Page 55 - IDC

8 CITY PRESS, 9 SEPTEMBER, 2018

Maneli’s milestones
In 2010/12:
partnership Nhlanhla Dlamini studies at Harvard and the gem
of an idea, to export African protein pet treat
with the products in between working towards his MBA,
takes root.
2015:
IDC Dlamini resigns from his cushy job as an advisor
for global consultancy firm McKinsey to pursue
his own company, Maneli Pets, named in part
after his mother’s clan.
2016:
The IDC provides the necessary seed funding for
Maneli to commence with the initial phases of
production, such as sourcing local protein offcuts
from abattoirs.
September 1 2017:
Maneli’s state-of-the-art facility in Sebenza is
formally opened.
October 2017:
The first shipment of pet treats leaves for New
York in the US.
April/May 2018:
Maneli launches Nandi, a uniquely African brand.

Aspirations and
achievements

Although Maneli Pets’ latest product range of
WHERE TO FIND THE TREATS locally sourced protein-based products has been
. Animal lovers can find Nandi treats such as Karoo Ostrich and met by unprecedented demand from countries
Kalahari Lamb at Absolute Pets and other premium pet stores far and wide – in Asia, Europe and the Americas
. If you own a veterinarian practice you can stock the product by – the Sebenza-based manufacturer of pet treats is
contacting Midlands Veterinary Wholesalers SA, visit www.mvwsa.com hoping to expand further still.
. If you are a pet store, contact Cube Route Logistics for stocking Nhlanhla Dlamini wants to see Nandi on the
details, www.cuberoute.co.za shelves of Australia, an export destination that’s
TOP DOG Maneli Pets co-founder Nhlanhla Dlamini PHOTOS: EUGENE GODDARD notoriously difficult from a regulatory point of
view.
seed-funded success stories, company co-founder Nhlanhla SUCCESS primary pet food production, apart from making
wagging tail does not lie, at least not by the
The potential for Maneli to branch out into
way dogs are taking to Nandi, the local line
premium treats, is also not ruled out. But for
of protein-based treats that take their name
from the isiZulu word for delicious – mnandi.
the time being Dlamini is happy to work towards
Launched by Maneli Pets, one of the
saturating South Africa’s undersubscribed market
AIndustrial Development Corporation’s (IDC’s)
“I want to build Maneli Pets into a truly South
Dlamini explained that the first letter “M” had to be dropped for pet treats.
African success story. I want it to sit alongside
to make it easier for reception overseas, and what a local brands such as Discovery and Nando’s, and
reception it has been. COMES WITH DOGGED the esteem they have internationally,” he said.
Although only launched a few months ago and hastily Getting there wasn’t easy though; it took hard
marketed during a trade show in Germany in May, Dlamini slog and sussed expertise to ensure success or,
returned home buoyed by interest in the uniquely South as Dlamini explained, the “three “P’s”:
African product and with a first order signed and sealed. . Personal commitment
That initial shipment to Italy went ahead in June, joining DETERMINATION . Personnel assimilation
the three to four containers of similar treats, branded as . Persuasion of investors
Roam and dedicated to the United States market, that leave The first was his own “nothing ventured,
Maneli’s loading bay every month. nothing gained” attitude, having the courage of
Roam is actually where it all started for the young Maneli Pets’ Nhlanhla Dlamini did his thesis in his convictions and going out on a limb to make
company and, although their US treats have only been it work.
shipped to those shores since October. “The market The second was surrounding himself with
reception has been phenomenal”, Dlamini says. youth employment - he’s put that into practice enough people of professional ability and
“We export to Roam’s warehouse in New York from where acumen to establish an impressive brains trust
our products are distributed to a myriad outlets across the by creating 130 jobs, writes Eugene Goddard that could persuade investors. That being the last
US, numbering around 800 in total.” major challenge, convincing the right people to
Considering that it’s all happening from Sebenza in invest proved instrumental in oiling the engine
Ekurhuleni is almost too difficult to imagine. room of Maneli Pets so its could propel its
But visiting Maneli’s state-of-the-art premises in this products on to the global stage.
industrial area on the border of Edenvale and Kempton Park,
one is quickly struck by the factory being a hive of activity Entrepreneurial
second to none – clean, cutting-edge and on the cusp of
even greater things. go-getters wanted
“When we got going,” somewhere around 2016, “we were
