Supplying a diverse business portfolio in Africa IN ASSOCIATION WITH
MOTISUN GROUP
DIGITAL REPORT 2020
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Motisun: supplying a diverse business portfolio in Africa WRITTEN BY
JOHN O’HANLON PRODUCED BY
JUSTIN BRAND
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MOTISUN GROUP
Motisun Group has grown to become one of Tanzania and Africa’s dominant conglomerates, achieving stellar growth and diversification
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he port of Dar es Salaam, the ‘haven of peace’, is the gateway to eastern, central and southern Africa. The former Tanzanian
capital has an international airport, and rail links to the landlocked nations, including the Chinesefunded TAZARA linking it with Zambia’s Copper Belt and a planned 2,190-km railway to Rwanda, Burundi and the DRC. It is expanding to rival Mombasa and Djibouti as the country develops its industry and the port acclimatizes with the demand for container and bulk mineral export capacity. Tanzania is not being left behind in Africa’s internet transformation. Dar es Salaam is connected to the rest of the world by all the major undersea cables that have been laid in recent years, including SEACOM and the Eastern Africa Submarine Cable System (EASSy). Other deepwater ports such as Pangani, Mtwara and Bagamoyo are being developed to take the pressure from Dar es Salaam and provide access for Panamax vessels.
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MOTISUN GROUP
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This vibrant city has been home
Sayona brand, as well as cabling and
to the Motisun Group since it was
plastic products of all kinds, distribut-
founded in 1992 by Subhash Patel. And,
ing them throughout Tanzania and
though it has grown to rank among
exporting them to all African markets.
the strongest business groups on the
It manufactures locally in some of those
continent, it remains a family concern.
markets. More recently, Motisun Group
It started with a small-scale steel plant
has been able to diversify into hospital-
with a single induction furnace and
ity, hotels, resorts and real estate.
rolling mill, but today MMI Steel Mills
A glance at the diversity of interests
produces more than 200,000MT of
reveals a complex logistics and sup-
steel a year. However, steel is only one
ply chain network. Key to the smooth
of many products the group produces.
running and cost management of this
It also manufactures paints, pipe,
network is the procurement depart-
beverages and juices sold under the
ment. Manoj Kumar is Head of Global
Procurement for Motisun, oversees
fruit juices, which are produced at
this vital part of the business from his
state of the art a new plant on a
office in Dar es Salaam and manages
40-acre site in the Mboga area,
a team of procurement professionals
Bagamoyo, which is 150 km from Dar
there in each of the businesses.
es Salaam.� The juices are prepared
The businesses are very diverse,
using fresh fruit sourced from Tanzania,
he says. “Under the Sayona brand,
and the beauty of this product is that
we diverse range of juices, carbonated
fresh fruit of the highest quality, such
soft drinks and packaged drinking
as mangos, pineapple, Guava and
water, and we started going into pure
Orange is available across Africa.
E XE CU T I VE PRO FI LE
Manoj Kumar A global leader, Manoj Kumar, has a successful history in supply chain management involving procurement, vendor management, material requirements planning & continuous process improvements in diverse industries like paint, chemical, steel, plastic, hospitality (food & beverage) in India, Tanzania and Africa. In a career spanning more than 15 years, he has collaborated with teams to manage a wide range of procurement and supply chain processes consisting of assessment & transformation, warehouse management, vendor management/sourcing, risk management, value management/Value engineering, financial management, and been a key contributor to the development and implementation of continuous improvement initiatives. He has acquired expertise in analysing market activities to build into category strategies to minimise supply risk, drive competitive market advantage, augment productivity & increase operational efficiencies via implementation of standardised processes across all procurement areas.
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If raw materials for Sayona products
supply chain relies upon stockists with
are comparatively simple and reliable
warehouses all over Tanzania, from Dar
to source, the supply chain for the
es Salaam to Mwanza and Arusha to
paints produced under the Kiboko
Mtwara. No area is too remote.
brand is somewhat more complex.
