SUSTAINABLE EMEA ISSUE 02/19
B U S I N E S S
M A G A Z I N E
FAUJI FERTILIZER COMPANY
MR RICHARD TAYLOR CEO OF THE INTERNATIONAL HYDROPOWER ASSOCIATION
EAST AFRICAN PAPER MILLS ALSO FEATURED THIS ISSUE
ABB FIA FORMULA E CHAMPIONSHIP â€¢ ALL4LABELS
S U S TA I N I N G T O M O R R O W. T O D AY
B U S I N E S S
M A G A Z I N E
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EUROPE / MIDDLE EAST / AFRICA
CONTENTS ISSUE 02/19
Welcome to the latest Europe, the Middle East, and Africa edition of Sustainable Business Magazine. Sustainable Business Magazine aims to spread awareness of sustainable values in business, as well as the exciting ways in which organizations continue to meet challenges and champion corporate social responsibility. In this issue, we speak to some of the businesses and corporations which are driving economic growth, environmental stewardship, and empowering communities across Europe, the Middle East, and Africa. We begin this issue by taking an in-depth look at East African Paper Mills, a Kenyan manufacturer of recycled paper products. Executive Director Amit Chandaria and Chief Executive Officer Sarvjeet Channa told us about their green business model, investing in increased capacity, and social commitments. In a new focus on sustainable business practices in Pakistan, we spoke to Lieutenant General Tariq Khan, CEO and Managing Director of Fauji Fertilizer Company, about their pioneering investments in renewable energy and supporting local farmers. We also spoke to Isphanyar Bhandara, CEO of Murree Brewery, about catering to local tastes, new technology, and reducing resource consumption. We caught up with Uwe Boegl, Managing Director at All4Labels South Africa, a local label and packaging manufacturer previously featured in Sustainable Business Magazine EMEA 01/18. Mr. Boegl told us about saving water, pursuing opportunities in new markets, and how flexible, efficient technology allowed the company to continue growing despite a challenging economic environment. In an exclusive Q&A, Richard Taylor, Chief Executive Officer of the International Hydropower Association (IHA), spoke to us about how the IHA and members are advancing hydropower around the world, pursuing the U.N. Sustainable Development Goals and working with local communities, and about hosting the 2019 World Hydropower Congress in Paris with a theme of ‘The Power of Water in a Sustainable, Interconnected World’. As the ABB FIA Formula E Championship continues in Europe, we’re publishing a special partner update with Formula E’s title sponsor, multinational technology company ABB, to be followed by a full-length feature on ABB in North and Central Africa in a later issue of Sustainable Business Magazine. President of ABB Europe Frank Duggan and CEO of ABB Egypt, North, and Central Africa Naji Jreijiri spoke to us about ABB’s history of innovation and developing electric transportation in Africa. Details of upcoming sustainability events in Europe, the Middle East, and Africa throughout June and July 2019 can be found on our events calendar. Our featured event is Power & Electricity World Africa 2020, Africa’s largest and longest-running power and electricity show, which will take place at the Sandton Convention Center in Johannesburg, South Africa, March 31st – April 1st 2020.
Q&A Richard Taylor CEO, The International Hydropower Association
Fauji Fertilizer Company (FFC)
ABB FIA Formula E Championship
All4Labels South Africa
East African Paper Mills
We hope that you find this issue both interesting and inspiring. Thank you for reading. The Sustainable Business Magazine Team
© SBM Media Ltd 2019. No part of this publication may be reproduced in any form for any purpose, other than short sections for the purpose of review, without prior consent of the publisher.
SUSTAINABLE BUSINESS MAGAZINE
Q&A RICHARD TAYLOR
Mr. Richard Taylor,
Chief Executive Officer, International Hydropower Association.
Can you tell us about the history of the International Hydropower Association (IHA)? The International Hydropower Association (IHA) was formed on 16 November 1995 as a non-profit mutual association of members. Our mission is to advance sustainable hydropower by building and sharing knowledge on its role in renewable energy systems, responsible freshwater management, and climate change solutions. In the two decades since we were formed, the hydropower sector has seen huge growth â€“ doubling in size from 625 GW to over 1,250 GW today. With this growth has come extra scrutiny of the way in which hydropower projects are planned, financed, developed, and operated. A key moment came in 2000 with the publication of a landmark report by the World Commission on Dams which signalled a new era for hydropower, with greater focus on environmental management and local benefit sharing. Over the past two and a half decades, our broad coalition of forward-thinking corporate members and committed individual members has built strong partnerships with leaders in government, intergov2 | SUSTAINABLE BUSINESS MAGAZINE
ernmental organizations, and civil society. We have worked hard to champion sustainability principles in hydropower and share good and best practices, with the goal of supporting the skills development of professionals and lifting the performance of the sector as a whole. IHA is hosting the World Hydropower Congress in Paris between 14-16 May. Can you tell us about the event? Our first world congress was hosted in Turkey in 2007 with the aim of bringing together leading decision-makers, innovators, and experts from across the sector to discuss challenges and opportunities in developing and operating hydropower today. The World Hydropower Congress has since been convened every two years in Iceland, Brazil, Malaysia, China, and Ethiopia. It has emerged as a truly multi-sectoral event, drawing high-level stakeholders from industry, government, finance, NGOs, and academia. We are delighted to host the 2019 World Hydropower Congress in Paris. Four years ago, in 2015, the French capital hosted the historic United Nations Climate Conference (COP21), at which the
