Company Profile

Hudani Manji Holdings Ltd.

P.O. Box 26274, Kampala, Uganda

Kampala Office: Plot 243, Bukoto-Kira Road

T: +256 792 780 780, +256 792 782 782

Farm: Plot 19, Bulemezi, Block 244 Buwazi, Semuto

T: +256 791 785 785

www.yokuku.com

01. Introduction.....................................................................1

02. Strategy...........................................................................5

03. Business Overview.....................................................7

04. Enkoko............................................................................11

05. Distribution Center..................................................12

06. Clients............................................................................13

07. New Markets...............................................................15

08. Kuku Shops.................................................................16

09. Kuku Feeds.................................................................17

10. Management..............................................................19

11. Community Support................................................23

12. Future Plans................................................................24

Table of Contents

Hudani Manji Holdings Ltd.

P.O. Box 26274, Kampala, Uganda

Kampala Office: Plot 243, Bukoto-Kira Road

T: +256 792 780 780, +256 792 782 782

Farm: Plot 19, Bulemezi, Block 244 Buwazi, Semuto

T: +256 791 785 785

www.yokuku.com

1 2

01

HMH-Rainbow Ltd. is the parent company of the Yo Kuku! brand. It is a

joint venture between Hudani Manji Holdings Ltd and RCL Foods Ltd,

South Africa. The Hudani-Manji Family is heavily invested in the East

African region with investments in hotels and tourism, food processing,

distribution of FMCC’s, construction and real Estate plus telecoms.

RCL Foods is listed on the JSE, is majority-owned by Remgro Limited

and represents Remgro’s food platform. It is the holding company of

four principal operating subsidiaries being Foodcorp (Pty) Ltd,

TSB Sugar RSA (Pty) Ltd, Rainbow Farms (Pty) Ltd and Vector Logistics

(Pty) Ltd.

The decision to invest in the poultry industry was as a result of three

factors:

• The high demand for chicken in Uganda

• The lack of a dominant integrated player in the sector

• The lack of reliable supply chains. The sector consists on the

large part of several small holders with unreliable supplychains

that frustrate both wholesale and retail customers

The HMH-Rainbow farm is located in Buwazi, Semuto about 50kms

outside Kampala City. The main farm and processing facility sit on 64

acres of typical lush-green, Ugandan savannah and draws water from

unspoiled reservoirs hundreds of feet below. Two 20-acre satellite broiler

farms are located 5kms from Semuto.

HMH-Rainbow broke ground in November 2011 and 18 months later,

the integrated operation consisting of a feed mill, broiler farms and

abattoir was operational. The farm was officially inaugurated by H.E

the President of the Republic of Uganda, Yoweri Kaguta Museveni, on

30th November 2014. The HMH-Rainbow Head Office and Distri- bution

Centre is located on Bukoto-Kira Road in Kampala.

Introduction

Company history Location

3 4

HMH-Rainbow produces feed, rears and processes chicken.

Feed Mill: Soya and maize are the main ingredients used to mix starter, growers’ and

finishers’ feed for the birds. No fish-based ingredients, which tamper with

the taste of the birds, are included. 400 tonnes of maize are consumed

every three months. With 20-tonne silos as part of the TFM, the chicken

are guaranteed the best quantity and quality feed.

As part of the company’s commitment to continuously improve quality

and efficiency, construction and installation of a 5-tonne per hour Buhler

Pellet Mill was completed in June 2015.

Broiler Farm: Currently, the 2 broiler farms consist of 8 broiler houses. The birds

spend 35- 42 days in the broiler houses and each broiler house enjoys a

mandatory 2-week resting period before new day-old chicks are brought

in.

The broiler houses employ the highest technology and are both

environmentally controlled and highly automated. Inside these houses,

the environment is near to perfect and more birds can be reared per

square meter with a higher live weight, lower mortality and better Feed

Conversion Ratio.

What the company does

Because all the systems are automated inside these houses, the input cost

per bird is lower.

