Duo earns big from concrete products after winning contract

The two have won a Sh2 million contract to supply culverts and fencing poles to the Chinese company working on the multi-billion standard gauge railway project which is crossing through Voi town.[PHOTOS: PASCAL MWANDAMBO/STANDARD]

Nairobi; Kenya: When two Voi businessmen Nelson Namwendwa and Elias Mdawida came together to register a company called Wima Concrete Products in 2010, their original plans and ambitions were a pale shadow of what they are doing now.

The businessmen had mulled over the production of culverts to supply Government and private contractors in the county, after realising that there were very few, if any, business people who had ventured into this kind of business. This was despite the fact that road construction and repair were growing steadily.

“We initially thought that production of culverts was in itself the most lucrative venture we could engage in but after a couple of months, reality began to set in - that it was not easy to make good money, especially given that Government contractors took too long to pay us and at times getting tenders was an uphill task, especially given the stiff competition from other culvert makers from outside the county,” Nelson told Business Beat during the interview.

Fencing poles

It was upon realising that this was a business with seasonal gains, that they began working on plans to diversify and improve their range of products.

“We began with capital of Sh50, 000. Still targeting the construction industry, we moved into making of fencing poles, ordinary building blocks and drainage blocks (culverts). From there we started attracting more customers,” says Nelson.

The businessmen say they still habour the ambition to be more creative and artistic so that their range of products can stand out from the others. “Concrete products can have a variety of uses, which include combining artistic creativity with strength to come up with attractive and durable products,” say the businessmen.

And going by their current range of products, it’s worthwhile to note that aesthetics and art are now the hallmarks of their industry.

Now, the company produces concrete flower pots, decorative ventilation, louver vents, balcony stands, wall slabs and road warning signs.

Mdawida says from a meagre Sh50, 000 in startup capital, the company has now injected about Sh1 million to make products worth over Sh 1.8 million. “A profit margin of Sh800, 000 is not a small margin given that most businesses in the county are struggling hard to merely break even,” says Mdawida.

The businessmen say they got a big reprieve when they joined the Voi Jua Kali Association and thereafter found a large jua kali plot near Sofia Village, where they manufacture and display their products.

With a warm glow on his face, Mdawida says they have not done away with making culverts and still supply the same at between Sh3, 500 and Sh 4,500 per piece depending on size, but says this is no longer their business priority.

“We also design and sell water tanks to both Government and private individuals,” he says, adding these have proved quite popular given the persistent water shortages especially in Voi town.

Nelson reveals that they have been awarded a Sh2 million contract to supply culverts and fencing poles to the Chinese company working on the multi-billion standard gauge railway project.

Nelson says their ambition is to diversify and improve their range of products to supply the whole of Coast region.