Paris Agreement was made to limit global emissions. So it is fitting that, this year, the city gives the stage to the hydropower sector, the world’s largest source of renewable electricity generation. The theme of the congress is ‘The Power of Water in a Sustainable, Interconnected World’, which will focus attention on hydropower’s role in delivering on the Paris Agreement, as well as the United Nations Sustainable Development Goals. Delegates have an unparalleled opportunity to exchange experiences and advance strategies that support hydropower project planning, development, and operation. As the organizer, we pride ourselves on the knowledge sharing, capacity building, and stakeholder dialogue which are at the heart of every World Hydropower Congress. Focus sessions and workshops are co-convened with knowledge partners that bring a depth of understanding to each topic. Partners include United Nations organizations, financial institutions, intergovernmental agencies, and research institutes. We are especially grateful to have the support of leading organizations, including our strategic partners CTG, EDF, GE, Itaipu Binacional, The Nature Conservancy, and Sarawak Energy, and our supporting partners Alpiq, CSHE, EDP, Voith, and Statkraft. How can hydropower help deliver on the Paris Agreement and the UN Sustainable Development Goals? Without hydropower, it is hard to see how the targets enshrined in the Paris Agreement and the Sustainable Development Goals could be reached. In a world in which almost 1 billion people still do not have access to electricity and 2.1 billion are without safely-managed water services, hydropower is a reliable and affordable source of low-carbon power and freshwater management. Hydropower has an integral role to play in the transition to the low carbon economy, contributing nearly two-thirds of renewable electricity generation. As well as reducing our dependence on fossil fuels and limiting air pollution, hydropower supports growth in solar and wind power through its flexibility in dispatch and clean energy storage. Where a project is planned, developed, and operated sustainably, it can offer multiple benefits including economic development, widening access to electricity, lifting people out of poverty, and protecting vulnerable communities against the risk of drought and floods. As climate change evolves with greater probability of more extreme weather events, safely-managed water storage provided by hydropower projects will become even more essential. In Africa, many countries are embracing hydropower to meet electricity demand. At the World Hydropower Congress, we will examine how project benefits can be shared, looking at success stories from Ethiopia, Cameroon, and Ghana, among other countries, and how other regions can learn from these experiences. How can hydropower developers involve communities and ensure that hydroelectric plants have direct benefits to local people? We encourage hydropower developers and operators to draw upon international good practice when planning and implementing hydropower projects and engaging and consulting affected communities. The Hydropower Sustainability Guidelines on good international industry practice, launched in December 2018, define expected performance and are an essential guide in this regard. The Hydropower Sustainability Guidelines are supported by assessment tools such as the Hydropower Sustainability Assessment Protocol for measuring performance, and the Hydropower Sustain-
ability ESG Gap Analysis Tool, which allows project proponents and investors to identify and address gaps against good practice. The sustainability tools look at the different stages of a hydropower project’s lifecycle, from planning and preparation to implementation and operation. The tools consider concerns and opportunities across 26 topics, including safety, cultural heritage, resettlement, and environmental protection, as well as the economic and social benefits associated with project development. The tools are applicable in both developing and developed country contexts, and are aligned with standards developed by the World Bank, International Finance Corporation, and the Equator Principles group of commercial banks. What other challenges does the hydropower sector face? Delegates at the World Hydropower Congress will hear about an array of challenges faced by the hydropower sector today, including the need to modernize aging infrastructure, adapt to a revolution in available digital technologies, and to build resilience to the changing climate. Participants will learn about opportunities for hydropower in the energy transition. The rapid growth of variable renewables such as wind and solar power mean hydropower’s flexibility and storage services will be in increasing demand, and coupling hydropower projects with solar photovoltaics and wind projects presents a real opportunity to scale up deployment around the world. Markets and regulatory systems however need to keep pace with changes to the energy system. Globally, there is demand for private sector involvement in hydropower development, especially in developing countries where public funds are scarce. But it can be hard to attract this investment where the risk profile attached to hydropower is poorly understood. As an association, we provide value by helping the hydropower sector to prepare for and adapt to these challenges and opportunities. Our knowledge sharing programs increase awareness of hydropower’s role in clean energy systems and sustainable development and the importance of collaborative, adaptive approaches to river basin development and regional energy interconnections. IHA’s Knowledge Networks have identified good practice around managing hydropower assets and have helped to develop tools for dealing with a variety of challenges, such as assessing the carbon footprint of reservoirs. Recognizing that investment in hydropower is essential if the world is to meet global climate targets, we are also working with partners to agree criteria for hydropower-eligible green bonds. The 2019 Hydropower Status Report, to be launched at the World Hydropower Congress, looks in-depth at the latest trends in hydropower development. The report features policy perspectives from leading government ministers with responsibility for water and energy, and provides the latest installed capacity and generation data from around the world. The report can be downloaded for free from our website: www.hydropower.org. c SUSTAINABLE BUSINESS MAGAZINE
FAUJI FERTILIZER COMPANY
FFC HAS ALSO BECOME A PIONEER IN PAKISTAN’S RENEWABLE ENERGY SECTOR.
FOR PAKISTANI FARMING LT. GEN. TARIQ KHAN, CEO AT FAUJI FERTILIZER COMPANY.
