of the product name, Road Vision into the Nigerian market truly confirmed the Innoson chairman as a man with the Midas touch.
Says he: “We want to prove to the world that the Nigerian rubber is the best, that its quality has no rival if properly harnessed.” Today, the products are scattered in all leading auto markets in Nigeria. In the communications industry, there are Innoson handsets of different categories in markets across Nigeria and beyond.
To put more succinctly, the Innoson brand has contributed tremendously towards the successful transfer of Chinese technology to Nigeria. The evidence on ground proves that. On record, the Innoson Group boasts over 7,000 indigenous workers of diverse disciplines scattered in various subsidiaries nationwide. These workers have learnt how to use different machines in Innoson factories. The technical knowledge has further improved their skills and business ideas. Of course, the industrial benefits derivable from the working experience have the potential to make each worker self-dependent.
Chukwuma has the will, skill and resources. He also has the foresight, determination and goodwill of Nigerian market. These are the propelling factors behind the confidence of the Chinese that partnered with him. They have discovered in him a golden opportunity towards building an industrial empire in Nigeria. They have equally noticed that the name Innoson has become a beautiful brand in the Nigerian market and capitalized on it to have a fair share of African market.
The business partnership no doubt has benefitted all parties involved. Chukwuma, for instance, has since risen from a mere motorcycle spare parts seller at his to become an industrial icon in Nigeria. He has received over 20 merit awards from institutions and governments both in Nigeria and abroad. Recently, the Commonwealth Business Council (CBC) bestowed on him the 2012 Business of the year award in London.
The Chinese in Nigeria too are feeling fulfilled for having an indispensable business partner in Chukwuma. While they offer Nigerians their technical expertise, they are equally enjoying her rich socio-cultural environment. The large Nigerian market has also given them huge returns on investment.
Venture, they say, triumphs in the midst of adversaries. But it is the man who makes a successful appearance in the world of business and creates wealth that actually forges ahead even as the storm rages. Chukwuma, despite the success story of his brand, had enormous challenges on the way. Virtually all the subsidiaries encountered different problems while in incubation. For instance, Innoson motorcycles while trying to capture the market met unexpected disturbances from officials of the Nigerian Customs Service who seized 35 containers of its CKD and auctioned them the service men, even when there was glaring evidence that the goods were duly imported. Innoson Plastics at Emene Enugu was almost closed down by envious Indians and Lebanese foreign investors who came to the factory based on false information regarding products copyright. In March 2007, kidnappers paid an unwanted visit to the Innoson Vehicle Manufacturing and abducted a Nigerian, Sylvester Unigwe and two Chinese engineers, Niu Guiqiang and Feng Shenyi. In fact, Shenyi later died in their hands inside the forest.
But then, the lessons to learn from the above ought to strengthen the mind of any potential business developer. As they say, uneasy lies the head that wears the crown.
However, Chukwuma believes that no matter the odds, there are endless opportunities for any Nigerian businessman who works hard: “If a Korean can come to Nigeria empty-handed and build a big business empire within an interval of two to three years and remits home millions of dollars from Nigeria, why can’t Nigerians who own the country and understand the business secrets, perform better?”

-Udeh is of the public relations unit of Innoson Group of Companies, Enugu.


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