Laduma Dec 2024

DEC | 2024

LADUMA

Celebrating 2024!

O L AB UT AL

IS ISSUE IS H T

MESSAGE from the Managing Director

As

we close another solid year at AlcoNCP, I am filled with pride reflecting on our collective achievements in 2024. Throughout this edition of Laduma, you'll read stories of innovation, dedication, and excellence across every department – from Production to Engineering, Site Logistics to Digital Innovation.

Our teams have delivered outstanding results: a 75% reduction in effluent tariffs resulting in significant savings, record-low heads and tails production at 2.7%, and significant progress in reducing lactic acid levels. The Engineering team's Reliability Engineering Program is already showing promising results, while our Site Logistics team has demonstrated improved efficiency streamlining maize handling and DDGS dispatch operations. Record sales volumes were also achieved, in addition to 73,000cbm of breakbulk sales, we also efficiently loaded and shipped almost 20,000cbm of alcohol in 5 bulk vessels, the highest ever.

The digital transformation journey continues to gain momentum, with innovations like the Digital Sensory Analysis Wheel and Plant Events App streamlining our operations. Our commitment to safety remains unwavering, with zero lost-time injuries in 2024, while maintaining the highest standards in quality as evidenced by our successful ISO, Halaal, and Coca-Cola certifications.

What makes these achievements particularly special is that they represent more than just operational excellence – they showcase the power of collaboration across departments. As we look toward 2025, we will build on this foundation by focusing on simplifying processes across our organisation. We recognise that our greatest opportunities lie in understanding and optimising the interfaces between departments.

By seeing our operation as an interconnected system rather than isolated functions, we can identify opportunities to streamline workflows,

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Peter Starling reduce complexity, and enhance value creation.

I am especially proud of our long-serving team members, who were recognised this year for their combined 300 years of service. Your dedication and experience provide the bedrock for our future success. To our newer team members, you bring fresh perspectives and energy that drive innovation and continuous improvement.

As we enter the festive season, I encourage everyone to take time to rest, recharge, and enjoy precious moments with family and friends.

Looking ahead to 2025, I am excited about the opportunities that await us as we work together to simplify our processes and strengthen our collaborative approach. Thank you for your continued dedication to AlcoNCP's success.

Wishing you and your loved ones a joyful festive season and a prosperous new year.

pRoDuCtIoN: ayEaR oFtRiUmPh As 2024 comes to a close, Kiara Premlall, Production Manager at AlcoNCP, reflects on a year filled with exceptional achievements and transformative milestones for the production team. From stepping into new roles to achieving remarkable technical and cost-saving successes, the team’s dedication and collaboration have been the driving forces behind this year’s growth and progress.

At the start of the year, the production team found itself navigating unfamiliar territory, with many members stepping into new roles - a mix of experienced and fresh faces. Kiara expressed her heartfelt gratitude to the team for coming together and blossoming into a cohesive, high-performing unit. “Your dedication and enthusiasm are seen even on the challenging days,” she said, highlighting the resilience and teamwork that defined the year.

One of the standout accomplishments of 2024 was the team’s commitment to training. The weeks leading up to exams were intense, and filled with both tension and camaraderie. Congratulations go out to everyone who rose to the challenge, demonstrating their commitment to growth and alignment with the team’s strategic vision. A special shoutout was given to Kiven Chetty, the first panel operator to master all plant operator positions - a truly exceptional achievement.

On the technical front, three major cost-reduction milestones were celebrated: • Effluent tariffs were reduced by 75%, saving a remarkable R4 million annually, thanks to the continuous efforts of the production and laboratory teams to monitor and prioritize effluent quality.

• Heads and tails production hit a record low of 2.7%, far exceeding the design standard of 6%, with plans to improve further in 2025.

• Lactic acid reduction efforts paid off through the hard work of front-end panel operators adapting to constant changes, coupled with the expertise of Shalini Naidoo from the process engineering team and the maintenance team’s invaluable support.

These successes are a testament to the team’s hard work, innovation, and unwavering commitment to excellence.