Sustainable Business Magazine speaks to Lt. Gen. Tariq Khan, CEO & MD at Fauji Fertilizer Company, about renewable energy, investing in farmers, and preparing for the future. Fauji Fertilizer Company Ltd (FFC) is Pakistan’s largest chemical fertilizer company. The company was created in 1978 in a joint venture between the Fauji Foundation, a Pakistani charitable trust founded in the 1950s to provide employment and funds for the welfare of former military personnel (‘Fauji’ in Urdu means ‘soldier’) and Haldor Topsøe, the Danish catalyst company. By 1982, Fauji Fertilizer had its first urea plant, and a further two followed in 1993 and 2002, the latter following the acquisition of Pak Saudi Fertilizers Ltd. In 1998, Fauji Fertilizer Bin Qasim was set up
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as Pakistan’s first diammonium phosphate and granular urea complex. Over 40 years, FFC has established its brand Sona as the leader in the Pakistani fertilizer sector. RENEWABLE PIONEERS Fertilizer is far from the company’s only concern, though. FFC has also become a pioneer in Pakistan’s renewable energy sector. “In 2009 we established FFC Energy Ltd, situated in the desert in a place called Jhampir,” explains Lt. Gen. Tariq Khan, CEO & MD of FFC. “It’s a subsidiary of FFC, and has an installed wind turbine
capacity of 49.5 megawatts (MW). Commercial operations began in May 2013, and we have now even taken over the operation and maintenance. FFC Energy is also in the process of developing a 40MW solar photovoltaic power plant. That will be in a hybrid arrangement with our wind turbines.” “The company was looking toward diversification to some extent,” says General Khan. “We are into hydrocarbons and petrochemicals, so renewable energy was a natural fit. At the time we went into it, there was a problem in the country related to setting up renewables and people were reluctant to do it. We were asked by the President if we would take up one of these projects in the designated ‘wind corridor’. Being the pioneers in this high-risk business at the time, we were able to get good tariffs. The present system is made up of 1.5 MW turbines. FFC is considering building a new wind farm and are looking at 3 MW turbines. We are going into new areas where hopefully we’re going to be expanding into the distribution system.”
UNDER PRESSURE Sustainability is core to FFC’s long-term vision – not only in terms of sustainable energy and environmentally friendly decisions but also the self-sufficient sustainability of the company itself. “Our plants are operating on a gas stream where the pressure is declining,” says General Khan. “We have successfully managed this challenge so far with proactive planning across the system, and good engineering. Our company has established a large offsite gas compression facility comprising of nine compressors. A further two more are in the pipeline at the moment. This would total to 33k BHP. We have invested about eight billion rupees on this facility since 2009 and that is to continue getting gas at the required pressure into the future. We are also working on securing long term sustainable water supplies for our plants. Various projects have begun to be put in place with this in mind. These include expanding the tube-well network, laying new pipelines, and installation of associated new equipment.”
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FAUJI FERTILIZER COMPANY
SOCIAL RESPONSIBILITY Another impressive element to FFC’s business is their commitment to social good. They operate a far-reaching corporate social responsibility program directed both to local communities and to the farmers that the company works with. Much of the work in this area is carried out through the Sona Welfare Foundation. To date, more than
600 million rupees have been spent in the areas of healthcare, education, sports, and rural development. “Near two of our plant sites we have established medical centers, the Trust Hospital and the Sona Welfare Hospital,” says General Khan. “These bring healthcare services to 150,000 patients each year. Our education program includes self-run schools, adopted and assisted
schools, scholarship programs, and financial assistance to academia. Together they support more than 15,000 students. Our technical training centers have embarked on a landmark initiative that aims to provide local youth with classrooms and on-site training. This is part for a sustainable growth of the community. For our sporting support we have also worked with the Hockey Feder-
FFC was incorporated in 1978 as a joint venture between Fauji Foundation and Haldor Topsøe of Denmark. Pakistan is an agriculture-based country where more than 40% of the population is employed in this sector. FFC provides guidance and support to growers for maximum output of the crops, resulting in their financial uplift. EFU, the largest insurer in Pakistan, is associated with FFC from the construction stage as the lead insurer and has been providing insurance coverage and risk management services. 6 | SUSTAINABLE BUSINESS MAGAZINE
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FAUJI FERTILIZER COMPANY
ation of Pakistan to help revive the sport in the country.” FFC have also brought their expertise in renewable energy and environmental protection to bear on their corporate social responsibility activities. “The environment is something we’re alarmed about right now,” explains General Khan. “It is degrading. So our new wind energy farm has a zero carbon footprint alongside the distinction of being Pakistan’s first fully operational wind farm. We’ve been able to make three villages, community schools, and colleges run entirely on solar power. Furthermore, we have also
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introduced biodegradable gunny bags. They ensure a negative footprint on the soil, water, and environment.” NATIONAL FOOD SECURITY Pakistan is heavily reliant on agriculture for its livelihood and economy. Since 1980 the country has doubled its production of wheat, rice and cotton. As a company with 45% of the fertilizer market share, a lot of credit can be attributed to FFC. Now, FFC plans to help Pakistani farmers even further. “I’ve decided to put corporate communications and agri-services together as one unit and to
then extend out towards communal farming,” says General Khan. “That means grouping 50 farms together and providing a community center where we offer our banking services to provide micro-loans. We give education and provide pesticides, seeds, fertilizers, water management, weather and climatic assessments and analysis, marketing, advice on what to grow, et cetera. This isn’t yet on the ground – I expect it to take another year or so. It will be serviced with stations all over the country where we can have a guidance system to provide any kind of assistance to farmers whenever they need us.”
