COMPANY BACKGROUND Top Industries Limited is a leading manufacturer and distributor of household plastics, sacks and PVC pipes

in the country. The company was incorporated in 1975. The company is Free Zone Company and has about 20% share of the market for household plastic wares in the country. Top Industries currently exports 80% of its products to neighboring countries and is planning to expand its business to other African countries. Top Industries Limited remains a formidable force in the market for household plastic products in Ghana, having grown to this position over two decades in Ghana. The company has also resorted to exports as a way of staying ahead of the market and maintaining its position in this market. The company imports raw materials mainly from Europe. Some of the companys raw material suppliers are Syrus Belgium Ltd, Antwerp, Belgium; LAKS International Ltd, UK; Nesstra Ltd in UK; MCS Ltd, UK and Snetor Ltd, UK. Raw materials for the company are petroleum by-products and its markets are often volatile, dictated by world petroleum prices. The company therefore stock in bulk at any point in time especially at the period when the prices of these raw materials are relatively stable. It usually takes between 45 to 60 days for raw materials to get to the port in Ghana after it has been shipped and takes about 10 days to clear it from the ports because the company operates as a member of the Ghana Free Zone companies. Production takes about another 10 days after which stocking is done and goods are subsequently loaded onto trucks for distribution to customers from within the country and in the neighbouring African countries based on specified orders/purchases. At any point in time, Top Industries Ltd must have 3 months stocks including finished products for the factory to keep running and to meet the demands of its customers.

Some of the major local customers of the company are L. Roma Ltd, 3F Ghana Ltd, and Ghana Specialty Foods. Some of the plastic products that the company produces include beverage and water coolers, food warmers, baskets, containers, trolleys, dish racks, basins, chopping boards, cloth pegs, chairs, buckets, soap dishes, plates, bowls and cups. INDUSTRY AND MARKET ANALYSIS Macro Environment Ghana, ranked amongst the top 5 politically stable countries in Sub-Saharan Africa has shown robust growth and stability in her economy over the last 10 years. This situation has given companies some amount of security to develop medium to long term strategies for their businesses. The Ghanaian government provides incentives to manufacturing companies by providing tax refund on imported raw materials a drive to boost the local manufacturing industry to viably compete on the free market. With an estimated population of 23,887,812 as of May, 2010, and an annual population growth rate of 1.9%, Ghana provides businesses with a large local customer base. Investments in industries such as mining, cocoa, energy, banking as well as telecommunication has contributed positively to the countrys GDP and currently regarded as growth sectors. The country recorded an average GDP growth of 5.7% in 2010. GDP growth rate for 2009 stood at 4.7% and that of 2008 stood at 8.4% by year end of 2008. With the discovery of crude oil in commercial quantities (estimated at about 2.1 billion barrels and increasing based on new discoveries), the Ghanaian economy is poised to further grow in terms of GDP with industry experts forecasting average GDP between 2010 and 2015 to reach 10.5%. The inflows from oil and gas trade would come to reduce budgetary pressures on the Government as well as enhance its fiscal stability.

The countrys inflation rate has taken a downward turn in the last two years and currently at 8.4%. This is the effect of guided fiscal and monetary policies of the Government of Ghana. The Government benchmark 91-day Treasury note is currently priced at about 9.37% per annum as against 23% some few years back. The fall in rates has impacted on the cost of borrowing as deposit prices are tied to rates offered by the Government on its treasury note. The Bank of Ghana (BoG) policy rate is 12.5% while current base interest rates offered by commercial banks one are from 16.95% to 25% from about 28% to 30% in the last two years. There is a downward trend on rates offered by some commercial banks, the least being 16.5%. It is expected that other sectors such as Cocoa, Energy and Manufacturing would continue to enjoy priority status as key sectors for growth and this is confirmed by increased attention from Government and investments from the private sector. MARKET ANALYSIS Structure & Description The manufacturing and marketing of plastics is characterized by few manufacturing firms that rely on a network of distributors for sales. The market for plastic products is highly competitive. The industry consists of importers and manufacturers. The industry is capital intensive especially for manufacturing companies. As a result of the intensity of capital needed, some new entrants have resulted to importing from neighbouring countries where existing manufacturing facilities exists.

Competition Competition is very keen among the market players. Despite import tariffs on finished/semi-finished products, local producers are sometimes faced with stiff competition from the influx of cheaper products. In the market for plastic products, factors such as brand acceptability and quality remain the driving force as it ensures consistent level of business at all times. The ability to sell and capture markets for products is tied to the presence of wide and effective distribution channels with proximity and availability. Also, as a result of keen competition players within the distribution network demand credit terms resulting in credit sales until products reach the final consumers. Suppliers Major players in the manufacturing of plastic products rely on foreign sources for most of their raw materials. These chemicals are mostly imported through agents or sister companies based overseas. In the case of Top Industries, the raw materials are imported from Europe and Asia. The company has a long term relationship with its suppliers. Major Players The major players in this industry and the share of the market they have are; i. ii. iii.
iv. v. vi.

Decorplast Top Industries Qualiplast Amani Manufacturing Kane-em 10% Others Total

25% 20% 18% 15% Industries 12% 100%

Board/Top Management

Key management team includes the following: Chairman Mr. Lilaram Wasudev is the Chairman of the company. He has a rich experience in the plastic industry. His qualities as a visionary leader has made the company one of the leading companies in the plastic industry in Ghana and its neighbouring countries.

Managing Director Mr. Anil Lakhiani is the Managing Director of the company. He has been over-seeing the affairs of the company for over a decade now. He completed his education in the UK and joined the company at an early age. His leadership qualities has steered the company to becoming a brand name in the country. He is planning to expand the business to cover other African countries. Financial Controller Another key member of the management team is Mr. Jignesh Parikh. He has a Masters in Finance in Business Administration from India. His wealth of experience of about 14 years in well known companies in Africa and India has contributed a lot in making the company to have a 35% share of the market for household plastic wares in the country. Plant Manager Mr. K. Palani is the Plant Manager of the company. He is directly involved in the manufacturing of the plastic products and works with other team members to enhance quality and durability of the products. He holds a degree in Plastic production and has a stint of experience working in India. OWNERSHIP & MANAGEMENT Ownership Structure: Top Industries Limited has a shareholding structure as follows: Name of Shareholder Anil Lakhiani Lilaram Wasudev Percentage 99% 1%

Conclusion Top Industry is involved in a good business with good growth prospect and strong cashflow generating capacity. The company has an entrenched position in the manufacturing and marketing of plastic products in Ghana. The company has strong management team with varied years of experience. For your consideration.