Motisun Group May 2020

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

Motisun CLICK TO WATCH

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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