movit products limited corporate profile · movit products limited corporate profile movit products...

1CORPORATE PROFILE

MOVIT PRODUCTS LIMITED

2

CONTENTSVision, Mission 3Corporate Information 4Our History 5Movit Group Structure 6Our Business Activities 8Our Journey 10Movit Strategy 2017-2020 11Business Model 13

Management Structure 14Management Team 15Regional Presence 22Economic Impact 23Production Lines 30CSR 32Key Statistics 34Situational Analysis 35

3

Our MissionTo manufacture the best quality and affordable cosmetics in a timely fashion and effectively supply them.

Our Winning AspirationThe preferred provider of healthy beauty hair and skin care products empowering every person to face life with confidence.

Our VisionTo be the leading cosmetics manufacturers in Africa

MOVIT PRODUCTS LIMITED CORPORATE PROFILE 4

Business Information

Business name: Movit Products Limited Business type: Private company TIN Number: 100 002 8076 Tel: +256 392 736 801

Fax: +256 414 200 547

E-mail: [email protected]

Website: www.movit.co.ug

Physical address:Plot 4454 & 4455 Zana – Bunamwaya, Off Entebbe Road, Kampala Uganda

Postal Address: 27109 Kampala Uganda

Auditors: Kisaka & Company, CPA

Bankers:

Barclays Bank Uganda Limited

Finca Uganda Limited

Centenary Bank Uganda Limited

KCB Uganda Limited

Orient Bank Uganda Limited

DFCU Bank Uganda Limited

Posta Uganda Limited

Diamond Trust Bank Uganda Limited

Pride Microfinance Uganda Limited

Equity Bank Uganda Limited

Stanbic Bank Uganda Limited

Uganda Development bank

CORPORATE INFORMATION

Lawyers: Birungi & Company Advocates

MOVIT PRODUCTS LIMITED CORPORATE PROFILE MOVIT PRODUCTS LIMITED CORPORATE PROFILE 5

“The cosmetics industry in Uganda is

a thriving one but success is hinged

on focus on a specific target market

and matching this market with a

particular product offering.”

Simpson BirungiManaging Director / Chairman

OUR HISTORY

Movit Products Limited (“Movit”) , a cosmetic manufacturing company was formed after a careful assessment of the market needs of the Ugandan cosmetics consumer, and a deep understanding of the Ugandan cosmetics sector.

The idea of developing Movit in Uganda dates way back in 1997 but the actual work did not commence until 1999.

Movit’s activities since its inception have revolved around manufacturing and selling of quality skin and hair care products.


MOVIT GROUP STRUCTURE

Movit Group of Companies

Real estate services company providing affordable real estate

solutions to the Ugandan market

Sourcing locally grown millet and sorghum from

Ugandan farmers and adding value to these to produce organic

sorghum and millet beverages

Flagship company of the Group. Manufacturer of quality skin

and hair care products providing employment to 2914 staff.

Plastics manufacturer combining virgin and recycled plastics to

provide packaging materials to Movit Products Limited


OVER 18 YEARS

OF SUCCESS

OUR BUSINESS ACTIVITIES

SourceWe source quality inputs both from the Local and International market at the most economical price. We also source talent from both the Local, Regional and international Markets to manage our expansion programme.

ManufactureRight from product conceptualisation to research and development we use the highest quality inputs and a rigorous control process to manufucture to the highest quality. Our products are UNBS Q-Mark certified.

SellWe deploy direct selling techniques through the Van Sales Model; Local Agents; Export Agents; and Key Customers.

DistributeOur distribution model covers all corners of the Country and 7 countries in the region with plans to expand to a further 13 countries – with a focus on the sub-saharan region.

The cosmetics industry in Uganda is a thriving one but success is hinged on focus on a specific target market and matching this market with a particular product offering.

The cosmetics industry in Uganda is still dominated by international brands.

Local players need to not only establish a niche for themselves but also advertise extensively.

Local players face stringent quality controls unlike the international brands.

