Ironmonger builds thriving business on low budget

Hitesh Patel recently walked us through his showroom at Regal Plaza on 6th Avenue in Parklands, Nairobi.

The outlet is quite a spectacle, what with fancy wrought Iron beds, stained steel art works and artistic chairs, door knobs and candle stands.

“I made this over Valentine’s Day for couples,” said Mr Patel while gesturing at four steel candle stands on display.

“This is what was left, they are custom made,’’ he added. This is the business empire Mr Patel has grown in the last 18 years.

After years of working at the family business in Mombasa, Mr Patel decided to move to Nairobi and establish his own enterprise.

He had spotted an opportunity in stainless steel fabrication and wrought iron which he was keen to exploit.

With seed capital of Sh70,000, Mr Patel leased a 1,500 square foot work station in Industrial Area, hired a labourer and imported machinery from Germany. The business was set for the skies.

He started off by fabricating wrought iron burglar proof doors, beds, furniture and tables.

He later expanded to other products including curtain rods and stained steel glasses. His business, named Iron Art, has grown in leaps and bounds. From one employee 18 years ago he currently employs 150. His clientele has also changed from individuals to companies.

“When we started we catered for clients in residential homes. But now we have expanded to cater for commercial clients,” Mr Patel said.

Iron Art serves clients in need of custom-made designs.

This year, the company delivered a big order of window grills to a client based in Italy. The firm also supplies furniture to high-end hotels in Nairobi. Lavington Mall and Serena Hotel are some of Mr Patel’s clients.

Iron Art has also expanded its capital base from Sh70,000 to an annual turnover of Sh100 million.

The growth saw Mr Patel enter the Top100 business competition sponsored by financial firm KPMG and Nation Media Group.

“One day I was reading a newspaper and saw the competition advertised. I decided to participate,” he said.

Iron Art was ranked number 72 out of 100 companies that made it to the coveted list. “At least we are among the top 100,” he said with a smile, adding that he fell ill and did not attend the gala night.

He will enter the competition this year and hopes to see his company improve in ranking, he said. Mr Patel aims to be among the top 10. Despite the presence of businesses offering similar products, Mr Patel said that he did not consider them a threat.

Quality

“There are a lot of people doing the same thing in the market but I don’t consider them threats. People who want quality service and products come to us,” said Mr Patel.

Erratic power cuts and high labour costs are his greatest challenges. Mr Patel spends Sh500,000 monthly on energy, which includes fuel for cars and a standby generator, he said. 

“The problem with workers is that they have become lazy and greedy,” he said. To cut down on expenses, Mr Patel is considering automating his workshop.

Taxes are also a hurdle. Often, employees decline working overtime for fear of their earnings being taxed.

“In December, when we paid service dues, workers complained of huge cuts in their pay. They don’t want to work overtime because of heavy taxes. But we tell them that it’s mandatory, they have to pay,” said Mr Patel.

Heavy traffic jams also pause a challenge to his business. He plans to set up another showroom on Mombasa Road to get nearer to clients and avoid the menace.

The new premises will target companies in the area. Iron Art is also expanding its glass art products.

“God willing, we will work hard and get more business,” said Mr Patel. Iron Art trains 20 to 30 people annually, he said.