gameboyo:


I saw dangote as a business role model until I noticed the point you've just stated

DeLaRue:
Some of the points raised against Dangote are ridiculous.

1. Someone asked if he didn't do market research on tomato factory.

As if doing market research is a guarantee of success.

Most successful people have stories of failed investments to tell. Warren Buffet, one of the world's most successful investors loses billions in unsuccessful investments from time to time. There are no guarantees of success in business. The key is to make sure you get it right more often than you are wrong.

2. Another contributor questioned his decision to invest in a refinery.

First, the idea that electric vehicles use will overtake internal combustion vehicles in Nigeria within 20 yrs is ridiculous. Besides, Dangote will prob have recouped his investment within 12yrs.

Second, any modular refinery in the Niger Delta will have significantly smaller production capacity, which will likely make its unit production cost higher than Dangote's. Modular refineries are unlikely to constitute much competition to Dangote's monster refinery.

The Tomato factory is a mere $40 million. Peanuts to Mr Dangote.

chukzyfcbb:

Unfortunately that's the only way they can thrive.

Because they can never compete with imported tonates from China, never.

cost of manufacturing in Nigeria is pretty.

Which is why GOVT should help improve the cost of doing business, at least gradually in areas of FOREX and reduced LOAN rates. let them forget bout power, security roads and focus on these two first since they can't handle it all

daywalker12911:
This post of for nursery school kids. You think a man like Dangote or any other man for that matter will set up a multi million dollar factory without doing proper due diligence.
Oga do a proper research and let us know

Lush100:
I'm a bit surprised.
they way the writer talks about business.
sir in business even when u do feasibility studies,
it may still go bad,
a new govt policy or regulation,
an alternative product which is not in the same substitute bracket (e.g nipost vs email),
a change in climate such as rainfall or drought,
external influence (imported vs local production).
change in taste or use.
business is still like giving ur best calculation a shot.
most true business men fail many times until they struck a successful one that stood well.
I have gone into business b4 so I know what I'm talking about.
almost all businessmen use the one that stood as a springboard to other business idea,
some fail, .
even Richard Brandson of Virgin Brand has his own share.
my opinion.
regards.

side point:
it's laughable that govt says its giving 2m to NTSC member for business,
meanwhile the ease of doing business in Nigeria is a "Jupiter task".
that money they intend giving can finish in 6months without any meaning full thing achieved

obailala:
Point of correction on the bolded bit, "it will take more than 10 years 40 years for electric cars to gain footing in Africa even in the most developed and industrialised first world economies."

A lot of people just believe in fairy tales they read online about electric vehicles taking over. The fact is, that is still a dream; fossil fuels aren't going anywhere just yet.

Solstar:


I have stated my opinion and that is a fact that most billionaires know. That is why no one dared to gamble with expensive liquidity on such a very apparent behemoth located almost in the middle of no where near the source of the feed. Even when there are cheaper and better alternatives such as modular and customized systems. The fact that Dangote is a house-hold name does not make him immuned to mistakes. His tomatoes factory is down not so ? Now there is no structure on the farming side for backward integration. Hence he has to begin to grow the raw materials himself.

Makes no sense to me.

MIKOLOWISKA:
supply demand price
IF international market demand more than you with higher price, Who do you think farmer will sell to. Who local sufficiency epp

Solstar:


I really have limited time to continue on these back and forth. But let me state that investing $14b to $18b in a refinery that is not near the wells

in a country that has double digits inflation, double digits interest rate and

an approval for Modular Refineries is not the best idea.

How will he deliver the feed ?

Piping ? (capital intensive

, exposure to vandalism,

expense on pipeline survellance), Trucking (bad idea), Rail transport (capital intensive).

Modular refiners site their plants at the epicenters of the oil and Independent marketers drive in, load products and move to destination, this is a better business module.

I dont know about you guys but there are better things to invest $14b to $18b into and get better RoIs. In fact, I think he is targeting other African countries with the investment, cos it is easier to ship the products abroad but he didnt evaluate the permanent cost associated with delivery of the feed from wells to his plant.

MIKOLOWISKA:
name the business or forever hold your peace? When did govt issue license for rice or wheat farming abi it's your laziness?
Did govt you from building cement plant?
28 ppl collected refinery license, .....since obj time, where are the refineries?
You better stop hating and find your own niche

wordcat:


I will name them only if you're not a Nigerian and have not been following the events in Nigeria

hisgrace090:



So Nigeria will now allow her citizen to purchase foreign rice from abroad and other prohibited goods since they sell cheaper and price determine where one should buy from?

