We have strong history of presence in emerging markets’

Michael König is a member of the board of management Bayer AG –a global enterprise with core competencies in the fields of healthcare, agriculture, and high-tech polymer materials. In this interview, he spoke to Iheanyi Nwachukwu recently in Lagos when the global brand launched its entry into Nigerian market.

 

Can you tell us about Bayer?

We are an innovative company. We do that in particular in the area of healthcare, nutrition and agriculture and modern high-tech materials. In addition to that, we also have animal health care business, where we sell products that improve the healthcare of family animals.

In the nutritional agriculture business, we focus on selling products that help increase the growth of farms and quality of farm produce. This is very essential in Africa and Nigeria in particular because it helps farmers increase their yield and the quality of their yield.

We are also environmental scientists. In material terms, we look at high-tech polymer and polymer that can be used for furniture or other types of housing or modern appliances.

In these areas of our focus, the all basically have their foundation in us. We invent molecules, bring them into the market and develop their applications. We are in transaction as a company. We are moving the company into a pure life time entity. We are deeply focused on healthcare, crop and agricultural businesses. We do not only export the material business, we have also acquired business.

Bayer is making entry into Nigerian market when other investors fear risks of oil price decline, unclear government policies and insecurity. What drives you?

For us, present in a country or a market is a very long term strategic decision. We have in terms of Nigerian market, the confidence because of the huge potentials that the country has as well as the determination of the government to move the country forward and its huge population.

Bayer has a good and strong history of having presence in emerging markets. We have looked at Africa as a whole two years ago and we are trying to redefine our strategy on Africa.

We tried to identify the countries we will focus on in Africa and Nigeria came out very clearly as one of three or probably most important focal point because there is so much potential and there is first indication that the potentials are going to be a lot.

Though there are couples of challenges, but we are aware of that because no business exists without risks or challenges. When we talked to people here, we found out that their confidence in Nigeria is on positive path and we want to be part of it.

How will you navigate the waters considering likely competition by other companies in same industry you are in?

One thing in very important to us; we are a socially and sustainability driven company. Integrity in what we do is one of our highest core values. We have in the past never really compromised that and we are not going to do that here. I believe that with our focus on integrity, we will find our place here, simply because the environment is going to move to more compliant environment and we have convincing good products that really make a difference to the customers and stakeholders that get the product because of its high quality.

We are typically a leading company in terms of the quality of our products. We believe that we will be rewarded in this market. At least, we are a company that has always looked at market, growth and look at investments from long term perspective.

What are your long-term goals in the Nigerian market?

We have couple of goals in Nigerian market. We have grown from one employee in Nigeria to 20 employees. By the end of this year, we will probably be up to 30. We will see businesses being recreated and a lot of business developments. In two to three years, we would see potentials for further expansion.

In value terms, what are you bringing to Nigeria market?

For Bayer, we are people driven organisation in any market. If you look at our portfolio, we are basically innovation driven; but also driven by our ability to defend our products. Even though I know there is competition in this market.

In a country of about 170 million people, there is no doubt you have a market. What kind of strategy will you use in the competitive market?

In terms of innovative products, we are a leading company; also in terms of portfolio of products that we have. Here in Nigeria we are not scared of local competition. Usually, anywhere around the world, there is local competition; but we are not scared of that, because we have leading products.

Also for our pharmaceutical and consumer care business, we look at areas where we have competitive advantage. I don’t see any reason for us to be afraid of competition.

If you look at the history, research, innovation, knowledge and experience that we have and add the portfolio of products, I wouldn’t see any company that could reasonability compete with us. Also, fundamentally, we come from science and innovation.

We simply have good products and we have strong marketing skills to sell the products. If you look at the potentials of the market simply in terms of the population of Nigeria, improved turnover will further drive more employment because the potentials in Nigeria market is very large.

What are your expectations from government?

We need a stable, reliable regulatory and legal environment. That includes reliable protection of intellectual property and trade market. We also need a functional healthcare system because our products will thrive on activities of functional healthcare professionals. We need the environment that will make our products useful. That is, something that we cannot create but we can support. Government needs to create that conducive environment for us.

What do you say to your customers?

Bayer is an innovation driven company and since more than 150 years we have spent some time developing and selling products that improve people’s life and we are in particular doing that for the healthcare professionals in the pharmaceutical area; for the general population and the consumer care area. We also help farmers increase their yield and quality of their produce.