BR Research recently met Muhammed Amin, CEO, Sunridge Foods, and discussed his company's new flour venture, future plans, and industry dynamics. Amin is a seasoned professional with turnaround specialist, having worked for over a decade with Mondelez Pakistan Limited. Below are edited excerpts from the conversation.
BR Research: What made you form this company and especially venture into the flour business from the very beginning?
Muhammed Amin: We started Sunridge Foods in 2015 and the aim behind the business is to build a trusted local food brand. We were open to multiple options, from the grocery end of the food chain to the snacks and confectionery end. We analyzed the market and we noticed that flour in most major countries around the globe has already been branded.
But in Pakistan, the segment remains unbranded, despite massively high consumption. It is a known fact that although Pakistan is the seventh largest producer of wheat, the flour milling process in Pakistan is outdated and behind the curve with no formal checks on quality and processes. When we have surplus wheat, we are unable to export flour or flour based products because of the age old milling processes that we have in Pakistan
We also scanned the neighboring developing countries and flour branding has taken place to quite an extent, which reaffirmed our view that this is a sound opportunity to fill a gap in the market. Another reason we went into the flour business first is because it is a high consumption daily use product, which will lead to establishing our brand now and later enable us to expand our product lines.
BRR: While the opportunity is huge being the only nationwide brand, is it also not a challenge to establish the presence in a segment where awareness is low? What is your Unique Selling Proposition?
MA: While awareness might be low, it will actually work in our favor since we will have the opportunity to educate the audience and create the right kind of awareness regarding certain elements of flour. We have observed that product hygiene is currently being overlooked in Pakistan. Keeping these factors in mind we created a product that banks on its USP of hygiene & quality assurance.
People talk about taste, quality, ingredients and so on, but very few talk about product hygiene.We believe that product hygiene comes ahead of any other product traits. We aim to be the pioneers and intend to set the benchmark for hygiene in the food market. This is our selling identity, vision, and purpose.
BRR: Tell us something about your plant and the processes that you have put in place there.
SR: Our factory is set up keeping in view our aim of being the benchmark in product hygiene. We have a fully automated setup, where you put the grain from one end and see the finished product coming from the other. PESA mill is a revolutionary method which has been introduced in Pakistan by Sunridge. From the choice of the wheat grains to the process implementation, the systemized methods ensure the best quality product is delivered to each and every household.
BRR: Is it the sophistication of the process itself that makes your product more hygienic or is it about the ingredients that you use?
SR: The sophistication obviously plays a part, as there is no manual handling which removes the risks. We are using the best available milling machinery. We are soon going to get certified from our machinery suppliers who are the world leaders in the business, establishing that our process is as refined as any other in the world in terms of hygiene.
The regular cleaning process is done in line with the fact that we want to create a benchmark in product hygiene. All other necessary precautions are taken to ensure we make the most hygienic product, free from all impurities. There a lot of impurities which come with wheat, for which we have a three step cleaning process.
BRR: Do you also mean to suggest that the open/unbranded flour available in the market is not as pure or clean?
SR: I will not say that they are bad and we are good. But if you look at the processes they follow, and compare it with ours, you will be confident that our product supersedes all other unbranded products available in the market.
BRR: Does it not then become a difficult task to sell your hygiene USP, especially when it is not as easily identifiable and quantifiable?
SR: I am sure that when our consumers use our product they too will be able to see a vast difference between the product they used and Sunridge. Hence, we will play on our passion to create the best quality benchmark and let our product speak for itself.
BRR: Does your process also alter the nutrition value of your product as compared to the unbranded flour?
SR: For the time being we have one product in our line and that is 100 percent whole wheat, without extraction or addition. We have tested our product from the best laboratory in the country, and it matches the whole wheat profile which is given by international authorities, in terms of nutrition value. The nutritional value of our current product is 100 percent in compliance with international best standards.
Keep in mind that it is a food product, and it does not sell if it does not deliver the taste requirements. 'Chakki aata' is the most popular form used in Pakistan and its milling and grinding is different from that of flour mills. We have brought this PESA mill technology from Switzerland and we can proudly say that this is the most advanced technique in the world for milling and we have this new technology which is the only such mill in Pakistan.
It helps us deliver the same milling as a stone mill, but in a very controlled environment, without attracting outside dust particles. Moreover, our process ensures a consistent quality, which you cannot achieve in a regular stone mill. We also have control on the quality of ingredients, which ensures quality and taste consistency.
BRR: How many milling units do you have currently and what is the capacity?
SR: We currently have one operating unit and the capacity is 3600 tons per month. We are at an early stage, having just launched the product and are in process of strengthening our distribution channels. We can now claim to be the only flour brand that is present nationwide.
The flour market currently has regional brands, confined to one city, or even particular regions within the city. So, in terms of competition, there is no one on the national scale.
BRR: What is the competition in terms of pricing? Is it a price sensitive market?
SR: We are pricing it just slightly over the unbranded market price, primarily because we have put in a lot of effort in ensuring that our product hygiene is consistent and we can give the consumer the best quality end product. Our premium is a promise to our consumers that we will keep delivering the best always.
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