Nosak Distilleries, one of the conglomerates in the country, is considering listing its entire shareholding on the nation’s capital market as part of commitment to help deepen the stock market as well as grow and develop the economy.
The intention of getting the company’s shares quoted on the exchange is already creating excitement among investors in both local and international markets, following the strong fundamental of the company and its expansion drive.
Besides, the company has announced an investment rise to N6 billion in its distillery plant, even as it has since its inception in 2007 provided 600 jobs both at the management and the junior level of its operations as well as increasing production capacity to 250,000 litres as at February this year.
Addressing financial reporters at the weekend, the Managing Director and Chief Executive Officer of the company, Mr. Edwin Ibude said that total investment to date, for its expansion drive in the industry wherein it controls 65 per cent was over N6 billion just as the company have received the recognition of the Standard Organisation of Nigeria (SON) by the award of NIS ISO : 2008 certificate recently.
Ibude said that to maintain the company’s leadership position in the industry, its third plant was commissioned in February, 2012. “This brings the daily combined production capacity to 540,000 litres, this capacity in addition to the capacity of other current local producers will be enough to meet the local market demand and have excess for the export market” he said.
According to him, Nosak Distilleries commenced operation in July 2002 and specialised in the production of Ethanol, with a daily production capacity of 100,000 litres which it increased to 250,000 litres per day following the commissioning of a second plant in October 2007.
“Be assured that it is the ambition of this group to eventually be in the Capital Market, we should be able to have a track record that will attract potential investors. For the kind of challenges that we are facing, we think, we still need to work through our plan to come out with something that would be impressive to any prospective investor; but be rest assured the Stock Exchange is where we want to be” he said.
According to the him, the managers of Nosak Group are highly skilled and hard working professionals that know the benefit of going to the Capital Market, “and without being told, we know that is where we want to be, there are pioneer industries in this environment owned by indigenous people that have succeeded in doing so and that is where we want to go”.
On the ownership of Nosak Distilleries, he said it is joint venture between the Group and Tradhol International SA of Spain; with Nosak Group owning 90 percent and Tradhol 10 per cent holding.
Ibude highlighted some of the challenges faced in the operations of the company to include infrastructure such as good roads, constant power and water supply.
“These three items as regards our facility in this location are provided by us; no government is providing any of these things for us. If I tell you what it cost us to build those power plants, you would be amazed.Like I have always told people, such an amount can start another business if our public power supply were steady and efficient” he said.