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Mr. Manish Uniyal – Managing Director, Euro Global Foods and Distilleries Limited

Trained as an engineer at St. Georges College Musoorie, India, Manish Uniyal, cut his professional teeth as a business manager at United Spirits Limited (A Diageo subsidiary in India). Many years after and loaded with a high dose of can-do spirit, Manish believed the time was ripe to sojourn out of his native India for greater challenges. In June 2015, he took up appointment as managing director of Euro Global Foods and Distilleries Limited, a young but promising spirits and soft-drinks manufacturing company in the Sona Group. BRANDPOWER was at the sprawling factory recently and Manish shared his exciting story of how a good blend of innovation, prudence and hard work is lifting Euro Global to its envisioned path of soaring success. In an otherwise difficult environment Euro Global was able post a 35% rise in revenue in 2016. Manish’s ultimate vision is to make Euro Global one of the top 3 beverage manufacturing companies in Nigeria. Below are excerpts of our chat…

Kindly share with us your Euro Global experience after 2 years in the saddle as Managing Director

Before joining Euro Global about two years ago, I had some notions about Africa. I had known there would be unique challenges here and indeed when I got here, there were some challenges in terms of resources, in terms of lack of qualified skill levels but during my period here, we have engaged in getting the right skill sets.  In the past two years, a lot of focus has been put into various departments from our marketing to sales and even in our production in order to ensure quality services. What I found out is that Nigeria has a very large talent pool of local good people here. I found people with very good skill sets and we have recruited a lot of them even at great expense. We aim at having a balance between two different categories of people from the local pool and the expatriate community and I believe we have the right combination that is why the company has been doing well.

Manish Uniyal: Innovation has been key to our success

For the past 2 years, the company has been growing at a CGR of almost 30-35% and this year we plan to aim higher. This has been a phenomenal growth considering the company is still a young and growing company. Currently, all the processes are not well laid down; proper processes and systems have to be laid down. Our core emphasis is getting the procedural structures and team in place; in order to achieve whatever we aspire for in the next 3-4 years. We need to have a solid foundation and a good talent pool in order to achieve our vision. My 2020 vision is for us to be amongst the top 3 leading beverage companies in the country.

Sir, you have been here for the past two years, how would you compare the Nigerian business environment against your previous experiences outside Nigeria?

There are some similarities and dissimilarities. Similarities in the sense that you have to get necessary approvals during business setups and expansions. India is working towards getting the startups set up at a faster pace; the Nigerian government is also doing that. They want local businesses to go back to the way they were earlier.

The dissimilarities are that the infrastructures in India are quite better compared to Nigeria. In Nigeria, a lot of work needs to be done in terms of roads, infrastructure and electricity. Most of all, we still import most of the things we use for production here in Nigeria. Nigeria as a business hub has to grow; although this is the consumption point; but if we have to grow, it has to be self-sufficient and also be able to feed its own people. It has to strive to be a production center instead of just a consumption centre.

Since you took over the helm at Euro Global, what innovations have been introduced and are you pleased with the results?

One of our core pillars in Euro Global has been innovation. We come up with two-three brands every year. Our portfolio is quite diversified and well balanced. We have a portfolio of spirits, carbonated soft drinks, wines and various brands.

For the past 5-6 years, we have developed 15-16 different brands and a rate of 4-5 brands are being introduced every year. Also in our innovation, the quality has always been our forte. All of our products are of top notch quality ranging from our spirits, to wines and even carbonated soft drinksour distributors and customers have unwavering trust in the quality of our products.

Euro Global Factory in Ota. (Insert: Power Bitters, their flagship Bitters brand)

We aim at getting the best raw materials for our production which we must say is top class and our packaging is also top notch.  Take for example CSD version of ready to drink tonic wine Julius Lite, none exists in the market; we are the only one in that segment for now. Also, we have the CSD with the Savana mango flavor, I doubt if any beverage company has that flavor in the market. This sort of innovations and specific flavors are not available in the market.

 You came in when there was stability in our FOREX, but sometime last year there was mayhem in that sector. We are aware that the hardest hit was the manufacturing sector, how did it impact your business? And how were you able to manage it while it lasted? Only recently, the naira began to appreciate against foreign currencies, so far how have you been able to manage?