“We have over 5,000 global suppliers
Only 30% of finished goods are
in our supply chain,” Kumar contin-
imported, the rest is manufactured in
ues. Chemicals for the factories are
high-capacity factories, backed by an
sourced via Dubai,South Africa, the
in-house resin & emulsion manufac-
USA and Europe, while much of the
turing plant. The Kiboko division can
steel required by MIIT’s plants comes
produce 50 tons of top-quality paint
from India. Accurate forecasting is
a day to satisfy the 60% share of the
required to keep costs in check and
Tanzanian market that Kiboko holds.
avoid waste. In the context of Africa it
Packaging and labelling are manufac-
is often not possible to achieve just-in-
tured at a separate facility. The onward
time sequencing of materials.
Sometime delays at the port con-
on the freeway. However, forecasting
gestion, fluctuations in availability and
gives manufacturing companies a
disruptions to the road and rail systems
leg-up on these elements of planning
have to be factored in with the rise and
and production cycles, companies can
fall of demand, making it necessary
operate with more agility, transparency,
to store enough raw materials at the
and flexibility to adapt to changing pro-
plants to ensure continuity of produc-
duction environments or schemes.”
tion. “Forecasting and planning always
Lead times are dependent on the
depend on market conditions,” says
location of the suppliers, he continues.
Kumar. “It’s a kind of rear-view mirror
Goods from Canada can take 90 days
approach, in that where you’ve been
by sea, whereas from Mumbai the time
can often help determine where you’re
from dispatch to clearance would be
going; but that does not necessarily
around 40 days. With reliable road and
help you avoid a multiple car accident
rail links, importing from South Africa is
“ Many of our vendors have been in place since the company was founded” — Manoj Kumar, Head of Global Procurement, Motisun
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MOTISUN GROUP
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“ With wide experience and forecasting business planning exposure, we can manage our accounts, warehouse management inventory management and other key procurement functions” — Manoj Kumar, Head of Global Procurement, Motisun
much easier. “Coordinating supply to a
becomes more diverse as the product
particular plant requires a backup plan
portfolio is extended, which happens
that includes a number of pre-approved
almost daily.” The core software plat-
suppliers. Any disruption in availability
forms in use within the group are SAP
will disrupt the entire supply chain.”
and the versatile Tally ERP, originating
Kumar stresses that there’s real
in India. A phased programme of migra-
partnership between Motisun Group
tion is in place as individual businesses
and its suppliers. “Many of our vendors
integrate legacy programmes and
have been in place since the company
Excel-based practices. “With Tally’s
was founded, however the supply chain
accounting application we can manage
It is very exciting, though challenging, to be part of a continually expanding group that dominates the East African market in a number of key verticals, says Kumar. “Our Chairman, Subhash Patel, has a simple mantra: there are three ‘Ms’ at the core of any successful business, Money, Mindset and Manpower. Our people find this a great way to focus our minds on our work. Clearly no business can survive without having a firm hand on its finances; then it has to have a clear vision and finally a committed and competent workforce.” Patel is a person of vision, retaining his humility and empathy, despite being a figure of huge influence in Tanzania and the wider African business world, Kumar acknowledges. Under his leadership our accounts, warehouse management
the group is constantly diversifying
inventory management and other key
and adding new products to the exist-
procurement functions,” explains Kumar,
ing divisions. Kumar and his team are
adding that parts of the business are still
fully equipped to accept the challenge
used to the familiar Excel for budget-
of keeping these supplied with the
ing, preparing financial statements and
materials they need.
creating balance sheets. During the migration period, it is easy to import and export cash management information and financial data to and from Tally. w w w.mo t i sungro u p . com
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MOTISUN GROUP P. O. BOX: 3030 6TH FLOOR NEELK ANTH TOWER, SEWA STREET, DAR ES SAL A AM, TANZ ANIA
P0WERED BY
T +255 22 2139158
www.motisungroup.com