STARUS917

STARUS917

Company Profile Hudani Manji Holdings Ltd.

2015

Hudani Manji Holdings Ltd.

P.O. Box 26274, Kampala, Uganda

Kampala Office: Plot 243, Bukoto-Kira Road

T: + 256 792 780 780. + 256 792 782 782

Farm: Plot 19, Bulemezi, Block 244 Buwazi, Semuto

T: + 256 791 785 785

www.yokuku.com

STARUS917

01. Introduction...................................................................1

02. Strategy...........................................................................5

03. Business Overview.....................................................7

04. Enkoko.............................................................................11

05. Distribution Centre....................................................12

06. Clients.............................................................................13

07. New Markets............................................... .................15

08. Management........................................................... ....17

09. Community Support................................... .............21

10. Future Plans.................................................................22

Table of Contents

Hudani Manji Holdings Ltd.

P.O. Box 26274, Kampala, Uganda

Kampala Office: Plot 243, Bukoto-Kira Road

T: + 256 792 780 780. + 256 792 782 782

Farm: Plot 19, Bulemezi, Block 244 Buwazi, Semuto

T: + 256 791 785 785

www.yokuku.com

1 2

01

Hudani Manji Holdings Ltd is the parent company of the Yo-Kuku!

brand. It is an independent and Ugandan-family owned business with an

investment of US$16,000,000.

The holding group is heavily invested in the East African region with

investments in hotels and tourism, food processing, distribution of

FMCG’s, construction and real estate plus telecoms.

The decision to invest in the poultry industry was as a result of three

factors:

• The high demand for chicken in Uganda

• The lack of a dominant integrated player in the sector

• The lack of reliable supply chains. The sector consists on the large part

of several small holders with unreliable supply chains that frustrate

both wholesale and retail customers

The Yo-Kuku! Farm is located in Buwazi, Semuto, about 50km outside

Kampala City. The farm sits on 64 acres of typical lush-green, Ugandan

savannah and draws water from unspoiled reservoirs hundreds of feet

below.

Hudani Manji Holdings broke ground in November 2011 and 18 months

later, the integrated operation consisting of a broiler farm, feed mill

and abattoir was operational. The Farm was officially inaugurated by

H.E the President of the Republic of Uganda, Yoweri Kaguta Museveni on

30th November 2014. The Yo Kuku! Head Office is located on Bukoto-Kira

Road in Kampala.

Introduction

Company history Location

3 4

Hudani Manji Holdings produces feed, rears and processes chicken.

Feed Mill:

Soya and maize are the main ingredients used to mix starter, growers’ and

finishers’ feed for the birds. No fish based ingredients, which tamper with

the taste of the birds, are included.

400 tonnes of maize are consumed every three months. With 20-tonne

silos as part of the TFM, the chicken are guaranteed the best quantity and

quality feed.

Construction and installation of 5-tonne per hour Buhler Pellet Mill is

on going and commissioning is expected by the end of May 2015. This will

greatly improve the Feed Conversion Ratios in the broiler farms from the

month of June 2015.

Broiler Farm:

Currently, the broiler farm consists of 8 broiler houses. The birds spend

35- 42 days in the broiler houses and each broiler house enjoys a

mandatory 2-week resting period before new day-old chicks are brought

in. The first 4 houses that have been in operation since 2013, have a

capacity of 25,000 birds each while the 4 newest houses, completed in

January 2014 have a capacity of 40,000 birds each.

What the company doesThis new set of broiler houses are both environmentally controlled and

highly automated. Inside these houses, the environment is near to perfect

and more birds can be reared per square meter with a higher live weight,

lower mortality and better Feed Conversion Ratio. Because all the systems

are automated inside these houses , the input cost per bird is lower.

Within 7-10 years, the broiler farm capacity will be 650,000 birds per cycle.

Abattoir:

The 15,000 Sqft processing facility is the first highly mechanised abattoir in

Uganda and the largest chicken processing facility in East Africa.

Key attributes:

• Highly automated which dramatically shortens the production time

• Temperature controlled processes from the abattoir, through the

distribution chain until the chicken reaches the customer. This includes

the superior cleansing spin-chiller before chicken is placed in blast

freezers where temperatures can drop to below -30°C degrees and

use of infra-red thermometers before packing, to ensure the birds’

temperatures are maintained between 0 and 10°C

• Holding rooms that can accommodate 200 tonnes of chicken.