Given the serious depreciation of the Naira, our only solace was that it was a general problem all the manufacturing companies had to go through. We were all sailing on the same boat. Like all companies did, we tried to manage; some managed by downsizing their operations, and retrenching staff. In terms of cost of operations, Euro Global has a much guided approach; even with the very difficult situation, we have been able to keep our costs under control. We were able to manage the situation when the raw materials and food costs went up; we were able to bring down the costs in other areas. We learnt certain key lessons in efficiency and took some innovative and conservative measures by rationalizing our products. We are also beginning to source for locally favorable materials.  Euro Global also has back-up from our sister companies within the Sona Group. As you may be aware Sona Group as a whole has always had a strong policy of backward integration in every field we operate in. The Group has a malting plant in  Food & Agro, so we did a lot of research in utilizing some of the raw materials from there into some of our beverages. The result is a unique chocolate and malt blend which is out with the brand name golden Choco. It is fast becoming the choice drink for children and young adults. This is one of the innovation that has made us relevant to our target consumers and raised us to the higher pedestal we have found ourselves because we do our utmost not to totally depend on imported input without dropping our quality.

In line with this vision, we also have a massive ethanol plant getting installed; this will also further reduce the cost of importing ethanol which happens to be a big chunk of our imports. Once the ethanol plant is fully installed, we will utilize our ethanol. Ours is a winning strategy for both Euro Global and indeed the Nigerian nation.

When exactly is the ethanol plant going to be launched?

The ethanol plant is almost 85-90% completed. We are in the closing stages of installation and hydraulic testing of the plants and probably by July, we hope to get everything in place.

What are the challenges hindering the growth of the beverage manufacturing sector?

I would say most of the challenges hindering the growth of the beverage companies are mostly the lack of the basic ingredients used in achieving the finished products. Nigeria doesn’t have the technologies for providing all the raw materials. Right now, we have to depend on imported raw materials. We have to aim to be self-sufficient; for example, beer has slowly shifted to Sorghum based malt, and that has helped the production of beer locally without having to depend on imported malted barley. So, for us beverage manufacturers, flavored requirements are a key component. So, there is need for some flavor producing companies to come here for setups.

Knowing how tough the manufacturing sector is in the country presently, what policies do you believe are required from the government and what attitudes should the Nigerian consumers adopt in order to make manufacturing worthwhile and grow the Nigerian economy?

The policies which we expect from the government are not forthcoming, in terms of giving benefits to new startups, companies who want to expand. I believe the government need to give some sort of tax rebates or concessions for new startups; I believe this is the only way companies will be willing to go for further expansions, and also increase their capacities.

We also require the government to reduce their stringent policies on acquiring approvals in terms of new product registration which has to be a little speedy especially when a company wants to launch new products or have new innovative ideas to showcase.

In the case of Nigerians patronizing locally made brands, I believe Nigerians have their own taste, and they like to stick to their own products. Even Nigerians in diaspora, like to consume Nigerian made products; and because of this fact, we like to produce more brands and export it to other countries.

Which is Euro Global’s flagship brand?

I would say Sabrina is our main flagship. It has been way back in 2013. Since then, we have launched other brands like the Savana range of products which we launched in pet bottles before introducing them in cans also. I can categorically say Savana is another flagship brand which is doing very well. Last year, we also launched Power Bitters which has also been doing exceptionally well in the bitters segment. I can say these three brands form the core brand strength for our company.

What is your overall outlook for 2017?

Like I said earlier, this year, we have a very aggressive goal in mind. Keeping in mind the consolidation in 2016, we were still able to grow at about 30-35%. Having done the consolidation and streamlined most of our functions, and also done some restructuring, we are taking a very aggressive target this year and we hope to grow to about 50-60% this year. And my overall vision is for us to be among the top 3 in 2020.

Who is the essential Manish Uniyal?

Manish Uniyal: The prospects for our industry are bright and promising

(laughs) That’s a very difficult question. Well, I am sort of a happy go-lucky person. I am also a person who likes to try out new things, try out new technologies, and check out new places. Infact, every year when I go on my annual leave, I try to check out new places and things, maybe go for hitch-hiking, mountain climbing and many other things. Discovering new places has always been part of my yearly routine.

So, with the level of work pressure you face on a daily basis, how do you unwind?

For me the best way of unwinding and relaxing is spending quality time with my wife and kids. I love to go out with my kids, play and gist with them. It helps me unwind a lot after the day’s pressure. My kids give me a lot of feedback about what goes on in their lives, and when I talk and laugh with them, it helps me enjoy the moment.

What would you like to say to your stakeholders, distributors and your loyal consumers?

I would like to say to my stakeholders and particularly my loyal consumers that Euro Global as a company is most supportive of them, we appreciate their continuous patronage. Above all, Euro Global doesn’t believe in having short-term relationships, therefore, would like to build a long-term relationship with our customers. We have had distributors who have been with us for over 5-6 years, and we would always like to appreciate them and recognize their performance.

And I would like to tell our loyal consumers that Euro Global would always strive to come up with new products that would satisfy their pallets without leaving a hole in their pockets, we will always endeavor to make them happy because their satisfaction is our priority.

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