“We are very cognizant of national food security,” explains General Khan. “Improving farm economics is essential. A focus on farmers and other stakeholders through result-oriented activities is the way we plan to do this. That means improving outreach, addressing the farmer’s needs in an intensive and interactive way, increasing farm productivity, and improving farm economics through capacity building.” COMPREHENSIVE BUSINESS PLAN FFC’s strategic goal is to achieve organic business growth, utilizing the potential of
Pakistan and its people. With this in mind, the company has devised a comprehensive business plan comprising a short-, medium, and long-term strategy. “Our short-term strategy is to focus on fertilizer business sustainability,” says General Khan. “For this, we are looking into options for securing alternative gas suppliers. Our medium-term strategy is investing in businesses linked to population growth. To this end we have already invested 30% equity in a 330MW coal power plant that will be commissioned in 2021. We’re also exploring opportunities on the China-Pa-
kistan Economic Corridor. Our long-term strategy is an expansion in the fertilizer business both within the country and abroad. We’re working to set up a fertilizer plant in Africa at the moment. We believe there’s going to be a shortage of gas in the country around 2025-26, so we’ve also acquired certain blocks in the Thar coalfield area. We are evaluating the feasibility of coal gasification, which if successful means we can then produce gas independently, substituting the indigenous gas, and perhaps supply to others through a distribution system.” c
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QUENCHING THE THIRST OF A NATION
Sustainable Business Magazine speaks to Isphanyar Bhandara, CEO of Murree Brewery, about embracing new technology, reducing resource consumption, and participating in Pakistan’s rapid growth.
“SINCE THE 1960S, MURREE BREWERY HAS BEEN EXPANDING ITS PRODUCT LINES AND INVESTING IN MODERNIZATION.
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Murree Brewery is one of the oldest industrial establishments on the South Asian sub-continent, and is among the five largest companies in Pakistan. Founded in 1860 to provide beer to the British colonial military, by the beginning of the 20th Century, Murree Brewery’s keg and
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bottled beers were popular across British India, while its shares were being traded on the Calcutta Stock Exchange. After a devastating earthquake destroyed the Quetta brewery in 1935, and as water scarcity became a concern at the Ghora Galli site, most operations were moved to
Murree Brewery’s Rawalpindi facility, where production continues today. Since the 1960s, Murree Brewery has been expanding its product lines and investing in modernization. The company has various lines of spirits, maturing malt whiskies using imported white oak casks, and in the 1990s, new facilities were added for canning and bottle-filling. As Pakistan prohibits the consumption of alcohol by anyone except non-Muslims and foreigners, the brewery has also developed popular lines of fruit juices and non-alcoholic beers. “Today, we have two plants, in Rawalpindi and at Hattar,” explains Isphanyar Bhandara, CEO of Murree Brewery. “We produce about a dozen types of spirits, half a dozen types of beers, and half a dozen apple ciders. We also produce half a dozen types of non-alcoholic beers, and many juices and mineral water. On top of this, we have a sister company called Murree Glass, which enables us to make
The consumption of bottled water in Pakistan is on the increase, and Murree Brewery Group is also actively involved in the bottled water business. Murree Brewery Group acquired a water bottling plant from another brand. The plant acquired has been upgraded in technology and capacity. The location of the plant is an added advantage; being located in the foothills of the Himalayas leads to higher-quality water. The popularity of ‘Murree Sparkletts’ as a brand is slowly elbowing out the many multi-national brands available in Pakistan. The overwhelming majority of Murree Brewery’s sales are domestic, with only 0.5% of sales going outside of Pakistan. Because alcoholic goods are by law not allowed to be exported, they are sold to tourists and visitors inside of the country. Meanwhile, Murree Brewery’s juices and non-alcoholic beers are widely consumed by the population. Only Murree’s mango juice travels beyond the Pakistan borders, primarily to Iran, Afghanistan, and countries in southern Africa. LOCAL PERSONNEL, INTERNATIONAL PEDIGREE At the heart of Murree Brewery’s operations are two vital assets: Staff and technology. “We employ local people throughout the company,” says Mr. Bhandara. “We hire good, qualified personnel: Our staff have PhDs, MScs, and BScs in food technology. And because we have to handle a wide range of complex equipment, we need our staff educated. There are local courses in Pakistan, but we want the best training from around
the world. We send them internationally for training in order to stay at the cutting edge. One of my brewers just went to Bavaria, Germany, for a major conference. Three of my managers went to Oktoberfest in Germany, too, in order to make connections and help them understand the international brewing market. We need to know the changes in the technology and new products, so keeping ourselves abreast of these developments is vital to our survival. We have Oracle-based cloud IT across the whole system, and we’re always undertaking R&D, for which we get experts from the local market and from the Brewing Institute in Germany.” SHARING AND RECYCLING Technology and close attention to processes allow Murree Brewery to achieve greater resource efficiency, cutting costs, protecting the local environment – and even providing local farmers with high-quality cattle feed. “After the beer process there is a sludge or slurry with the yeast,” explains Mr. Bhandara. “A lot of brewers in the world throw this
our own bottles for our drinks, as well as sell bottles to other companies in the industry.” INVESTING IN THE LOCAL MARKET As Murree Brewery has moved into non-alcoholic products to cater to the large local non-alcoholic beverage market, they have experienced rapid growth of key product lines. With two plants already producing at full capacity, the company is about to open a third site dedicated entirely to juices. “We are currently buying machinery and expanding our juice plant,” says Mr. Bhandara. “We recently put up a new juice plant facility for about $3.5m, much of which came from Swedish company Tetrapak, which is very big here in Pakistan. Because we are in a state of prohibition here in Pakistan, almost all our investments and expansion is on the non-alcoholic side. We recently put in three new lines of juices and one new line of non-alcoholic beer, just in the last few months.” SUSTAINABLE BUSINESS MAGAZINE