Kiara noted that these achievements have not only delivered measurable results but also laid a solid foundation for an even brighter future. As the year winds down, Kiara expressed her gratitude to the entire production team for making 2024 extraordinary. She wished everyone a joyful and restful festive season, encouraging them to recharge and enjoy time with loved ones. Looking ahead to 2025, she shared her optimism for continued success, saying, “The future definitely looks golden!”

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Engineering Excellence CELEBRATING THE TEAM'S 2024 ACHIEVEMENTS AND MILESTONES

As the year 2024 draws to a close, Morgan Murefu, engineering manager at AlcoNCP, reflected on the remarkable achievements of the Engineering, Utilities, and SHEQ teams. Highlighting their dedication and collaboration, he expressed pride in their collective success and the progress made across various areas.

Recognising the Team’s Dedication The teams celebrated several milestones this year, including six employees - Lance Ethel, Andreas Mazibuko, Les Appalsamy, Avril Chetty, Don Pillay, and Patrick Dladla - being honoured for a combined 150 years of service. Their commitment is an inspiration to all. A special moment for the Boilerhouse team came with Rylan Naicker’s wedding on 14 December, while the arrival of Chapi Elellwang as Reliability Engineer and Siboniso Simelane as Mechanical Fitter added new talent and expertise to the group.

Advancing Reliability and Cost Efficiency This year marked the launch of the Reliability Engineering Program, spearheaded by Chapi. This initiative focuses on analysing equipment failures and eliminating root causes, with promising early results. Efforts to optimise maintenance processes also delivered significant savings of R1.5 million, achieved through tighter controls, streamlined routines, and securing cost-effective supplier deals.

Enhancements in Operations In the Boilerhouse, a molasses tank was converted into a water storage tank, helping the plant remain operational during Durban’s two-day water outage. Chronic boiler issues causing blackouts were also resolved, ensuring more reliable utility services. Stores management improved as well, with goods receipting delays reduced to less than 1% and a comprehensive 4

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plan developed to address gaps in stock management after identifying a historic R6 million write-off.

Maintaining High SHEQ Standards Safety and quality remained priorities, with the teams achieving Zero disabling injuries and completing successful ISO audits a Food Safety recertification audit, and obtaining Halaal and Coca-Cola certifications to support new market opportunities.

A Message of Gratitude and Festive Wishes Morgan expressed heartfelt gratitude to his teams for their dedication, resilience, and contributions to the company’s success in 2024. As the festive season approaches, he encourages everyone to take time to rest, recharge, and enjoy moments with their loved ones. Looking ahead, he conveyed optimism for 2025 and wished all team members a joyful and prosperous new year.

EFFICIENCY AND GROWTH FOR SITE LOGISTICS Reflecting on 2024, Logan Naicker, Site Logistics Manager at AlcoNCP, highlighted the significant strides his team made in operational efficiency and teamwork throughout the year.

A key development this year was the reduction in contract staff at drumming, maize, and DDGS loading operations. While this posed challenges, Logan emphasised how the team rose to the occasion with meticulous planning to maintain seamless order fulfilment and raw material deliveries. The remaining staff have consistently proven their value, meeting every challenge with resilience and determination.

One of the notable milestones was the appointment of Simphiwe Ndlovu, a former weighbridge operator, as the Logistics Coordinator. Simphiwe’s leadership and dedication have further strengthened the team.

Additionally, procedural changes to DDGS dispatch resulted in significantly reduced truck turnaround times, streamlining operations and minimising delays. The team also focused on optimising processes at the bulk loading bay through value stream mapping. This initiative has already improved load times, with the next area of focus being the reduction of tanker site times, aiming for even greater efficiency. October brought a standout achievement:

offloading 24,451 tons of maize at an impressively low labour cost per ton. This accomplishment reflects the team's commitment to cost-effective and high-performance Logan Naicker logistics.

Another Site Logistics Manager highlight of the year was passing the Coca-Cola audit, underscoring the team's adherence to the highest standards. Logan commended his team for their dedication and teamwork, describing them as committed, understanding, and eager to learn and grow with AlcoNCP. Their collective efforts have been instrumental in achieving the successes of 2024.

