Sumba-Wanga
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Said Salim Bakhresa
Basic details. With a turnover exceeding US$250 million per annum, the Bakhresa group of companies is one of the largest private firms in sub- Saharan Africa, employing over 2,000 people. Its activities span three of the industries survey edinlat flour milling and bakeries( bottled water and fruit juice and polypropylene woven sacks
History. In 1968, Said Salim Awadh Bakhresa opened a shoe repair shop in Dar es Salaam. He went on to open a restaurant in 1973 and by 1975 he had added a bakery and an ice cream parlour, all managed and controlled by his family. In 1983, in response to problems he faced in obtaining flour supplies for his bakery business, he set up his own wheat flour milling business. In 1988, the government decided to sell a flour mill (National Milling Corporation) as part of its privatization programme, and Bakhresa acquired the premises, replaced its outdated machinery, and raised the mill's capacity from 50 mt per day to 240. The firm entered the bottled water industry in 1988, expanding into fruit juices in 2006 (initially using imported concentrate but, from 2008, using fruit directly).
The Azam PP Bags division was established in 2001 to supply polypro- pylene woven sacks to the firm's milling operations.
Current activities and products.
Flour milling. The flour milling operation has a capacity of 1,750 mt of wheat flour and buns, 50 mt of maize flour and 50 mt of rice per day. Average capacity utilization is 85%, with utilization varying between 50% and 100% depending on the season. Under the Azam brand it accounts for 70% of Tanzania's wheat flour production, and 80% of the turnover
of the Bakhresa group. The flour business has formed the basis for the group's expansion in to Malawi,Uganda,Rwanda,the Democratic Republic ofthe Congo,Mozambique and Burundi I thas three grain millingp plants in Tanzania: namely, Mzizima Milling, Buguruni Milling and Kipawa Milling. All these are along Pugu Road and they process wheat, rice and maize. The firm also retains aline of business in baked goods(bread and biscuits).The second of the group's three core businesses is a shipping line that links Dar es Salaam to Zanzibar. The third and most recent of its core businesses is soft drinks: an operation established in 1998.
Bakhresa Food Products Ltd is based in Dar es Salaam and is part of the Bakhresa group of companies. It produces food products including ice cream, fruit juice, frozen chapattis and drinking water. The ice cream business was the first processing activity in the group. Juice processing and water bottling came much later. Bakhresa Food Products has three divisions: one that deals with ice cream, one with juice and the third with drinking water. The ice cream division produces Azam brand ice cream. The juice division deals with the production of fruit juices with technical assistance from Tetra Pak, Sweden. The existing plant is capable of processing tropical fruits, e.g. mango, orange, pineapple, passion fruit and guava.
The Bakhresa Food Products fruit juice processing plant was Tanzania's first aseptic packing facility for fruit juices. The plant has a current capacity of 41 million litres per annum. Bakhresa Food Products has a fully automated plant for producing non- carbonated fruit-flavoured beverages.The products it produces are packed in 300m polyethyleneterephthalate(PET)bottles that are shrink-wrapped in packs of 12. The product is fortified with ascorbic acid (vitamin C). The company sells its products in various countries,mostly in Kenya and Zambia. There is a plan in place to expand their market in other countries, especially Uganda, Rwanda, Burundi and Mozambique.
Polypropylene woven sacks. The Azam PP Bags division, with a plant capacity of 4,000 mt per annum, is one of the leading manufacturers of polypropylene/high-density polyethylene (HDPE) woven sacks in East Africa. It produces woven sacks in various sizes and grades, both printed and plain, for food, grain and other industrial and agriculture products.
Other activities.
The transport division was established to serve the in- house needs of the group. However, it now also operates as a haulage business serving other companies. The company has over 150 vehicles, including semi-trailers, 10 tonne trucks, covered trailers, low loaders, WIDELY DIVERSIFIED FIRMS 13 heavy-duty recovery and tow trucks, and expandable trailers, as well as storage and warehousing facilities.
