RAW MATERIAL MANAGEMENT IN A BREWERY INDUSTRY (A CASE STUDY OF GUINESS NIGERIA PLC)

RAW MATERIAL MANAGEMENT IN A BREWERY INDUSTRY (A CASE STUDY OF GUINNESS NIGERIA PLC)

CHAPTER ONE

1.0       INTRODUCTION

The major fact the characterize the parents economic science in Nigeria is the man reduction of workers under utilization of factory capacities profit margin closing down of so many factories lost/ shortage of very essential industrial out put and consumer good etc.

There problems emerged from how the level of productions in industries have be developing difficulties in the requisition and   handling of raw material in any production process.

No organization or firm can effectively carry out its duty activities in an organized manner without the interruptions in the flow of raw material.

The position enquired by raw material in the process of production now become reality applicator when the coot of acquiring such amenities is been compared to its total cost of production.

According to the encyclopedia of management by Heyez (1983) raw material handling represent thirty-five to forty percent (35-40%) of all production cost sometimes it is or such or seventy-five percents (75%)

From the above we can now see the importance of raw material management

David farmer defined material management or the concept concerned with the management of flow of material into an organization to the point where there material are converted into the firms prod into the firms products it is only when management become successful to the problems encountered with there raw material management and critically examine the effects on other function of the firm.

Hence this study of given breweries plc material management method so see if there company with the generally accepted practical method and the effect of such on the production process.

HISTORICAL BACKGROUND OF GUINNESS BREWERIES PLC

Guinness  Nigeria plc was established in the year 1950 and or at then the duty was to import and distribute Guinness stout from Dubum for sale in Nigeria.

As a result of its great success in the sale of the imported bear (stout) in Nigeria it was decided that the above brewery was built at the cost of N2.4 million in 1961. he brewery started production in 1962 this made Guinness  Nigeria plc one of the first companies in the world is produce guineas stout outside Britain.

The factory was located at Ijeja (Ojibe) Lagos state and or at then it was producing only Guinness  stout the company then because a public liability company in 1965 and was managed by Nigerians their maker it possible for Nigerians to   being. Sharer in the company

Hence the Guinness Nigeria plc became one of the first companies to be quoted on the Nigeria stock exchange (them the Lagos stock exchange)

About one thousand Nigerians acquired some sharer in the company totally twenty percent (20%) of the equity of the company of that time

In 1970 following the increased demand due to high quality of the product the brewery was then expanded and also was it production capacity from thirty thousand tomes (30,000) in 1967 to sixty-four thousand tones (04.000) in 1970 the growth handed by the building of the brewery reached its peak in 1974 1982 and 1989 in 1974 a new brewery for harp larger been was commissioned in Benin city at cost of twelve million Naira (N 12m)

The commissioning of the brewery signaled the entry of the stout giant into the larger market.

In 1978 a new Guinness stout brewery was opened in Benin city at the appreciated at thirty million Naira (N30m) this was in addition to the one built in 1974 which was producing harp larger beer

Ti was the largest brewery build from locally generated funds sources of these fund include:

i.                    The sale of 4,000,000 sharers Nigerians participation increased from 40% -46%

ii.                  N 6,000,000 2^nd mortgage debenture 1978/91

iii.                N 6,000,000 and 9% first mortgage debenture 1976

iv.                N 8, 8000,000 from internal revenue

In 1982 the fifty two million Naira (N52m) ultra modern Ogba brewery for harp larger beer commended production.  The brewery was rated or the most sophisticated in the whole of Africa in 1987 Guinness Nigeria limited a new product to its stout production.  This product has the brand name of MERIT and reputed to its 100% locally sources currently Nigerians are holding seventy five (75%) percent of the companies sharer. While Guinness over sees the remaining twenty-five percent (25%) including Atlanta limited.

RAW MATERIAL MANAGEMENT IN A BREWERY INDUSTRY (A CASE STUDY OF GUINNESS NIGERIA PLC)