Habibo Group

REDUCING RELIANCE ON IMPORTS WITH QUALITY HOMEMADE PRODUCTS

HABIBO GROUP

T

he Republic of Madagascar is commonly associated with tropical conditions, teeming groups of lemurs, and the iconic baobab trees that tower above forest floors. As well as harbouring a perfect climate to grow fruit, the nation is home to a wide variety of natural resources and valuable commodities (graphite, chromite, bauxite, coal, tar sands, fish, vanilla, and hydropower, to name a few).

But with a population of over 27.5 million as of 2020, Madagascar relies heavily on imports to provide its people with the produce, products, and resources the country needs.

The largest of these imports is petroleum oils that make up over 15 percent of total imports to Madagascar. Rice (six percent), vehicles (more than four percent), medicine (over two percent), and palm oil (around another two percent), are just some of the primary import produce that the nation is reliant upon.

Producing for

Madagascar Habibo Group is determined to supply Madagascar and beyond with quality FMCG products at a fair price as the nation seeks to reduce reliance on imported goods Writer: Marcus Kääpä Project Manager: Donovan Smith

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FOOD & DRINK

HABIBO GROUP These products are brought in from its major trading partners: Europe (mainly France and the Netherlands), Asia (China and India), the UAE, the USA, and of course South Africa (with a closer proximity than any other partner).

But the nation is seeking to gradually move away from this reliance on imports.

As it has many important and widely used resources to offer (an example being bauxite, used in aluminium production, or tar sands,

THE HABIBO WAY Habibo provides customers with the best value-for-money options in many regions where it operates. This is largely down to the consistent quality of the products it provides in line with international brands, that in turn hold to international standards of quality in its factories.

Following on from this quality of produce, Habibo holds itself to certain company values that maintain the continuity of quality service. These include: • Consumer satisfaction • Teamwork • Integrity • Respect • Responsibility • Quality • Excellence • Proximity

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used in the production of petroleum), Madagascar is aiming to further develop its exportation industry to access lucrative markets abroad.

And there is one company in particular that is trying to reduce the nation’s reliance on imports.

The Habibo Group is a major player in Malagasy fast-moving consumer goods (FMCG) production and distribution, and has more than 80 years of experience in the industry.

Since 1936, Habibo has been owned and operated by CEO Malik Karmaly’s family, and has concentrated on the importation, exportation, and distribution of various consumer goods and food stuffs. In 2009 it added SOFIA, the distribution company under the banner of Habibo, to its business.

“The vision is to provide continuing quality goods with consistent and reasonable prices to the market. If the sales of certain products grow, the company will think of expanding into industry goods,” Karmaly says.

Habibo Group is subdivided into four businesses. Habibo Compagnie produces spices, vegetable fibres, and beeswax (on top of fabric goods like mattresses) for distribution. Another branch, Habibo Mills, stands as the leading producer of pasta goods in the Indian Ocean, and as a franchisee of French brand Panzani, it is equipped with high-tech machines capable of meeting international standards for recipes and quality.

Habibo Dairy is the only local producer of UHT Tetra pack milk, a product that is franchised in Madagascar under the well-known French brand CANDIA. The factory provides different milks (additional flavoured options) and produces fruit juices for the brand LeFruit.

But the jewel in the company crown is Sofia, the aforementioned distribution company of the Group. Sofia’s primary focus is the importation, sale, and exportation of produce all over the Indian Ocean.

Colombina Colombina is a Colombian food company with over 90 years of market presence. From its founding in 1918, it has interacted with its customers and consumers through a management model rooted in comprehensive transparency.

Such customer-centricity is just one of the reasons for Colombina’s global reach of 80-plus countries today, boasting nearly USD $600 million in annual sales from manufacturing and commercialising its wide array of food – a legitimate leader in major candy markets.

Colombina also observes employeecentricity with its over 7,300 workers.

This in-house pledge to its workforce inspires them to simply turn out the very best flavours and food experiences.

Colombina has operations in 21 African countries, making in-roads there with established well-loved brands, such as Bon Bon Bum chewing-gum filled lollipops, Tiger Pops chewy centre filled lollipops, Mini Bum chewing-gum filled hard candies and Crakeñas crackers. Its presence on the African continent grew from alliances with distributors, such as Habibo Group: a steady Malagasy ally since 2013. And the people of Madagascar have made Colombina’s Bon Bon Bum lollipop a star product!