“As we close out 2024, I want to express my heartfelt gratitude to the Site Logistics team for your unwavering dedication, resilience, and positive attitude throughout the year. You’ve tackled every challenge with determination and have made this year’s successes possible. I wish you and your families a joyful and restful festive season. I look forward to achieving even greater things together in 2025.”

– Logan Naicker, Site Logistics Manager.

HAPPY RETIREMENT RONNIE! As 2024 draws to a close, AlcoNCP bids a fond farewell to Ronnie Anamd, who retires this year after more than four decades of remarkable service.

Ronnie’s journey at AlcoNCP began on 25 May 1981 when he joined as a drum filler. Over the years, his commitment and hard work saw him rise through the ranks, taking on roles as a bulk filler supervisor, and excise clerk, and eventually managing the Packing and Mixing Station - now known as Site Logistics - while continuing to oversee SARS matters.

Throughout his career, Ronnie witnessed many significant changes, but what stood out most to him was the company’s increasing focus on people - fostering teamwork, passion, and a collective drive to achieve goals.

Ronnie's journey wasn’t without challenges. Ronnie recalls long hours and weekends of hard work, but his unwavering dedication always paid off.

Ronnie hopes to be remembered for his diligence and simplicity. He advises current employees to stay focused, take pride in their work, and find joy and satisfaction in their roles - key ingredients for long-term success. When asked what he’ll miss most, Ronnie speaks fondly of his team. “Your team can either make or break your day,” he shares, cherishing the little chats and camaraderie he experienced daily. As he steps into retirement, Ronnie looks forward to relaxing, spending time with his family, and diving into his hobbies. After a career defined by hard work, loyalty, and a passion for excellence, Ronnie’s well-earned retirement marks the start of a new chapter.

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MILESTONES IN 2024

Digital Innovation Reflecting on 2024, Shon Roopnarain, Principal Solutions Architect at AlcoNCP, highlighted the strides his team made in leveraging digital technology to enhance operations, reduce costs, and streamline workflows. These advancements underscore the company’s ongoing commitment to innovation and efficiency.

This year saw the development of several custom applications designed to modernise operations.

The Digital Sensory Analysis Wheel (DSAW) replaced manual evaluation methods with a fully digital platform, ensuring greater data accuracy, reduced errors, and standardized processes.

Similarly, the introduction of the Plant Events App enabled real-time event logging through a mobile-friendly interface, allowing critical data to be captured and accessed promptly.

Another milestone was the near completion of the Digital Store Requisition App, which transitioned the requisition process from paper-based to digital, significantly improving transparency and reducing delays.

The team also achieved substantial cost savings by optimising Microsoft Dynamics 365 (D365) licensing and Azure resources, reallocating underused licenses, and automating resource management. Additionally, the main cooling tower was upgraded with advanced sensors integrated into the distributed control system (DCS), improving monitoring and operational efficiency.

System enhancements further supported the company’s digital transformation. A D365 migration from NCP Alcohols to AlcoNCP streamlined infrastructure, reduced costs, and improved cross-departmental processes.

Network reliability also saw a boost with an upgrade to the voice-operated exchange’s (VOX) 7

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Shon Roopnarain, Principal Solutions Architect sseen here in the nosing room at the launch of the Digital Sensory Anaylysis Wheel direct link (DI), which addressed longstanding connectivity issues and enhanced performance.

Laboratory operations were transformed through the integration of gas chromatograph (GC) instruments into a centralised digital system, reducing paper usage, improving data accuracy, and enabling more efficient workflows. These upgrades reinforced AlcoNCP’s commitment to sustainability and operational excellence.

Looking back on these accomplishments, Shon expressed gratitude for the team’s dedication and innovation, which were instrumental in achieving these milestones.

As the year comes to a close, he extends his warm wishes to his team and the AlcoNCP family, encouraging everyone to enjoy the festive season, recharge, and spend time with loved ones. With optimism for continued success in 2025, Shon wished all a joyous and prosperous New Year.

Kiven Chetty A Journey of Curiosity and Mastery

Fr°

his first steps as a front-end field operator in 2022 to becoming a master of every process in the maize plant, Kiven Chetty’s journey at AlcoNCP is one of passion, perseverance, and remarkable achievement.