There is a tendency for Ugandans to trust imported products as opposed to locally manufactured ones.

8

9

A FOCUS ON QUALITY

MOVIT PRODUCTS LIMITED CORPORATE PROFILE


OUR JOURNEY

Yr.2

2000

-

First warehouse

opened in Namuwongo

(1200 sqm). 2 additional

SKUs and 1 additional

vehicle

Yr.6

2005

-

Additional space

requirement drives

the construction of 4

more warehouses. Staff

compliment > 200 and 15

SKUs now produced with

20 vehicles.

Yr.13

2012

-

Radiant product line

launched.

Opening of modern

administration block.

Expansion in export

market

Yr.15

2014

-

Launch of Operation

Africa.

UNBS Gold Quality

Award.

Best Exhibitor Rwanda

& Mwanza trade shows

Yr.0

1997

-

Company registered

with Simpson Birungi

as Managing Director

Best overall exhibitor

Lugogo (2nd year

running).

Expansion of 21

warehouses to support

growth with 10 initially

planned.

-

Yr.16

2015

Export market

entered with Rwanda.

Tanzania follows in

the subsequent year.

-

Yr.9

2008

Skin Guard product

line launched.

UNBS Q-Mark

certification.

URA Excel Award.

-

Yr.14

2013

Business operations

commence with 4 staff

members; 2 SKUs;1

vehicle and 1 Product

line – Movit.

-

Yr.1

1999

2 acres procured in

Zana Bunamwaya.

2 warehouses

constructed from

internally generated

funds

-

Yr.3

2002

Yr.17

2016

Yr.18

2017

Launch of new corporate strategy

and increasing focus on

professionalisation and efficiency.

Increasing automation of production lines.

Launch of SAP Enterprise Resource

Planning System Increased automation of

production lines and planned completion

of 10 new warehouses

We have built the leading cosmetics company in the Region... in 18 years

MOVIT PRODUCTS LIMITED CORPORATE PROFILE MOVIT PRODUCTS LIMITED CORPORATE PROFILE

MOVIT STRATEGY 2017-2020

What is ourwinning aspiration?

Where willwe pay?

How willwe win?

What capabilitiesmust wehave?

What manegementsystems dowe need?

The preferred provider of healthy beauty hair and skin care products empowering every person to face life with confidence

• Customers: Clear segmentation by Age 0-11; 12-20; 21-29; 30-45 and 45+• Channel: Strong partnerships (Saloons, Beauty schools, Cosmetic shops, Institutions,• Pharmacies, Retail & Wholesale shops, Hotels); Agents; Outlets; Mobile vans; and Online• Products: Hair care, Skin care and Nail Care • Geography: Consistent brand in the African Market

1. Effective governance , production efficiency, risk management and compliance2. Leader in branding, marketing, distribution, sales and market research3. Innovative and responsive product offerings4. Sustainable, profitable operations, leveraging digital & mobile (ICT)5. Efficient supply chain and stores management 6. Shared services and People Agenda

S1 Enterprise Resource Planning (ERP) [CRM, Analytics, Sales Force Automation, Warehouse Management S2 Security Systems (Car Tracking; CCTV; Biometrics; SIEMS)S3 Unified Communication (email, apps for work, web, mobile, apps)S4 SOPs & ISO certification for key processes

C1 Effective staffing (Marketing & Sales; technical R&D and Manufacturing; Creative & Design; Procurement & Supply Chain & IT)C2 Automated plant line; with scalable standardized & documented processesC3 Strong ICT set up (hardware, cloud and software)