Colombina has set its sights on expanding its brands more across the continent, particularly into Mozambique, Zambia, Malawi, Uganda, Kenya, Rwanda and Ethiopia. So, our company is putting out the call to any major importers and distribution heads able to handle national wholesale coverage throughout East Africa.

For more information, please contact our African-markets Commercial Manager: MARIO ANDRES JORDAN mjordan@colombina.com WhatsApp: (+57) 314-894-4579

www.colombina.com/ corporativo/en/index.php

HABIBO GROUP “The Group’s distribution network “FORTUNATELY, EVEN DURING THE WORST OF supplies more than 60 high-quality THE VIRUS, HABIBO WAS ABLE TO MAINTAIN family brands at the best prices to ITS ACTIVITIES, KEEP ITS WORKFORCE IN consumers covering Madagascar’s 22 regions and 33 countries across the EMPLOYMENT, AND HOLD ONTO THE DEMAND world,” Karmaly continues.

FOR ITS PRODUCTS IN ITS OPERATING REGIONS” “This is why our company motto is: The best for you.”

Collectively, Habibo employs 600 slowed companies in their tracks. For worst of the virus, Habibo was able individuals and focusses on the food Karmaly, the pandemic significantly to maintain its activities, keep its and beverage industry in line with over reduced business for the company. workforce in employment, and hold 50 international brands.

“COVID-19 made planning difficult onto the demand for its products in its for the company and has considerably operating regions,” Karmaly says.

CHALLENGES AND impacted our sales; they have not Another issue faced is that such an OPPORTUNITIES been following a steady trend. And on industry requires an environment of The events of 2020, paired with the top of this all marketing activities were long-term stability in order to thrive, nation’s recent history, have been completely ceased. The effects of the and several political crises that have significant factors which have slowed virus meant that we could not directly occurred within Madagascar in the Madagascar’s growth. address our customers,” Karmaly past decades have potentially limited COVID-19 has brought industries explains. this development. across the board, and indeed across With the pandemic still very present, An example of this was the 2009 the world, to a halt. The logistical the growth of Madagascan exports Malagasy Crisis that lasted almost a adaptations required alone amid new has been slower than desired. year and saw a split of national control safety and restriction practices have “But fortunately, even during the between the government and an

FOOD & DRINK

SUPPLY CHAIN FOCUS Habibo keeps strong relationships with its supply chain partners, focusing on shared goals beyond the standard pricing and transactions that form the norm of these relationships.

For a few years now the company has been a worldwide distributer of many international brands. It is due to the professionalism of its long-term partnerships that it has achieved this ability and status.

Habibo values long standing supply chain partners above all, and strives to maintain and expand these relationships to further the mutual benefits all parties involved.

aspiring faction vying for power. This crisis disrupted industry development across the board and threw into question whether Madagascar was (and still is) a nation reliable and stable enough to invest into its aspiring industry.

However, despite the pandemic and politically related challenges, Karmaly insists that the optimistic future plans of the company will be based on the needs of the market, the needs of the Malagasy people, and local pricing analysis. Madagascar export trade is expanding and reaching out for opportunities where they present themselves. Despite its past disruptions, the chance to develop and move forward in the exportation industry is a very viable and attainable goal.

“Investing in Madagascar is an exciting challenge despite all risks because the market is very responsive,” Karmaly adds.

He ends on a positive note regarding the opportunities the company provides to the Malagasy people.

“We have expanded our reach in society, helping out the local communities at least once per week,” the CEO says.

“As part of this outreach programme, the company decided to cover the tuition fees of the 20 best students coming from rural colleges for the next three years to take them up to their exams. This is aimed to increase youth integration for those who will end up potentially leading their own businesses and moving our country forward.”

As for future plans among the highs and lows of the past year, Habibo Group aims to maintain its position as a leader in the FMCG sector through its existing practices of best quality, availability, and priced products.

The wider African market sits in the company’s sights as a future industry to expand into, and all the while the firm seeks to maintain a healthy and attractive working environment for all stakeholders.

HABIBO GROUP Tel: +261 32 27 000 07 www.habibo.mg

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HABIBO GROUP Zone Galilée Bâtiment Il Tanjombato – 101 Antananarivo Tel: +261 32 27 000 07 www.habibo.mg PRODUCED BY AFRICA OUTLOOK MAGAZINE