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away because it’s very smelly. We sell it to people who have cows. This is very good cattle food, full of protein, and the milk yield of the cows increases after feeding on this wastage. Water recycling is also something very close to our heart. Water levels in Pakistan are quickly depleting, so we recycle as much of our water as possible. We recycle cullet, or broken glass, which is thrown back into the furnace to make new bottles. Carton wastage is another important issue. Anything we can’t use, we give to someone to cut and reshape it for other purposes, so that it is not simply thrown away.” Murree Brewery also recently installed a biogas plant. “We are one of the few companies in Pakistan that has a biogas generator, powering ourselves with gas from our own distillery,” says Mr. Bhandara. “Using distillery waste,
called ‘spentwash’, we create bacteria and propagate it. This becomes biogas. After scrubbing it we put it back in to feed the boilers. This was put in by a Thai consultant back in 2006. We are a good corporate citizen and want to reduce our carbon footprint as much as possible.” As part of their corporate citizenship, the Murree Brewery has also built a school for disabled girls and women. Called Darakshan, the school provides education and training for up to 65 individuals at a time. “We believe it’s important for successful businesses to give something back to Pakistani society, and to the community,” says Mr. Bhandara. MARKET EXPANSION Having already mastered the art of non-alcoholic beverages, Murree Brewery are confident about their market position
moving into the future. “We have a population of more than 200 million,” says Mr. Bhandara. “About 60% of that population is under 20 years of age. That is a huge population of up and coming drinkers. We have a population where people like to have alcoholic and non-alcoholic drinks. Of course, the alcoholic drinks are limited in consumption, but still we see big growth. The best example in front of us is China and India, where there is more than one billion people. Those people, every one of them, has to eat and drink and use soap and shampoo. As Pakistan grows, we will face similar prospects. A lot of European and U.S. companies are running businesses in Pakistan and India now. We believe Murree Brewery is ideally placed to capitalize on the country’s exploding population.” c
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ABB FIA FORMULA E CHAMPIONSHIP
“RENEWABLES HELP US TO MAKE A MORE SUSTAINABLE WORLD.”
TRANSFORMATION As the ABB FIA Formula E Championship continues, Sustainable Business Magazine brings you a special partner update with the Formula E title sponsor, multinational technology company ABB. FRANK DUGGAN, PRESIDENT OF ABB EUROPE.
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Headquartered in Zurich, and listed on the SIX Swiss Exchange, Nasdaq Stockholm, and the New York Stock Exchange, ABB has a long history of innovation. Sustainable Business Magazine’s George Bell recently caught up with the President of ABB Europe, Frank Duggan, and the CEO of ABB Egypt, North, and Central Africa, Naji Jreijiri. They talked about ABB’s sustainable partnership with Formula E, a history of innovation, and new projects in North Africa. “Going into Formula E and any major global sporting event like this is a new venture for ABB,” says Mr. Duggan. “Brand rec-
ognition is really important here, and that’s something we have only really come to do in recent years. We’ve traditionally been seen as the engineer’s engineering company. You might not know, but we invented synthetic diamond. The first three-phase transformer was ABB. High-voltage DC was invented by ABB in the mid-1950s, which is really a foundation stone for sustainable energy and renewables. We invented the first electric robot in the mid-70s. But we’re more a B2B company, and so the name wasn’t known.” ABB have a longstanding involvement with electric vehicles. “We were the first
ones to develop the fast DC charger,” explains Mr. Duggan. “The latest charger, we can charge a car for 200km in 8 minutes, which makes charging on highways viable. Later this year, the first car that will be able to take the charge at that speed is the Porsche that’s coming out. If you go to Geneva, you’ll see the buses on the airport route, when they come into the bus station to take the passengers on, we flash charge the bus in fifteen seconds so it gets enough charge to go to the next station. We also do a huge amount in trucks and rail. That’s how FIA and ABB came together, marrying what we wanted to do with what they want to do, which is using Formula E to drive technology and electric vehicles.” For the past three years, the Circuit International Automobile Moulay El Hassan, a temporary street circuit in Marrakesh, has hosted the second ePrix in the Formula E season, most recently on 12 January 2019. Morocco is the first African country to host a Formula E race – and the country also recently entered into an agreement with ABB to begin an e-mobility project. “We signed a memorandum of understanding with the Morocco Agency for Energy Efficiency six months ago, under the patronage of the
Swiss and Moroccan Ministers of Energy, to develop the concept of e-mobility in one of the cities here,” says Mr. Jreijiri. “Before we can start to massively move e-vehicles into Morocco, you need to get the people to understand, and also the cities themselves. We need to work with the mayors to build an infrastructure and to understand the savings for the city. Morocco wants to be an example in Africa, and also as part of the world community, as leading in renewables.” This ultimately necessitates the development of new infrastructure, to allow a greater share of the energy consumed in the country – including for transportation – to be electrical without overwhelming the existing grid. “This MoU will help us to start a pilot project in one of the cities, mainly on buses,” says
Mr. Jreijiri. “We can use the public transportation system as an example, to reduce CO2 emissions and also to introduce the concept of e-vehicles into the country.” “Renewables help us to make a more sustainable world,” says Mr. Duggan. “There’s no question about that. Morocco is one of the most advanced countries in Africa, and there’s good infrastructure here. The government is very clearly pushing the Moroccan economy to become a leading economy for all Africa, particularly for Francophone Africa. For us it gives us a real opportunity to build on that.” This partner update will be followed by a full-length feature on ABB in North and Central Africa in Sustainable Business Magazine later this year. c
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ALL4LABELS SOUTH AFRICA
IN ORDER TO WORK WITH BLUE CHIP COMPANIES, ALL4LABELS SOUTH AFRICA HAS RECENTLY SECURED ISO CERTIFICATION.
