Overview of gulf market year 2015-16

1. Presented by: Ms. Faryal Ghori
Muhammad Asif Ashraf

2. Synopsis
 Year 2015~16 Sales/ Lifting analysis – all customers
 All Customers performance review/ SWOT analysis
 UAE Market Highlights
 Competition Information
 Way Forward – Gulf Region
 Vision 2016-17

3. Business Partners – Gulf Region
 Fineway International Trading LLC, Dubai
 Aramtec Trading LLC, Dubai
 Green Global Trading LLC, Ajman/ Abu Dhabi
 Q2 General Trading LLC, Dubai
 Bestway General Trading LLC, Umm al Quwain
 Gusto Distribution Muscat, Oman
 Al Majed Trading Doha, Qatar
 Fineway International Doha, Qatar

4. Fineway International Trading LLC – Dubai
Aramtec Trading LLC, Dubai
Green Global Trading LLC, Ajman/ Abu Dhabi
Q2 General Trading LLC, Dubai
Bestway General Trading LLC, Umm al Quwain

5. Achievements for Year 2015-16
 Successfully launched Matco Gold broken rice and FALAK 1121
Extreme rice
 Sustained the volumes despite of internal and external
challenges
 Strengthened channel based distribution i.e. retail, wholesale,
bulk, Horeca & Institutions etc.
 Brands’ development with focused approach on retail
penetration and visibility
 Supply chain improvement. Chronic shortages have been
minimized in year 2015-16
 FALAK brand’s new positioning among top/ high end brands
i.e. Mehran etc.
 Sustained position in terms of value and volumes in spite of
fierce/ cut throat competition
 Focus on retail channel development

6. Achievements for Year 2015-16
 Sales of 1 FCL f Sadqa/ Fitr rice in short span of 1 week only
 Improved range selling while focus on availability of each and
every brand in the portfolio
 Matco brands’ insertion in promotion flyers of retail outlets for
brand communication and recall
 Sustained volumes despite of launch of Banno, Golden Chef,
Punjab Gold, Quality Basmati and many other brands by FNW
Dxb
 Sustained volumes despite of closure of business both at Lulu
and Abu Dhabi Coop
 Focus shifting from bulk to consumer bag business
 Increased stocks inventory at outlets level while starting
incentivizing shelf boys and purchase manager on target
achievement (Ref. Top 10 Outlets activity)
 Shelf space dominance via SMART approach

7. Achievements for Year 2015-16
 Successfully lifting and liquidating stocks from Silex
Trading
 Initiated sales team competition while rewarding best
performer of the month
 Initiated daily morning meeting culture with sales team to
assign and review daily target and achievement planning
 Results are improved volumes, improved placements and
visibility of corporate image of Matco as a serious rice player
in UAE market
 Despite of intense internal and external competition,
achieved highest ever sales in terms of volumes in May 2016
 Consolidated the business despite of supplies stopped to
Abu Dhabi Coop and Lulu.
 Liquidated all stuck up stocks of D&S, Zain and FALAK
Aromatic rice

11.  Business Closure
 In October 2015, Silex Trading got bankrupt
 Lifted stocks worth approx. AED 240k to recover the outstanding
balance with Silex Trading
 Liquidated the lifted stocks via M/s FNW Dxb platform
 Dent in volumes was received due to closure of Silex business
 Shelf presence was lost
 We had to start all over again in terms of FALAK new brands
positioning, placement and availability at shelves of retail market
 New business partner Aramtec Trading. Relisting of FALAK
brands is underway

12. Sales & Marketing Activities for Brand Launch/
Post Launch
 Reliable name in distribution
 Already started re-listing of FALAK brands
 Brands’ availability through effective Distribution at all
targeted outlets
 Brands’ familiarity & training to the sales team
 Back to school promotion is being initiated in July 2016
 Product development & Line extension
 Focus on numeric coverage
 Distribution and volumes generation via cost effective
and tailored made offers/ promotions
 Availability at all major retail chain outlets by end of
Aug/ September 2016

13. Sales & Marketing Activities for Brand Launch/
Post Launch
 Improved numeric coverage and distribution in all
regions
 Hiring spaces in the category areas i.e. Abu Dhabi and
Union Coop
 Brand awareness through block and pallet displays at
leading outlets
 Educating customers through sales promoter activity
 Value pack offers to generate consumer trial
 Effective promotional activities to bring FALAK on top of
mind state of consumers
 Special promotional materials as per the categories
 Flyer insertions for brand recall
 Cost effective distribution model

