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Vitafoam Confident Of Profitable Returns Amid Harsh Terrain, Naira Devaluation

Nigeria , Africa : Vitafoam Nigeria Plc has stated that despite the harsh business terrain and the current naira devaluation hindering the growth of the manufacturing sector, it is optimistic about having a positive and rewarding financial year in the country reported All Africa.

Group Managing Director, Mr. Joel Ajiga, explained that although, the sector is still plagued with myriad of challenges such as, inaccessible road networks; infrastructural deficiencies; inadequate power supply and multiple taxation, but expressed confidence that the company has strategised to meet the ever growing needs of its loyal and esteemed customers and distributors.

At a press briefing to join the rest of the world to mark the 2015 world sleep day, Ajiga said the company has not been left out from the impact of the current naira devaluation affecting most sectors of the economy, saying that companies like Vitafoam that imports most of its raw materials for production, the devaluation has escalated their cost of operations in doing business in the country. “The current devaluation of the naira has had a major impact on our business because most of our raw materials are imported and has escalated the cost of our operations. We have to go back to the drawing board to weather the storm. The dwindling disposable income in the economy has reduced the buying power of consumers. The environment is very challenging but we are up to the task,” he said.

He said its subsidiaries, although at their gestation stages, is part of the company’s strategic decisions to achieve organisational excellence. In his words: “Our subsidiaries are still at their gestation stages , even if they are not making fantastic profits now, we are optimistic about the potentials they possess for the future. Our company is on the path of growth looking at our figures, although the dwindling disposable income has impacted business operations but we have looked inward to strategise to meet the expectations of our stakeholders in the country.”

“We have a trading outfit in Ghana and the products that we sell in Ghana are exported from our factory here in Lagos. We have a state-of-the-art factory in Sierra Leone but because of the current situation in the country, we are operating on a low, but we believe if the situation in the country improves, our company will go full blast. Our factory in Sierra Leone was set up to serve the West African corridor where we supply to other countries around Sierra Leone,” he said. He pointed out that Vitafoam, over the years has metamorphosed from being a household name in the production of just mattresses and pillows into being a foremost provider of ultimate comfort products.

He stressed that as a solution oriented organisation, it supports the World Association of Sleep Medicine (WASM) to lessen the burden of sleep problems on society through better prevention and management of sleep disorders with its world class sleep products.

“We have transcended beyond sleep to the living business, we produce quality soft and hard furnitures, footwears, leisure products and everything that makes you experience total comfort. We will continue to produce quality innovative products that will support your sleeps and your total comfort,” he added.

He noted that despite the challenging operating environment, creativity, innovativeness and corporate integrity shall always put the company on the leading edge of Nigeria’s economic growth and development.

Also speaking at the event, the Managing Director, Vono Foam Plc and Director, Corporate Services, Vitafoam Nigeria Plc, Mr. Tunji Anjorin, said a lot of innovation is taking place with plans to introduce new and vibrant products into the market space.

“We are doing products that complement the very high art of living and luxurious comfort depending on the different choices of the consumer. There is a lot of backward and forward integration taking place between Vitafoam and Vonofoam towards meeting the expectation and desires of both the average and premium consumers,” he said. He said the company is also working closely with the automotive council in Nigeria to play a part in the low injection field in areas of vehicle spare parts for engines, interior decoration, dashboards and some of the small and medium parts that makes up a vehicle. We are also thinking and strategising with the federal government in building local content to support local industrialisation.

“We, at Vitafoam, we are positioned to complement the effort of the federal government towards ensuring that the local content and value creation is taking to the next level,” he added. Group Head Corporate Planning and Business Development, Mr. Charles Somorin stressed that the company has been evolving over the last 53 years, changing from just being a manufacturing concern to a company that works with its consumers.

“We have a lot of channels of our comfort centres which has enabled us to come closer to the end consumer. We are putting ideas in the hands of the consumer and the consumer is going to decide how our products will look like in the future,” he added.