A third broiler farm with 4 new broiler houses will be completed by Q4

2016. By the end of 2018, the combined broiler farms capacity will be

7000,000 birds per cycle.

Abattoir: The 15,000 Sqft processing facility is the first highly mechanised abattoir

in Uganda and the largest chicken processing facility in East Africa with a

capacity of 2,500 birds per hour.

Key attributes:

• Highly automated which dramatically shortens the production

time

• Temperature controlled processes from the abattoir, through the

distribution chain to the end customer. This includes the superior

cleansing spin-chiller before chicken is placed in blast freezers

where temperatures can drop to below -30°C degrees and the use

of infra-red thermometers before packing,

• to ensure the birds’ temperatures are maintained between 0 and

10°C

• Holding rooms that can accommodate 200 tonnes of chicken.

• STAR certification including a traceability system that reduces the

margin for error in the processes as well as Food Safety Systems

Certifications (FSSC22000), Halal and the Uganda National

Bureau of Standards (UNBS), Q-Mark.

.

5 6

02 Strategy

To be the leading provider of affordable fresh and frozen chicken products in the East African region.

With a highly automated processing facility, Yo-Kuku! aims to:

• Guarantee hygienic end products

• To be the dominant player in the supply of chicken by

harnessing investment in advanced technology as a means of

maximising efficiency, ultimately lowering the overall cost of

production

• To be a market leader in implementing technology and

standards in the region

• To expand the product offering to satisfy the growing customer

base for animal protein

To supercede the highest industry standards by maintaining consistent

hygiene in delivering the best value-for-money chicken.

Innovation, efficiency and consistency. This, in keeping with hygiene

standards and quality of the product.

Mission Statement

Business Objectives

Business StrategyVision

Values

• Achieve standardization of output

• Ensure product availability and consistent production to ascertain buyer security

• Maximize production and make chicken available for Ugandans

7 8

03 Business overview

• Fresh and Frozen whole chicken

• Chicken portions & fillet

• By-products

• Value Added products

• Poultry Feed

Production Out-put

Products

2013 2014 2015 2016

2017PHASE 1 PHASE 2

PHASE 3

Total output capacity

300,000 birds/week

2,500 birds/hour

time2013

100,000

260,000

2014 2015

total capacity/ birds

420,000

25,000 birds each

12,500 birds/week

4 broiler houses

Abattoir output

40,000 birds each

180,000 birds260,000 birds

25,000 birds/week

2 broiler houses

Abattoir output

40,000 birds each2 broiler houses

32,500 birds/week

Abattoir output

420,000 birds

40,000 birds each

4 broiler houses

40,000 birds each

4 broiler houses

52,500 birds/week

Abattoir output82,650 birds/week

Abattoir output

100,000 birdsTOTAL CAPACITY

Broiler houses

Abattoir output

80,000 birds

80,000 birdsTOTAL CAPACITY

TOTAL OUTPUTTOTAL OUTPUT

160,000 birdsTOTAL CAPACITY

TOTAL OUTPUT 580,000 birds

160,000 birdsTOTAL CAPACITY

TOTAL OUTPUTTOTAL CAPACITY

9 10

• The integrated approach to production results in huge efficiencies

of production

• The high level of automation shortens production time and means

chicken will be more readily available to customers

• It also minimises human contact with the product, lowering the

margin for error

• Economies of scale mean more chicken can be produced more

cost effectively which translates as a lower price for the end

customer

• Cold storage processes and capacity ensures that the chicken that

reaches the customer is fresh and of the best quality

• The company runs its own transport department covering chilled

and frozen distribution. The distribution is in the long term stated

to reach every corner of Uganda, and to operate with third party

companies in a strong export market

• It will encourage increased investment in primary agriculture and

processing of crops such as maize and soya beans

HMH-Rainbow believes strongly that chicken as a source of the

recommended daily protein intake for a person, should be both accessible

and affordable to Ugandans. Currently market prices are too high and

chicken is a luxury for the average Ugandan. Most enjoy it only on

occasions.