11

12

A MODEL FOR COOPERATION


BUSINESS MODEL

CUSTOMERSEGMENTS

m Mass Market m Middle Market m Mass Affluent

m Affluent

m Chemicals

Manufacturers

m Packaging Materials Manufacturers

m Transporters

m Agents –

external market

m Banks

m Insurers

m Lawyers

m Regulatory

& Tax bodies

m R&D

m Production

m Sales & Distribution

m Supply Chain

m Talent Management

KEY PARTNERSHIPS KEY ACTIVITIES KEY RESOURCES

m Managing Director

m Top Management Team

m Supply Chain Team m 24 Hour Production line

m UNBS Q-Mark and self certification

CUSTOMER RELATIONSHIPS

m Key Customers

m Local Agents

m Export Agents

VALUE PROPOSITION

m Cost effective products for every

market segment

CHANNELSm Van Sales Persons

m Local Agents

m Export Agents

COST STRUCTURE

m Import Suppliers

m Local Suppliers

m Statutory Costs

m Selling &

Distribution

REVENUE STRUCTURE

m Van Sales

m Local Agents

m Key Customers

m Export Agents

13MOVIT PRODUCTS LIMITED CORPORATE PROFILE


TOP MANAGEMENT STRUCTURE

l R&D

BOARD OF DIRECTORS

SIMPSON BIRUNGIMANAGING DIRECTOR

STEVEN MWESIGWAFINANCE DIRECTOR

HENRY TUMUSIIMEHUMAN CAPITAL & SHARED

SERVICES DIRECTOR

l Financial

Control

l Credit

Control

l Statutory

Planning

l ICT

EMMY MUSASIRANEOPERATIONS &

ADMINISTRATION DIRECTOR

l Legal

l Production

l Quality

Control

l Compliance

l OHSl Transport

l Human

Resources

l Security

l Stores

l Procurement

NAVEEN KRISHNAN SUPPLY CHAIN DIRECTOR

In line with our 2017 - 2020 strategy, and following good corporate governance practices, Movit is in the process of constituting a balanced Board of Directors. We expect this process off adding Non Executive Directors to compliment the current Executive Directors to be completed in 2018.

l National Sales

l International

Business

l Marketing

BRUCE MPAMIZOSALES & MARKETING

DIRECTOR


Simpson is the Chairman and Managing Director Movit Products Limited which is a leading cosmetics manufacturing company in Sub-Saharan Africa. The Company started business in Uganda more than eighteen years ago. Movit Products Limited was formed after a careful assessment of the community development needs for quality hair and skin products. Movit is now present in eight African countries -Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan, Zambia and Democratic Republic of Congo.

The Company is also ranked amongst Uganda’s top tax payers with a growing production line of over 250 products. Simpson is a captain of the cosmetics industry and boasts over 20 years in the industry - first as an importer and now as a manufucturer. He is passionate about managing diversity of Human Resources of the Company to accomplish the set goals - with the near term goal of “Operation Africa”. He leads our strategy to be the preferred provider of healthy beauty hair and skin care products empowering every person to face life with confidence.

Simpson Birungi Founder, EntrepreneurChairman and Managing Director

MANAGEMENT TEAM


MANAGEMENT TEAM

Emmy is a versatile administrator and an able problem solver with a keen understanding of the law and legal environment of Uganda. He has overseen the operations of the Company, helping mould the Company from a local to a regional player. Over the past 15 years he has been with the Company, Emmy has improved the working practices in the Company, kept the Company on a clear path regarding safety and legal regulations, whilst overseeing the Human Resources agenda to ensure employees are motivated and appropriately skilled and trained. He is the point person for our “Cleaner Production” agenda on a broad spectrum covering water, energy, raw materials, environment, waste management, compliance, and occupational health and safety.

He supports our strategy by ensuring effective governance , production efficiency, risk management and compliance. He is a lawyer and social administrator by training - LLB, DLP, BSWASA, MPAM

Emmy Musasirane Lawyer, Administrator Operations and Administrations Director


MANAGEMENT TEAM

Bruce Mpamizo Marketer, Sales StrategistSales and Marketing Director

Bruce is an accomplished marketer and salesman and has been with the Company for the last 14 years making him one of the longest serving employees of the Company. In that time he has risen from being a Sales Representative to Sales and Marketing Director on account of his abilities especially in the areas of sales strategy and market development, distribution and channel management, trading terms and pricing management and organizational development and people management. Bruce has spearheaded the rapid expansion of the Company in the local market as well as its expansion in the region. He has been pivotal in identifying markets that have great potential and coordinating Movit’s attack on such markets.

