eBusiness Weekly
Kudzanai Sharara
Nestled in the Msasa industrial area, a budding business is pushing through the boundaries to become “the country’s biggest producer of loose biscuits.
Synergy Biscuits owned by 31-year-old Andrew Mumanyi, has an ambitious plan to become the country’s biggest loose biscuits producer by 2020, and judging by the company’s humble beginnings, it’s a dream that can be achieved.
Having started by buying and selling loose biscuits in the rural areas and then embarking on a manufacturing journey, Mumanyi looks determined to succeed.
All he asks for is a fair chance to compete alongside the established brands and let the customers decide.
“Our major challenge is the issue of perception from the major markets that are used to wholesaling products from already established brands. Sometimes they don’t give you a chance or shelf space to showcase your products.
“But we are confident that our brand is competitive against the bigger brands and given a chance we can deliver at the same level as bigger brands but unfortunately we are not given a chance to breakthrough.
“Some wholesalers don’t even entertain small businesses and always say they have enough lines. So even if you have all the requirements, registered, a good product, and everything it’s not easy to get an opportunity to be listed as a supplier,” said Mumanyi.
However, he has already come a long way to let that deter his dream.
How did this all start?
Mumanyi has always wanted to become a manufacturer.
“I have always had a desire for manufacturing. Even at university, I used to tell my classmates that I would employ them one day and they would laugh at me, but given where I am now, they are now appreciating how determined I was.”
While working as an accountant in the rural areas, he also started buying and selling groceries to people, for some extra income which he saved religiously. One of the product that was appreciated by the market were loose biscuits. Coincidentally, someone told him about an old biscuit manufacturing plant that was up for sale.
Mumanyi took the risk and bought the machine and quit his job to embark on a biscuit manufacturing business.
Thus, Synergy Biscuits came into being in 2016.
“We started by producing just 40 boxes containing 20 by 250 grammes packets of loose biscuits. I would just go into town, buy one case of sugar and then do formulations, at some point I thought the project was not going to work, but since I had already quit my job, I had to soldier on.”
Mumanyi said the business has been concentrating on getting it right before venturing into other varieties.
“Once our loose biscuits get approvals and appreciated in the market it will be more easier for us to add other lines because people will now be aware of the brand and that it’s a good brand. So we are concentrating on improving our formula on daily basis.
“We always call our customers and get feedback which encourages us to do better and improve on the product. We also work closely with suppliers and use the feedback to develop the product,” Mumanyi said.
The old plant has since been upgraded and now has capacity to produce 2,500 boxes per day filled up with twenty 250 grammes packets.
“At the moment we produce according to orders. If we have more orders we try to push for more production and reduce when orders are lower. The highest we have produced and sold per day is 2 000 boxes.
The company currently boosts of 14 workers up from four at the start and management says it is aiming at increasing its market share.
The challenges
“The biggest challenge for us has been to get into the retail space,” says Mumanyi.
“The environment is not entrepreneur-friendly.”
“But if we compare our product with the bigger brands there is no difference and we are seeing this through those who have been buying from us who have since increased their orders.
“It’s only that there is a perception that the big outlets are used to big brands, so as a small company that is growing we think we should be given a chance.
“Our target is that by 2020 we should be the largest producer of loose biscuits in the country,” said Mumanyi confidently.
“So all we ask for is to be given a chance to showcase our products and let the customers decide, as for us we are now confident of what we can do.
Because the business has been growing slowly as Mumanyi works on perfecting the art, funding wasn’t necessarily a key obstacle at the start of the journey.
However, the fast-moving consumer goods worldwide brings various challenges that make life difficult for smaller business to get a foot on the door.
According to Mumanyi credit terms from big players are not good for small businesses, and one has to figure out how to manage cash flows.
“In theory they might say 30 days but in reality you don’t get paid on the said date. We also try to work and consult with credit controllers from other big manufacturers and get information on how certain wholesalers perform in terms of payment.
“Sometimes the advice is that for smaller manufacturers, the credit terms will choke our cash flows. But our aim is to move to consignment basis from cash basis because customers will be reluctant to pay for a new product, so we will have to wait patiently until the product is sold.
“That’s the disadvantage of a small business because you don’t dictate terms of payment but they dictate. Until a time when your product is now moving, you start dictating the terms again and try to control how and when you are paid. So until our cash position becomes strong we will try and work with small players who pay cash.”
It might be early days yet, but Mumanyi and his Synergy Biscuits 14-member team is determined to make his loose biscuits “Every Mouth’s Desire” as per their payoff line.