GROWTH Sustainable Business Magazine speaks to Uwe Boegl, Managing Director at All4Labels South Africa, about the benefits of digital technology at a time of recession, international expansion, and reducing resource consumption.
All4Labels South Africa, a regional subsidiary of the global All4Labels Group, is a Cape Town-based label, shrink sleeve, and flexible packaging manufacturer. By investing early in digital print technology to become quicker and more flexible, All4Labels South Africa have been able to rapidly grow, and today the company has more than 50 employees, 18 | SUSTAINABLE BUSINESS MAGAZINE
working with customers not only domestically but also in the SADC region (Zimbabwe, Zambia, Namibia, Botswana and Malawi) to deliver unique promotional solutions. Since Sustainable Business Magazine last spoke to All4Labels South Africa, at the beginning of 2018, South Africa entered a recession, affecting core All4Labels markets
and causing the company to reassess some of their growth goals. Nonetheless, despite a difficult climate for South African businesses, All4Labels were able to achieve some growth.
CHALLENGING ENVIRONMENT “In our core market, the fast-moving consumer goods industry, they were facing a decline of about 7-8% in their turnover,” says Uwe Boegl, Managing Director at All4Labels South Africa. “The structure of the retail industry faced drastic changes, and because we are supplying the suppliers of the FMCG industry, this meant direct effects on us. Our clients needed to reduced their working capital and with that their stockholding and ordered smaller lots just in time. This led to an increase of smaller orders on shorter
days, because of the tremendous workload on the digital department. Moving into this market has enormously extended our portfolio, meaning we can offer new products like tubes and rigid packaging for the cosmetics industry and pouches and flexible packaging for the food industry.” NEW MARKETS Even while digital technology opens up new product lines for All4Labels South Africa, the
company is increasingly looking to do business outside of South Africa in the regional market – and beyond. In order to do this, the company is seeing to forge partnerships with blue chip companies. “We will see further growth in the sub-Saharan African region,” explains Mr. Boegl. “In our current market, there is limited growth, except in the SADC region where we do see some opportunities, depending on their ecomonic policies and business climate. What we’re
notice and we had to adapt our production accordingly to fullfil these demands.” As a result of their investments in digital technology (see Sustainable Business Magazine EMEA 01/18 for the full story), All4Labels South Africa were well-equipped to handle this shift in customer requirements. “Though we normally have double-digit growth of around 20-25% per year, and we weren’t able to achieve that in 2018 due to the recession, but we still managed to have a sustainable growth,” explains Mr. Boegl. “We also saw a significant move in our business to digital work. This was due to the change in the order structure from our clients. The investment in digital was well worth our while: For the last couple of months of 2018, we actually worked 24/7, including Saturdays and SunSUSTAINABLE BUSINESS MAGAZINE
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ALL4LABELS SOUTH AFRICA
really keen on is exposure to East and West African companies through partnerships with blue chip companies. Blue chips operate very much in regions and not just in countries. Therefore, the tenders we’ve put out include the entire sub-Saharan Africa region, which exposes Eastern African countries like Kenya, Uganda, and Tanzania, as well as in Western African countries like Nigeria and Ghana. These are markets which we’ve been absent from so far, but we believe there is a demand for the kind of service we can offer. We’ve been seeking tenders in these regions, one of which we recently won. As a result, I fully expect that we’ll see a growth in our sub-Saharan African business.”
All4Labels South Africa are also working towards the ISO 14001 environmental management standard. “The roof of our warehouses has been completely covered with solar panels,” says Mr. Boegl. “They contribute about 20% of our total energy consumption. We are a 24-hour operation, so it helps a lot to save on our electricity costs during the day. We are now increasing the size of those panels in the second phase. During 2019 we will triple what we have at the moment, and hope to cover over 50% of our energy needs by solar power alone.”
