Clay Firm Creates Capacity to Consume

Published on 25th July 2006

Uganda Clays Limited (UCL) has allocated one billion shillings for upgrading of all the machinery in the company’s production plants in order to march the rapidly increasing demand for its products, according to the company’s chairman, Professor J.S.R Senfuma.

In his report detailing the company’s performance for 2005, Senfuma added that another Shs 70 million would be invested in improving electricity supply and metering to the factory. The current power shortage in the country has led to both low manufacture in industries and rise in the prices of goods due to high costs of production. Most small scale industries have resorted to the use of diesel powered generators.

“It has had tremendous negative effects on all production processes of the company,” Senfuma said. He added that the consumption of diesel increased due to the prolonged use of generators whose prices have also risen by 17%.

These effects coupled with a sharp increase in the price of coffee husks, used as fuel in the baking processes and the recent increment in the electricity tariffs resulted in huge increase in production costs and reduced profitability margins.

Unlike many businesses that take their customers for granted, UCL has promised to pull up its socks. “I am convinced that investors’ confidence will continue to improve and the company’s share value will continue to appreciate,” he said adding that improvement of customer service still remains among the company’s top priorities.

In spite of the challenging poor infrastructure in the region, UCL promises to open up more sales outlets in Kampala during this year to take products nearer to the people. As part of its social responsibility, the private company that manufactures tiles, bricks and other clay products has contributed to the repair of roads and bridges as well as providing assistance to institutions in several localities.

In order to trigger the engine of productivity among those perceived to be poor; one must ensure that they consume the fuel that will get them moving. Capacity to consume is created through affordability, access and availability.

If companies stopped perceiving low resource people as victims and burdens and started recognizing them as resilient and creative entrepreneurs, a whole new world of business opportunities will open up. It is time companies left the cities and visited the countryside with a view of repackaging their products to fit various classes of people and working with them on a win –win basis. The government on its part has to provide a conducive environment through lowering of taxes.


This article has been read 1,686 times
COMMENTS