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Translink are Uganda’s premier distribution and logistics company
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LOCAL KNOWLEDGE WITH
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Translink Uganda Limited combines local knowledge with international business acumen to deliver first class distribution services to East Africa Writer Matt Bone Project Manager Donovan Smith
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ith global multinational companies looking for new markets in Africa to expand into, logistics and distribution companies with impeccable service delivery, coupled with strong local knowledge of markets and cultures, have become indispensible. Having been operating in the country since 1991 and with roots in the region stretching back to 1905, Translink Uganda Ltd fit this very criteria. Translink are Uganda’s premier distribution and logistics company,
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representing some of the world’s most renowned industry leaders including Samsung, Johnson & Johnson and Nestle. Amar Thakrar, Sales Director of Translink, has noted a considerable change in the market’s composition over the last 23 years and this change has benefitted the company greatly: “When the company was first established, we were operating in a very traditional market, largely driven by a few wholesalers with limited retail infrastructure. With the shift to a more contemporary and structured market place, trade
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has become considerably more organised and larger in scale. Big retail chains have taken over the wholesaler role, meaning logistics and distribution companies like us - representing high quality brands have really prospered.”
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business ethos and international business practices that enabled them, upon their return to Kampala in 1989, to professionally set up and manage the organisation. By understanding and implementing new business ideas in Uganda based on western principles, Translink were Western Ethos, Ugandan Knowledge able to begin negotiating distribution With Idi Amin’s successful Coup D’état contracts with globally renowned in Uganda the 70’s, the company’s multi-national companies. This, founders, Mukesh Thakrar and Raj coupled with a vast understanding Thakrar were forced to move to the of the local culture, customs and UK. During this period of exile, they market forces made Translink a clear gained valuable experience and a favourite for any brand seeking to greater understanding of western enter the Ugandan market.
Strengthening Distribution Channels
With Uganda being landlocked, trade and expansion into neighbouring countries is a must for any successful distribution company. Translink have set up new distribution centres in Kenya and Rwanda, which have allowed the company to further their distribution network into two key markets in East Africa. With Kenya being one of the strongest and most stable markets on the eastern seaboard for imports and exports, Translink’s management made the decision to enter into these eastern markets, with a view to establishing a strong rapport
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Growth in Challenging Times Ugandan businesses are faced with several key challenges that can have a long term impact on the success of any company. The high cost of borrowing in Uganda limits spending power of a population with a GDP per capita of just US $572. This, coupled with the fluctuating currency depreciation of the Ugandan shilling, has led to increasing costs for importation and distribution of goods for Translink which inevitably affects the end consumer. As the majority of Translink’s business is realised through imported goods, this is a problem that will not be quickly alleviated. “Over the years, the Ugandan Shilling (UGX) has been steadily depreciating against the US dollar which makes it critical for us to forecast with the companies currently operating in the region. and plan well in order “We have already negotiated agreements with key to optimise inventory retailers in Kenya and Rwanda and will continue to and run our business build up our footprint in the region,” adds Thakrar. efficiently,” cites Thakrar. To further capitalise on the vast and growing With electronics opportunities in the region, Translink has begun distribution being one developing their own brand items such as razor of Translink’s main blades and consumables for the surrounding markets. revenue streams, having “With a lot of cross-border business coming from the a consumer market with neighbouring countries, we want to ensure that we relatively low disposable can capitalise on the opportunities. By working with income has proved numerous multinational corporations over the years, challenging, but it is we have learnt the importance of brand development something that Thakrar and value-added services to grow our footprint in believes will change the market, but have been somewhat restricted by thanks to a rise in the territorial restrictions. By developing our own brands number of middle class we have been able to overcome these barriers thus homes in the region: boosting our own revenue streams,” explains Thakrar. “Uganda’s middle
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NAKUMATT HOLDINGS
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ith a complement of 50 world class branches across the East African region, Nakumatt Holdings is well positioned as the discerning shoppers’ retail store of choice. Our Smart Shoppers enjoy a variety of more than 200,000 quality products stocked in the most inviting environment and served with a smile by some of the friendliest shop assistants. At Nakumatt convenience stores, supermarkets and hypermarkets, our five star promise to deliver quality, value, variety, service and lifestyle is a living commitment to guarantee you an excellent shopping experience. Tel +254 733-632130, +254 722-204931, +254 20-3599991-4 Email nakumatt@nakumatt.net
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By working with numerous multinational corporations over the years we have learnt the importance of brand development and value-added services to grow our footprint in the market”
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class has been steadily growing over the last five years, which coupled with investment in electrification infrastructure has meant the demand for the latest Smartphones, home appliances and widescreen TV’s has also risen.” The recent discovery of oil in Western Uganda is also expected to have considerable added benefits for the economy and businesses over the next 5 to 10 years. “Although the rest of the consumer market has very little extra spending available to them, the desire and aspiration for these goods still exists. This is why we have projected a 20% growth for the company’s revenue this year,” adds Thakrar.
Swift Success
In the distribution industry, swift decision making can be the difference between securing a contract with a major retailer and letting the opportunity slip through your fingers.
Translink’s senior management are all based in-country and are actively involved in the business, meaning that if an executive decision is needed post-haste, managers can be reached at short notice. Thakrar considers this to be one of the key reasons Translink have been so successful in acquiring contracts with global companies: “With the company being familyowned and operated, our senior management team are all situated in Uganda, so when a major contract with a multi-national company is presented to us, we have the ability to return a response in a swift manner. In addition, our high tax compliance and impeccable reputation with the various authorities has helped build a very strong foundation for the company’s growth. These are some of the key reasons for why we are widely regarded as the premier logistics and distribution company in Uganda,” he concludes.
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ENQUIRIES Tel (UK): +44 (0) 1603 559 151
Translink
Tel (SA): +27 (0) 21 527 0053
Plot 4 Muwesi Road
ben.weaver@outlookpublishing.com
Bugolobi
SUBSCRIPTIONS
Uganda
Tel (UK): +44 (0) 1603 559 152
Tel: +256 414 342 421
matthew.bone@outlookpublishing.com
Email: admin@translink.co.ug
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Kampala
www.translink.co.ug