14. No. Channel No. of Outlets
1 Hypermarkets Co-
operatives/ Chains/
A-Class
650
2 B-Class 500
3 Van Sales -
4
Whole sale 40
5
Institutions 50
TOTAL 1,240

15. No. Channel No. of
Outlets
Existence
1 Hypermarkets Co-
operatives/ Chains/
A-Class
650 25
2 B-Class 500 50
3 Van Sales - -
4
Whole sale 45 -
5
Institutions 40 1
TOTAL 1,245 76

16. •CARREFOURS •HYPER PANDA •EMARAT
•ABU DHABI COOPERATIVE
SOCIETY
•LULU GROUP** (Matco call) •GIANT GROUP OF COMPANIES •GEANT HYPERMARKET •AL AIN COOPERATIVE SOCIETY
•UNION COOPERATIVE SOCIETY •K.M.TRADING •GRAND CITY MALL •BANIYAS COOPERATIVE SOCIETY
•SAFEER GROUP • MEGA MART HYPERMARKET •GRAND HYPERMARKET •DHAFRA COOP SOCIETY
•WALMART •EMIRATES COOPERATIVE SOCIETY •AL MADINA GROUP •EMARAT COOPERATIVE SOCIETY
•SHARJAH COOPERATIVE
SOCIETY •RAK NATIONAL MARKET •K.M SHARJAH • SHAKLAN TRADING
•REGENCY GROUP •RAK COOPERATIVE SOCIETY •FRESH & MORE •EMKE GROUP
•AL MAYA GROUP •ANSAR MALL •PARK N SHOP •AL FALAH AL AIN
•MANAMA GROUP • ABELA & Co. •WAFA/ NESTO •AL AIN CITY CENTRE
• FATHIMA GROUP • SAJIDHA GROUP • KERALA SUPER MKT • TOP B CLASS OUTLETS

17.  Quest to implement Hub and Spoke model of distribution at UAE
market
 Roped in 3 new business partners in year 2015-16
 Objective is to implement local for local distribution model
 Bottom up approach towards distribution
 Cost effective distribution model
 Tapping B & C class retail outlets
 Brands presence at all relevant outlets
 Higher probability of sales of our brands
 Shelf dominance
 Following are 3 new business partners…

21. Business Objectives & Achievements:
 Launched Everyday brand via Q2 Trading’s platform
 Steady growth of business and focus to build the brand
name
 Everyday brand is being penetrated in the market while
following bottom up approach
 Cost effective distribution
 Brand’s availability at relevant outlets
 After initial phase of brand launch, listing of Everyday
range shall be started at A class outlets of UAE market
 2nd
phase of brand launch to be started after August 2016
 Induction of 1121 and Super Kernel rice verities is
underway

30. Al Amaya Trading
Start & business
closure
• Developed new
brand i.e. SALAR for
Al Amaya Trading
•1 FCL shipped on
cash terms
•Unfortunately, SD
couldn’t survive in
the turmoil business
situation and shut
down the business
•New SD appointed
in place of Al Amaya

31. Business Objectives & Achievements:
 Re-launched SALAR brand via Bestway Trading’s
platform
 Listing & re-listing of brand at all relevant B class retail
outlets
 SALAR brand is being penetrated in the market while
following bottom up approach
 Cost effective distribution
 Addition of Super Kernel rice in SALAR family
 After initial phase of brand launch, listing of SALAR
range shall be started at A class outlets of UAE market
 2nd
phase of brand launch to be started after August 2016
 Way forward is to add 1121 rice variety in portfolio

34. Business Objectives & Achievements:
 Launched Amber brands via G.G Trading’s platform
 Steady approach to build the brand
 Focus on Horeca segment and brought in volumes of
Amber Catering Silver and Amber Daily bulk bags
 Amber Super and Amber Daily brands are doing pretty
well in consumer bags segment
 Cost effective distribution
 Brand’s availability at relevant outlets
 Consumer bags acceptance is low due to packing
complain
 Requested to change packing material of Amber Premium
brand

