Aurora Magazine

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“We anticipate that within five years, we will be listed among the top dairy companies of Pakistan”

Published in Nov-Dec 2016
Aamir Khawas, Head of Marketing and Sales, Fauji Foods on the acquisition of Noon Pakistan by Fauji Foods.

AMBER ARSHAD: How is the Fauji Foundation structured in terms of the different divisions?
AAMIR KHAWAS: The Fauji Foundation was established in 1954 and is one of the largest business conglomerates in Pakistan. The objective of the Foundation is to serve the interests of former service men. Eighty percent of all our profits go towards the services’ medical facilities, schools, colleges and training centres across Pakistan. You could say that 80% of the profits cater to about five percent of the country’s population. The Foundation has four fully owned projects; Fauji Cereals, Foundation Gas, Overseas Employment Services, and Fauji Foundation Experimental and Seed Multiplication Farm. Then there are 15 associated companies in which the Foundation has shares; these include Askari Bank, Fauji Cement, Fauji Fertilizers, Fauji Fertilizers Bin Qasim Limited (FFBL), Fauji Kabirwala Power, Fauji Oil Terminal and Distribution among others. FFBL has started to diversify in other businesses and there are four companies under it; they are Fauji Coal Power, Fauji Foods, Fauji Meats and Fauji Wind Energy. Fauji Foods is the Foundation’s most recent expansion and was established in 2015.


"The objective of the Fauji Foundation is to serve the interests of former service men. Eighty percent of all our profits go towards the services’ medical facilities, schools, colleges and training centres across Pakistan. "


AA: Why did you decide to diversify into food and acquire Noon Pakistan?
AK: FFBL wanted to diversify from the fertiliser business which is largely dependent on the availability of gas, and because of the current shortage this business is not growing the way it should be. In fact, a lot of fertiliser companies, including Engro, are diversifying. Going into food was deemed very feasible – and dairy as the one with most potential. While we were doing feasibility required to set up the company, we learnt that Noon Pakistan was up for sale. Noon Pakistan was the oldest dairy company in Pakistan, added to which it had a very strong brand in the form of Nurpur butter. Noon Pakistan had no negative baggage, it was simply the case that perhaps not enough marketing was being done to promote the company. This is why Fauji’s management decided that instead of launching new products from scratch, they would buy Noon Pakistan, turn it around and then later consider further expansion.

AA: What is the share division of Noon Pakistan now?
AK: FFBL has the major share (49.12%) and Noon Pakistan has been renamed Fauji Foods. Fauji Foundation has 12.75%, the Noon family 16.27%, and the rest (21.86%) are with the general public.

AA: What is Fauji Foods’ vision?
AK: Our vision is ‘transforming lives through nourishment’. We want to become one of the top players in the industry. We will not restrict ourselves to dairy; our aim is to make it a comprehensive foods company.


"Everything has been overhauled – product recipes, raw material, the logo, the packaging and the way our employees are trained. With aggressive marketing, better branding, better quality and the name of the Fauji Group, we plan to grab a much larger chunk of market share."


AA: How do you plan to differentiate from Nestlé and Engro, which are very strong players?
AK: Firstly, we have put together the right HR. Ninety percent of our HR has been inducted from leading Pakistani companies such as Unilever, Engro, Nestlé, Pepsi and Coke. Our team is young, energetic and extremely enthusiastic about infusing new life into the brand. Secondly, we are the only ‘true’ dairy company in Pakistan – we produce the entire dairy line, ranging from cheese and milk to yoghurt and butter – and no other company offers this in Pakistan. To maintain product quality, our machines and equipment are similar if not better than what Nestlé or Engro have. Everything has been overhauled – product recipes, raw material, the logo, the packaging and the way our employees are trained. With aggressive marketing, better branding, better quality and the name of the Fauji Group, we plan to grab a much larger chunk of market share.

AA: What is your current share in the dairy category?
AK: We are the market leaders in butter (more than 50% market share), the other players are Lurpak and Adam’s. Overall we hold six to seven percent of the dairy market, which is not much, and we aim to get to around 25 to 30% once our revamped brands start gaining traction and we relaunch other product lines.

AA: Which brands have you relaunched so far?
AK: In March this year we relaunched Dostea, our tea whitener that was previously known as Chai Mix. We chose this category because it is volume-based. We improved the recipe, changed the packaging and the marketing mix, appointed new distributors and improved our distribution. We are aiming to go from 200 cities to about 400 cities and towns. The second brand we relaunched was Nurpur in May 2016. The new look was carried out through the milk line, cream, butter and cheese. We improved the recipes, changed the packaging, the marketing mix and positioning, but kept the name Nurpur as it had reasonable equity and even a legacy of its own.

AA: The packaging of both Nurpur and Dostea is unconventional. What factors were kept in mind?
AK: We wanted to create waves – and hence followed the ‘purple cow’ marketing strategy. We opted for colour themes (charcoal grey for Nurpur Milk and bright yellow for Dostea) that would stand out on the shelves and give a new look to the category. Initially people did question the colours, but gradually they started to like the packaging. We also worked on the functionality and used extremely durable European Ecolean packaging. We have also introduced a new SKU size of 500 ml for Nurpur Milk, which no other dairy brand currently has.

AA: What was the Big Idea behind the TVCs for both brands?
AK: We wanted to stand out and didn’t want to do the typical naach gaana or ‘achi bahu impressing the saas’ routine. For Dostea, we made a series of five short TVCs narrating the story of a joint family welcoming their new daughter-in-law – but there was nothing conventional about that family. The series started with the son hesitantly introducing the girl and ended with a shaadi finale. The theme was based on ‘friendship in families’ and in line with the brand name ‘Dostea’.

