Mr. M. Aljarboua

8/8/2019 Mr. M. Aljarboua

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A TO Z TEXTILE MILLS LIMITED

BORN TO LEAD

INTER COUNTRY WORKSHOP ON SCALING UP ITNIMPLEMENTATION FOR CONTROL OF MALARIA AND

OTHER VECTOR BORNE DESEASES IN COUNRTIESOF EMRABHA, KINGDOM OF SAUDI ARABIA,18 20.OCT 2003

The challenges of Meeting Local Demands for ITNS(With example of Tanzania)


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INTRODUCTION:

Although unable to attend, we are grateful indeed to be invited to this meeting

A to Z Textile Mills Ltd is a fully integrated plant with spinning, knitting,weaving, dyeing, finishing, cutting and making departments.

The factory is based in Arusha Tanzania (East Africa), established in 1966 as a

small garment making enterprise, with few sewing machines. A to Z Textile Mills Ltd started manufacturing polyester mosquito net fabrics in

mid 1970s which were sold locally.

1997 saw the start of A to Z manufacturing mosquito nets on a much larger scale.

Ownership: Privately owned by Shah Family based in Arusha Tanzania.

Man Power: A to Z is employing 1,500 people 85% of whom are women.

Capacity: Current capacity is 5 million nets per annum, exporting to over 25countries in Africa

The projected capacity is over 8 million nets per annum by 2004.

Product Line: Mosquito net is number one product for A to Z, constituting 80%of total production.

Conventional: A to Z manufactures 100% Polyester Textured nets .


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(i) Olyset Net

This is a Long Lasting Insecticide Treated Net made of polyethylene whereby theinsecticide is already in the resin which is the main raw material, a technologyreceived from SUMITOMO Japan.

Olyset is permanently treated through out its life time without retreatment and it isthe only LLITN which has currently passed WHOPES stage (Ref.WHO/IS/NI/331/2002).

The estimated life time of an olyset net is four (4) years minimum.

Olyset is the answer to low re-treatment levels.

A to Z Textile Mills Ltd is the first company in Africa to receive this technology

from SUMITOMO Japan to manufacture Olyset Nets. The first Olyset net rolled out of the production line in September 2003, and it will

be followed by official launch soon.

Initial capacity is estimated to be 30,000 50,000 nets per month. This willincrease according to demand.

Product Development:


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MANUFACTURING

CHALLENGES

Machinery and spares very expensive.

Raw materials and other ITNS consumables are 100%

imported. Taxes and tariffs applicable on ITN raw materials: 10% ID

and 20% VAT whereas no taxes and tariffs on finished nets.

Imported ITNS are duty and tax free thus, creating unfaircompetition.

Uncontrolled raw material prices due to petrol pricefluctuations.

Power (hydro and thermo electricity) very expensive.


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MANUFACTURING

CHALLENGES-2

Labour cost is very high.

Unstable power supply; hence low production.

Internal transportation very costly.

Other operation costs.

Generally cost of production is very high.

DISTRIBUTION

Institutional markets:

NGOs

UN relief agencies

MOH

DMOs etc.

Commercial markets:

Wholesalers in every big city e.g. Dar es Salaam, Mwanza, Mbeya, etc.

Primary Agents (PA), one in every region. Tanzania has 26 regions including 5 inZanzibar.

Primary Agents supply to Secondary Agents and retailers / outlets.


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Demand creation

/PromotionDEMAND CREATION / PROMOTION

Given the high cost of production, it is impossible for us to allocate the budget for demand creation because themargins on bed nets are very slim.

PSI- Population Services International are doing the sensitization work on ITN usage in Tanzania through

printed media, radios and T.Vs, Road Shows, etc. but still not sufficient. Cost of advertisement is very high and if added to the ITN cost the product will not be affordable to the end

user.

A to Z in collaboration with PSI Tanzania are currently running lotteries in promotion of ourSafi Netbrandand the insecticide kits namely Ngao yaMaji supplied by PSI, in order to increase ITN usage.

More education on ITN usage is still required to most people especially in the rural areas.

PUBLIC PRIVATE SECTOR PARTNERSHIP.

Malaria Programs in Tanzania

A to Z has been instrumental in the scaling up of ITNs in Tanzania from the beginning.

A to Z has been a member of the Task Force on voucher scheme - second meeting on voucher scheme held on10th July 2003.

A to Z is a member of the National Scaling up of ITNs in Tanzania

A to Z and PSI Tanzania have entered an agreement to bundle all the Safi Nets sold in the local market withinsecticide branded NGAO. PSI supplies treatment kits to A to Z for 100 % bundling with the nets. The sameapplies to the other two ITN manufacturers in Tanzania.


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Future Plans ofA to Z To establish manufacturing units in other African countries e.g. Cameroon and Angola.

To increase the manufacturing capacity of Olyset Nets in Tanzania.

Globalfund Private Sector Partnership. ( Effectiveness ofPrivate Sector)

By involving commercial sector in Global Fund ITN programs the following results areimminent:

i. Supply : Supply of ITNs will be increased to meet the increasing demand to be created by

Global Fund through promotion and sensitization programs.

ii. Incentive: The program is an incentive for the private sector expansion as it encourages

competition.

iii. Price Subsidy Unlike product subsidy programs, Global Fund ITN program supports price

subsidy which creates a better environment to the private sector by notinterfering with the commercial market. This in turn will lead to

growth in the entire distribution chain i.e. wholesale and retail levels.

iv. Sustainability By supporting the commercial sector the program will be sustainable, afterthe program period is over, unlike other programmes, which collapsedafter the facilitators have pulled out.

v. Accessibility By private sector controlling distribution and sales of ITNs, it makes ITNs

accessible and available due to the increased competition.


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Working with Global Fund

ITN Program is Unique i. Global Fund is willing to fund and take risk on untested programs on a national scale, thus

creating a wider playing field for the private sector as opposed to other programs which have to

go for pilot areas/projects (e.g. regions or districts for testing).

ii. All commercial partners will benefit through increased sales because the Global Fund Program fully integrates into the commercial market.

iii. The Global Fund program, models and complements on the existing ITN programs.

iv. If the program is implemented properly this will lead to an increase in the capacity building of

net manufacturing through the increased demand for the ITNs.

v. We believe that the voucher scheme will lead to guaranteed demand by targeting specific sector (pregnant women) which in return will be an incentive for the private sector to develop rural

marketing. Currently there is no effective rural marketing and / or supply.

vi. The Global Fund will not only help in creating sales from the targeted sector (pregnant women)but will also have a SPIN OFF effect into the fully paid commercial market.


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To Summarize: -

Global Fund Concept will help to increase the distribution of ITNs to rural Tanzania and inparticular the current underserved areas.

Will lead to the creation of both direct and indirect employment opportunities.

More pregnant women and children under the age of five to be protected from the risk of malaria.

On behalf of A to Z Textile Mills Ltd I wish to thank WHO/EMRO for inviting us to this meeting and welook forward to working hand in hand with theirPrograms on ITNs in the Region.

Address: P.O Box 945, Ungalimited Industrial Area

Arusha Tanzania, East Africa

Tel: + 255 27 2548888 2548895 / 2548139/ 2502375

Fax: + 255 27 2548235

E-mail: [email protected]

Contact : 1. Anuj Shah - Executive Director

2. Binesh Haria - Production Director

3. Sylvester Kazi - Export Manager

Conclusion

Mr. M. Aljarboua

Documents

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