• HMH-Rainbow is committed to providing the highest quality

chicken product to all its customers. Core to the company’s day-

to-day philosophy is the belief that the quality of the product that

it supplies to its customers is of the utmost importance to the

long-term success and growth of the Yo Kuku! brand

• A documented traceability system is put in place throughout

the production system, incorporating all relevant local and

international legal and safety requirements and qualitative

standards

• HMH-Rainbow recognizes team cohesion and synergy with

customers’ needs, as the key to providing the highest quality

value-for-money products

Yo Kuku! chicken is fed purely on plant protein and does not receive

antibiotics or growth promoters.

• FSSC 22000 is the world’s leading food certification scheme for ISO 22000. HMH-

Rainbow is the first company in Uganda to ever receive this certification

• HMH-Rainbow is the only STAR certified company in Uganda and the second company

to be awarded this certification in East Africa

• Q-Mark US 917 20002 is the highest ranked national standard only issued to those

products that meet the stringent requirements of food safety and quality systems,

including being heavy metal and veterinary drug residue free

Competitive Advantages Quality Certifications

Service Pledge

Our Organic Promise

US917Uganda National

Bureau of Standards

Food Safety Systems

certification FSSC

A prerequisite to supplying KFC

Halal certified

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04 Enkoko 05Distribution Center

• Enkoko is a brand within the HMH-Rainbow portfolio with a

specific range of chicken and chicken by-products for a broad

segment of the market

• The Enkoko product is consistent with the high standards and

certifications of HMH-Rainbow and Yo Kuku!

• The first Enkoko retail shop has been operational in the Semuto

town centre, close to farm, since January 2015. Two additional

shops have been opened in 2016, in Kabalagala and Kawempe

and a strategic rollout plan is in place for additional shops in the

Kampala suburbs.

• Currently, Enkoko supplies dealer shops located in the Nansana,

Bweyogerere, Kalerwe, Mpererewe, Cayaza, Kamwokya and

Wandegeya trading centres.

• The Kampala based distribution centre has strengthened the

cold chain while also improving distribution and shortening the

delivery times to wholesale customers

• The distribution centre has a 50-tonnes capacity holding room

that is maintained at -20°C and used to store chicken for

dispatch to customers

• The centre ensures that chicken is always available to customers

whenever they need it.

• Before dispatch, there are additional quality checks done which

further ensures that the chicken that reaches the customer is

fresh and of the best quality.

13 14

Kentucky Fried Chicken (KFC): the global fast-food franchise that is already operating two of serveral planned outlets in Uganda.

Mr. Tasty: has one of the fastest growing footprints of takeaways in locations all over Kamapala. Fried chicken is their primary offering.

Cayenne Express: A fast food take-away service, a branch of Cayenne Restaurant and Lounge with two locations, at Petro Stations on Bombo Road and Yusuf Lule Road.

Serena Hotels: A five star brand hotel in Kampala and Kigo with a pan-African panache.

Sheraton Kampala: One of the oldest international hotel brands in Uganda found in the heart of Kampala.

Shoprite: One of the biggest supermarket chains in Kampala, that began operations in 2000, operating 2 branches in the city.

Java House: A gourmet cafe and diner started in Nairobi in 1999, that has since opened 2 branches in Kampala, in Bugolobi Village Mall and Lugogo.

Kampala International School: An International School with over 600 students representing over 60 nationalities.

Protea Hotel Kampala: The luxurious South African hotel franchise fully operating within the city centre with various leisure and business facilities on offer.

Speke Resort Munyonyo: The ultimate luxurious lakeside resort with the range of business, leisure and conference facilities.

Cafe Javas: A full service coffee-themed restaurant chain in Kampala with 5 outlets in Kampala and Entebbe.

Capital Shoppers: One of the largest Ugandan-owned supermarket chains with 4 outlets. Each supermarket has a bustling deli that offers a variety of fresh chicken bites.

Cafesserie: A Kisementi-based cafe and bakery that specialises in Italian coffee, French breads and pastries.

Mezza: A Lebanese restaurant located in the busy Kisementi area.

