Adane Berhe is the founder of Adal Industrial P.L.C. Since its establishment, he has been working hard to get the company to the level where it is now. He spent many years looking for options to engage in industrial business through means of generating new idea, innovation and creativity. The Ethiopian Herald had a little while with the founder of Adal Industrial PLC- Adane Berhe. Excerpts:
Herald: Could you tell us about the historical background of the PLC?
Adane: The Company was established aiming at bridging the gap of investment in the field of incense products. The investment was a bit disorganized. It was established in 1979 with the brand name of Crown Incense Stick.
At that time, though there was no convenient and streamlined trade, we produced the incense item with limited capital inflows. Though I had not a plan to involve in such kind of business, I envisioned engaging in industrial business activities. I was enthusiastic to do business in the spheres of innovation and creativity.
Then gradually, engaging in incense business activity crossed my mind. As the market demands competitiveness, sagacity and bold moves collogues and I were forced to produce quality bamboo products. After Ethiopia espoused free market and privatization, there was a big temptation in getting involved in demand-driven market as well as local market.
There is placing focus on the quality of the bamboo trees, products to produce incense productions, we managed to survive the competition of the local market and sustain our business.
And we have proceeded further to step up production and productivity through utilizing technology intensive to prove much competitive in the market.
So, from India we brought high-tech machines, which have a hallmark and brand names of incense products. In course of time, we firmly held the belief that it is possible to introduce new products – such as bamboo trees-made-sanitary toothpick, bamboo blind (curtain) and other related products.
Naturally, bamboo trees have distinctive features unique from other trees. That is, cutting bamboo trees is encouraged to increases their production and productivity. Unless the bamboo trees are trimmed, its species could disappear.
Therefore, we believe that it is a great opportunity to import bamboo cutting machines to invest in this sector. Secondly, the bamboo trees have unique features of strength. Since the bamboo trees have a prolonged life span, the trees become stronger and stronger.
As a result, it makes the bamboo trees helpful for using them for various services and purposes. This can be realized if the bamboo trees are conserved and maintained well-enough. In other words, there are follow-up processes of handling the bamboo trees before they are infected by parasitic worms.
Before used for industrial products, the trees must be washed. They must be neat. They must be carbonized to acquire quality products. So make sure that the trees are ready enough to deliver satisfactory results. It picks strength by the day. There are so many bamboo tree varieties.
In consideration of the nation’s environmental eco-system and climate seasons, we have both highland and lowland bamboo trees types. In this regard, Ethiopia is really endowed with various kinds of bamboo trees. For instance, Shemen bamboo tree is found around highland areas. But most of the time, we use lowland bamboo trees type.
Before engaging in bamboo industry, we have to have a deep understanding where the bamboo trees are fit to grow. Then, we try to draw lessons from other bamboo products producing countries through visitations of the particular places of the companies.
We used the experiences as a lesson in building a bamboo factory.
In Southern Nation Nationalities and Peoples States, Hager Selam, Shenen and Woliyta are few of rich bamboo trees places . According to the study finding, in the Africa context 68 perecent of bamboo varieties are found here in this country.
Imagine we are still lagging behind in not utilizing the untapped potential of the given tree varieties for economic performance of the country. Due to wrong assumption and ignorance on the significance aspect of bamboo trees by the rural farmers’ communities, we are not able to use the bamboo trees appropriately and properly. Here in this country, among the two bamboo tree producing companies, we are self-sufficient in satisfying demanders’ interests.
Of course, the bamboo trees’ prices are sky rocketing. This is really serious problem in the industry. After we established the factory, the number of householders that use the bamboo trees for home building consumptions is snowballing.
Gradually, we started using the bamboo trees for multi-purposes such as bamboo flooring, bamboo blind, incense stick, bamboo ceiling, and timber products. We use by product of the bamboo trees for producing charcoal briquettes aiming to fuel wood consumption. In short, we give high prioritization for deploying high-tech. Specially; we managed to produce sanitary tooth stick products, which are reputable brand for hotel services.
Hilton Hotel was the foremost customer of packaging sanitary tooth pick products. At this moment, the toothpick products are bought by several international hotels and local restaurants. One of the big successes of Adal Industrial PLC was an introduction of technology in bamboo trees industry. In the not distant future, we plan to launch pulp, paper products and put up them on market within a period of two months. This kind of product is climate friendly. We have a plan to produce white pepper.
