Rhombus Ready Mix Concrete Company

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Rhombus Ready Mix Concrete Company
CORPORATE SCENE

Rhombus Ready Mix
Concrete Company

                                 By Marketing Africa Crew

 R
         hombus Ready Mix Concrete is          on the Rhombus Ready Mix Concrete              diary and to update the program of works.
         a Kenyan-owned construction           journey. The discussion provided valuable      In short, I was at the heart of the project
         company founded in 2015.              nuggets into their product and insights        tasked with minimizing delays, leading to
 Located at Ridgeways along Kiambu             into what it takes to be a successful          lost time and cost overruns. My job took
 Road, Nairobi, its core business is selling   entrepreneur, as evidenced through the         me to many parts of Kenya. I later moved
 ready mix concrete. It was established to     journey of this courageous and unique          to Cementers in Kampala and then came
 improve Kenyan construction credibility       man looking to disrupt long-held norms         back to Kenya. But with time, I felt that
 and trust by producing high-quality ready     in the construction industry.                  I had contributed enough as an employee
 mix concrete using the latest technology                                                     and learned all that I needed to. Earlier
 and efficient delivery methods. For the                                                      on, I registered a construction company as
 last five years, Rhombus has constructed
                                               Wangai's Exciting Journey                      a side hassle and decided to dive right in
 buildings, roads, bridges, and dams much      to Entrepreneurship                            with both feet. The construction company
 more manageable, safer, and faster.                                                          is what is today known as Rhombus.
                                               My journey to entrepreneurship started
 Being a wholly Kenyan-owned enterprise,       while at the University of Nairobi, where      Like a quadrilateral whose sides are equal
 Rhombus takes pride in playing a vital        I was studying Building Economics.             in length, a diamond Rhombus denotes
 role in the country's rapid infrastructure    Building Economics qualifies one to be a       not just strength but perfection. In 5
 development and is looking forward, in        QS - Quantity Surveyor. However, it was        years, we have become the market leaders
 conjunction with other players, to doing      clear in my mind that I did not want to        despite encountering numerous challenges
 even more for the beloved mother country.     work for a consulting QS firm. I wanted        along the way.
 As such, the company is committed to          to work for a contractor, to be there in the
 investing more in innovation, delivery,       trenches where the action is, and creation
 and human resource capacity to develop        takes place. That, to me, was an exciting
                                                                                              What Does Rhombus Offer?
 the industry.                                 place to be.
                                                                                              Rhombus offers pre-mixed or ready-mix
                                                                                              concrete to the construction industry.
 Marketing Africa crew had an engaging         I was fortunate to get a job immediately
                                                                                              Let me explain. Concrete is a mixture of
 conversation with Mr. Solomon Wangai,         after graduating as a claims consultant for
                                                                                              cement, sand, rocks (in the form of gravel)
 Founder & Chief Executive Officer,            a contractor. My role was to keep the site
                                                                                              using water and chemicals and is a critical
                                                                                              ingredient in the construction industry. It
     Being a wholly Kenyan-owned enter-                                                       has been in use since the Roman Empire.
                                                                                              In most instances, concrete is manually
     prise, Rhombus takes pride in playing                                                    mixed on-site as the construction is going
     a vital role in the country's rapid infra-                                               on. Pre-mixed concrete is done off-site
                                                                                              and delivered to construction sites, ready
     structure development and is looking                                                     for use.

     forward, in conjunction with other play-                                                 Ready-mix concrete has brought efficiency
     ers, to doing even more for the beloved                                                  and reliability, translating to time and
                                                                                              cost savings in the industry. How? You
     mother country. As such, the company                                                     may ask; Manual mixing does not assure
     is committed to investing more in inno-                                                  consistency of quality, takes time, requires
                                                                                              more space, and is wasteful as one needs to
     vation, delivery, and human resource ca-                                                 buy all the ingredients in many cases from
     pacity to develop the industry.                                                          different suppliers then transport them to
                                                                                              the site. The chances of pilferage are also
                                                                                              high. Pre-mixed concrete overcomes all