MIKOLOWISKA:
you're just parroting what others have been saying ignorantly.

MIKOLOWISKA:
so you prefer Nigeria to buy Rice for 40,000 per bag?

Tinalex:
Believe Nigerian Ministers/politicians at your own peril. Imagine, Emefiele saying Naija has more reserves monetary wise that South Africa . Nonsense people

MIKOLOWISKA:

Can the farmers be sued for breach of contract and arrested?

Afam4eva:
Did he not do a feasibility study before venturing into a business with limited raw material?

As much as i respect Aliko Dangote, i think he's overrated as a business man because i can count how many businesses that he has failed at even as Nigeria's business man.

MIKOLOWISKA:
yet Mtn
Dstv
Shoprite
Are making a
difference
Keep playing the victim

Opinionated:
By Aroms
Aigbehi

Spain produces 850 000 mT of raw tomatoes yearly. That is 12% of total European production. That is a lot of tomatoes because the Europeans eat lots of tomatoes. Lots of Nigerians work in the tomato farms in Spain.

They have so much tomatoes in Spain that once a year the Spanish will come together and have a very big tomato fight on the street. They will come with truck loads of tomatoes and people can fight each other with it all day. It is tradition and nobody gets hurt. But when you go to Spain just make sure you stay away from the Bull Run. That one also happens every year but don’t mix them up.

In Nigeria, many brilliant people thought the problem of tomatoes shortage was there wasn’t enough processing power to process the tomatoes produced, and were left to rot. Mr. Aliko Dangote got that information too, so he thought why not build a mega tomato factory to process all that tomatoes?

But he thought lets have a plan B. Lets recruit more farmers to produce tomatoes in case the present capacity was not enough.

As it happened, when the factory was completed the tomatoes available in Nigeria could only run the factory for few weeks and there wasn’t enough tomatoes. The country produce too little. Where are all the tomatoes the Minister said were spoiling in Nigeria due to lack of processing power? Stories.

Now Mr. Dangote is stuck with his tomato processing factory and has called in the Italians to come and build and run a very big tomatoes farm in Nigeria so he can run the processing factory.

This is the problem when people believe in fables and live in a fictional reality.

Hmm. could it have been a spiritual attack on Dangote?

Source: http://www.opinions.ng/dangote-closed-tomato-factory/

adecz:


You mean greenhouses...

Too expensive & too low a capacity for
the level of processing planned by Dangote.

The other option would have been to adapt
his system to process other fruits, off season of
tomatoes.

Like, after glut of tomatoes, the next glut is
of mangoes, so, you can keep the factory plant
engaged by making mango juice CFJ.

The whole essence of processing is to
preserve for future use.

Like, you make amala flour when yam
is in excess (peak harvest time october to March)
not like now when a tuber can go for up to 1500.

MIKOLOWISKA:
did anybody hold LAfarGE or elephant from building more plants. They were happy with their local champion status, now you're lamenting.
Who stopped you from plantingsugar cane?
Govt ba?

MIKOLOWISKA:
what is wrong with buying a profitable football club?what is he supposed to focus on?

Solstar:
I love the way you ended it. It is not a spiritual attack, it is a religious attack.

Nigerians spend all their time fasting and praying and forget to get creative, then they run around to find fast money in order to buy imported food, cream, phone and wrist-watches so they dont have to waste time being creative when they should be worshipping God. Now churches run 5 services on Sundays, and a midweek service on wednesdays, not forgetting tarry nights and vigils.

The mohammedans are not left out, they pray a fuccking 5 times a day, and are constantly checking their time to make sure they dont miss a date with Allahu, what remains of their time is spent separating quarrels between their 4 wives, the rest is spent reminding the kids of the need to go to the Alfas and Imams for tutelage.

So, what time do we have to plant tomatoes or engineer apples that can grow on our climate.

We are not poor because we are religious, we are poor as a country because we have found an excuse in God.

Yet money does not grow on trees. Dangote should have known better. He has been making serious business mistakes of late, one of which is building $18B Refinery when electric cars and solar panels are the future. I really question the true source of his wealth. How are his projects financed ? From which sources ? He pays back loans at the speed of light, well, almost. Just to create impression of 'source' ? It could be these politicians just financing him till his retirement and eventual demise. It could just be a ponzi that takes money from early mules and paying the new politicians. I envy the man, I truly do, but if I have access to such money, then I should be able to buy up Nigeria and put everyone on a universal basic income from what I can do with that money.