committed to creating 60 jobs over five years,” Dlamini says. If your business plan is sound and has the
Initial war-room discussions quickly added some potential to kick-start a sustainable enterprise that
entrepreneurial peers to Dlamini’s shoestring outfit and by can create jobs, the Industrial Development
the time investor pledges started to take hold, the company’s Corporation (IDC) could become a valuable
staff complement slowly began growing. partner on your journey.
When City Press profiled the company over a year ago, its David McGluwa, who heads operations at the
multimillion-rand space-age freeze dryers from China barely IDC head office and regions across the country,
hoisted into position, Maneli was still only employing about said if the business plan is workable and paints a
30 people. picture of a business with true potential, the
Today that figure stands at 130 people – an amazing feat in process moves to the second phase. A basic
anyone’s books. assessment is done on the application to
Thanks to the growing demand from the US and the determine whether the business has economic
success of Roam, Maneli’s root product that is now also merit and whether it will, in the long run, be able
exported to countries such as Germany, “we have created a to repay the loan advanced by the IDC.
100 jobs in less than a year,” Dlamini beamed. Four key components are assessed to determine
In broad terms some 70% of the venture’s staff consists of the viability of an application:
shop-floor workers and supervisors, while the remaining 1. Management team – Who are they? What is
personnel is made up of factory and commercial managers. their background?
Dlamini, who is only 34 years old, jokes that he is one of 2. Market analysis – How big is your market?
the oldest on the team as the average age of the company’s Where will you get orders from?
staff is 29. 3. Technical aspects – This is the operational
Moreover, walk around Maneli Pets and it quickly becomes IN DEMAND Workers prepare the raw materials for the pet food side. If it’s a manufacturing business, does it have
apparent that it couldn’t represent a truer reflection of the right equipment? Where will it get raw
desired demographics and gender equity. speaking to his uncle’s next big business partner. It could be that the pet treats industry in South Africa was materials? What volumes can it produce?
“Nearly half of our staff is female and we are 94% black. To a certain extent it was a no-brainer from the start. simply too small. 4. The financial model at a basic level – Will the
That’s what I always wanted – to create employment where “We looked at the numbers and it made sense,” Dlamini However, realising that the market for treats in SA is vastly business be able to repay the loan? Will it be
it’s most needed,” said the alumnus from Oxford University says. undersubscribed, Dlamini set out to create Nandi, a uniquely sustainable?
who completed his MPhil studies with a thesis about youth “The pet food market in the US is huge. The global pet African brand. The IDC also has a business support programme
employment. food industry is worth a $100 billion (about R1.4 trillion), of Nandi has a range of products that exemplify the adage that provides advice and support for
Interestingly, had Dlamini stopped studying there, Maneli which about $60 billion is just the States’ share. To put it that “local is lekker”, not only in sheer nyammyness, but in entrepreneurs before their funding request is
might never have been. into perspective, South Arica’s comparative presence is about name as well. awarded and afterwards to assess whether the
“I really didn’t have to do my MBA,” he said with R1 billion, so we are less than 1% of the global market. Treats called Karoo Ostrich and Kalahari Lamb have taken capital injection has made the business viable and
reference to relocating his ongoing academic sojourn abroad “Another way of looking at it is that there are more off like wildfire and altogether 11 products currently grace what additional help is required. Entrepreneurs
to the US. American families with pets than there are families with local shelves. can also access these services at regional offices
“But I didn’t want to stop studying. I was still having fun children.” “We’re experiencing unprecedented demand and plan to located in each province.
as a student and didn’t want to start working.” Dlamini adds that once all the angles had been examined be on all continents before the end of the year. McGluwa said the minimum IDC business loan
Finding something else to do with his brain, like pursuing and a team of experts had been gathered – many of them “We’re also looking at launching another five products, was R1 million. There is no limit to how much a