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Rhombus Ready Mix Concrete Company
Rhombus Ready Mix Concrete Company
these problems and is also environment-
 friendly.
                                                    Our unique selling proposition is that
 The Future of Premixed                             'we care.' The customer is changing,
 Concrete Sector                                    becoming more discerning, always de-
 The Concrete fortunes have annually been
                                                    manding quality at a fair price, and de-
 growing by about 6.4 percent and in tandem         livered on time. Guided by the fact that
 with those of the construction industry.
 The growth has been driven mainly by               construction is driven by cost and time
 Government spending on infrastructure.
 Additionally, private developers in the
                                                    and that our product is perishable, we
 commercial and housing sectors are also            endeavor to build our capacity and have
 steadily growing. Considering these facts,
 ready-mix concrete future in Kenya is
                                                    the right people to deliver solutions that
 indeed bright.                                     the customer is seeking every day.
 Apart from this and more importantly, the
 growth of concrete will come from three        Lastly, concerns for environmentally             In short, our unique selling proposition is
 inevitable factors. One is the change in the   friendly options in the construction            that 'we care.' The customer is changing,
 customer who is looking to build better,       industry will push developers to adapt pre-     becoming more discerning, always
 faster, and cheaper. There are also taste      mixed concrete. The advantages that this        demanding quality at a fair price, and
 changes where customers are demanding          innovation offers will prove irresistible.      delivered on time. Guided by the fact that
 a different end product such as colored        Pre-mixed concrete is the future, and I do      construction is driven by cost and time
 concrete and joint-less slabs. These are       not doubt it.                                   and that our product is perishable, we
 better done elsewhere and delivered ready                                                      endeavor to build our capacity and have
 to the site. Our product, all other factors                                                    the right people to deliver solutions that
                                                Who are your customers,                         the customer is seeking every day.
 being constant, contributes to achieving
 this.                                          and why do they come and
                                                stick with Rhombus?                             The Effect of Covid-19
 Additionally, shrinking construction
 space means that buildings are going           Our customers are contractors and               Initially, there was a slow down when
 higher, and Rhombus has the technology         developers, be they commercial or those         the Government enforced the Covid-19
 that enables us to deliver concrete to as      building their own homes. They come to          containment measures. The curfew
 high as 20 floors, increasing construction     us for two main reasons. Firstly, it's our      lowered our capacity as we had to work
 cost when done manually. Moreover,             consistent quality. To ensure quality, we       fewer hours to give our workers time to
 mixing on-site requires many workers to        have invested in the requisite technology       reach their homes in time. The steps also
 use a larger space which increases costs.      across all processes, and we source and         affected our deliveries as we could not
 The need for site efficiency and space         select our raw materials from the very best     deliver at night. However, work didn't
 utilization is essential to the contractor     sources. We also have the necessary checks      slow ultimately as the construction sector
 and the developer.                             and balances, including independent labs,       is an essential service.
                                                to test every batch that leaves our premises.
 Construction is becoming more complex,                                                         Nevertheless, there was a silver lining for
 and customers demand smaller but               Secondly, it's our timely delivery. Over time   the construction industry. Government
 stronger columns which augur well for          we have come to appreciate that we are in       construction projects, especially roads, did
 pre-mixed concrete. Pre-mixed concrete         the logistics business more than anything       not stop. Additionally, private developers,
 ensures quality consistency as the whole       else. We have the most significant number       especially those putting up residential
 process is mechanized and computerized         of delivery trucks and two batching             units, who may have put them on hold
 hence reducing guesswork and other             sites, one in Athi River and the other at       now found they had time on their hands,
 human error. It avoids wastage and leads       Ridgeways, Nairobi. That enables us to          given the lockdowns and curfews, to start
 to safer buildings. Poor concrete mix is       deliver to sites located further than any of    new projects, complete stalled works, or
 a crucial contributor to most collapsing       our competitors can.                            carry out some repairs.
 facilities during construction.
                                                We keenly listen to our customers and           The need for social distancing worked
 Ready-mix concrete also reduces theft of       ensure we give them the solution at their       out in our favor as the fewer people on-
 materials as nothing gets diverted during      pain points. We visit construction sites to     site, the safer it got. Mixing cement on-
 transportation. Pre-mixed concrete is          understand various customer needs better        site requires many people close together,
 always cost-effective as Rhombus buys          and identify areas we can improve. Lastly,      while our product eliminates that need.
 all ingredients in bulk, and all volume        being a local indigenous company and            We, therefore, witnessed an uptake of pre-
 discount savings are passed on to              medium size, we are nimble and agile,           mixed cement for that reason too.
 customers.                                     adapting our ways to changing customers'
                                                needs and the industry.                         I must add that being a socially