He supports our strategy as a leader in branding, marketing, distribution, sales and market research He is a qualified marketing professional holding qualifications of HD Marketing; BCom Marketing; and MSC Marketing.


MANAGEMENT TEAM

Steven has over thirteen years’ work experience specializing in the financial services industry and in performance improvement consulting. His broad experience covers both the private and public sectors and includes roles with Barclays Bank, Price water house Coopers, Bank of Uganda, Parliament of Uganda, and Stanbic Bank.

Steven joined the Movit team to drive the efficiency agenda for the Company. This includes, among others, leveraging technology to a greater extent in financial and operational decision making, building the analytics potential of the Company to leverage internal and external data, enforcing proactive risk management strategies and driving the strategic agenda in our “Operation Afica”.

He supports our strategy by ensuring sustainable, profitable operations, leveraging digital & mobile (ICT)

Steven is a qualified accountant, FCCA and CPA, and a holds B Com (Accounting).

Steven Mwesigwa Accountant, Management ConsultantFinance Director


MANAGEMENT TEAM

Henry Tumusiime has over 12 years of work experience in Human Resource and Organisation Development both as a practitioner and in consulting. His experience has been in both public and private sectors with notable roles at Reev Consult International, Uganda Revenue Authority, Unilever East Africa and PricewaterhouseCoopers (PwC).

Henry is currently a Director for Human Capital and Shared Services at Movit Products Limited and he is responsible for driving the talent strategy and general administration efficiency. He major focus areas include identification, development and management of the right talent through execution of the people agenda strategy, ensuring an efficient and effective transport services for the business, delivering a high-tech physical and system-based security, and development and implementation of company policies and procedures.

He supports our strategy by ensuring efficiency in the shared services and people agenda.

He is a Chartered Member of CIPD-UK and a full member of the Human Resource Managers’ Association of Uganda (HRMAU). He holds a Master of Science degree in Organizational Development and Social Psychology. He also holds a Bachelor’s degree of Social Work and Social Administration (SWASA).

Henry TumusiimeHuman Capital Specialist Director Human Capital & Shared Services


MANAGEMENT TEAM

Naveen is a career finance and procurement professional with over 26 years in senior management in functional positions in Rwanda, Uganda, Kenya and India.

His key experience was attained at Roofings Limited where he joined as General Manager and was instrumental in setting up the steel Company and helping the company grow from a US $ 2 million investment to one of US $ 55 million. While at Roofings he helped the Company achieve a consistent growth of more than 25% per annum. On commencement the tonnage achieved was 3000 tonnes which subsequently increased to 120,000 tonnes in 2009. He also led the companies to become one of the first companies to be certified for ISO 9001 and subsequently to have it upgraded it to the new ISO 9001-2000 standard.

Naveen has also held senior management positions in Kubs Safes & Locks (P) Ltd India, Doshi Group of Companies – Kenya and Tolirwa – Rwanda.

He supports our strategy through efficient supply chain and stores management

He is a chartered accountant B.Com (Bachelor of Commerce & ACA) and holds a Diploma in application- packages.

NAVEEN KRISHNAN Finance and Procurement ProfessionalSupply Chain Director


ExportAgenda

21


Current and targeted outreach for Africa – Operation Africa

REGIONAL PRESENCE

Current presence Uganda Kenya Tanzania Rwanda Burundi DR Congo South Sudan Zambia

Planned presence

• Angola• Botswana• Cameroun• Central African Republic• Ethiopia• Malawi• Mozambique• Namibia• Namibia• Nigeria• Somalia• South Africa• Swaziland

(2017 – 2020)

22



OUR IMPACT ON THE ECONOMY



In 1996, in collaboration with the World Bank and UNDP, the International Business Leaders Forum (IBLF) identified eight core business multipliers that assess private companies’ contributions to development.