Kiven’s story is not just about training—it’s about transformation. He dove headfirst into the intricate world of milling, mashing, liquefaction, and fermentation, uncovering the magic of turning maize into ethanol. Each step in the front-end operations added a new layer of knowledge, but it was the back-end processes where Kiven truly found his stride.

Distillation quickly became his favourite—a challenging yet rewarding process of refining ethanol to perfection. “There’s a real thrill in nailing the nosing,” Kiven says with a smile, reflecting on the satisfaction of precision in action. Moving through dehydration, dryers, and evaporators, Kiven embraced every challenge, learning the art of transforming raw materials into products that fuel AlcoNCP’s success.

But Kiven didn’t achieve this alone. He credits the unwavering support of the production team, with

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a special nod to Bongani Nkosi, his mentor and guide. Bongani who has 36 years of service to AlcoNCP is known for helping new operators find their feet, and played a pivotal role in shaping Kiven’s confidence and expertise.

For Kiven, this journey has been about more than just mastering processes; it’s been about cultivating curiosity and embracing growth. “Ask questions, share what you learn, and never stop exploring,” he advises new operators. His philosophy is simple: every challenge is an opportunity, and every moment is a chance to grow.

Kiven’s incredible story is a shining example of how curiosity, teamwork, and dedication can turn a job into a passion and challenges into triumphs.

At AlcoNCP, Kiven’s journey is a reminder that success is built on one question, one breakthrough, and one lesson at a time.

'...every challenge is an opportunity, and every moment is a chance to grow.' Kiven Chetty

Ce˜bra°ng LoNg SeRvIcE AwArDs 2024 On 21 November 2024, AlcoNCP proudly hosted its Long Service Awards during a heartfelt celebration of commitment and loyalty, honouring employees who have dedicated 15 years or more to the company.

This year, a staggering 300 combined years of service were recognised, showcasing the remarkable dedication of the AlcoNCP family. Among these, the spotlight shone brightly on Les Appalsamy, whose extraordinary 45 years of service stand as a testament to unwavering commitment and loyalty.

Les Appalsamy ! marks 45 years

The afternoon began with a warm welcome from Peter Starling, Managing Director, who expressed his gratitude to all award recipients for their invaluable contributions. The elegant venue and the camaraderie of colleagues made for a truly memorable occasion. These milestones are a testament to the dedication and resilience of our team members, who continue to drive AlcoNCP's success. Here’s to many more years of shared success and milestones!

Our celebrated empl˛˝s Ravi Govindasamy 35 years

Andreas Mazibuko 35 years

Patrick Dladla 20 years Avril Chetty 20 years

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Logan Naicker 20 years

Peter Starling congratulates Logan on his 20 year long service

Lance Ethel 20 years

Don Pillay 20 years

Shon Roopnarain Mark Immelman 15 years 20 years

Ashraf Moosa 20 years

Aubrey Mbeje 15 years

Siphokazi Majozi 20 years

BEHIND THE SCENES

ICONIC LACTIC ACID SAVINGS DRIVE Imagine running a factory where even a small inefficiency can result in millions of rands lost monthly.

That was the challenge we faced when we noticed lactic acid levels in our fermentation process were higher than they should be. Lactic acid, a byproduct of bacterial activity, reduces our ability to produce ethanol efficiently, eating our profits. Here's how we tackled the problem and turned it into an opportunity for growth.

A Team Effort This initiative was a multi-disciplinary effort. Shalini spearheaded the project, guiding the operations team through implementation and follow-up steps. The journey included input from experts like Kiara Premlall, Stephen Kitching, Pablo Vercruysse (ABF), and Jonas Verpaelle (ABF), alongside external partners from Lallemand, Prominent, and Improchem.

Our production team, including Nandi Ndawonde, Arthur Ndaba, and Siphokazi Majozi, played a pivotal role and were supported by lab personnel and maintenance teams. Together, they identified, tested, and implemented solutions.