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Rhombus Ready Mix Concrete Company
Rhombus Ready Mix Concrete Company
responsible firm; Rhombus ensures that all      with the necessary skills is difficult.         discussed, is fundamental to our success.
 our workers, whether on our site or when        So, we had to hire staff for attitude and       Some of the targeted ways we use
 delivering to a customer, follow all the set    train them. That is expensive and slow          to market our product are to attend
 Covid-19 protocols.                             in an industry where speed and accuracy         construction exhibitions and partner
                                                 are critical pillars of success. These two      with BURAX - Board of Registration of
                                                 people-related issues have slowed building      Contactors - where we train contractors on
 Challenges                                      capacity and scaling.                           the advantages of ready-mix concrete and
                                                                                                 why Rhombus should be their preferred
 The challenges we face can be divided
                                                 Thirdly, as with any innovation, acceptance     partner. We also give out marketing
 into four varied categories. Firstly, those
                                                 takes time. We, therefore, have to educate      collateral to the relevant target audience
 faced as a startup, secondly, people issues
                                                 potential customers on what we offer and        at appropriate forums and venues.
 encountered by SME's in a new sector,
                                                 the advantages derived. Uptake depends
 thirdly, those of a pioneer investor selling
                                                 mainly on the market being clear on the
 a new idea or a concept, and fourthly,
                                                 benefits they are getting. Most of our
                                                                                                 Our Competitors
 the perishability of our products. I must
                                                 potential customers are sticking to the
 point out that these are intertwined. As a                                                      Our main competitors are Bamburi
                                                 traditional ways of doing things. That
 startup, we faced the challenge of raising                                                      Cement, Alliance Concrete, Warren,
                                                 slows the sector's growth and puts a cap
 the necessary finances. The pre-mix sector                                                      and Sidai. But our most significant
                                                 on how first we can scale our business. But
 is capital intensive and requires investment                                                    competition is the on-site traditional
                                                 we are privy to the fact that we shall bear
 in trucks and space (land) for the site and                                                     concrete mixing. We must never lose sight
                                                 the more significant portion of educating
 the equipment. We started by leasing the                                                        that we are competing against a long but
                                                 the customer as market leaders and do not
 area and buying used mixer trucks from                                                          outdated concrete mixing tradition that is
                                                 shy from it.
 the UK. We then put up the batching                                                             a hard nut to crack as change takes time.
 plants and other necessary services such                                                        Though we are the market leader, due to
                                                 The fourth challenge is the common
 as water and electricity. Purchasing raw                                                        having the highest capacity and market
                                                 congestion on our roads, heavy daytime
 materials such as sand, cement, and ballast                                                     share, we must not rest on our laurels or
                                                 traffic as it were. Our product is perishable
 is expensive. When we began, suppliers                                                          be satisfied as championing this sector's
                                                 and should be delivered to the site within
 required upfront payment as we had not                                                          growth falls squarely on us.
                                                 3-4 hours to maintain its desired quality.
 developed the necessary relationships to
                                                 We try to overcome this by transporting
 get credit facilities. That called for a fair
 amount of cash flow, and we had to take
                                                 at night or public holidays when traffic is     Dealing With Impact on the
                                                 light, but most sites may not work in such
 loans which we struggled to pay as our
                                                 periods.
                                                                                                 Environment
 customer base was still tiny.
                                                                                                 As a matter of cause, the construction
 The second challenge is that which faces        Marketing                                       industry impacts the environment in
 firms offering a relatively new idea. Pre-                                                      two ways; dust and waste. By delivering
 mixed concrete, though very popular in          Marketing our product to ensure                 ready-made concrete, we reduce the
 developed markets, is rather a new thing        customers understand what we offer              number of sites that mix individually,
 in this region. So getting the right people     and our unique proposition, as earlier          thereby reducing the environmental

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Rhombus Ready Mix Concrete Company
emissions that each site contributes.           itch to be an entrepreneur also starts         mixed concrete. I want people to look
Secondly, we have a state-of-the-art            early in one's life. It was the need to be     at what we have done and believe that a
plant that recycles most of the waste for       independent, control, and not depend on        local indigenous Kenyan can do it. I want
re-use. Our products and processes go           anyone to determine my personal growth         to break the perception that we cannot
through rigorous testing, with approvals        and destiny, which drove me to business.       make it on our own. I want to give people
from KEBs and other relevant industry           I recognized this way back when I was          the confidence and grit that, armed with
regulatory bodies to ensure minimum             at the University. I found myself being        courage, tenacity, desire, and relevant
impact on the environment.                      motivated and drawn to those running           knowledge, you can build a homegrown
                                                their businesses. My curiosities led me to     business from scratch. I want the next
Corporate Social                                read articles on entrepreneurship which I      generation to know that business is not
                                                printed and filed.                             only about the things I have talked about,
Responsibility                                                                                 but one must also embrace discipline,
                                                Secondly, I would tell them that               consistency, and the ability to make the
We are conscious that though we are a           knowledge is critical. Before diving in, one   right decisions most of the time. Above
young company, we must give back to             should search for as much information as       all, they must be guided by integrity and
society in whatever measure we can. To          possible, not just about the industry of       doing the right thing. Our dreams are
this end, we have a Children's Home we          interest but also about running a business     indeed valid.
support in Githurai, Kiambu County. We          generally. How are the most successful
are working on a more strategic CSR             companies run? What are the critical
program to benefit more people, especially      pillars that determine their success? What
those left behind by the vagaries in society.   pitfalls should one avoid? For example, if
                                                one wants to start an accounting firm, find
                                                                                                 These are excerpts as recorded
Lessons to Those Looking                        out through reading or talking to those
                                                                                                 by Marketing Africa Crew
                                                in the industry how the best accounting
To Be Entrepreneurs                             firms are running. Better still, work for
                                                                                                 from the conversation with Mr.
                                                one before launching yours.                      Solomon Wangai, Founder &
If I were to advise those looking to embark                                                      Chief Executive Officer, Rhombus
on this arduous, challenging, but exciting,                                                      Ready Mix Concrete. For more
and rewarding journey, I would tell them        My Legacy                                        information or comments drop us
two things based on my experience. Firstly,                                                      a line on: Info@marketingafrica.
business is not for everyone, and it's ok to    I want to be remembered as someone who           co.ke.
be employed as long as one contributes          played a critical contribution to improving
in the best way they can. The desire or         the construction industry through pre-
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