EFFICIENCY PROGRAMS Driven by Cape Town’s severe drought in 2018, All4Labels have also begun a rainwater collection project. “We see this as a drought mitigation project,” says Mr. Boegl. “Water tanks were installed all around our factory to collect the rainwater. We also drilled a well to contribute further to the water for our factory needs, so that we don’t use potable water for our production. This includes greywater applications, such as toilets and washbasins. This way, we’re not unnecessarily cutting into South Africa’s valuable potable water resources.” The company has also embraced the ‘5S’ workplace methodology, to improve efficiencies and reduce waste. “This starts really basic, going in work teams from department-to-department, machine-to-machine, to solve problems,” says Mr. Boegl. “The team looks at sorting the problem, setting everything in order, shining the machine, standardizing the process, and ensuring it can be sustained, together with support from the All4Labels group and a young project engineer from Germany, from the University of Stuttgart, who is going to accompany that project throughout the year in various departments of our business. It’s partly to drive efficiency in terms of getting more capacity out of our presses and our machinery in general, while at the same time we will reduce the waste, increase safety around the machines, and also improve staff satisfaction.” “Our 2015 five-year plan was that we wanted to completely double the turnover of our company by 2020,” explains Mr. Boegl. “Even with a difficult 2018, we are still on track, and we intend by 2020 to be above the target we set ourselves in 2015. Growth isn’t a problem for us, but obviously to achieve that growth you need to have sustainable growth, and hence the efforts in achieving these certifications, pursuing more sustainability, and seeking new markets.” c
INTERNATIONAL STANDARDS In order to work with blue chip companies, All4Labels South Africa has recently expanded its ISO certifications, to demonstrate its capability to comply with the requirements of the international marketplace. “Having already been awarded ISO 9001, we are currently pursuing ISO 22000 for food safety management,” says Mr. Boegl. “We’re confident we will achieve this certification, which will indicate to other companies our readiness to work in various markets.” SUSTAINABLE BUSINESS MAGAZINE
EAST AFRICAN PAPER MILLS A PART OF PAPER MAKING MACHINE AT EAST AFRICA PAPER MILL LTD.
EAST AFRICAN PAPER MILLS WORK EXCLUSIVELY WITH RECYCLED PAPER, AND HAVE DONE SINCE STARTING OUT IN 1987.
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EAST AFRICAN PAPER MILLS LIMITED Leading in excellence
KENYAN RECYCLING Sustainable Business Magazine speaks with Amit Chandaria, Executive Director of East African Paper Mills, and Sarvjeet Channa, CEO, about a business model based on recycling, investing in new green technology, and contributing to the local community.
East African Paper Mills Ltd is a major manufacturer of recycled paper products for the carton and corrugated box industry in Kenya. The company is part of the DMC Group, a conglomerate with a wide portfolio of businesses from paper to banking, energy to real estate. DMC Group bought East African Paper Mills in 1987, when the company was known as Kenya Paper Mill. Then, as now, the company focused on three core types of paper production: Testliner, two-ply, and fluting. Kenya Paper Mill purchased a second milling machine in 2007, doubling their production and increasing their ability to export regionally. The company was renamed East African Paper Mills in 2013. Today, East African Paper Mills has a 38% market share in Kenya, and exports to Uganda, Tanzania, and Burundi. GREEN ETHOS East African Paper Mills work exclusively with recycled paper, and have done since starting out in 1987. “This means we don’t cut down a single tree in our manufacturing,” explains Amit Chandaria, Executive Director of East African Paper Mills. “There are major cost
advantages to this, and crucially it reduces our ecological footprint as well.” “There are two kinds of waste paper,” explains Sarvjeet Channa, CEO of East African Paper Mills. “The first is waste that comes from industry. What happens is they bale that paper and then they sell it on to us. Then there’s the second grade of paper, which is from supermarkets, shops, and other retail outlets. This includes used carton boxes, used brown paper bags, that kind of thing. Paper is collected from these by about 3,000 waste paper collectors all over Kenya. Some send it to waste paper companies, who bale it then sell it to us. That’s one channel. The other is that some of these collectors sell directly to us as well.” INCREASED CAPACITY, IMPROVED QUALITY Recently, East African Paper Mills made further investments to increase their capacity. “In 2018, we upgraded our machinery, which increased our production, and even more importantly increased the quality of our products,” says Mr. Chandaria. “Our customers are very happy about the better paper quality.” SUSTAINABLE BUSINESS MAGAZINE
EAST AFRICAN PAPER MILLS SEATED LEFT, AMIT CHANDARIA, DIRECTOR. SEATED RIGHT, SARVJEET CHANNA, CHIEF EXECUTIVE OFFICER.
“Before the upgrade, our market share was about 25% to 30%,” says Mr. Channa. “In East Africa, the carton box market grows by about 5% to 7% year on year. We wanted to increase our capacity and overall share of the market, so we upgraded the machine with three objectives in mind. First, to increase our capacity by about 30%. Second, to enhance our efficiency in terms of cost of production. Third, to continuously enhance
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our quality as well. We achieved this. Now we have increased our market share by about 8%, so today it’s at 38%.” SOCIAL COMMITMENTS In addition to having a business model predicated upon recycling, East African Paper Mills are implementing green investments at their plant, contributing to lower costs and a smaller footprint. “We have a
closed-loop water system,” says Mr. Channa. “This means we’re able to recycle 100% of our water requirements. The DMC Group was named after Dinesh Maganlal Chandaria, son of founder Dr. Maganlal Chandaria, and has remained a family-led business to this day. East African Paper Mills retains these close ties to the local community. “We directly employ two hundred local people, which means their families benefit directly from this employment,” says Mr. Chandaria. “We also help more than a thousand other families, through the waste paper collection, which is an important source of income.” Thorough training helps the plant’s operations run smoothly, and also allows employees to develop their skills. “We train, mentor and coach our staff on the technical aspects of their jobs, be it in the office, paper making, boiler operations, or in the electrical department,” says Mr. Channa. “By focusing on training, we’ve only had to bring in two experts from outside of Kenya. The rest of the staff are all local. That’s very important to us. We also offer work experience to students from local technical colleges during
“WE’RE PROUD OF THE WORK WE DO AT OUR PLANTS, AND OUR RELATIONSHIP WITH OUR CUSTOMERS AND THE COMMUNITY,”
holidays, so they can put into practice what they’ve learned.” “The other aspect we do is true character building in terms of organizational behavior,” adds Mr. Channa. “We work hard on teaching how employees should behave in an organization in terms of attitude, and inculcating the right corporate culture. We’re basically trying to create a culture of continuous improvement. That is always a better way of doing things. With this, we feel we’re helping people
learn more and more, and helping them develop.” CHARITABLE FOUNDATION As part of the DMC Group, East African Paper Mills works with the DMC Charitable Foundation. “DMC Charitable Foundation was started by the family in honor of my late father,” says Mr. Chandaria. The Foundation focuses on sustainable charitable projects with key focus areas being Education, Healthcare, Environment, Arts, and Sports.”