Steps to Success To address the lactic acid issue, we implemented several key measures: 1. Cleaning and Sterilization Improvements: Enhanced cleaning processes using high-temperature caustic solutions and chlorine dioxide rinses helped sterilise equipment effectively.

2. Equipment Upgrades: Troubleshooting and improving the chlorine dioxide unit reduced downtime and ensured steady chemical supply by switching to bulk stock storage.

3. Alternative Solutions: Trials of chlorine dioxide tablets and additional measures, such as dosing fermenters with Fermasure, helped combat bacterial activity directly.

4. Process Adjustments: Acid dosing in propagators slowed bacterial growth, cutting down lactic acid production at its source.

Overcoming Obstacles The road wasn’t easy. We faced design flaws in our equipment, unreliable chlorine dioxide units, and long lead times for critical parts. By identifying infection hotspots and prioritising fixes, we minimized these challenges. Frequent communication and collaboration helped keep everyone focused and motivated, ensuring the project's success.

Significant Savings The results speak for themselves. While early reductions from 0.63% to 0.5% were largely due to a calibration correction, further efforts brought the average lactic acid level down to 0.32%. This represents a significant improvement, saving up to R1.5 million per month. The initiative is ongoing, with a final target of

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reaching 0.1% lactic acid by the end of next year. These savings translate directly into better yields, allowing us to produce more ethanol from the same resources.

Targeting Inefficiencies The biggest inefficiencies were found in areas like the mash booster pump and propagators, where bacterial infections thrived. By addressing these problem spots, we significantly reduced lactic acid production, leading to better efficiency across the plant.

Timing Is Everything Addressing lactic acid costs was critical to improving our profit margins. This project succeeded because of a passionate team that believed in the mission, adapted to challenges, and celebrated every small win.

Lessons for the Future Daily discussions in team meetings kept everyone informed and aligned. Chlorine dioxide proved invaluable, though maintaining batch strength remains a challenge.

Moving forward, the lessons learned will guide future initiatives, emphasising collaboration, persistence, and clear communication.

By taking a systematic approach, we not only reduced lactic acid levels but also set a blueprint for tackling similar challenges in the future. This journey shows that even the most complex technical problems can be solved with teamwork, innovation, and determination.

STRATEGIC PROJECTS YIELD SIGNIFICANT COST SAVING In 2024, under the leadership of Project Manager Lumeshni Pillay, the projects team achieved significant milestones in both professional development and project execution.

Project Execution Highlights Site Water Storage Enhancement: The team

converted Molasses Tank 3 into a site water storage tank, providing 3-4 days of water reserve. This initiative ensures uninterrupted production during municipal water shutoffs, which have become more frequent.

Cooling Tower Automation: New instrumentation was installed to measure conductivity, pH, and free chlorine levels in the cooling tower. By adhering to the adage, ‘you cannot manage what you cannot measure’, the team optimised chemical dosing, reducing calcium hypochlorite (HTH) usage at the Main Cooling Tower by 66% and achieving annual savings of R500,000.

Evaporators' Seal Water Cooler Installation: A heat exchanger was installed at the evaporators' vacuum pumps, commissioned on September 18th. This led to a decrease in water consumption by approximately 3 cubic meters per hour, equating to savings of 2,160 kiloliters per month and R1.4 million per year.

Distillery Vacuum Pump Temperature Automation: An automated temperature and flow

control loop was implemented on the Distributed Control System for the distillery vacuum pumps. This automation reduced and optimised demineralised water usage, previously adjusted manually by operators, resulting in annual savings of R540,000 in water and effluent costs during high plant operation rates.

Bottom Stills Demolition: Significant progress was made in demolishing the rum/vinegar area and bottom stills plant, preparing the site for a future carbon dioxide plant. Demolition work is scheduled to continue into 2025, paving the way for new developments.

Second Booster Pump Installation: Aimed at reducing lactic acid infections and improving fermenter efficiency, the second booster pump installation project also sought to eliminate pressure surges at mash coolers.

Interlocks for various operation modes were implemented in 2024 to prevent potential surges from incorrect line-ups. Plans for the upcoming year include

Main Cooling Tower Automation

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Distillery vacuum pump temperature automation

installing a Variable Speed Drive on the Caustic Clean-In-Place (CIP) pump along with the second booster pump.