Herald: To which countries does your organization export the processed products?
Adane: We exported incense sticks to India. And charcoal briquettes to Libya. We exported those products to the countries that are not much extensive and large.
Herald: Tell us about the feedbacks your company received from customers?
Adane: The customers accept and buy our product with great level of admiration. We enjoy appreciation regarding how the bamboo twig got converted into sanitary toothpick. The customers accord us a lot of admiration whit emphasis on the creativity we came up with. Our door is wide open to welcome any complaint about our products. Customers’ encouragement or feedback serves us as an incentive to proceed ahead.
Herald: What kind of relationship did your organization establish with the government, and other stakeholders or supporting groups?
Adane: Though the question is inevitable to ask, it is very hard to respond for such sensible issue. Actually, there would be governmental policy which encourages us to engage in healthy business. Facilitating some sort of incentives as well exemptions from the government side is expected.
It is hard to translate the policy into practice. We have not yet received supports from governmental bodies based upon the industry’s policy.
We are importing technological machines and other related materials paying taxes.
As a matter of fact, there are incentives, especially, by the Ministry of Industry (MoI). But the real case is the only support we demanded is simply the enhancement of our industry. Of course, MoI is doing great in facilitation of hard currency.
Because of bureaucratic labyrinth, we were forced to pay demurrages for 40 fit containers.
Herald: Do you get sufficient quality bamboo raw materials in the required volume for your task?
Adane: In comparison with its demand, it is not as such sufficient and abundant. We prioritize in producing quality-based bamboo products. As much as possible, we put them up on market after introducing the products.
Herald: What sort of challenges have your factory faced so far?
Adane: Even if we do not have many products due to importation of limited raw materials, we are still working hard to be abundantly productive. As we believe that we are part of the government’s effort of development, we try to handle internal and external problems by ourselves.
Herald: Do you have any plan to expand your organization?
Adane: We have reached agreement with other foreign organizations. So, we request the government to facilitate the lease of land to extensively expand the task of our factory. But some government ministries have not allowed us land for expansion purposes.
If it is possible, with in a short period of time, we will be glad to expand the bamboo trees plantation, which will be the first and utmost in Africa continent.
If I chance to meet the Prime Minister Abiy Ahmed, I will tell him that the bamboo industry should be given due attention for the overall economic performance of the country.
Otherwise, we may face hardship and political constraints what happened on us previously. Unhealthful business scenarios may take place.
We are doing our best to do plant project and are studying the appropriate place for the bamboo trees plantation. Hopefully, we will receive encouraging feedback from concerned bodies to launch the project into practice.
Herald; Tell us about the experience of other countries in engaging in bamboo-tree-based business?
Adane: Other countries do lot of things within limited resources. They get support and incentives from the concerned body beyond the framework of industrial policy. Not only the government but also development-based NGOs are contributing a lot for bamboo tree industry. It is hard to compare it with other countries’ experiences.
Hearld: What should we do to enhance the export of bamboo products for foreign markets?
Adane: We have to upgrade our production and productivity. If the presence of a healthful business environment and producing qualitative, items in the required quantity, it would be much easier to penetrate the global market and get hard currency. In order to have a place in a foreign exchange market, we have improved and updated the technology we were using before.
By improving the capacity of technological machines, it is possible to score high in global market using limited startup capital and investment. If somebody wants to understand us and what kind of goals we have, it is as easy as ABC to produce items to export-driven economy. The problem is that it is unthinkable to produce quality products using outdated technology.
Herald: What can you say on the future prospects of your organization?
Adane: We have a plan to fetch foreign currency from the export to the global market.
Herald: At last, you are welcome to convey additional messages.
Adane: We should not do something for the sake of fulfilling our demands and desires. The country’s interests must come to the center stage. And we need leaders who want to hear us and realize the genuine mission we have.
Encouraging us in the expansion of the industry helps a lot in reducing the ever-increasing rate of unemployment and hardships. Ninety percent of our workers are women. Presumably, we are working hard for added job opportunities for the coming generation.
The Ethiopian Herald Sunday Edition 11 August 2019
BY MEHARI BEYENE