Azam Marine Company Ltd operates passenger ferries between the islands of Zanzibar and Pemba and mainland Tanzania. It has four speed- boats, built by Sea Bus of Australia, with a total carrying capacity of over 800 passengers. SatAfrik Tanzania Limited, incorporated in May 2002, is an autho- rized service provider for the Thuraya Satellite Communications Com- pany of the United Arab Emirates (UAE). (Thuraya is a mobile satellite telecommunication operator based in the UAE and operating in over 100 countries.) The Azam Inland Container Depot is the most recently added division of the group. The services that it offers include receipt of import containers under custom bond, provision of container storage, facilitation of dispatch and the overall clearance of containerized cargo, as well as LCL (‘less than a container load') shipments under its custody to designated consignees.
Organization and management.
Said Salim Awadh Bakhresa is the founder and current chairman of the Bakhresa group of companies. His four sons occupy key positions. Each group company/division is professionally managed by a team of local and expatriate managers.
Firm capabilities.
The milling operation uses German milling technol- ogy, which is state of the art in sub-Saharan Africa. The company is ISO 22000:2005 food safety standards compliant. The group encourages feedback from customers by allowing the sampling of test products and by making telephone and email access straightforward.
Supply and marketing chain.
For its core (milling) business, Bakhresa sources maize and rice locally while it imports over 98% of its wheat requirements. The company buys maize and rice from distributors mainly from Ruvuma, Rukwa, Iringa and Uyole. Bakhresa uses its own vehicles and network of distributors to distribute its products.
Exports.
The Bakhresa group exports 20% of its output o fwheat flour.The company's approach is to initially enter foreign markets through exports and later to undertake local production.
Recent developments.
The factories in Dar es Salaam have undergone several major upgrades in recent years to increase efficiency and reduce waste. New initiatives include the establishment of a PET plastic recycling plant for its bottling business.
Development agenda.
Bakhresa plans to strengthen its operations in East and Central Africa, and in particular it plans to build factories in the Democratic Republic of the Congo and Zambia. It is exploring investment opportunities in Kenya and elsewhere
Source:
Book: AN ENTERPRISE MAP OF TANZANIA
Authors: John Sutton and Donath Olomi
Copyright © 2012 International Growth Centre
Published by the International Growth Centre
Published in association with the London Publishing Partnership
www.london publishing partnership.co.uk
All Rights Reserved
ISBN 978-1-907994-07-4 (pbk.)
Basic details. With a turnover exceeding US$250 million per annum, the Bakhresa group of companies is one of the largest private firms in sub- Saharan Africa, employing over 2,000 people. Its activities span three of the industries survey edinlat flour milling and bakeries( bottled water and fruit juice and polypropylene woven sacks
History. In 1968, Said Salim Awadh Bakhresa opened a shoe repair shop in Dar es Salaam. He went on to open a restaurant in 1973 and by 1975 he had added a bakery and an ice cream parlour, all managed and controlled by his family. In 1983, in response to problems he faced in obtaining flour supplies for his bakery business, he set up his own wheat flour milling business. In 1988, the government decided to sell a flour mill (National Milling Corporation) as part of its privatization programme, and Bakhresa acquired the premises, replaced its outdated machinery, and raised the mill's capacity from 50 mt per day to 240. The firm entered the bottled water industry in 1988, expanding into fruit juices in 2006 (initially using imported concentrate but, from 2008, using fruit directly).
The Azam PP Bags division was established in 2001 to supply polypro- pylene woven sacks to the firm's milling operations.
Current activities and products.
Flour milling. The flour milling operation has a capacity of 1,750 mt of wheat flour and buns, 50 mt of maize flour and 50 mt of rice per day. Average capacity utilization is 85%, with utilization varying between 50% and 100% depending on the season. Under the Azam brand it accounts for 70% of Tanzania's wheat flour production, and 80% of the turnover
of the Bakhresa group. The flour business has formed the basis for the group's expansion in to Malawi,Uganda,Rwanda,the Democratic Republic ofthe Congo,Mozambique and Burundi I thas three grain millingp plants in Tanzania: namely, Mzizima Milling, Buguruni Milling and Kipawa Milling. All these are along Pugu Road and they process wheat, rice and maize. The firm also retains aline of business in baked goods(bread and biscuits).The second of the group's three core businesses is a shipping line that links Dar es Salaam to Zanzibar. The third and most recent of its core businesses is soft drinks: an operation established in 1998.
