Positive outlook for Serendib Flour Mills

Serendib Flour Mills CEO Kevin O’Leary

By Senuri de Silva

Serendib Flour Mills (SFML) recently celebrated seven years of successful operations in Sri Lanka, and is well poised to further solidify its position as one of the country’s leading flour companies. In an exclusive interview with the Daily FT, the senior management of SFML highlighted the company’s future outlook and plans for growth. 

Achieving success in a saturated market 

The flour industry has grown by 10% with Sri Lankans consuming an increase of 8000MT of flour in January 2015, in comparison to the same period of the previous year. Commenting on the increase in flour consumption Serendib Flour Mills CEO Kevin O’Leary stated, “For a mature and highly saturated market, the double digit growth in flour consumption which has been recorded this year, is very impressive and augurs well for our business and the industry at large.”  

He attributed the present growth rate to factors such as the natural growth and development of the economy, the government’s decision to reduce taxes on flour as well as the booming biscuit industry which has opened up new markets. 

New markets pave the way for growth 

The growing biscuit industry in particular has proved to be a new high potential market which Serendib Flour Mills has been able to supply. As more biscuit manufacturers continue to build their brands and drive production, Serendib Flour Mills is able to supply them with larger volumes of high quality flour, and this in turn boosts SFML’s sales and revenue generation. Commenting on this, O’Leary stated, “The growth in the biscuit industry has enabled us to reach new customers and we hope that the innovation and development of new products that use flour as a core ingredient, will continue, as this will undoubtedly have a positive impact on our own growth.”  

Sustainable expansion and increased production: At present Sri Lanka consumes as much as 55,000 MT of flour per month. Serendib Flour Mills has been able to capture 25% of this market share by producing specialised types of flour for commercial and domestic use. O’Leary stated, “Our market share and production levels are at the very highest that they have been in the company’s history. Serendib Flour Mills’ main milling facility is situated at the Colombo Port and is the largest single flour mill in the world, with a potential output of 1000 MT a day. We look forward to gradually and sustainably expanding our market share and production yields, to meet the demands of both local and export markets. We have allocated adequate floor space in our facility, to continue expanding the mill in the near future.”

Investing in processes 

and technology

The company has also been making a series of new investments that will focus on increasing production, as well as operational and environmental efficiency throughout all operations. A three-year plan has been put in place to increase production and will be implemented by the senior management to take Serendib Flour Mills to even greater heights by 2018.The company has also invested in new technology including a processing kit featuring the latest Buhler milling technology that further guarantees the quality of all flour that is produced at the mill. SFML has also invested in a new test mill kit, which allows for raw wheat to be tested at the start of the milling process, so the wheat can thereafter be milled into flour in a matter of minutes. The company also hopes to increase its packaging capacity and is also investing in equipment that efficiently manages its bran pellet cooling and drying systems.

Building a brand that resonates with people 

In addition to this, the company remains committed to building both the Serendib Flour Mills brand and the ‘7 Star’ brand of flour. Efforts are also currently underway to strengthen the company’s retail network and increase its market presence in Sri Lanka. The company has taken an active role in industry events, trade shows and exhibitions, and is constantly finding new ways to inform and engage with customers in a meaningful way. 

Long-term plans to go green 

Other investments in the pipeline for SFML include efforts to reduce its carbon footprint and plans to reduce water usage, energy consumption, and ensure waste reduction. The company will also increase recycling initiatives and is planning to explore the use of alternative energy sources throughout its operations. SFML is also developing a bespoke wheat container uploading system which will drastically reduce energy consumption during this process.

Foreign support, investment and backing 

Serendib Flour Mills is owned by Al Ghurair Foods, a food manufacturing company based in Dubai. Ghurair Foods CEO Mark McKinney, who was the Guest of Honour at the company’s 7th anniversary celebrations in Sri Lanka stated, “Serendib Flour Mills has the backing of Al Ghurair Foods, which extends its support through investments and the sharing of knowledge and expertise. SFM has aligned itself well with the group’s plans for strategic growth and its success in the local market can be attributed to its ability to develop and market specialised types of flour such as Cake Flour, Noodle Flour and Atta Flour for different uses. The ‘7 Star’ range of flour has become popular in many homes across the country, as well as in many bakeries, restaurants and hotels, and the ‘7 Star’ range is becoming increasingly renowned for its exceptional nutritional value, affordability and quality.”