DRIVING TO THE FUTURE: dUNLOP NIGERIA PLC
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Lagos Business School
Nigeria. Tyre. Large
Tyre industry, diversification, global competition
Against an unstable and harsh economic environment, Dunlop Nigeria had recorded an average real growth of 20% in sales and 11% in asset size. In March 1991 the company had invested in the purchase of 60% of the shares of PAMOL, thus integrating backwards into rubber production, and by 1994 it also acquired 40$ equity in Hagemeyer, thus diversifying into the paints industry. Both moves had proved to be profitable. Apparently, however, the stock market did not seem to recognise Dunlop's good performance. Dayo Lawuyi, Dunlop's Managing Director, was considering what steps the management of the company should take to keep the good performance and improve the company's value in the stock market.