The eight socio-economic indicators are guidelines that should be addressed by responsible, efficient and profitable private companies.

The eight core business multipliers are as follows:

1.Generate investment and income;2.Create jobs;3.Produce safe products and services;4.Invest in human capital;5.Establish local business linkages;6.Spread international business standards;7.Support technology transfer; and8.Build physical and institutional infrastructure.

INDICATOR 1: GENERATE INVESTMENT AND INCOME

Direct taxes to government: In 2016, Movit paid UGX 11.0bn in direct taxes to government. This was comprised of: Excise Duty (UGX 7.6bn); PAYE (UGX 2.8bn) and Corporation Tax (UGX 601mn)

BANKING INDUSTRY: Movit is a strong player in the banking sector and main-tains over 15 operational accounts with local banks. Movit also has strong re-lationships with Uganda Development Bank from whom it has raised UGX 4 Billion to aid in the construction of 10 warehouses for modern storage and pro-duction facilities.



INDICATOR 2: CREATE JOBSThe relationship between employment and GDP growth has been documented by many studies and prominently by Okun’s “law” 1 which proposes that a linear relationship exists between employment and GDP growth.

Movit has impacted Uganda’s job market by creating direct, indirect , contracted and induced employment

DIRECT EMPLOYMENT: The company directly employs many professionals in Sales, Marketing, Production, Procure-ment, Stores, Finance, Research and De-velopment, ICT, Legal, roles . By July 2017, Movit employs 2,914 people. (99.5% Ugan-dans). Male. 1,459 - Female. 1,415 Full time 887 - Part Time: 2,027

INDIRECT & INDUCED EMPLOYMENT: This is through services such as supplies of good and services to Movit. The World Bank estimates that between 1 – 28 jobs are created as direct, indirect, or induced employment for each person formally employed 2. However, because of the large informal employment sector and lack of national data on the informal employment sector, the extent of indirect employment stimulated by the company is difficult to measure.

1Okun, Arthur, M, Potential GNP, its measurement and significance (1962), Cowles Foundation, Yale University

2 International Finance Corporation, Jobs Study, 2013


INDICATOR 3: PRODUCE SAFE PRODUCTS AND SERVICES

Safety remains paramount to Movit’s operational agenda. The Company has a fully fledged health and safety department, headed by experienced heath and safety professionals, to manage health and safety matters. Movit has developed an internal safety focussed culture that extends to its staff and contractors.

Staff and contractors are all required to comply with safety policies and procedures of the Company that include mandatory health and safety training, spot field health and safety audits aimed at ensuring staff and contractors comply with health and safety policies and procedures, and provision of safety gear and on site first aid kits to all staff and contractors.

In 2017, Movit has gone for 86 days without lost time incident as indicted below. Fatalities - 0

Medical Treatment Case - 1

First Aid case - 2

Near Miss - 0

Fire Drill - 1

Movit also invests heavily in the training or salonists in the safe use or our products

INDICATOR 4: INVEST IN HUMAN CAPITAL

Human capital investment has a large multiplier effect since skills shortages and inadequate capacity constrain the development of the economy.

Movit supports human capital development through: Training and development: Movit provides both on and off-site training to its employees . The Company endeavours to provide training programs to all employees. Key areas of training provided include but are not limited to; information technology, administration, quality control, finance, and maintenance, project planning and control, financial management, risk management, professional exams and membership to professional associations.

Efficiency: Through extensive employee training and development and improved automation of its operations

Culture: Movit has developed a work culture built on service delivery, integrity and team performance. The Company has developed reward systems based on performance to further inculcate these value and grow an efficient workforce



INDICATOR 5: ESTABLISH LOCAL BUSINESS LINKAGES

Cosmetics manufacturing requires a number of materials inputs, many of which are sourced locally. These include: packaging materials, advertising agencies, construction companies, electricity providers etc.

