Asterve is a new tertiary business, specializing in facilitating the trade of metals. It had started in 2019, with the founder, Sanjay Mukherjee’s aim, to “connect buyers with sellers so that there is an efficient meta buying exchange and as Asterve is able to make a profit through the sales commissions.”
He also said that “the target market is for niche commodities such as sulfur and avoids the non-specialized commodities such as steel, etc. where there are efficient market places already available.” [sic]
Looking to the future, he also has “stage two plans” with the “intention” of buying mines in Ghana for “Sulfur, Bauxite” to consolidate his chain of production.
I interviewed the founder for 3 vital questions that almost every current business can relate to: Who are you? How has COVID impacted you? How do you think you will recover?
Me: What are some of the existing practices used in your business?
Sanjay: Sometimes a business may need a lower quality ore, as they have facilities to refine and process a lower quality, so why will they pay for a more expensive higher-grade ore? Asterve provides them with this ore while charging a premium. Grade mixing of ores is done for optimized quality based on the costs (produces a medium grade ore from a high grade and low-grade ore which is cheaper per ton than the high-grade ore). Asterve also fills any gaps in the service of existing suppliers. Say a supplier is only able to provide 100 tonnes a month, but the demand of the business goes up to 120 tonnes a month, Asterve provides the additional 20 tonnes.
Me: how has COVID impacted your business?
Sanjay: COVID has led to the downscaling of several manufacturing projects, which has led to a reduction in the need for our services.
His claims were backed by COVID-19: The Impact on the Manufacturing Industry (marsh.com), which states that COVID19 has “left many manufacturers with a number of arising risks,” and the vulnerability of a business with a global supply chain such as Asterve:
“The continuing coronavirus outbreak has demonstrated the double-edged sword that global supply chains can represent for manufacturers. Yes, they can enable just-in-time production. But they can also be highly intricate, leaving little room for resilience in the face of critical disruptions such as those caused by COVID-19.” [COVID-19: The Impact on the Manufacturing Industry (marsh.com)]
Forbes also implies that “The global manufacturing and supply chain ecosystem have been among the hardest hit by the down-level impacts of the pandemic,” and that businesses have to be “grappling “ to survive in the “insidious” pandemic [2020 State Of Manufacturing: COVID-19 Impacts Point Toward A New Digital Era (forbes.com)]
Me: How do you plan to overcome this?
Sanjay: By seeking out new markets which are less impacted by COVID, and re-looking at the supply chain, and reducing any fixed costs.
His sharp, concise plan seems to mirror what many businesses are forced to do: adapt.
“97 percent [of respondents] believe COVID-19 has created business opportunities, specifically in the areas of innovation, supply chain resilience, and operational costs.” [2020 State Of Manufacturing: COVID-19 Impacts Point Toward A New Digital Era (forbes.com)]
Several businesses are scrambling to exploit such opportunities, adapting their whole business models in some cases, while other are failing to survive. Even long-established brands, such as Debenhams, are not immune, whereas some new start-ups seem to thrive in COVID.
“COVID-19 cases are rising in Nigeria, and the pandemic's economic impacts are worsening too. In response, the government is working with the country's manufacturing sector to produce PPE and medical equipment. This could represent a significant growth opportunity for Nigeria's manufacturers.”
Can COVID-19 be an opportunity for Nigeria's manufacturers? | World Economic Forum (weforum.org)
Is COVID really a wave of destruction, or a process that has accelerated natural selection within businesses-natural selection, which has cost many their jobs?