43. A Visual Introduction/ Reference

107. A Visual Introduction/ Reference

160.  India Gate Basmati Rice 5kg+1kg Free @ AED 39.95 at all leading
outlets of UAE with additional pallet displays.
 India Gate Basmati Rice 20kg+5kg free @ AED 209.00 at all leading
outlets of UAE with additional pallet displays.
 Azwa Long Grain Biryani Rice 5kg @ AED 13.50 per bag at C4
outlets with central promotion. Dedicated gondola displays had
been acquired over and above of flyer printing. The regular
price of the brand is AED 27.50 for 5kg SKU.
 Bab al Hind Basmati Rice 5kg @ AED 28.95 at all leading outlets with
additional pallet displays.
 Bab al Hind Basmati Rice 20kg+5kg free @ AED 169.75 at all leading
outlets with additional pallet displays.

161.  Mehran Basmati Rice has become very active and
offering good consumer offers at modern trade & even at
B class outlets.
 Mehran Basmati 5kg bag @ consumer price AED 24.95
special displays as month on moth basis continuous
promotion at all leading and B class outlets
 Mehran Basmati 10kg bag @ consumer price AED 59.95
special displays at Coop outlets. Regular price of said
SKU is AED 96.25
 Mehran Basmati Rice 5kg+1kg @ 24.95 per bag @ major
modern trade outlets i.e. Al Mayas, Nesto, Manama,
Madina and Talal outlets etc.

162.  Devaya Basmati Rice 5kg @ AED 26.75 per bag @ Lulu,
Ansaar, Nesto, Al Madina and other major B class outlets.
Regular price of said SKU is AED 52.00 per 5kg bag.
 Kaula Basmati Rice 5kg consumer price AED 19.95 at
C4 and other leading A class retail outlets with additional
pallet/ gondola displays.
 Kaula Classic Basmati Rice 5kg consumer price AED
27.50 at leading A & B class retail outlets.
 Kaula Traditional Basmati Rice 20kg @ special price
of AED 105.00 with podium displays at C4 outlets.
 Kaula Classic XXL Basmati Rice 20kg @ special price
of AED 105.00 with podium displays at C4 outlets.

163.  Indus Valley Basmati Rice 5kg @ 29.50 per bag
(whereas regular price is AED 55.00 per bag) at LULU,
Al Madina, Al Manama, Safeer, Ansaar and other and
other modern trade outlets.
 Green Farm's XXXL 1121 Basmati rice 5kg @ AED
24.95 per bag at all B class markets.
 Unilever Rozana Basmati Rice 5kg @ special
consumer price of AED 23.95 per bag at Lulu markets
with dedicated displays. Regular price of said SKU is
AED 34.50.
 Al Ameen Pure Basmati Rice 5kg consumer price
AED 28.99 at Nesto outlets.

164.  Nadira Basmati Rice, consumer price AED 17.95 at Nesto,
Coops, Madina's, Talal's and other modern trade and B Class
outlets. Regular price of said SKU is AED 41.00 for 5kg only.
 Shakti Bhog Gold Basmati 1121 Rice at special price of
AED 24.95 at Al Madina group and other leading B Class
retail outlets.
 Banno 1121 Extra Long Grain Basmati Rice 5kg bag
consumer price AED 28.75 at Al Madina, Talal and other B
class outlets.
 QZEEN Biryani Rice 5kg bag consumer price AED 18.75 at
Al Madina, Nesto and other B class outlets with free wet
trail of the brand.
 Shalimar Basmati Rice 5kg @ AED 25.95 per bag @ B class
outlets

165.  Mumtaz Basmati Rice 2kg+2kg consumer price AED 25.95
at Al Madina, Talal and other leading B class outlets.
 Mumtaz Basmati Rice 5kg special consumer price AED
27.95 at major B class outlets.
 Mumtaz Basmati Rice 5kg+1kg @ special consumer price of
AED 29.95 per bag across the board.
 Tilda Basmati Rice 2kg+2kg Mega offer @ AED 39.99 offer
pack at leading modern trade outlets with dedicated displays.
 Tilda 5kg Basmati Rice @ AED 44.75 per bag with podium
displays at C4, Union Coop, Abu Dhabi Coop and SHJ Coop
outlets.

