Introduction
His name is Rotimi Odewale and he lives in Ibadan. He is in his
forties and runs his own businesses. Although he graduated from the University
of Ibadan with a degree in computer science, he is a self-taught manufacturer
of industrial ice making machines (ice makers). From the construction-shed he
built in his house, he supplies customers in far-flung cities like Kaduna,
Calabar and Bauchi; and he almost always has a backlog of orders. What I found
most intriguing however, is that after seven years of successful business and
over 500 machines sold, the man still doesn't have an office - the kind
equipped with an executive chair and air-conditioning - instead he spends his
day at work with the machines, hammering, welding and the like. This is the
master stroke of his career, but we need to go a little back in time so you can
understand how.
A front-loading ice maker built by Rotimi |
Legacy
Orphaned at a very tender age, Rotimi's father had had a very
tough childhood. He told his young son about having to trek a distance of about
8 km to school each day, and back. Through sheer determination and hard
work, he finished secondary school, graduated from U.I, became a teacher &
finally joined the army officer corps. As time went, he was able to provide his
family with all the comforts he never enjoyed as a child, but he made a point
of teaching his children the dignity of work; especially work that others feel
too big to do. For instance, once in the presence of Rotimi's female friend,
his father insisted he use his bare hands to pick some oily muddy dirt clogging
a gutter. When he finished, his father was waiting with a bowl of water to wash
his hands. His dad then went in and brought a bottle of Armani, which he
sprayed on his son’s hand and asked him if they still smelled of the gutter.
The flustered Rotimi said, “No”, then his father gave him the bottle of cologne
and walked away. Lesson passed across; military style!
Growing up
Due to a referral, Rotimi had an extra year in the university and
during this time he was able to put his father’s lessons to use. He visited with
a friend working at a company close by and while there he offered some
suggestions on the software program the friend and company were developing.
Unknown to him, a director in the company overheard their discussion and at his
next visit, requested to meet with him. The director was the cerebral Prof.
Bamiro (ex-vice chancellor of U.I) who was on sabbatical at the company. The
Professor was very impressed and contracted him to work on the software. He was
able to complete the project in an extremely short period and was instantly
employed, confirmed as a permanent staff (he hadn't graduated yet) and given
even more difficult tasks to complete. He recalled once when he resumed at work
on a Monday with the Prof and neither stepped out again until Thursday evening.
They were trying to beat some deadline and as long as they had their cups of
coffee, and he his cigarettes (he later quit smoking) they just kept working.
After 2 years, he left the company for Ilorin (and also Ibadan and
Lagos), where he worked for years on contract with the Army. He was engaged to
train officers with computers on simulation programs and software, data capture
and satellite monitoring. After this, he started a partnership with a friend
and opened a cyber-café located in Dugbe, Ibadan’s busiest business district.
As the café began posting large profits, his business partnership began showing
more and more cracks. He eventually upped and left, and was beginning to wonder
if being his own boss wasn't the way to go. The next years were spent doing
whatever came to hand and created a desire for something personal, which he
would have full control over.
The moment of convergence
Then one day in 2006, while wondering and praying for guidance on
which career path to follow, his sister told him that someone had discussed ice
production with her and asked him if he would be interested in the business
too. The question, or proposition I should say, struck a chord and he decided
to give it a try. He recruited a technician who came highly recommended and who
promised to build him a one-of-a-kind ice maker. It was an expensive mistake!
After weeks of waiting for the creation, after several experiments by the
technician, after Rotimi suffered two electric shocks (the kind that gets you
flying across the room) and after pouring about N600, 000 down the drain, he
fired the guy. He picked up his laptop and began reading up how to fix (or
rebuild) the ice maker. One day he joined an online refrigeration forum; he
typed in the words: How do I
build an ice maker? And on
the other end, somewhere in Florida, someone saw his question and replied: Are you there? Thus began a relationship that led
Rotimi to owning his business today.
It was a 66 year old man who had only retired the previous week
and was bored, thus looking to get busy that he met on the forum. The man who
has a master’s degree in Refrigeration Engineering denies to this day that he
taught Rotimi anything. Truly, he didn't spoon-feed Rotimi but kept referring
him to websites and materials that he needed. He also kept supervising the
construction by requesting for pictures of what his mentee had made and
suggesting what next to do. He didn't collect a dime from Rotimi, rather he
must have been so impressed with him that he sent him $5,000 sometime later as
Christmas gift. Late in 2006, when Rotimi finally turned his first machine, it
turned out to be really good! The ice formed in a shorter period and lasted a
longer while.
