B5 Plus: The Leading Iron and Steel Company in Ghana and West Africa by Mukesh Thakwani

Interview with Mukesh V. Thakwani, Founder and CEO of B5 Plus Ltd

What is the scope of your business?

B5 Plus is involved in steel manufacturing and trading activity. We are involved in prefabrication and we are West Africa’s biggest fabrication plant. We are also active in the construction industry. We are also in the service industry through our DPSI International School.

How would you assess the iron and steel industry?

The steel industry in Ghana in the last decade has really boomed because of the many government policies, not only for Ghana but for all of West Africa. Today, Ghana is becoming the hub for supplying to the steel industry for West Africa. We are very proud to say that just two decades ago, B5 Plus was one of the importers from the neighboring countries, like Ivory Coast and Togo, and today, we have become a net exporter to 15 West African countries. It is a very competitive environment right now. The market is a bit saturated in this segment, but we have a competitive edge and we are moving forward in a positive way. A lot of backward and vertical integration is required in this particular field right now.

What are the major challenges that are confronting the company or the industry as a whole?

For the industry as a whole, the biggest challenge we are having right now is the electricity prices. Electricity prices in Ghana are much higher compared to the international markets. We have competition with tough countries from Asia where the price of electricity is much lower compared to that of Ghana. There is also the issue of the timely supply of electricity for the new industries and challenges with the water supply.

How did COVID affect your sector?

It has affected many industries and the steel industry was not left out. We had our own challenges, from manpower to health issues. And then, on the ground, there was the challenge with the regular supply of electricity and water. The Ghanaian government has really done a commendable job in these difficult times. We are very proud to say that Ghana has come out as a winner. The number of cases in Ghana was quite low because the Ghanaian people really listened to the ministry regulations. In the near future, COVID will be a thing of the past here. For the last six months, we have been giving a free oxygen supply to all government and private hospitals. We have also given a lot of donations to the government and private individuals, whatever we could do. Collectively, there were very good efforts made by the Ghanaian government, Ghanaian companies, and individuals. Today, we are blessed that Ghana is comparatively a much safer zone. In the near future, we will be able to put COVID behind us.

Many companies are taking action to improve themselves, to get more efficient, more digitalized, to take advantage of this situation and to become stronger. Have you done some improvements as well?

Tough times never last but tough people do. I really believe in this mantra. When times are tough, this is where the real leaders emerge and they come up with a better solution. We had to be stationed in one place and we learned to do our meetings on Zoom, for example. Bringing the technology and automation closer to us was new. Also, during this time, we never fired a single person; rather, we went ahead and hired as a CSR activity as a group policy. In difficult times, how can we sustain ourselves and at the same time try to grow? We have a couple of projects which were coming up and we were able to start on that. For example, we had a 25 kilometer long wall we wanted to build around our compounds in the new project. That is how we were able to create the employment. We were able to think outside of the box, put the things on the blueprint for the new projects, and find how we could have government support from their side so that we can really make the Ghanaian dream come true.

What CSR activities are you doing currently?

Today, when you talk about industry, whether it is the residential construction industry, the mining industry, the fabrication industry, individual homes or anything related to steel, B5 Plus’ name is at the top.

B5 Plus always believes in giving back to society manyfold. Education is very close to our heart and that is why we are the promoters of DPSI International School which is located in Community 25. We believe that education is the best tool to give back to society because this is a gift which will last. We give free education to a lot of our employees and we promote education. After that, we come to the health sector. We conduct a lot of free health checkups and blood donations and a lot of communal services like eye camps, etc. We are also into other CSR activities, like boreholes, giving free education, promoting educational supports like MICE examination, Scripps Spelling Bee examination, and much more. B5 Plus was very prompt and aggressive in giving to the government coffers as well when this crisis began. When His Excellency, Nana Akufo-Addo, called for donations, B5 Plus was there. We also gave to the private institutions like AGI and the CEO Forum and many other forums. Charity starts at home. During the lockdown period, the first thing we did was to keep all our factory employees within our campus. We built a facility for them to reside in and we paid them one and a half times their normal salary so that they were able to stay motivated and work harder. We were able to provide boxes to them where we put rice, sugar, and the basic amenities for one month so that they could feel secure when they are working here that their families would also have food. B5 Plus also distributed 1,000 packages of food to the communities surrounding us so that people who are not able to work were able to get free food for one month. We were the first company to come up with free oxygen supply. We realized that the oxygen prices were really increasing in the market. B5 Plus pledged to fight COVID along with the government and our dear Ghanaian brothers and sisters. For the last seven months, B5 Plus has been giving free oxygen not only to the government hospitals- anyone can come and collect the free oxygen from us- but also to the private hospitals so that the costs can be reduced and they are able to take advantage of it. Many Catholic hospitals, private hospitals, not only from Tema, Accra, but from the different regions, have been coming and collecting free oxygen from B5 Plus, and we will continue this program until December 31.

What makes B5 Plus stand out from the competition?

B5 Plus is the top player in the sector. When we started, people were looking for quality products delivered to their doorstep. We brought in the concept of service. B5 Plus has built up many entrepreneurs. Today, in Ghana alone, we have more than 1,000 distribution networks with 12 outlets in the region. We are able to bring the quality product at a competitive price to the consumer’s doorstep. Through our network, they were given the credit facility, the port, and they have created thousands of jobs. Directly and indirectly, we are giving jobs to more than 10,000 people and with the new project, 15,000 people. We give back to society in many ways. Today, when you talk about industry, whether it is the residential construction industry, the mining industry, the fabrication industry, individual homes or anything related to steel, B5 Plus’ name is at the top because that is where we deliver and we add the value not only for the company, but also for the associates.

