Enterprise

Firm serves up new success recipe with ready-to-cook chips

muthaka

Mr Kibiru Muthaka, the founder of Panagro Limited. Photo/Annie Njanja

Kibiru Muthaka has attained at a young age what most people don’t achieve in a lifetime.

At 26, he had established an applied finance training and financial consultancy firm Alpha Review and managed to bring on board corporate heavyweights, among them Britam, Safaricom Sacco, the Co-operative Bank, Genghis Capital, Stanlib, African Alliance and Old Mutual Asset Managers, among others.

He trained their staff on financial models and forecasting.

“Alpha Review has trained most of these corporate employees on Financial Modelling, Forecasting and Valuation of Asset Classes such as Real Estate,’’ Mr Muthaka told the Business Daily in an interview last Friday in his office on Mombasa Road, Nairobi.

“I am a risk-taker. There is no danger in pursuing ventures that promise profits,’’ said Mr Muthaka who is a CFA charter holder and a Bachelor of Science in Finance graduate from Towson University (Maryland) and a member of the East African Society of Investment Professionals (EASIP).

“I am also a member of  the Chartered Financial Analyst Society of South Africa,’’ he said with a wide grin.

Alpha Review started its operations in Kenya two years ago through an idea that was born in the US.

Mr Muthaka said he saw untapped potential and decided to create a paradigm shift where a younger generation could also partner with more seasoned investment professionals as consultants and trainers through outsourcing their services and pay them from the revenue gained.

“I had worked at Trans Century, Capital Markets Authority, and Ferris Baker Watts (Maryland). I did credit at Trans Century for building my vision and entrepreneurial business acumen having been given the opportunity to be part of a highly talented team,’’ said the entrepreneur.

He added: “It is more useful offering practical advice after testing the waters with both feet at my two enterprises.”

At Trans Century, he was involved in a variety of transactions among them buy-side and sell-side deals as well as the listing of the company on the Nairobi Securities Exchange.

“Sometimes it is good to challenge your strength and live through such test. You gain strength and passion to soldier on,’’ said the otherwise seemingly laidback entrepreneur who has diversified to food processing.

Now aged 28, Mr Muthaka is eyeing the global multi-million food industry and does not bulk at pursuing further dreams and ambitions.

“Panagro Limited is  a pioneering processor of ready- to-cook chips, targeting both individuals and institutional clients such as hotels, restaurants, cafeterias, schools and events,’’ said Mr Muthaka.

“The company is nearly one year old. We had however started with frozen chips that were not well received here in Kenya for I had borrowed the model from the US where it works really well.’’

“I realised that Kenya is a different community with varying tastes and preference and we had to fast come up with new market strategies to remain relevant,’’ said Mr Muthaka.

He says the initial product had a shelf life of six months and that consumers’ perception was not favourable. Clients saw it as a stale commodity that was not fit for consumption.

With this hitch, Mr Muthaka switched to refrigerated ready-to- cook chips that have a seven-day shelf life. The target market has been high-end hotels, restaurants, cafeterias and schools.

“The response has been encouraging. We ventured into a market with a premium product, banking on innovation and market research to understand what consumers want,’’ said Mr Mr Muthaka.

“Quality and fair pricing are other key factors. Kenyans are price-sensitive but also keen on quality. Packaging is another element that moves the products from the shelves. We had to come up with strategies to get the right people to do this,’’ he said.

The company sells a packet of 1.5 kilogramme chips at Sh250 which can make approximately six plates.

He said the company has divided its marketing team into various groups, with each targeting a certain segment in retail, restaurant and schools.

He adds that the company has even started selling the products directly to individuals through a website, making deliveries in Nairobi and its environs. It has contracted large-scale farmers in Kinangop plateau in the Rift valley to supply them with potatoes.

Greener markets

Panagro Limited can produce five tonnes of the commodity and packs the products ranging between 1.5 kilogrammes and 12 kilogrammes. The company employs 35 people and is looking forward to raising the number as it grows.

The manufacturer is also eyeing further diversification and greener markets both locally and globally.

“We are looking to diversify into micro-wave meals and even frozen fruits and vegetables for export markets,’’ said Mr Muthaka.

Although he terms the investment an expensive venture, he did not disclose how much he spent to set up Panagro.

“This is a huge investment that required a lot of capital but money should not be a measure of success but a tool to create more growth opportunities for people around you,’’ he said. He also did not reveal whether there are equity investors in the company.

Mr Muthaka says putting a new product on the market is one of the biggest challenges of business.

“This was a big headache and our initial sale volumes were very low. We embarked on marketing and referrals and I can comfortably say that we have made big strides,’’ he said.