From food vendor to CEO

Financial Standard

Richard Ndubai knew little about the clothing industry. However, after frequent visits to the Export Processing Zones (EPZ) as a food vendor, he developed interest in garment-making.

Being a hotelier, the quest to establish his own industry was met by a professional conflict.

However, his desire grew gradually after two multinationals at EPZ closed shop early 2008 in the wake of global financial turmoil.

"I saw an opportune time to open a business," says Mr Ndubai.

He had no idea how a garment factory operates, save for the experience of his labour force.

Despite that, he left his career and followed his dream.

He begun the long sojourn that culminated in realising a previously thought and elusive dream —establishing the only Kenyan owned apparel company in the EPZ.

Ditching the venture

No success comes without pain, and Ndubai’s case was not different.

His quest to enter the garment-making business was met with insufficient funds, lack of proper contacts, scanty information on market access, red tape and the cut-throat competition from big players.

At some point, he contemplated ditching the venture.

"I visited banks severally to top up my savings with a loan. When I finally secured one, I took off never to look back."

Ndubai, 32 years old, then established Ricardo International Ltd. But due to little capital base, failure always hang on the air.

The global recession characterised by deepened economies sparked further uncertainty to his venture.

This was 2008 when the global market was hit by recession and closer home, the country was overly fresh with post-election effects of 2007.

But his firm resolute decision to go for the garment industry blinded the challenges.

The US, which is the major market for EPZ products courtesy of African Growth and Opportunity Act (Agoa), had its economy hard hit by recession and as such, increased uncertainty for a two-month old Kenya’s apparel company, where most exports were targeted.

He was torn between closing down the business and Staying put to weather the financial storm.

However, Mr Ndubai consistently knew failure was not an option, as all his savings were in the venture.

"Businesses found by huge financial investments can also slump even at their infant stages. But with little investment and focus, any business venture has many chances of succeeding," he says.

As months went by, every little sign of failure came with huge success. He turned what seemed like a threat into an opportunity and with that success came.

Today, he is matching with the world’s renowned business entrepreneurs and headed in the right path.

Currently, signs of success are evident through huge demand for his garments, even as the western economies climb out of recession.

Ndubai, a CEO of Ricardo International, says all is well, not only to his company, but to other local industries with no bearing in the global market.

The multi-million value of Ricardo International is evident by the daily production of garments and the swelling number of workers from 300 to over 450.

He intends to increase workers to match the increasing demand.

Ricardo International is the sole supplier of bed sheets to hospitals for the government of Southern Sudan, a deal clinched after cut-throat bidding with other international apparel companies.

The company is also at an advanced stage in clinching a lucrative deal with an international US-based company, the MacDonalds.

France and Italy, he says, are also part of the countries that have demonstrated willingness in his garments.

Besides the global markets, Ricardo Ltd has had talks with the Government to supply garments to the disciplined forces.

big demand

"We have held discussions with the Government and hope for a fruitful conclusion soon," said Ndubai.

He adds that demand for the garments has risen steadily overtime surpassing the production capacity, which stands at 5,000 a day.

A visit to his office in Nairobi’s EPZ Athi River portrays a little company that is trying to match the increasing demand for its products.

With the coming into force of the East African Community Common Market Protocol early this month, Mr Ndubai says plans are underway to reap from the protocol.

"We have set up base in Tanzania and production is set to start any time from now. Also, plans are afoot for the company to enter the Ugandan market," beams Ndubai.

He hopes the Government will support local investors in providing financial leverage and reducing power tariffs.

According to Ndubai, the rising demand for garments has forced the company to seek new space within the EPZ, which is part of its expansion plans.

The new building will act as a packaging and administration block to pave way for adequate space for production and storage.

"The overall goal is to offer quality garments for high-end markets," said Ndubai.

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