As it is with the tomato factories, so will it be with the refineries in the next 20 yrs. This is the new world order.

ahiboilandgas:
u dont know anything bro....

Bishopsgate:


Please look at the logos of the two companies Oga.

I know you Know more than me but what I have said has not been proven false

fluentinfor:


It is hard. I can write a billion words essay on the topic. You should check my profile and read my posts. You will get more ideas on farming. Dealing with poor people is too hard. Having poor people as major producer of ones raw material is very dangerous. Poor people are destroyers. It is why they can never get out of poverty. Dangote's enemies can easily manipulate those poor farmers. Politicians know the game. They know that just 200 naira can buy the vote of a poor man even after performing woefully in their first term, they will return to the seat. Poor people are dangerous for the economy. They are destroyers.

First, there are situations you may not want to take someone to court. For example, taking an employer to court is hard. You may win, but it may prevent other employers from associating with you. However, there are exceptions. Those exceptions are ground breakers. For example, Oliseh took his employer to court recently and he was able to prove the football board was trying to make him do illegal acts. Oliseh is wise enough to return to the club. Why? He is trying to tell potential employers that he does not keep malice, or dump employers even in the midst of crisis. Oliseh is a smart guy. Check him in his teenage age, Oliseh was the senior prefect in his high school. Does that ring bell in your ear? He rose up to become super eagles captain when cabals are so powerful in the Nigetian football. Ok, here is my point, a gifted man is unique in his ways. Dangote is unique.

Second, you may not want to sue a poor man because it may affect your business. Maybe if he takes them to court, other farmers will run away from him. The headline on all newpapers will be " Dangote, the billionaire who makes money from poor farmers". Bloggers on internet will have on front page "Nigerian billionaire persecuting poor farmers", and the whole twitter and instagram will explode with #GreedyDangote.

To be smart is a gift. Dangote is a gift to Nigeria. Let us appreciate him.

Bishopsgate:


Bros forget o.

I worked with this guy as far back as 16 years ago. He is about the "shrewdest" business man I have met in all my almost 2 decades in banking an FMCG industries.

Yes he and a couple of guys had the unfair advantage of having govt created monopolies (in some cases duopolies) but that era was over more than a decade ago and at that point of change he was almost bankrupt. He clawed his way back up and changed his tactics. He moved from a rent taker to a creator of value (importer to manufacturer). You can compare him with his fellow monopolies and the understanding of his business acumen becomes obvious.

Where are the other beneficiaries of govt monopolies? How many factories have they built, how many people do they employ, how much tax do they contribute to the Nigerian economy?

Overrated - no I don't think so one bit!

H

Afam4eva:
Did he not do a feasibility study before venturing into a business with limited raw material?

As much as i respect Aliko Dangote, i think he's overrated as a business man because i can count how many businesses that he has failed at even as Nigeria's business man.

PrecisionFx:


This is why I hope owner of nairaland will find a way to add members real age here. Ur assertions expose that u were probably born around year 2000 so u know nothing about this issue.

A certain Nigerian cement giant called Ibeto from Nnewi (who's cement till today has far higher quality than dangotes cement) was once the leader in anything cement in Nigeria. Dangote connived with Obasanjo n the FG seized all the cement he imported worth billions of naira n he had a severe stroke n almost lost his life, He spent months in the hospital n by God's grace he survived.

OBJ made laws dat disallowed anyone in nigeria from importing cement, Thus making Dangote the only importer of cement in Nigeria for Many years n they shared the profits with OBJ.

Dangote knows nothing about managing a business, Even an slowpoke or down syndrome patient will become become a billionaire in a monopoly.





Dangote was also once the sole importer of sugar in nigeria. It isn't rocket science.

SternProphet:
Everybody missed the lesson in this story due to shallowness and lack of depth of thinking.
The TOMATO venture has not failed. The factory was wrongly sized for the available produce and ran out of raw mateial.
A factory can be mothballed and start up again but to leave a business because of a small mistake like this is strange
Dangote goes in big in everything. This is a big mistake. He should have started medium scale and grown his own supply chain organically through out grower farmers

But he thought lets have a plan B. Lets recruit more farmers to produce tomatoes in case the present capacity was not enough.

authority2006:


A lot of people didn't know that Dangote started as an importer and has since moved away from importation to manufacturing. And many who did still believe that he's enjoying monopolistic power in manufacturing sector.