By Ebele Orakpo

In a bid to get a bigger share of the foam, mattresses and furniture market, increase value for all stakeholders and reduce operational costs, Vono Products Plc. and Vitafoam Nigeria Plc, two of the nation’s leading players in the beddings and furniture industry, have come together in a strategic alliance.

Briefing newsmen in Lagos weekend, the Managing Director of Vono Products Plc, Mrs. Titilola Bakare said the alliance became necessary because “in the 1960s and 70s, Vono enjoyed great patronage and tremendous market share in its core product line until about two decades ago when the fortunes of Vono worsened due to a combination of factors, including poor management, economic downturn in the country which reduced the purchasing power of consumers and government neglect of institutions.Whilst we have the Vono name heritage to leverage on, the company has not achieved the expected market share in the trade.”

On their part, the Ag. Managing Director, Vitafoam Nigeria Plc., Mr. Joel Ajiga said Vitafoam saw the opportunity to invest in Vono and took advantage of it. According to him, Vono has superior capability in the area of furniture-making while Vitafoam has the largest foam manufacturing and distribution network which will benefit Vono in terms of timely delivery of its products in and outside the country.

Ajiga said the alliance is all about collaboration and not mergers and acquisitions. It will involve information-sharing, developing new ideas and pooling resources together.

The Group Company Secretary, Mr. Lekan Sanni said the two companies will remain as separate entities. He said right now, Vitafoam has about 25% investment in Vono. Vono on its part, has invested about half a million naira in the turnaround process.

Plans are underway to raise funds from existing shareholders by offering 525m units of shares at N1.60 per share.