Other People’s Money
When he started, he hadn't the cash to build another ice maker. It was a number of friends who financed the construction; they gave him money to build machines for them. Upon finishing their machines, while ‘testing’ and waiting for them to be picked up, he continued to produce and sell ice with them. The income from these sales paid for components to be used in making the next machine. Through this method, he was able to build more machines, sell them and grow his ice sales business. By accident, he had designed his machines such that the ice were not only formed through vapour-cooling, like conventional ice makers. His cooling pipes actually touch the ice and provided additional contact freezing. The result is that they are rock-solid.
When he started, he hadn't the cash to build another ice maker. It was a number of friends who financed the construction; they gave him money to build machines for them. Upon finishing their machines, while ‘testing’ and waiting for them to be picked up, he continued to produce and sell ice with them. The income from these sales paid for components to be used in making the next machine. Through this method, he was able to build more machines, sell them and grow his ice sales business. By accident, he had designed his machines such that the ice were not only formed through vapour-cooling, like conventional ice makers. His cooling pipes actually touch the ice and provided additional contact freezing. The result is that they are rock-solid.
Ice selling like hot-cakes
God also opened his eyes to the profitability of ice sales by bringing him a distributor - a woman who bought some ice from him. The woman discovered that his ice kept longer than what obtained elsewhere so she decided to try and be his sole distributor. She often arrived at the shop as early as 5 a.m. every day to buy his ice. She came back in the afternoon and evening and bought EVERYTHING. She was reselling them far higher than the price of others, hence it was a mutually beneficial arrangement. He recalls that at a time when there was an extra machine the owner hadn't picked up, she pleaded, cajoled and prevailed on the client to be more patient while ‘testing’ was going on just so her own supply of ice wouldn't reduce.
The Apola and Rotimi series
Customers call the top-loading ice makers Apola and named the front-loading ones after
him. They come in single, double, triple or even four-unit sizes with varying
load capacities. He has built 553 machines to date (early 2007 - April 2014)
and each sells between N285,000 and N570,000, depending on customer
specification. With his team of workers, he builds between one and three
machines in a week, contingent upon order volume. As at this interview he had 5
workers (3 on contract and 2 on permanent basis) but order volumes often
increase such that his staff strength reaches up to 16 workers. While the ice
makers sell more in the rainy season (in preparation for the coming
dry-season), sales of ice spike in the dry season; thereby giving him an
all-year round supply of customers. He is a believer in the kaizen principle
and is always improving the design or efficiency or cost requirement of his
machines. His aim is to make every machine better than the last. Recently he
had a friendly contest with one of his former workers, who has gone on to start
a similar business. They wanted to see whose Apola machine would make ice faster. Subject
to power supply, a typical machine makes ice in 12 to 16 hours. The ex-worker’s
machine achieved it in 9 hours while Rotimi's did in 6.5 hours.
Let’s talk margins
A test ice maker of his with a single-compressor unit consumes
about 15 units of energy (15 KWh) in making a batch of 18 ice blocks. At N13
per unit and N80 per block, that adds up to N195 worth of energy to make N1,
440 worth of ice. Other costs are water, cellophane, time and labour (this will
further increase if generator is used). Same former worker for example, who
lives in an area of the city where power supply is almost perfect, has more
machines and approximately makes a guaranteed N25,000 every day (during the
peak season) from ice sales only. Indeed the initial cost outlay is sizeable
due to the purchase price of the machine but the returns are fantastic; even
though the work is hard and can be quite painful.
Getting the last laugh
Rotimi is no different, at work, from the average auto-mechanic -
greasy and sweaty. When he started out, he faced a lot of ridicule especially
from people who couldn't comprehend why a degree holder should stoop so low!
They called him names and some suggested a change of job or hiring hands to do
the ‘dirty-work’. Being a chip off the old block, he didn't bother with their
opinions. However, all that changed the day he rewarded himself with a new 2007
Nissan Pathfinder – that shut a lot of mouths! Now, many of his former career
advisers are coming to him for business advice. And his admonition to them is
the same, “Quit daydreaming. Wake up and smell the coffee: God has given you
two hands so that you can fend for yourself”.
He concluded with the story of a fresh graduate who came for
advice on what business he could do. Following in his father’s footstep, Rotimi
didn't tell him what to do but rather showed him. He took him to the city
outskirts; to a bush full of pits where poultry farms dump their bird droppings.
He then asked an attendant to hose one of the pits. As they stood there,
overwhelmed with the rising stench, giant maggots of all species began to float
atop the water. Rotimi picked a hand net, swiped the top of the pool and
harvested some of the maggots. Showing this to the young man, he informed him
that if he could come to his house with 50kg of the maggots, he was going to
pay him N5,000. The man took his advice and began supplying fish farms with
maggots and later confessed to sometimes making up to N12,000 daily from the
sales of this premier catfish food.
Rotimi on his yam farm. To the right is the harvest of his yams |
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