• STAR certification including a traceability system that reduces the

margin for error in the processes as well as Food Safety Systems

Certifications (FSSC22000), Halal and the Uganda National Bureau of

Standards (UNBS)

5 6

02 Strategy

To be the leading provider of affordable fresh and frozen chicken

products in the East African region.With a highly automated processing facility, Yo-Kuku! aims to:

• Guarantee hygienic end products

• Achieve standardization of output

• Ensure product availability and consistent production to ascertain

buyer security

• Maximize production and make chicken available for Ugandans

• Contribute to market price stability

• To be the dominant player in the supply of chicken by harnessing

investment in advanced technology as a means of maximising

efficiency, ultimately lowering the overall cost of production

• To be a market leader in implementing technology and standards in

the region

To supercede the highest industry standards by maintaining consistent

hygiene in delivering the best value-for-money chicken.

Innovation, efficiency and consistency. This, in keeping with hygiene

standards and quality of the product.

Mission Statement Business Objectives

Business Strategy

Vision

Values

7 8

2013

25,000 birds each

12,000 birds/week

220,000 birds/week

2,500 birds/hour

Total output capacity

4 broiler houses

Broiler housesAbattoir output Abattoir output

20142nd quarter 3rd quarter

2014

40,000

180,000 birds 260,000 birds

birds each

25,000 birds/week

2 broiler houses

Abattoir output

40,000 birds each

2 broiler houses

32,500 birds/week

Abattoir output

2nd quarter2015

480,000 birds

40,000 birds each

8 broiler houses

120,000 birds/week

Abattoir output

100,000 birdstotal capacity 80,000 birds

total capacity80,000 birdstotal capacity

Investment footprint

$ 10,000,000PHASE 1

$ 6,000,000PHASE 2

$ 9,000,000PHASE 3

total output total output

480,000 birdstotal capacity

total output

420,000

total capacity/ birds

time2013

100,000

260,000

2014 2015

03 Business overview

• Fresh and Frozen whole chicken

• Chicken parts

• Fillet

• Value Added Services

• By-products

Production Out-put

Products

9 10

• The integrated approach to production results in huge efficiencies of

production

• The high level of automation shortens production time and means

chicken will be more readily available to customers

• Automation minimises human contact with the product, lowers the

margin for error and enhances food safety

• Economies of scale mean more chicken can be produced more cost

effectively which translates as a lower price for the end customer

• Cold storage processes ensures that the chicken that reaches the

customer is fresh and of the best quality

• The company runs its own transport department covering chilled and

frozen distribution with a fleet of 10 trucks of capacity ranging from

3 to 7 tonnes .The distribution plan aims to service every corner of

Uganda and to support a growing regional export market

• Growth of the farm will encourage increase investment in primary

agriculture and process of crops such as maize and soya beans

Uganda National Bureau of Standards

Halal certified Food Safety SystemsCertification FSSC

A prerequisite to supplying KFC

• FSSC 22000 is the world’s leading food certification scheme for ISO 22000. Yo-kuku! is the first company in Uganda to ever receive this certification

• Qmark. US 917 20002 is the highest ranked national standard only issued to those products that meet the stringent requirements of food safety and quality systems. Part of the requirements of this standard is heavy metal and veterinary drug residue free products. Yo Kuku! chicken is fed purely on plant protein and does not receive antibiotics or growth promoters.

• Yo kuku! is the only STAR certification holder in Uganda and only the second in East Africa

Hudani Manji Holdings believes strongly that chicken as a source of the recommended

daily protein intake for a person, should be both accessible and affordable to

Ugandans. Currently market prices are too high and chicken is a luxury for the average

Ugandan. Most enjoy it only on occasions.

• Yo-Kuku! is committed to providing the highest quality chicken product to all its

customers. The company’s core philosophy is the utmost importance to maintain

this quality while supplying them, this is vital to the long-term success and growth

of Yo Kuku!

• A documented traceability system is put in place throughout the production

system, incorporating all relevant local and international legal and safety

requirements and qualitative standards

• Yo-Kuku! recognizes team coherence and synergy with customers’ needs, as the key

to providing the highest quality value-for-money products

Competitive Advantages Quality Certifications

Service Pledge

US917

11 12

• Enkoko is a brand within the Hudani Manji Holdings Limited portfolio with a

specific range of chicken and chicken by-products for a broad segment of

the market.