06 Clients

15 16

07 New Markets

In line with our vision to be the leading provider of fresh and frozen

chicken products in the East African region, HMH-Rainbow exports a

wide range of Yo Kuku! products to suppliers in:

• South Sudan

• Kenya

• Democratic Republic of Congo

• Rwanda

Exports

08Kuku Shops

The Kuku Shops! are part of the HMH-Rainbow vision to rollout a network

of retail outlets to take chicken to every potential customer in Uganda and

the immediate region.

The flagship Kuku Shop! was commissioned in 2015, adjacent to the

Kampala Head Office in Bukoto, offering a range of fresh and frozen

chicken products from whole chicken and chicken portions to chicken

by-products. A second shop was opened in June 2016 on Bombo Road,

opposite Watoto Church.

Plans are underway to open more Kuku Shops! in other locations in

Kampala and in other districts in Uganda and the region. The Yo Kuku!

retail footprint will also soon grow to include supermarkets and grocery

stores.

KUKU SHOPFRESH AND FROZEN CHICKEN

UGANDA

RWANDA

KENYADRC

SOUTH SUDAN

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09 Kuku Feeds

At HMH-Rainbow, we have been raising healthy poultry since 2013 with

our wholesome, nutritious feeds that are mixed and prepared at our

feed mill, located on the farm in Semuto. We know that an important

part of raising chickens is feeding and that although chicken feed makes

up the major cost of production, good nutrition is reflected in the birds’

performance and in its products.

Kuku Feeds is the latest brand in the HMH-Rainbow portfolio; a

special blend of chicken feed that is mixed and packed in Semuto and

distributed to various customers in Uganda and some parts of East

Africa.

The unique blend of Kuku Feeds is produced by the state of the art

pelleting plant and the main macro-ingredients used include whole white

maize, soya cake and sunflower cake, which make up the main sources

of energy and protein to birds. Our feed also contains micro-ingredients;

vitamins, minerals, enzymes and limiting amino acids that ensure healthy

growth of the birds.

The two main poultry feeds we produce are broiler and layer feeds,

consisting of crumbles and pellets that are formulated to provide high

nutrition to the bird and to improve the feed conversion ratio that has a

more favourable financial impact on farmers. Our pellet feeds; grower,

finisher and layer, are more easily consumed and there is much less

wastage than with regular chicken mash, which also saves on the bottom

line of farmers.

Kuku Feeds is available for broilers (Starter Crumble, Grower Pellet and

Finisher Pellet) and layers (Layer Pellet) and is conveniently packaged in

20kg and 50kg packs for easy handling. Kuku Feeds is available in all major

feed stockists and wholesalers in Kampala and its environs as well as in

Jinja and Mbarara. Kuku Feeds will also be sold in Western Kenya through

distributors in the border towns of Busia and Kisumu among others.

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10 Management

Francis Gachunga: Feed Mill Manager

With an Honors Degree in Food Science and Technology, he has mentored

and coached staff in World Class Practices including Hazard Analysis

Critical Control Points (HACCP) & Kaizen. He boasts of 18 years’ experience

leading both food and feed manufacturing win- ning teams in Kenya and

Uganda.

Francis Varghese: Chief Engineer

Holds a degree in Mechanical Engineering and has over 20 years of

experience managing large poultry farms and abattoirs both in India and

Africa. A staff of highly qualified techni - cians and machine operators

support his engineering depart-ment and run the highly mechanised

abattoir.

Cosmas Mali: Broiler Farm 2 Manager

Has over 12 years of experience in Broiler Management in Zambia.

He is a specialist in Animal Health and Production and large scale

poultry, managing up to 80,000 broilers per cycle. He has undertaken

Standardizing Farm Practices projects; an initiative from KAIZEN Institute

in India.

Board of Directors

Management

Wes SchwimmbacherDIRECTOR

Alykhan HudaniCHAIRMAN

Rahim ManjiDIRECTOR

Pierre RossouwDIRECTOR

Rafik ManjiC.E.O

Chris NormanDIRECTOR

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Linden Marais: Production Manager

Has 27 years of experience working in large production companies in

South Africa. This has enabled him train the local team to meet market

demands.

