Majesty Oil Mills - Brochure July 2014

C O

O M P A V E R V I

N E

Y W

Company logo goes here

Majesty Oil Mills: Majesty Oil Mills couples pioneering work with continuous investment The oil processor has unique facilities in South Africa and is making further investments within its considerable sole property to offer a wealth of services on a larger scale Written by: Sam Jermy Produced by: Alex Barron

3

MAJESTY OIL MILLS

Headquarters at West Krugersdorp, South Africa

4

M

ajesty Oil Mills has invested R6million in new production facilities and become the first in South Africa to produce Lecithin as part of an ongoing expansion programme.

The oil processor has also earmarked R50m for a new silo complex, which is expected to be constructed in the next six months, and is also planning an R30m upgrade of its TVP plant.

The innovative company which operates from an 116,500 square metre production facility in West Krugersdorp, near Johannesburg, has a capacity of 250 tonnes of Lecithin product a month, and produces 60 tonnes a month at present.

FOOD

Billy Pillay, who has been Majesty Oil’s Chief Executive Officer since the company’s inception in 2000, is excited about leading the way in the production of Lecithin and has announced further multiple investments.

He said: “Our new product, Lecithin, is the first of its kind in South Africa. Basically, Lecithin is made from the gums that we extract out of the oil.

“It is used in the margarine and paint industry, as a form of binding agent. We’ve got the texturised vegetable protein line, regular oil, Lecithin, Oil Cake, and then the full-fat which is a separate line. So we have two production lines.”

The new Lecithin plant was a turnkey project which involved local sub-contractors Flintstone Engineering and India-based Kumar Metal Industries, which supervised the installation.

Pillay explained that there are also further plans to construct a new sunflower extraction plant costing a projected R300m. The entire Krugersdorp plant is worth approximately R400m.

Majesty Oil was established in 2000 and initially started crushing cold-press sunflower seed in its first premises. It didn’t have any solvent plant and experienced a lot of problems with electricity because the site where it was located on a rural farm area, and this impacted the company’s decision when it was looking at expanding the plant.

For the first month it produced

Key Personnel

Billy Pillay Chief Operating Officer

“Our new product, Lecithin, is the first of its kind in South Africa… it is made from the gums that we extract out of the oil” – Billy Pillay, CEO of Majesty Oil Mills

w w w. m a j e s t y. c o . z a

5

MAJESTY OIL MILLS sunflower oil but then made a decision to change to soya bean, and Majesty is still crushing soya beans today.

Soya beans

Soya bean cake

“We have a good quality product and as a result our order book is full a year in advance” – Billy Pillay

6

Industrial hub The main industrial hub at Krugersdorp houses all the company processing plants and lines, including the new Lecithin plant.

Pillay explained the products Majesty Oil provides. He said: “We do soya bean oil processing and the product we get out is the oil cake, which is used in the animal feed industry.

Full-fat soya is also used in the animal feed industry. Then, as well as regular oil, we started a section for human consumption which is called texturised vegetable protein.”

Strategic Management With regard to supply, Majesty Oil provides some of its products to Seaboard trading and shipping (Pty) LTD, an international overseas trading company. The company speaks directly to endusers and clients, but uses Seaboard Corporation as a vehicle to carry out and manage contracts.

It uses the same principle when working with Olam International, also an international trading group, which manages an integrated supply chain for Majesty Oil and helps create greater value in products. In terms of exports, Majesty Oil supplies Olam International and it then sends the oil products to countries such as Zimbabwe and Zambia.

FOOD

XXXX

Majesty Oil Mills’ bottled soya oil product w w w. m a j e s t y. c o . z a

7

MAJESTY OIL MILLS The actual soya beans are sourced via agents as the company does not buy them directly from farmers at present. Four or five different agents are used to supply the beans and contracts are normally signed a year in advance.

Looking after employees is another key focus for the company, because within such a specialised industry such as the Lecithin plant, the skills and expertise required are not always readily available in South Africa.

This means most of its senior staff have been with the company since inception and are nurtured to management levels through

Market Research Safex Services Management of Stock Planning of Marketing

Strategies Agricultural Commodity Contracts Ex-Silo Transations

www.unigrain.co.za

+27 11 692 4400

info@perdigon.co.za www.perdigon.co.za @perdigonsa

Trading of summer grains and oilseeds

Grain Storage

Proud Supplier to

Majesty Oil Mills

Trading of winter grains

Grading of derivitives on the JSE market

Tel : 021-870 3960 Fax : 021-872 8548

FOOD

comprehensive, ongoing training.

“We don’t have much turnaround of staff. Twice a year we will get external boiler specialists to do training with our operatives,” Pillay said.

“Other than for medical, safety and boilers, we get in house training. The plant is specialised for specific needs for oil extraction and there isn’t the facilities in this country for that sort of training.

“At the moment we have a few apprentices in the workshop section. This current group will take three years to go through the course, and at the end of it we will have readily available and highly qualified staff.”

“We are the first to start to producing and processing soya bean on a large scale and we have been in operation for nearly 10 years, we are an established brand in the market” – Billy Pillay

Soya bean cake

w w w. m a j e s t y. c o . z a

9

MAJESTY OIL MILLS

Majesty Oil production plant based at West Krugersdorp, South Africa

“The main challenge is whether South Africa can produce enough soya beans...”

– Billy Pillay

10

Future plans and challenges Majesty Oil has looked to import soya beans from South America, but mostly sources from within the continent including Zambia and Malawi, and more frequently local South African beans.

Pillay said: “The main challenge is whether South Africa can produce enough soya beans and also to try and minimise the importation of the soya oil cake.

FOOD

Company Information INDUSTRY

Oil processing HEADQUARTERS

West Krugersdorp FOUNDED

2000 EMPLOYEES

228 REVENUE

R850 Million PRODUCTS/ SERVICES

“We were the first to start to producing and processing soya bean on a large scale and we have been in operation for nearly 10 years, we are an established brand in the market whereas others go through teething problems with setting up to get the quality right.

“We have a good quality product and as a result our order book is full a year in advance. We do want to see vertical integration within Majesty Oil, and hope to grow more on the Oil Cake line”.

Lecithin, Oil Cake, fullfat soya, texturized vegetable protein, regular oil

w w w. m a j e s t y. c o . z a

11

MAJESTY OIL MILLS Tel. +27 (0) 11 660 7074 Fax. +27 (0) 11 660 9980 info@majesty.co.za www.majesty.co.za