Value Stream Mapping and Continuous Improvement: Significant progress was achieved in

implementing 6S (Sort, Set in order, Shine, Standardise, Sustain, Safety) principles in the laboratory. The workspace has been transformed, with notable improvements in organisation and efficiency. The motivation and ownership demonstrated by the lab team have been highly commendable, contributing to a culture of continuous improvement.

These accomplishments reflect the team's dedication to operational excellence, sustainability, and professional growth, positioning AlcoNCP for continued success in the industry.

STRATEGIC PROJECTS YIELD SIGNIFICANT COST SAVING (continue)

The Projects Team's Professional Development Achievements Emerging Leaders Development Programme (ELDP): Lumeshni Pillay and

Kaylin Naidoo completed the ELDP, enhancing their leadership skills. AlcoNCP received a company recognition award for its commitment to developing emerging leaders. Lumeshni was honoured with a mentor recognition award, and Kaylin showcased his project during the graduation ceremony.

Lumeshni Pillay (left) and Kaylin Naidoo (right) completed the Emerging Leaders Development Programme this year

HAZOP Leadership Training: Lavania

Govender and Kaylin Naidoo attended Hazard and Operability Leadership Training, achieving outstanding results demonstrating their safety and risk management proficiency.

Lavania Govender was recognised for her 5-year service by MD, Peter Starling during the company's recent year-end function

Service Milestones and Academic Achievements: Lavania Govender was

recognised for her 5-year service at AlcoNCP. Selma Mpungose and Zethembe Mwelase also graduated with Bachelor of Science degrees in Chemical Engineering, bringing fresh expertise to the team.

Leeandra Sarjoo was appointed as the Value Stream Mapping Coordinator, a role pivotal for continuous improvement initiatives.

Furthermore, Kaylin Naidoo completed his Postgraduate Diploma in Project Management and is set to graduate next year, further strengthening the team's project execution capabilities.

Selma Mpungose (left) and Zethembe Mwelase (right) recently graduated with Bachelor of Science degrees in Chemical Engineering

HAZOP

Leadership

Training:

Lavania Govender and Kaylin Naidoo attended Hazard and Operability Leadership Training, achieving outstanding results demonstrating their safety and risk management proficiency.

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Celebrating Authenticity

AlcoNCP wrapped up the year in style with its annual year-end function held on 3 December, themed "Authentically You." Employees were encouraged to show up as the best version of themselves, celebrating individuality and authenticity. The result was a vibrant and colourful gathering that perfectly embodied the spirit of the theme.

A highlight of the event was the online voting to crown the Most Authentic Staff Member. The coveted title went to Renisha Joseph, who walked away with a rare prize: a bottle of Hippopotamus Gin, a unique, not-for-sale gin crafted by AlcoNCP to commemorate its 150th anniversary.

The function was expertly hosted by MCs Nikita Ajodha and Kaylin Naidoo, whose lively humour had everyone in stitches as they joked about the quirks of various departments.

Adding a heartfelt touch, Managing Director Peter Starling welcomed everyone and presented long-service awards to employees celebrating five and ten years of dedication to the company. This followed the remarkable celebration in November, where staff with 15 or more years of service were honoured during a special luncheon. Together, these long-serving employees represented an extraordinary 300 years of combined service, highlighting the incredible dedication and commitment within the AlcoNCP family.

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WHAT ELSE DID WE 'ACHIEVE' DURING 2024?

3 Babies and 2 Weddings!

h and ipersad r a H e g Lorrain welcomed lon e eir h h t c Joda udah in J le t t li awaited n 23 July 2024 lives o

an and hubby Sarisha Sewnund ed their Clinton welcom Saige into the first-born, little ary 2024 world on 24 Janu

Rashina Mu nsamy and h ubby Deshan and 'big' brother Tayden welcomed li ttle Taylana into the world on 13 September 2 024

Rylan& Sarisha

David & Kiara

Congratulations to Kiara Premlall and David Lokhat who got married on 20 October

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Congratulations to Rylan Naicker and Serisha who got married on 14 December