• The Enkoko product is consistent with the high standards and certifications

of Yo Kuku!

• The first Enkoko retail shop has been operational in the Semuto town centre,

close to farm, since January 2015. A strategic roll out plan is in place for

additional shops in the Kampala suburbs.

• Currently, Enkoko supplies dealer shops located in the Nansana,

Bweyogerere, Kalerwe, Mpererewe, Gayaza Kamwokya and Wandegeya

trading centres.

• The Kampala based distribution centre has improved distribution and

strengthened the cold chain. It has shortened the delivery times to wholesale

customers

• Has a 50-tonnes capacity holding room that is maintained at -20°C and

used to store chicken for dispatch to wholesale clients and retail shops

• The centre ensures that chicken is always available to customers whenever

they need it.

• Before dispatch, there are additional quality checks done which further

ensures that the chicken that reaches the customer is fresh and of the best

quality.

K A W O M E R A

E N KO KO

04 Enkoko 05Distribution Centre

13 14

06 Clients

Cayenne Express: A new fast food take-away service located inside five Nakumatt supermarkets at various malls in Kampala and Entebbe.

Mr. Tasty: Has one of the fastest growing footprints of takeaways in locations all over Kampala. Fried chicken is their primary offering.

Fresh Cuts: One of the leading meat processors in Uganda, with a supply chain that covers clients within Uganda and all over East and Central Africa.

Sheraton Kampala: One of the oldest intermational hotel brands in Uganda found in the heart of Kampala

Kampala International School: An International school with over 600 students representing over 60 nationalities.

Protea Hotel Kampala: The luxurious South African franchise fully operating within the city centre with various leisure and business facilities on offer.

Cafe Javas : A full service coffee-themed restuarant chain in Kampala

Speke Resort Munyonyo :The ultimate luxurious lakeside resort with the range of business, leisure and conference facilities.

Serena Hotels: A five star brand hotel in Kampala and Kigo with a pan-African panache.

Kampala Speke Hotel: Is the first and oldest hotel in Uganda, which offers the ultimate in luxury accommodation and leisure with the finest 5 star restaurants

Kentucky Fried Chicken (KFC): The global fast-food franchise that is already operating 4 of several planned outlets in Uganda.

15 16

BACK

ONCE THAWED,COOK THOROUGHLYBEFORE EATING

DRESSEDPORTIONEDCHICKEN

Grade B (Frozen)Store below -18 C

o

Product of Hundani Manji Holdings Limited

Plot 19, Bulemezi, Block 244 Buwazi, SemutoTel: +256 792782782www.yokuku.com

P.o.box 26274, Kampala, Uganda

Food Safety SystemCertification 22000 STAR

Average Net Weight: 1.2 Kg

NO artificial ingredients,preservatives or hormones added

For Human Consumption

See label for Expiry Date

Holdings LimitedHundan Manji

HALAL

07 New Markets

Retail Exports

Starting Q2 2015 Yo Kuku! has been available to the retail market,

Yo Kuku! products are already available in:

• Shoprite

• Quality Supermarket

• Capital Shoppers Supermarket

The retail footprint will grow to include other supermarkets in Kampala

and other towns in Uganda.

Hudani Manji Holdings Ltd has a strategic plan in place that includes the

roll out of it own retail shops in various locations and this has already

been championed by the completed shop at the Kampala Head Office.

In line with our vision to be the leading provider of fresh and frozen chicken

products in the East African region, Hudani Manji Holdings Limited exports

a wide range of Yo Kuku! products to suppliers in:

• South Sudan

• Kenya

• Democratic Republic of Congo

• Rwanda

DRC

SouthSudan

Kenya

Uganda

To Rwanda

17 18

Francis Gachunga: Feed Mill Manager.

With an Honors Degree in Food Science and Technology, he has mentored and

coached staff in World Class Practices including Hazard Analysis Critical Control

Points (HACCP) & Kaizen. He boasts of 18 years’ experience leading both food and

feed manufacturing winning teams in Kenya and Uganda.

George T. Sabu: Broiler Farm Manager.

After studying poultry management in India, worked in the Middle East, Tanzania,

Bangladesh and now Uganda. He has over 35 years’ experience in Pure Line- GP,

Parent Stock and Hatchery.

Cosmos Mali: Site 2 Broiler Farm Manager.