Bakhresa Food Products Ltd is based in Dar es Salaam and is part of the Bakhresa group of companies. It produces food products including ice cream, fruit juice, frozen chapattis and drinking water. The ice cream business was the first processing activity in the group. Juice processing and water bottling came much later. Bakhresa Food Products has three divisions: one that deals with ice cream, one with juice and the third with drinking water. The ice cream division produces Azam brand ice cream. The juice division deals with the production of fruit juices with technical assistance from Tetra Pak, Sweden. The existing plant is capable of processing tropical fruits, e.g. mango, orange, pineapple, passion fruit and guava.
The Bakhresa Food Products fruit juice processing plant was Tanzania's first aseptic packing facility for fruit juices. The plant has a current capacity of 41 million litres per annum. Bakhresa Food Products has a fully automated plant for producing non- carbonated fruit-flavoured beverages.The products it produces are packed in 300m polyethyleneterephthalate(PET)bottles that are shrink-wrapped in packs of 12. The product is fortified with ascorbic acid (vitamin C). The company sells its products in various countries,mostly in Kenya and Zambia. There is a plan in place to expand their market in other countries, especially Uganda, Rwanda, Burundi and Mozambique.
Polypropylene woven sacks. The Azam PP Bags division, with a plant capacity of 4,000 mt per annum, is one of the leading manufacturers of polypropylene/high-density polyethylene (HDPE) woven sacks in East Africa. It produces woven sacks in various sizes and grades, both printed and plain, for food, grain and other industrial and agriculture products.
Other activities.
The transport division was established to serve the in- house needs of the group. However, it now also operates as a haulage business serving other companies. The company has over 150 vehicles, including semi-trailers, 10 tonne trucks, covered trailers, low loaders, WIDELY DIVERSIFIED FIRMS 13 heavy-duty recovery and tow trucks, and expandable trailers, as well as storage and warehousing facilities.
Azam Marine Company Ltd operates passenger ferries between the islands of Zanzibar and Pemba and mainland Tanzania. It has four speed- boats, built by Sea Bus of Australia, with a total carrying capacity of over 800 passengers. SatAfrik Tanzania Limited, incorporated in May 2002, is an autho- rized service provider for the Thuraya Satellite Communications Com- pany of the United Arab Emirates (UAE). (Thuraya is a mobile satellite telecommunication operator based in the UAE and operating in over 100 countries.) The Azam Inland Container Depot is the most recently added division of the group. The services that it offers include receipt of import containers under custom bond, provision of container storage, facilitation of dispatch and the overall clearance of containerized cargo, as well as LCL (‘less than a container load') shipments under its custody to designated consignees.
Organization and management.
Said Salim Awadh Bakhresa is the founder and current chairman of the Bakhresa group of companies. His four sons occupy key positions. Each group company/division is professionally managed by a team of local and expatriate managers.
Firm capabilities.
The milling operation uses German milling technol- ogy, which is state of the art in sub-Saharan Africa. The company is ISO 22000:2005 food safety standards compliant. The group encourages feedback from customers by allowing the sampling of test products and by making telephone and email access straightforward.
Supply and marketing chain.
For its core (milling) business, Bakhresa sources maize and rice locally while it imports over 98% of its wheat requirements. The company buys maize and rice from distributors mainly from Ruvuma, Rukwa, Iringa and Uyole. Bakhresa uses its own vehicles and network of distributors to distribute its products.
Exports.
The Bakhresa group exports 20% of its output o fwheat flour.The company's approach is to initially enter foreign markets through exports and later to undertake local production.
Recent developments.
The factories in Dar es Salaam have undergone several major upgrades in recent years to increase efficiency and reduce waste. New initiatives include the establishment of a PET plastic recycling plant for its bottling business.
Development agenda.
Bakhresa plans to strengthen its operations in East and Central Africa, and in particular it plans to build factories in the Democratic Republic of the Congo and Zambia. It is exploring investment opportunities in Kenya and elsewhere
Source:
Book: AN ENTERPRISE MAP OF TANZANIA
Authors: John Sutton and Donath Olomi
Copyright © 2012 International Growth Centre
Published by the International Growth Centre
Published in association with the London Publishing Partnership
www.london publishing partnership.co.uk
All Rights Reserved
ISBN 978-1-907994-07-4 (pbk.)