Eme Agha is the co-founder and CEO of EM Gold Overseas Ltd. She started her career in banking and has 20 years of distinguished service in the banking industry, where she gained diversified experience. She was with Akintola Williams Deloitte (Deloitte Nigeria) as director in charge of Brand and Communications, Business Development and Marketing up till May 2015. In this interview with Mabel Dimma, she shares the secret of EM Gold success. Excerpts:
What influenced your decision to start a block-molding factory?
We started it basically to reduce the incidences of building collapse because we identified that gap. In addition to the various anomalies associated with the construction company. The chairman of the company an erudite lawyer, Chuks Ikokwu, is into construction and his focus is real estate, so he knows what obtains in the industry. We did a market research, went round and found out that most of the block makers around this vicinity were mushroom block makers. We found a lot of lapses which we felt very strongly are a part of the reason why buildings collapse. First of all the molders use their hands, beach sand and they do not mold to specification, the blocks are always crumbling. We found this was an opportunity for us to come in, make a difference, make an impact and that is reflected on our logo-the Hercules figure showing strength. We produce solid blocks. This other mushrooms are everywhere and their blocks are very cheap; we can’t compete with price but what speaks for us is quality.
How long have you been operating?
We started in September 2015 with one molding machine and by December, we have bought the second one- fabricated machines with everything automated. We are producing two sets of block; nine and six inch.
How has it been for the past six months?
We started large scale, very huge investments. We produced over 30, 000 blocks and then we went into the market telling people about quality, ‘we’ve come to make a difference’, come to the site and check out everything and people who want quality come to us. We are operating on very little profit margin just for people to come. Some companies come to use with their own specification of the type of block they want and we do it.
What stands EM Gold out of the bunch?
What stands’ us out is quality and some things we use such as stone dust. We found out most of the others just produce their blocks with ordinary beach sand; for instance when molding our nine inches, we make 30 standard blocks from a bag of cement. We also have special blocks that we mold 23 from a bag. You can’t get that anywhere within this area. During the market research, I found out people mold as much as 45 blocks from a bag of cement and it is all sand. These are the reasons why we have building collapse, substandard materials. Here we use good quantities of stone dust and quality very sharp sand. So we are doing our own part to enhance construction.
How has the demand been?
When we first started the first one, two months it was a bit slow because people didn’t know us, but of course my background in marketing, business development, everything came to play here. We came out with a difference; I had my people working with me in well branded t-shirts, we were out giving out our marketing materials and having road shows. Immediately we affected our immediate environment with our fliers and getting people to come see our production process. Once we started giving out our blocks, we started getting referrals and that’s how it is now. We have our brands separating from others.
What types of blocks do you mold at the factory?
Right now we are producing only six and nine inches but within the next one year, we intend to make major investments into getting the machines for curbstones and also interlocking stones.
So where do you source your materials?
We use only Dangote cement and even applied to be a distributor but that hasn’t worked out yet so I buy from major distributors. I use very sharp sand and have vendors whom I patronize. The sharp sand is quite expensive but I have decided to maintain the quality. The stone dust I buy from CNC mining, and they have very good ones. Majorly what makes a block strong is the number of it that comes out of a bag. Stone dust actually adds to the quality of the blocks, in fact it is easy to differentiate such blocks.
What’s your target for the next six months?
I must tell you that in six months we have done over a 100, 000 blocks so for the next six months I’m looking at over 150, 000 blocks.
What’s your role in EM Gold?
I am the CEO and chief operating officer. I manage the daily running of the company and also play a strategic role in the company in terms of planning, future investments, profitability cash flow and all of that.
As an entrepreneur, what will be your advice to someone intending to start this business?
First is for you to ensure you want to go into the business. My focus is ensuring we have quality, making the difference. So anyone intending to go into this business; ensure you have fabricated and automated machines because your block comes out better. Invest in very good machines from the molding machines, the mixer to the conveyor belt. It is very important that you go only for quality in terms of the products you use and you may not see the profit but by the time people begin to know you for who you are, the profit will come with time. The profit may be very slim because you are using quality products and there is a pricing issue especially with the estates where developers are building to sell; their focus is really ‘how can I get the cheapest’? With time after several turnovers, you’ll begin to see profit.
Seems people building their own houses are more careful with the quality of blocks they use?
Clearly so, they are very careful. We have seen that here that even those who are requesting for special blocks are those building their personal houses as well as those who are directly involved with the purchase of what they want to use in building. Some engineers have told me, ‘these blocks are expensive. Why don’t you reduce the quality so that you can reduce the price?’ Some engineers in the sight, they may have some dealings with some vendors’ maybe to get materials at a cheaper rate and then get something out for themselves. But when we deal with the owners, they really want the best.