166. Sinnara Basmati Rice 5kg consumer offer price AED
26.95 whereas regular price is AED 38.50 per bag
Sinnara Basmati Rice 10kg consumer offer price AED
59.75 at all leading A & B class markets, whereas
regular price is AED 73.50 per bag
Al Watan Basmati Rice 5kg+2kg consumer price @
AED 28.75 at leading B class markets.
Mubarak Basmati Rice 5kg+1kg free @ AED 24.95
per bag while acquiring dedicated displays at LULU,
SHJ, Abu Dhabi and Union Coops etc. This brand has
become quite active and selling in quantity due to
attractive price viz a viz quality of rice.

167. New Entrants:
Capitalizing on the low price of Indian rice, there are many more
mushroom brands showing up in the market on daily basis with very
competitive prices and acquiring special/ secondary displays as well.
The main rice type of such brands is 1121 Basmati and retail price ranges
from AED 20.00 to AED 30.00 per 5kg bag. The other popular rice
variety being imported from India is PR-11 steam with bulk bag price
ranging from AED 60.00 to 70.00 for 40kg bag. These new entrant
brands have really dented the sales of other established/ high price
brands and this trend is ongoing from last 1 year now.
Seasoned Players:
At the moment all major competition players are quite hyper in
offering heavy consumer/ trade promotions in order to secure volumes
and to block other competition players.

168. Ramadan Offers by Competition Players:
 India Gate 5kg+1kg @ AED 48.95 per bag across the
board
 Ahmed Vermicelli 200gm 6 Pcs @ AED 3.95 at leading
outlets
 Sinnara Basmati Rice 2kg @ AED 11.95 per bag at Al
Manama and other B class markets
 Mehran Basmati Rice 5kg @ AED 24.95 per bag at all
leading B class markets
 Sinnara Basmati Rice 5kg @ 26.95 across the board
 Mumtaz Basmati Rice 2kg+2kg @ AED 28.95 at Coops
 Uniliver Rozana Basmati Rice 5kg @ AED 23.95 at Lulu,
Nesto, Al Mayas and other leading outlets
 Devaya Basmati rice 5kg @ AED 24.95 across the board
 Daawat Basmati rice 5kg @ AED 35.00 across the board
 Indus Valley Basmati rice 5kg @ AED 26.95 at all leading
outlets

169. Ramadan Offers by Competition Players:
 Malika Biryani Rice 5kg+2kg @ AED 23.95 at Ansaar
markets
 Tilda Basmati Rice 5kg @ AED 44.75 as Killer Offer @ C4
outlets with dedicated displays
 Bab al Hind Basmati Rice 5kg+1kg @ 31.75 at C4 outlets
with dedicated displays
 Sinnar 5kg @ AED 27.75 per bag Killer Price Offer at C4
and other leading outlets
 Bab al Hind 5kg @ AED 29.95 per bag as Killer Price
Offer at B class outlets
 Mehran Basmati Rice 5kg+1kg free @ AED 24.95 at
leading outlets

170. Ramadan Offers by Competition Players:
 Gulf Farm Basmati Rice 5kg @ AED 19.95 per bag as
Killer Price offer at Coops
 Empire Basmati rice 5kg @ AED 25.95 at leading outlets
 Kaula Basmati Rice 5kg @ AED 19.50 across the board
with dedicated display
 Gulf farm basmati rice 5kg @ AED 19.50 across the board
 Kashmir Basmati rice 5kg @ AED 19.95 at C4 outlets with
dedicated display
 Azwa Rice 5kg @ AED 13.00 per bag as Killer Price Offer
at C4 outlets with dedicated podium displays
 Mumtaz Basmati Rice 5kg @ AED 26.75 at leading
outlets

183. Strengths:
 Young motivated team and
good connections with
Horeca segment
 Warehouses at strategic
locations
 Strong Financial
background
 Less congested brand’s
portfolio
 Focused distribution of
brands
 Huge local demand for rice
Weaknesses:
High dependency on
Horeca segment
Weak retail
penetration
Price war
Inducted many
brands at a time