a second master’s degree – namely in business administration still employed elsewhere but sold on the idea of building a one of which is called Zulu Chicken, but we’re still in two business can receive, but if it’s more than
– would become the impetus for an idea that steadily pet treat empire in SA – they were ready to prise open the minds about it because research has shown that some people R1 billion, it is likely that co-funding options with
percolated into pet treats. doors of reluctant investors. wonder why the chicken is Zulu,” Dlamini laughed. other financing institutions will be explored. A
“Because I had been living away for six years, every time I The IDC was one of the easier calls made for capital But hiccups with manufacturing and marketing don’t faze total of R4.5 billion has been made available over
would eat out I would lament how expensive it turned out injection. the entrepreneur who, from the time he was “a young boy a period of five years to support youth
to be, to eat the kind of food abroad that you find at some “We ticked a lot of their boxes. We were creating jobs, we surrounded by poverty, knew that I wanted to do something entrepreneurs who have bankable projects in
of our own restaurants. employed black entrepreneurs, became export brokers and in the line of job creation”. sectors that the IDC funds.
“It’s really one of our best-kept secrets,” Dlamini believes. are environmentally friendly.” Of course that path was potholed by problems or, as McGluwa is excited about the drive led by the
“The quality of our food is something that we should be Expecting hurdles at some point along the way Dlamini Dlamini’s positive outlook sees it, challenges. IDC and the department of trade and industry to
sharing with the rest of the world.” and his fellow eager beavers found out that, without much There was the decision he made to risk everything, create new black industrialists. He said new black
He adds that from a young age he thought he would get access to equity, they were facing an uphill battle to secure including giving up a plush consultancy job at McKinsey, industrialists were investing in sectors that were
involved in food, not necessarily pet food, mainly because more investment. followed by the responsibility of assimilating a tenacious driving the economy, often in spaces where few
one of his favourite inspirational brands, Nando’s, had But persistent efforts to sway captains of enterprise saved team of entrepreneurial peers with his co-founder black business people have operated before.
become such a strong household name in countries such as the day in 2017 as efforts were under way to unlock the Siphamandla Ndawonde. “We are seeing black people in the active
the United Kingdom and the US. liquidity needed for Maneli’s comprehensive sourcing, And finally, they had to convince the investment fraternity industrial sectors that drive the economy of South
So when a fellow student of Dlamini’s at Harvard spoke of storing, manufacturing and packaging facility. that Maneli Pets was a winning idea. Africa. They are moving into that space, and that
his uncle’s established business in the pet treats industry When that facility was formally opened on September 1 “It’s never easy,” Dlamini says. “But it’s worth it in the is the exciting part. It has exceeded our
and how they were looking for new proteins from Argentina last year by Deputy Minister of Trade and Industry Bulelani end.” expectations.”
and countries in Africa, little did that friend know he was Magwanishe, Nandi was nowhere on the horizon. All it takes to succeed is dogged determination.

The IDC financing process in 5 s teps 4 5 The SBU undertakes a d ue

R1 million or more for entrepreneurs for new businesses or expansions diligence process. If the plan
Appli- meets all the requirements,
The potential 1 All business 2 If it falls within 3 cations the money is transferred
client drops off plans are the mandate, the that Agroprocessing Industrial Chemicals Textiles Heavy Light manufacturing The rest of
their business registered PIBC allocates pass and agriculture infrastructure and clothing manufacturing and tourism Africa
plan at the IDC's by the it to a m anager the
Pre-Investment records to begin basic assessment
Business Centre (PIBC) at departement screening as process are forwarded
19 Friedman Ave, Sandown, and part o f t he basic for review to one of
or at one of the IDC's r egional screened for assessment the 13 strategic Metals and New Automotive a nd Media and
Chemical
provincial offices a m andate process business units (SBU's) mining industries transport audiovisual Machinery a nd products and
capital
equipment equipment pharmaceuticals Graphics24