WITH a mandate to improve shareholders’ value and provide its customers with innovative products, the Group Managing Director of Vitafoam Nigeria Plc, Taiwo Adeniyi has expressed optimism of consolidating on the gains of the merger between the firm and Vono Products Nigeria Plc.

According to Adeniyi, the merged entity will provide economies of scale, save costs and enhance improved operational and administrative efficiencies as comparative advantages would be explored to provide consumers with innovative products, while improving the bottom-line.

Besides, the Vitafoam boss urged the federal government to create an enabling environment for manufacturers in mitigating the effects of scarce foreign exchange rate for sustainability of businesses as the firm relies on importation of raw materials for production.

Addressing the journalists on the merger of Vono Products with Vitafoam Nigeria Plc, Adeniyi explained that the shareholders of both companies endorsed the merger at the recent Extra Ordinary General Meeting.

“The merger was concluded because investors believe in the ability of the management to turn the fortune of the company around. I can assure you that we at Vitafoam have always been thinking ahead. The issue of merger started about five years ago. Vitafoam is not just about mattresses only. We have many products for human comfort. As you all know, Vono is also a brand.

“If we produce foam and Vono produces furniture, they are complementary. It is a strategic decision for Vitafoam to have Vono as a subsidiary. As you are aware, we have other subsidiaries such as Vitabloom, Vitagreen and Vitapur. Each of them produces distinct products. But they have something in common and this defines the unity of purpose.

“We are truly a national company. We have a full fledged factory in Ikeja, Kano, Aba and Jos. We also have factories offshore. We operate at Sierra Leone and Ghana strategically to position the centres for inflow of foreign exchange in the long term because these are dollar based business environment. They may not be generating expected profit for now but they have high prospects. The key issue is that Vitafoam as a group, has a very bright future and the shareholder value would be greatly enhanced. As a mark of competence, Vitafoam is ISO certified”, Adeniyi said.

Corroborating him, Vitafoam’s Group Executive Director, Corporate Services, Olatunji Anjorin described the merger as a vertical one as the furniture produced by Vono Products would complement Vitafoam’s foams.

Anjorin explained that the consummated merger would put an end to past encumbrances militating against Vono’s growth, bring about more efficient expertise, shared value and improved technology.

Commenting on the operating environment, Adeniyi lamented the plight of manufacturers and pleaded that the federal government should address the chronic shortage of dollar and also revive Eleme Petrochemical Industry to live up to its strategic objective of serving as a hub for providing raw materials.

He explained that one of the company’s subsidiaries would soon commence production of vehicle filter and other components as the company has capacity to produce such product.