PwC MSME Survey 2020

Case study: Nuli Juice Company (2 of 3) "The Nuli Juice Company is proudly indigenous and has a 'NO imported products philosophy..." PwC MSME Survey 2020 PwC • • • • • Journey so far In January 2015, Ada Osakwe conceptualised and launched Nuli strictly as a natural juice company - investing through her principal investment vehicle - Agrolay Agricultural Company ("Agrolay"), a Nigeria-based agribusiness investment company. The Company has successfully executed key initiatives, which include: growing its production capacity to meet strong local demand; getting major retailers to stock its products; and opening its own-branded casual restaurant ('Nuli Lounge') in Abuja and Lagos; expanding from a CPG producer to entering the Fast Casual restaurant space with the launch of 11 restaurant outlets since January 2016. In its first year of operations, revenues grew by 172%; and in the second year (2016), it grew by 111%, which was an impressive performance at the time considering the economic recession in Nigeria. The Company has since remained on this growth trend, particularly with the tripling of the number of restaurant outlets. Business turned a profit after 24 months of operations (FY2016) and broke-even in FY2017, despite the difficult operating environment in Nigeria and the economic recession. The Company is proudly indigenous and has a 'NO imported products philosophy', ensuring that the supply-chain is secure and maintaining consistent, uninterrupted operations in a volatile operating environment like Nigeria. Recorded Milestones The growth of our team from only 1 person on the payroll in January 2015 to over 80 people as of November 2019, is a significant milestone for us. Furthermore, the fact that we have been able to set a strong standard of quality in a market that has accepted mediocrity for so long, makes us truly proud. The challenge we face today is ensuring that this remains consistent, even as we scale up our operations. Issues / Problems In my opinion, Nigeria is one of the most difficult places to build and sustain the growth of a business. I say this because since Nuli began, we have been faced with drawbacks, that I don't see my fellow entrepreneurs facing in fellow African countries like Ghana, Senegal or Rwanda. My sanity has truly been put to the test, and on so many occasions, I have felt like giving up. A few of the pains we've experienced are as follows: Finance: Working capital is not easy to come by. For instance, Nuli is not just in the restaurant business but also deals with fresh produce, so we are constantly in need of cash to make daily purchases of our perishable raw materials. We need to finance this and so must have cash available at all times. If sales is slow, this is not possible. If capital expenditures need to be made, this ‘eats' into our available cash, making it impossible to meet daily cash needs. June 2020 21

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