What are some of your success stories and awards?

We have many major projects such as the Bui Dam, Accra Mall, the stadiums, any university project, major road projects, even the President’s house, we are proud to say that B5 Plus was associated with that. B5 Plus delivers quality steel and that is where the customer satisfaction lies. They know that B5 Plus will not only be delivering quality steel, but that we will be delivering at a competitive price at the right time. That is where we really stand out. Even last week, we have received from His Excellency, Nana Akufo-Addo, the Industrialist of the Year award. We have also been a Ghana Club 100 company for the last few years. We were the AGI Industry of the Year last year. We are also the CSR Company of the Year from the AGI. We have won many awards on our quality, our service, and our CSR activities. B5 Plus is top in our segment in the steel industry. We are by far number one, but overall industrial ranking, as per GIPC (Ghana Investment Promotion Centre), we always ranked number one or number two. B5 Plus is always making sure that with each award, it takes us to the next level, making sure that we are keeping on our toes to deliver the best.

What is your vision for the company in the medium term, three years’ time?

We want to get more into manufacturing products. With the current project that we are running, over the first phase, we will be able to save 100 million dollars of foreign currency for Ghana. If we have government support, we can really increase this number. Not only will we be able to save hundreds of millions of dollars of foreign currency, we will be able to create jobs, we will be able to sustain the economy, we will be able to produce quality, “made in Ghana” goods. In the fabrication aspect, in less than one year, B5 Plus has emerged victorious. We have delivered more than 15 projects and we have a huge capacity. We have not only delivered in Ghana, but we also deliver in West Africa, Guinea, Mali, Ivory Coast, Gambia, Senegal, etc. We are receiving orders not only from Ghana, but from the whole of West Africa. The Ghanaian government has to stop the importation of any cheap products or stop importation completely, where Ghana is able to produce the goods. Whenever the Ghanaian government has a project, they should first anchorage the goods which are made in Ghana. This is how the industries will develop and how we will create more employment and bring goods with competitive rates to the doorstep of every Ghanaian.

What do you want to achieve in the short term, by the end of the year?

For the short term, we have already started the fabrication plant and we did a second phase of expansion as well. Now, we have two challenges. One is the electricity supply, constant good quality electricity supply without fluctuations and without cut offs, and the second is the water supply. The third important thing is that as we are building up the capacity, we need orders. There needs to be an immediate ban on cheap importation because we have the capacity to deliver not only for the Ghanaian market, but for the whole West African market. The Ghanaian government should immediately put a ban on the importation of any type of fabrication into Ghana. That will really motivate and this will take us to the next level.

What kind of fabrication are you working on?

We do fabrication of tankers, warehouses, residential buildings, any type of fabrication. This is the best technology because it is much faster than the old, conventional type. If you say today you want to build a hospital, you can build a hospital within a couple of weeks and that is only possible with fabrication. If you go the conventional way, it will take a much longer period of time. So not only do you save money, but you save time. Currently, the initiative brought by the Ghanaian government is an excellent thing. Today, if anybody wants to get into the industry, under One District One Factory, if you have a project in mind and you want to deliver that project on time, the best thing is that you go for this fabrication. Within a couple of months, you will have the structure ready. If you give us any project, within six to nine months, we can have the project ready for you, delivered at site, ready for you to operate. This is an exceptional thing. If today, you want to order something from outside, it will take you six months. But B5 Plus can do a turnkey project for you. So, within six to nine months, we give you a project ready in hand and you are able to start your factory, whether it is a juice factory, a tomato factory, if you want to build steel or build cars. We can deliver everything to your doorstep. If you want to build tankers, you want to build a tank form, whether you want to have truck trailers, anything you say, we will be able to deliver to you at your doorstep at competitive prices.

You are the founder of the company. What is the story behind it? What made you build this company? What has the journey been like?

This journey started 32 years when I was a young man. I am really blessed that I came to Africa and I am more blessed that after seven years going to different West African countries that I settled in Ghana. 20 years ago, everything in Ghana was being imported in the steel industry. At that time, when we said that we wanted to get into manufacturing, I remember when I spoke to my uncle, he told me it was a crazy idea, because manufacturing is not a success story in any part of West Africa. But I was very determined. And with a modest start with a production of nails and then binding wire and then iron rods, today, we are very proud to say that we are making more than 100 products and we are really looking forward to producing a lot more. Ghana is really blessed with the location as well. I will give all credit to our dear brothers and sisters in Ghana. They really make this place beautiful, always welcoming, always with that positive attitude. It is very easy to work in Ghana.

What has been the key to your success?

The key is the commitment to hard work. It is something which requires humility, empathy, and being with people. Now, we build up the people around us. Today we have more than 1,000 distributors. We have built so many entrepreneurs around us. So, once those entrepreneurs are built around you, that commitment and that dedication is there and they also want to grow with you. Whether you talk about the banker, a supplier, a trader, everyone grows with us.

Are you interested in joint ventures or partnerships?

B5 Plus has made a foothold not only in Ghana, but in West Africa. Today, we are very proud to say that we are the market leaders not only in Ghana, but in the whole of West Africa in the steel segment. We want to grow from here, not only into the steel segment, but also into the other segments. So, we really are very keen to make investments and put our steps into the service industry like hospitals. Medical is a big possibility for us. We are also interested in aviation, and most important, the agro industry. Ghana has a lot to offer. If we have good land reforms in Ghana, with the help of the government, we can really produce a lot of agro foods right here, made in Ghana. There are many industries related to the agro so there is a huge potential there.

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