Maize mill is the staple food for over 90%of the Kenyan population.

High pricing and lack of availability

in rural areas and amongst low income groups forces many families especially women and children to go
to bed hungry. Uchumi's goal (as her Swahili name suggests- Economical) is to profitably ensure
availability of high quality nutritious sifted grade 1 maize mill for all income groups both in rural and
urban areas at affordable prices . This is done through its distribution network, efficient quality
production methods and exceptional marketing. By running a for-profit industrial business model, we
sustainably create jobs, contribute to improved standard of living to our valued stakeholders while
ultimately ensuring families get a decent meal affordably.

Facts

Legal status business

Formally registered
Year of establishment

2004

Sales (US$)
Two years ago: 66,801
Last year: 415,338
This year (forecast): 1,974,462
Year 2 (forecast): 2,300,000
Year 3 (forecast): 2,800,000
Net profit after tax (US$)
Two years ago: 3,861
Last year: 21,443
This year (forecast): 284,511
Year 2 (forecast): 300,000
Year 3 (forecast): 350,000
Total number of Employees
Two years ago: 5
Last year: 25
This year (forecast): 152
Year 2 (forecast): 313
Year 3 (forecast): 460

Finance needed
Finance needed for fixed assets (buying of machines, buildings, ...) 84,615
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 422,770
Total finance needed (US$) 507,385
How do you expect this to be financed? Please note: the total amount mentioned here
should be equal to the total finance needed at the previous question.

Own Contribution in cash 84,615

Loans (debt) 322,770
Share capital that you seek from investors (equity) 100,000
Other sources 0
Total finance needed (US$) 507,385

The Business
What is your product/service?

Uchumi Product range include the following

a. Grade 1 sifted maize Mill- our MSOSI brand name is a Swahili (local language) Word that
means An Exceptional Quality Meal!
b. Novelty and specialized mineral enriched milled grains- millet , sorghum cassava
c. Animal Feed
Uchumi planned products for 2008-2009 include
a. Chicken feed
b. Pet feeds
c. Other animal feeds

What customer need/problem do your products/services satisfy?

Uchumi products fill the food gap for high quality more nutritious, more hygienically produced
milled grain. The maize mill is targeted for low income groups and its affordably packaged in
desired quantities

How will you make the product/service?

The production process of Uchumi is a simple yet highly automated that involves a loader
putting of the maize into the milling machine which does the cleaning, sorting, milling and
grading. Packaging is done by hand. See pictures for process. The production of novelty products
in the case of animal feed involves taking the byproducts of the milling process and mixing it in
predetermined formulas with nutrients suitable for the animals.

Explain how you will sell your product/service (marketing strategy) and how you will reach your
customers (distribution strategy)?

The sales function at Uchumi Grain Millers is divided in two dimensions: The territories are set
according to high population areas that are characterized by slums/ low income groups
households and Marketplaces and shopping centers a within our locality- Nairobi estates,
Mlolongo, Athi River Namanga highway and Nairobi Mombasa highway. The sales force is
comprised of 4 sales representatives who have significant experience in the industry and have
driven the Msosi brand in their territories.

To whom are you selling, what is your market?

The retail market in Kenya can be classified into high, middle and low class. The low class is the
majority followed by the middle class. Uchumi’s strategy is to first attract the low class and work
its way up. Uchumi is preparing for this by establishing a distribution network that will make it
possible to meet the requirements of the vast majority of the population this is the Middle (BC)
and Low class (D)

Describe your competitors?

The competition can basically be divided into three categories. We have industrial millers
producing over 200 tons a day, small and medium millers doing approximately 23-100 tons a day
and posho mills who mill for individuals. The following millers sale their products all over the
country and have established key brand names nationally; Mombasa maize millers, Unga
Limited, Kenya Flour Mills, Kenwheat Flour Mills. we are in the second category

What makes your business different/better than your competitors (competitive advantage)?

Our Business model is superior than our competitors, given our excellent geographical
distribution network, high quality and fair price.No other company offers this combination when
targeting low income groups right at their market place.

What makes your business, your product or service innovative?

Our service is innovative because of the marketing strategy we use. The strategy communicates
to specific communities at a time thus encourages communal ownership of the product. Though
our product is a traditional product this marketing strategy makes ownership by different rural
and urban communities possible e.g. our flyers and adverts target specific groups and therefore
speaks to them in their dialect.

How will you ensure the growth of your business?

The growth of the business is ensured through new product development, low priced grain
sourcing, opening up of new markets, signing up new distributors and hiring new staff with
desired qualifications. Uchumi is now registered and certified by the government as a maize
Milling company, our products have been tested and certified by the Kenya Beureu of standards
in addition we are members of the newly formed United Millers and Farmers Association of
Kenya. This body is involved and recognized by the government in legislation consultative
matters. New products are also continuously being developed; with a short term focus on
including animal feeds and even nutritional products like soya and sorghum with supplements.

The Entrepreneur & Management

Describe the entrepreneur & management

UCHUMI Management Team.

Isaac Chege – Executive Director:

-He is an Actuarial Scientist & diploma in management & Information systems.
-Extensive business experience as CEO of own businesses.

Anthony Chepseba – Operations Director

-Mechanical engineer with over 15 years experience in manufacturing and operations
management.

Solomon Njuguna Chege – Administration Director.

-Brings over 30 years experience in people and procurement management

David Nderitu Ndungu - Finance Manager.

-CPA with 10 years experience in Audit & Financial Management -Experience with accounting
firm, micro finance institution,small businesses &NGOs.

Attached are the resume for the key management staff in Appendix 2

What specifically makes you and (if relevant) your management team most qualified to build this
business?

Our team is involved in the day to day operations of the business. The combined experience of
the team and knowledge of the business from its inception ensures that we have the skills
knowledge and experience to run the businesses effectively. This is the evident from the
immediate turnaround the business has experienced since we took over.

How much time do/will you expect to spend per week in the business?

I will work on the business on full time basis, this is approximately 50 hours a week while
running at full capacity.

Development
How does your business improve the local living standards (social and environmental)?

The key development factor are the jobs created by the business in addition to availing
exceptional quality-low priced maize mill to all income groups. In the past 3 months Uchumi has
been able to hire 4 additional people in sales and marketing, 2 in operations and another 2 in
quality control. our total direct employees 23 of whom 7 are women.Indirectly we have created
more than 1320 jobs through our distribution channel. Short term goal is to have created another
17 jobs when working at full capacity. We also help people save on food costs as we are cheaper
than competitors. By ensuring high quality nutritious products we contribute to the health of
society.