The volume of transactions between us and other major indigenous Ugandan companies, in 2016, is indicated in this table:

UGX MnGeneral Mouldings Limited 6,220 ASWT Limited 4,779 Sim Plastics Limited 2,410 Print 'N' Carton Limited 2,470 Total Uganda Limited 1,860 Jude Color Solutions Limited 2,085 Picfare Industries Limited 1,649 Afroplast Enterprises Limited 1,735 Graphics Systems Limited 1,604Total Katwe Service Station Limited 1,277 Mukono Plastics Limited 1,316 Umeme Limited 970 East African Packaging Solutions Limited 1,231 Afrika Hotpot Limited 621 Bestpack Uganda Limited 713 Arrow Center Uganda Limited 637 Nice House Of Plastics 530 City Oil Uganda Limited 768 Quality Plastics Uganda Limited 425 Kawuuzi and Sons Construction Company 434 Rohi Printers and General Enterprises Limited 443 Luuka Plastics Limited 372 Macdough Foods Limited 241 Roofings Limited 346 City Tyres Limited 319


27


INDICATOR 6: SPREAD INTERNATIONAL BUSINESS STANDARDS

Our products are Qmark certified. We are also on the road to ISO certification in 2018

INDICATOR 7: SUPPORT TECH-NOLOGY TRANSFER

On 07.Jul.2017, Movit launched latest version of SAP (S/4 Hana) Enterprise Management System. This system focuses on intelligent customer engagement, real-time sensing and responding, proactive risk management and dynamic business planning.

In 2016, Movit launched Google apps for work. This comprises Gmail, Hangouts, Calendar, and


Google+ for communication; Drive for storage; Docs, Sheets, Slides, Forms, and Sites for collaboration

Other major technology innovations include implementation of new network switches, enablement of wireless networks and launching of leased printing.


INDICATOR 8: BUILD PHYSICAL AND INSTITUTIONAL INFRASTRUCTURE


CURRENT DEVELOPMENTS10 new warehouses to house modern storage and production facilities are close to completion and have been funded by internally generated funds and a term loan from Uganda Development Bank


OUR PRODUCTION LINES


OUR CERTIFIED BRANDS


CORPORATE SOCIAL RESPONSIBILITY

Movit, as a responsible social citizen, is committed to sustainable development in Uganda and plays a significant role in contributing to health, education, the environment and community development programmes.


CORPORATE SOCIAL RESPONSIBILITY


KEY STATISTICS

Employees 2914Full Time. 887 Part Time: 2,027Male. 1459Female. 1415

LandApprox. 50 acres

Motor vehicles 221

Product range 260

Financial Statistics 2016 UGX.Turn over 124 BnTotal Assets 52 Bn Taxes Paid 11.0 Bn


SITUATIONAL ANALYSIS

STRENGTHS OPPORTUNITIES

WEAKNESSES THREATS

Good production infrastructureStrong MPL leadershipTalented staffReputable brandsWide market and distribution networkAdequate land for expansionReliable raw material sourcesWide customer baseEnvironmental permits (NEMA) for land use

The open EAC marketThe wide customer baseAccess to new markets e.g. SADCThe increasing population in AfricaThe political stability in Uganda and manyforeign marketsThe good local and international road networkLarge skilled labour force

Insecurity in our foreign markets (Burundi & S. Sudan)Increasing growing competition and entry of multi national companies e.g. Loreal, Beiersdorf AG (Nivea)Extreme foreign exchange instability especially since many of our inputs are importedUNRA terms on road use and tonnageGlobal warming and climate change Non-regulated cosmetic industryExpensive capital

Poor time management and absenteeismLow automation of the production linesLow employee job commitmentWeak performance management mechanismsWeak reporting systems

OUR SUCCESSFUL JOURNEY SOFAR

Movit Group of Companies

wwww.movit.co.ug

[email protected] 4454 & 4455 Zana – Bunamwaya P.O. Box 27109 Kampala Uganda

General: +256 392 736 801 Fax: +256 414 200 547 Toll Free Line: 0800203011

movit products limited corporate profile · movit products limited corporate profile movit products...

Documents