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Beyti dairy plant sustainably increases production volumes by 275%

Beyti dairy plant sustainably increases production volumes by 275%

Executive Summary
Egyptian dairy producer Beyti began their journey to world class with some ambitious goals around increasing production volumes. Four years into the implementation, they increased their production volumes by 275%, going from 17,000 tons to 47,000 tons.

 

Situation
IGI Beyti, the food and agricultural division of the Egyptian private investment company International Group for Investments, required a total shift in plant culture in order to improve performance in a sustainable manner. This would make it possible for Beyti management to unearth new talent from inside and develop them into leaders. In addition, milk and yogurt production volumes needed to be increased. Beyti produces a range of blow-formed HDPE in 250 ml, 1,000 ml and 1,500 ml sizes. Blown bottles arrive at the production line sealed and are opened with a knife blade machine (neck trimmer). Excess material is passed back up the packaging line to the blow moulder for reuse in new bottles. Excess material savings on this line was on the priority list.

ActionBeyti dairy plant results
The initial TRACC assessment resulted in a master plan and specific performance improvement targets as the 18-month program’s framework for phase one. Thereafter, a second implementation phase would take place in order to roll out Total Productive Maintenance (TPM) practices across the entire plant, and to sustain the practices that had been implemented in phase one. Implementation had a two-pronged approach:

  1. TPM best practices were implemented step by step, driven mainly by an internal Steering Committee, a dedicated TPM facilitator and departmental Task Forces, supported by licensed internal trainers — this approach is crucial to ensure ownership and sustainability.
  2. In parallel, a loss and waste analysis sparked a series of focused Profit Improvement Projects (PIPs) to eliminate waste and generate quick savings to ensure that the program was self-funding. These pilot projects centered on reducing fruit losses in the yogurt department, preventing overweight bottles in blow moulding, modifying the machine program to optimize milk losses in processing, and also reducing changeover times and defects on the UHT line.

A practical and hands-on consulting approach created much enthusiasm on the shop floor. Furthermore, with a companywide incentive scheme, shop floor teams participated and shared in the improvement projects.

Results
The performance improvements exceeded all expectations. Also, the plant is much cleaner, tidier and more organized than before — which was great news for Beyti’s HACCP program.

production volumesInitially, the UHT line was producing 21 million bottles. Within two years, this line was successfully producing 35 million bottles. A further two years later, 85 million bottles were produced, equating to a near 400% production volume increase over a four-year period.

An exponential increase took place in the yogurt production too. At the outset, around 30 million cups of yogurt were being produced. Two years on and the plant was producing 40 million cups. Four years on and the plant was producing 53 million cups — a 175% increase in production volumes.

Overall, the plant’s total production volume at the outset of the implementation was at 17,000 tons. This increased to 28,000 tons within two years, and a further increase to 47,000 tons was experienced two years after that. This equates to more than a 275% improvement in total production volume in a four-year period.

There were a series of attempts to reduce plastic sheets, fruit and raw material losses, in addition to other PIPs that were based on a thorough loss and waste analysis. This has saved Beyti US$2 million over the four-year period.

Given the achievements above, Saudi-based Almarai agreed to buy Beyti for US$115 million, allowing a new joint venture with PepsiCo to set foot in the Arab world’s most populous nation.

“The acquisition of Beyti is an important step forward for our joint venture with Almarai,” said Saad Abdul-Latif, then CEO of PepsiCo Asia, Middle East and Africa. “Beyti’s dairy and juice brands build on our commitment to world class quality, while addressing consumers’ need for nutrition as well as fun and refreshment.”

This transaction complements PepsiCo’s existing Egyptian market leadership in nonalcoholic beverages and savory snacks, and it expands Almarai’s leadership in dairy outside its core markets within the Gulf Cooperation Council (GCC).

Beyti’s dairy and juice brands build on our commitment to world class quality, while addressing consumers’ need for nutrition as well as fun and refreshment.
– Saad Abdul-Latif, then CEO of PepsiCo
Asia, Middle East and Africa

 

Company Background
IGI Beyti, the food and agricultural division of the Egyptian private investment company International Group for Investments, is setting that country’s dairy market on fire with rapid growth and an expanding product range which is fast becoming a quality benchmark. Established in 1998, Beyti currently employs more than 600 workers. It produces a wide range of high quality dairy products for local and international markets, including UHT milk in varying sizes, fruit juice, yogurt and cheese. Even the company’s name, Beyti, which translates as “home-made”, reflects its wholesome products.

 

Disclaimer
This resource has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained herein without obtaining specific professional advice. Competitive Capabilities International (CCi) does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this resource or for any decision based on it.

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