184. Opportunities:
 High demand for
Pakistani rice in local
market
 Rich rice brand portfolio
 Competitive prices
 Experienced team,
familiar with rice sales
 Focused distribution of
brands in retail channel
 High potential for growth
 Start of distribution at
Dubai
Threats:
Indian brands
flooding the market
Low prices of Indian
brands
Highly hyper trade
Low profitability in
downward price
trend
High entry barrier for
new entrants
Main focus on bulk
sales

185. To find a new business partner for Amber/ Bahar
brands
Retail penetration
Brand’s building/ selling not the commodity
Tapping the Horeca sement via Gusto distribution
Improve retail coverage of FALAK and Sunbul brands
Improved volumes

186. Strengths:
Reliable name in
distribution
Strong Financial
background
Less congested brand’s
portfolio
Good contacts with
Horeca segment
Huge local demand for
rice
Weaknesses:
High dependency
on Horeca segment
Weak retail
penetration
Price war
Lion’s share of
business is bulk
No second tier
brand in portfolio

187. Opportunities:
 Competitive prices
 Experienced team,
familiar with rice sales
 Good connection with
trade
 Fast listing of brands
across the board
 High potential for growth
 Strong Horeca segment’s
coverage
Threats:
Indian brands
flooding the market
Low prices of Indian
brands
Highly hyper trade
Low profitability in
downward price
trend
High entry barrier
Focus on sales of
India Gate

188. Strengths:
Good connections
with wholesale/
Horeca segment of
trade
Experienced and
motivated sales team
Strong financial
background
Adequate storage
facilities
Good experience of
rice selling
Weaknesses:
High dependency on
bulk volumes
Weak retail
penetration
Price war
Lion’s share of
business is bulk
Focus on selling of
Indian brands i.e.
High profitability

189. Opportunities:
New listing of Sunbul
brand across the board
High potential for
growth
Instant volumes with
competitive prices
Good connection with
wholesale segment of
trade
Catering of Horeca
segment
Threats:
High entry barrier
for new entrant
Highly hyper trade
Low profitability in
downward price
trend
Low prices of
Indian brands
Indian brands
flooding the market

190.  Listing of FALAK & Sunbul brands at top retail outlets of Oman
& Qatar
 Launch of Amber brands via new business partners at Oman
and Qatar markets
 Launch of Bahar brands via new businesss partner at UAE
market
 Busniess Consolidation viz a viz line extension
 Brands ‘ development while improving retail penetration
 Brands’ selling not the commodity
 Special strategy to tap Horeca segment
 TCM, CCM & STCM (Trade communication and motivation,
consumer communication and motivation and sales team
communication and motivation drives)
 Launch of new brands i.e. Broken rice and 1121 verities etc.
 To take onboard new business partners
 Strong Horeca segment’s tapping and presence
 Improved volumes across gulf region

191.  Lifting Review for Year 2015-16 - All Gulf Customers

192. Country Customer NO OF FCLs VOLUME (MT)
AL AMAYA GENERAL TRADING LLC 1 22.25
ARAMTEC 1 19.11
BEST WAY FOODSTUFF TRADING LLC 1 23.6
FINEWAY INTERNATIONAL TRAD. LLC 52 1046.35
GREEN GLOBAL TRADING LLC 3 66.47
Q2 INTERNATIONAL GENERAL TRADING LLC 2 45.5
SILEX GENERAL TRADING LLC 3 52.52
TOTAL UAE 63 1275.8
AL MAJED MARKETING AND DIST. - QATAR 12 256.3
FINEWAY INTERNATIONAL WLL 4 86
TOTAL QATAR 16 342.3
GUSTO DISTRIBUTION CO LLC 7 164.73
TOTAL OMAN 7 164.73
86 1782.83
SALES REPORT 2015-2016 GULF REGION
UNITED ARAB EMIRATES
QATAR
OMAN
Grand Total

193.  Implementation of Hub & Spoke model i.e.
 Local for Local distribution. Distributors at all major Emirates i.e.
total 7 business partners across UAE
 Enhanced visibility of all brands via SMART approach
 Targeted and focused marketing activities for both cost and result
oriented
 Improved volumes, visibility and coverage via enhanced REACH
 Capitalize on volumes while tapping Horeca segment via Q2, G.G
and Bestway platforms
 To enhance all brand’s penetration in retail market
 Dedicated distribution for Horeca segment via FNW Dxb platform
 To make FALAK and other brands house hold names in gulf market
 To us SKY is the limit!