Kyegombe Godwin: Quality Assurance Manager

Holds a Bachelor Degree in Mechanical Engineering and has trained

in Hazard Analysis Critical Control Points (HACCP) with extensive

experience in Fast Moving Consumer Goods.

Brian Ballack: Chief Financial Officer

Brings with him a wealth of experience garnered from 27 years working

in corporate banking, institutional banking, international banking,

trade finance, investment banking, retail banking and credit in over 5

countries. Has previously served as CEO of Letshego Financial Services

in Zambia and Credit Manager and head of Compliance at Grindrod

Group, a commodities trading company in Durban.

David Njau: Management Accountant

Holds a BHRM, CPA II, Kaizen Practitioner and currently pursuing

ACCA. Has 5 years of comprehensive accounting in FMCG environment.

Experience encompasses; payable & treasury operations, banking

relations, financial analysis, HR and costing functions with expertise

in ERP Implementation, internal controls, stock valuation and Kaizen

management systems.

Johann Vorster: Agriculture Manager

Johann has over 10 years experience in the poultry industry as the

Production Manager Commercial Laying. He joined Rainbow, South

Africa in 2002 as the Area Manager, overseeing 1.8 million birds and

in 2007 as the Early Bird Operational Manager, overseeing 1.7 million

birdsong finally as the Supreme Area Manager. In 2015, he joined HMH-

Rainbow as the Agriculture Manager bringing with him a wealth of

experience in commercial rearing of birds.

Lillian Karongo: Human Resources Manager

Holds a Bachelors’ Degree in SWASA and is a Masters Student in

Development studies. Has over 7 years’ experience in Human Resource

and administration, worked in a Fast Moving Consumer Goods (FMCG)

environment and has been able to devise and implement policies which

select, develop and retain the right staff needed to meet the objectives

of the Business.

The skill and experience of this management team is at the core

of building and developing a local management team. Mid-level

management and all other workers at the farm are locals.

EmploymentThe farm employs 300 staff on a permanent basis, with a large percent-

age being residents of Semuto. Employee training is an integral and

continual part of human resource development. HMH-Rainbow offers

staff training opportunities in Europe and South Africa. Employee well

being is a top priori- ty of management and safety wear and safety pro-

tocols are used every- where on the facilities. Staff medical check-ups

are done every three months. Medical follow up is done at an infirmary

on site that is staffed by full-time, qualified medical practitioners.

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11 Community Support

• The HMH-Rainbow farm has great support from the local area

administration

• The investment has spurred significant economic activity and

new employment in Semuto town and the surrounding areas, to

the benefit of the Semuto residents

• A large scale out growers programme for Semuto residents is in

the works, that will equip local farmers with the best skills and

practices in raising chicken hygienically and efficiently

• Currently the feed mill buys 250 Mega Tonnes of maize each

month from small and large scale farmers around Semuto and

Kapeeka

• In 2014-2015, as part of the company’s CSR plan, HMH-Rainbow

partnered with 40 Days, over 40 Smiles, a youth-led charity

Organisation, to positively contribute to the livelihoods of

children in Luweero. From October 2014, the children of Happy

Times Junior School, a school for disadvantaged children,

have been receiving 50Kgs of Yo Kuku! chicken each month

to supplement their diets. They have also received a 50Kg –

capacity refrigerator to keep their chicken and other perishables

12Future Plans

• To continue to grow capacity and efficiency, and further lower the

price of chicken

• Expand the feed mill to better serve local out growers of maize

and soya beans; the main ingredients of the chicken feed

• The third phase of development of the farm will see a further US$

15,000,000 invested

• A greater presence in other countries in East Africa, aided by the

pace of on-going regional integration

• To become established as the market leader for chicken supply in

Uganda

• To expand the operations of HMH-Rainbow to include other animal

proteins including beef, fish, eggs and pork

Short Term

Long Term

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3

Buhler Pellet Press, Feedmill