SEATED FROM LEFT, BHAVNISH CHANDARIA – DIRECTOR, HETUL CHANDARIA – DIRECTOR, AMIT CHANDARIA – DIRECTOR, SARVJEET CHANNA – CHIEF EXECUTIVE OFFICER. STANDING – EAST AFRICAN PAPER MILLS SENIOR MANAGEMENT TEAM CELEBRATING AWARDS IN CORPORATE CITIZENSHIP AND ENVIRONMENTAL FOCUS, 1ST RUNNERS UP IN LEADERSHIP MANAGEMENT, AND 1ST RUNNERS UP IN PRODUCTIVITY AND QUALITY.
“It’s very important for the Group, that we have social programs for the neighboring communities,” explains Mr. Channa. “The foundation provides mosquito nets for children, medicine, and school books,to the less privileged in the neighbouring communities where the DMC Group Companies operate. We’ve also developed water pipelines for a local community next to East African Paper Mills, that provides water for household chores for the community.” GROWING THE MARKET Looking forwards, East African Paper Mills intends to continue expanding. “We’ve been looking at a diversification in terms of paper and paper products,” says Mr. Channa. “Going forward we’re going to try increasing our geographical footprint. The East and Central African markets are what we’re currently looking at. We are supplying paper right now to them, to Uganda, Tanzania, and Burundi, but we want that market to grow. “We’re proud of the work we do at our plants, and our relationship with our customers and the community,” says Mr. Chandaria. “We intend to keep moving forward and contributing to Kenya, continuing my father’s vision.” c SUSTAINABLE BUSINESS MAGAZINE
3rd - 6th
3rd - 7th
Angola Oil & Gas 2019 Luanda, Angola www.africaoilandpower.com
13th - 14th
Zambia International Mining & Energy Conference (ZIMEC) Lusaka, Zambia
RES4AFRICA Addis Ababa, Ethiopia www.res4med.org
RES4Med&Africa will offer a unique opportunity to consolidate and expand RES4Med&Africa’s well-established dialogue with key public and private sector stakeholders, multilateral institutions, and civil society organizations working on accelerating access to clean energy as a foundation for inclusive, sustainable development in Africa.
20th - 22nd
POGEE 2019 Karachi, Pakistan www.pogeepakistan.com
The conference aims to bring together professional from the energy industry to showcase products and services to potential buyers using hands-on demonstrations with new products to educate customers and prospects with the displayed technology.
24th - 25th
2nd North Africa Renewable Energy Summit Casablanca, Morocco www.moroccorenewable.org
The summit will focus on the Solar & Wind power development in Morocco, Egypt, Algeria, and Tunisia. It is expected that more than 300 decision makers will join the event and share the latest news in the renewable energy development in North Africa.
This events dives into the specifics surrounding solar project development in Africa’s desert regions. These wastelands boast some of the world’s highest solar irradiation levels. Plans range from electrifying local communities to dreams of powering entire (remote) continents through the solar harvests of Africa’s deserts.
9th - 11th
IFAT Africa Johannesburg, South Africa www.ifatforum-africa.com
Wide-ranging water delivery and purification, solutions for the food and beverage industries as well as laboratory technology, analysis, and other application areas are key issues in the future market of Africa and is the theme for IFAT Africa.
25th - 27th
Oil & Gas Africa Nairobi, Kenya www.expogr.com/kenyaoil/
Oil & Gas Africa - The Gateway to the East African Oil & Gas Industry is a hub for key players in the oil and gas community, attracting leading oil, gas and petroleum companies from around the world.
25th - 27th
Power & Energy Africa Nairobi, Kenya
The seventh edition of Power & Energy Africa is an imposing demonstration of its importance to the successful development of the power and energy sector in Kenya. Exhibitors at the largest power event in the industry will showcase their products and services to the industry’s largest gathering of qualified decision-makers.
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Zambia’s longest running mining and energy focused event shaping a sustainable growth path for Zambia mining and energy sectors. The event has been providing an unparalleled opportunity for businesses to network and showcase to the key stakeholders.
The Solar Future: Deserts of Africa Addis Ababa, Ethiopia
The elite energy event for one of Africa’s premier oil and gas markets. The conference will gather executives spanning the spectrum of the energy industry as Angola aims to attract investment in all segments of the energy chain.
ADVERTISERS INDEX A Atlas Insurance
J Jubilee General Insurance Co Ltd.
T The Globe Radio Company
B Bulleh Shah Packaging (Private) Ltd
K Kemtek Imaging Systems
U UBL Insurers Ltd
E EFU General Insurance Ltd.
P Power & Electricity World
EAST AFRICAN PAPER MILLS LIMITED Leading in excellence
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