By Chinenye Anuforo
Metal Manufacturing Nigeria Limited (MMNL), the country’s leading producer of tubular batteries, unveiled a $50 million investment strategy today to boost production capacity to 100,000 units monthly within the next five years.
This initiative encompasses investments in new projects, research and development, and backward and forward integration into mining and manufacturing processes.
MMNL aims to double its current production capacity to 60,000 units per month in the upcoming financial year to cater to Nigeria’s burgeoning energy sector. This investment will facilitate the establishment of new energy backup projects, plastic container and carton manufacturing units, alongside enhanced brand-building and partner engagement initiatives.
As the pioneer in Nigerian tubular battery production, MMNL acknowledges the numerous challenges it has faced, including a skilled labor shortage, supply chain disruptions, an unstable power supply, high electricity and gasoline costs, and limited access to spare parts and raw materials.
Despite these hurdles, the company has persevered, creating thousands of jobs while advocating for government support in the form of increased import duties on foreign batteries and export duties on raw materials to bolster the struggling battery manufacturing sector.
MMNL has addressed these challenges head-on by enhancing operational efficiency, providing extensive technical training to its local workforce, and venturing into the mining sector to secure a steady supply of raw materials.
“We are proud to have achieved a stable production rate of 30,000 units per month as of 2024, despite facing numerous challenges,” stated Mr. Amit Kumar, CEO of MMNL. “As the first and only Made-in-Nigeria inverter battery company, we hold a dominant market share exceeding 40%. Our unwavering commitment to innovation and quality significantly contributes to local employment and foreign exchange savings.”
MMNL’s strategic focus hinges on achieving complete supply chain control through backward and forward integration. The company has invested $25 million in a new battery production and lead oxide manufacturing plant located in Shagamu, Ogun State.
With its current production at 30,000 units, MMNL plans to double this capacity by the start of the new financial year. The company aims to further expand to over 100,000 units by 2027-2028 through the construction of a new greenfield production plant and additional backward integration initiatives, including lead-zinc ore mining and beneficiation.
To enhance market accessibility, MMNL is expanding its geographic footprint across Nigeria, solidifying multi-channel partnerships, and leveraging e-commerce and digital sales channels.
MMNL’s 14 years of experience in Nigerian manufacturing have established a formidable barrier to entry for new and existing competitors in the tubular battery sector. The company’s unwavering dedication to quality and innovation has been recognized with numerous prestigious awards, including the ECOWAS Inverter Battery Company of the Year, ECOWAS Inverter Battery Manufacturing Company of the Year, and ECOWAS Renewable Company of the Year.