Has over 12 years of experience in Broiler Management in Zambia. He is a specialist

in Animal Health and Production and large scale poultry, managing up to 80,000

broilers per cycle. He has undertaken Standardizing Farm Practices projects; an

initiative from KAIZEN Institute in India.

Linden Marais: Production Manager.

With 27 years of experience working in large production companies inSouthAfrica.

This has enabled him train the local team to meet market demands.

Management

08 Management

Board of Directors

Alykhan HudaniCHAIRMAN

Hamida HudaniDIRECTOR

Salim MakeeraSECRETARY

Rafik ManjiMANAGING DIRECTOR

Rahim ManjiDIRECTOR

19 20

The farm employs 300 staff on a permanent basis, with a large percentage being

residents of Semuto. Employee training is an integral and continual part of human

resource development. Hudani Manji Holdings offers staff training opportunities in

Europe and South Africa. Employee well-being is a top priority of management and

safety wear and safety protocols are used everywhere on the facilities. Staff medical

check-ups are done every three months. Medical follow up is done at an infirmary is

on site that is staffed by full-time, qualifed medical practitioners.

Employment

Brian Ballack: Chief Financial Officer.

Brings with him a wealth of experience garnered from 27 years working in

corporate banking, institutional banking, international banking, trade finance,

investment banking, retail banking and credit in over 5 countries. Has previously

served as CEO of Letshego Financial Services in Zambia and Credit Manager and

head of Compliance at Grindrod Group, a commodities trading companyin Durban.

Kyegombe Godwin: Quality Manager

Holds a Bachelor Degree in Mechanical Engineering and has trained in Hazard

Analysis Critical Control Points ( HACCP) with extensive experience in Fast Moving

Consumer Goods.

David Njau: Management Accountant

Holds a BHRM, CPA II, Kaizen Practitioner and currently pursuing ACCA.

Has 5 years of comprehensive accounting in FMCG environment. Experience

encompasses; payable & treasury operations, banking relations, financial analysis,

HR and costing functions with expertise in ERP Implementation, internal controls,

stock valuation and Kaizen management systems

Lillian Karongo: Human Resources Manager.

Holds a Bachelors’ Degree in SWASA and is a Masters Student in Development

studies. Has over 7 years’ experience in Human Resource and administration,

worked in a Fast Moving Consumer Goods (FMCG) environment and has been able

to devise and implement policies which select, develop and retain the right staff

needed to meet the objectives of the Business.

Krishna Kumar: Warehouse Manager

Holds a Bachelor of Science from Mahatma Gandhi University and a Post Graduate in

Aquaculture and Fisheries from Centre for Aquaculture studies, both in Kerala, India.

While with Hudani Mani Holdings ltd., he has participated in various workshops for

implementing food safety management - Standard ISO 22000 conducted by Essentia

AS and UNBS

The skill and experience of this management team is at the core of building and

developing a local management team. Mid-level management and all other workers at

the farm are locals.

21 22

09 Community Support

• The farm has been supported whole heartedly by the local area administration.

• The investment has spurred significant economic activity and new employment

in Semuto town and the surrounding areas, to the benefit of the Semuto

residents

• A large scale out growers programme for Semuto residents is in the works,

that will equip local farmers with the best skills and practices in raising chicken

hygienically and efficiently

• Currently the feed mill buys 250 Mega Tonnes a month from small and large

scale maize farmers around Semuto and Kapeeka

• As part of the company’s CSR plan, Yo Kuku! has partnered with 40 Days,

over 40 Smiles, a youth led charity Organisation, to positively contribute to

the livelihoods of children in Luweero. Starting in October 2014, the children

of Happy Times Junior School, a school for disadvantaged children, have been

receiving 50Kgs of chicken each month to supplement their diets. They have

also received a 50Kg refrigerator to keep their chicken and other perishables

• To continue to grow capacity and efficiency, and further lower the price of chicken

• The third phase of development of the farm will see a further US$ 9,000,000 invested

• A greater presence in other countries in East Africa, aided by the pace of on-going

regional integration

• To become established as the market leader for chicken supply in Uganda

Short Term:

Medium Term:

10Future Plans

23 24Computer used to control the feeding conditions and track growth of birds

Aerial view of site 1 of the farm (admin block, abattoir and feed mill)

Aerial view of the broiler house (phase 1)

Site 2 under consctrution

Computerized poultry house (site 2)

Automated nipple drinker Water treatment system

Feed mill