The 'Dostea series' were based on ‘friendship in families’ and in line with the brand name ‘Dostea’

For Nurpur, we took a clutter-free minimalistic route and created a story using exotic food shots. The TVC was a symphony of our various dairy products interacting with each other. I think the TVC has maintained the balance of being both functional and emotional.

Nurpur took a minimilistic route and created a story using exotic food shots.

AA: Who were the creative people behind the TVCs?
AK: After we came up with the initial idea in terms of the look and feel we wanted to give to the brands, we communicated the idea to a few top creative agencies of Pakistan. Fishbowl came up with the most innovative ideas and they did the package design, the TVCs and the radio spots. The TV shots in the Nurpur TVC were executed by a creative director from the Netherlands and music was by Noori.

AA: What is your target market?
AK: For Nurpur Milk, it was mainly SEC A and B; however, after the relaunch we noted that the lower SECs are trying out the brand as well. For Dostea, we are mainly targeting SEC C. Our sales are in line with industry trends; tea whiteners have a bigger market in areas where non branded milk availability is low, for example in Khyber Pakhtunkhwa and even in some parts of Karachi.

AA: What is the next product area you plan to revamp?
AK: Flavoured milk and juices. We already have brands in this category and we will revamp and relaunch them in the first quarter of 2017. Right now we are aggressively investing in our ‘revival’ and it will take about three years to breakeven. The way things are panning out, we anticipate that within five years we will be listed among the top dairy companies of Pakistan.

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Comments (21)

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weq Mar 01, 2017 03:11pm

Rename this country to faujistan, and put all civilians in a chimney

sajjad kamran Mar 01, 2017 03:15pm

"The objective of the Foundation is to serve the interests of former service men..."

"Eighty percent of all our profits go towards the services’ medical facilities, schools, colleges and training centres across Pakistan. You could say that 80% of the profits cater to about five percent of the country’s population."

Anyone there to take care of the remaining 95% of the country's population?????????????????????????????????

Sameer Mar 01, 2017 03:34pm

One would be lucky to have names like fauji, mansha, sharif, bahria in their enterprises. Only such enterprises can do well. Rest can standby and buy what they sell.

samir Mar 01, 2017 05:06pm

Good to see the army excelling in selling food and milk products....if only they can guard the border as well.......

saqib Mar 01, 2017 05:36pm

@weq haha nice

Usman Ajmal Mar 01, 2017 06:47pm

@weq The civilians are already putting each other in the chimney, don't need faujis for it.

Zafar Mar 01, 2017 08:05pm

Nice to see a Pakistani company in a run with multinationals.

Copper Mar 01, 2017 08:45pm

Fauji everywhere..! totally agree with @WEQ

Syed Moinuddin, Canada Mar 01, 2017 09:49pm

Why such negative response to this article. But than, many Pakistanis have developed this kind of attitude no matter justified or not.

Yaa Mar 01, 2017 09:50pm

Why milk is double the price as in india.

wamaman Mar 01, 2017 10:31pm

Civilians totally scum....see what we had achieved up till now.......U knuckleheads expressing your views due to the freedoms given by our armed forces....Shame on you ignorant idiots....11

A shah Mar 01, 2017 11:31pm

No revenue or turnover quoted? Size or company? What are they trying to hide?

A shah Mar 01, 2017 11:32pm

$500,000 turnover? Is that it?

Hammad Mar 02, 2017 12:15am

@weq Stupid. Thanks.

'Fauji Mar 02, 2017 05:08am

@WEQ

What do you mean Rename it?

It is Faujistan! Did not you know that?

NLC, FWO, DHA, Okara Farms, Chak Shazad Farms, Agricultural Land, BMWs, Plots ............The Foundation has four fully owned projects; Fauji Cereals, Foundation Gas, Overseas Employment Services, and Fauji Foundation Experimental and Seed Multiplication Farm. Then there are 15 associated companies in which the Foundation has shares; these include Askari Bank, Fauji Cement, Fauji Fertilizers, Fauji Fertilizers Bin Qasim Limited (FFBL), Fauji Kabirwala Power, Fauji Oil Terminal and Distribution among others. FFBL has started to diversify in other businesses and there are four companies under it; they are Fauji Coal Power, Fauji Foods, Fauji Meats and Fauji Wind Energy. Fauji Foods is the Foundation’s most recent expansion and was established in 2015.

Faujistan Zinda Baad!

concerned Mar 02, 2017 11:37am

Foods industry always has narrow margins to begin with, many companies are venturing out of food business including Engro. Fauji group entering the food market recently does not make much business sense to me. With a high revenue base many other options where available to a company with higher returns. .

harris Mar 02, 2017 11:46am

This is an organisation with specific purpose... I think an amazing feat to witness of what can be achieved once the pakistanis can be disciplined and organised under a leadership... Tremendously proud civilian... Wake up rest of the pakistani business community instead of building real estate in Dubai invest in the future of the country that allowed you to be who you are today!!!

ahmad durrani Mar 02, 2017 09:51pm

@Yaa Most Indians don't counsume beef and the cattle herd is mainly for the dairy farming. While in Pakistan and rest of the world the cattle farming is both for beef and dairy products.

Cosmo Mar 04, 2017 08:57am

It amazes me that some Pakistanis allow Fauji to own business. State institutions cannot be for profit. Period. Else there is bound to be conflict of interest. Shame on those supporting military to own business. Worse than living under dictatorship. At least in a dictatorship one knows the reality. In Pakistani they are under divtayorship, they have just turned a blind eye to it.

danny Mar 06, 2017 11:41am

@weq well said. faujistan. you make me laugh. only thinking to fight with others. economy , people ,relation with neighbours go to hell. being puppet with china.

Akram Mar 06, 2017 04:33pm

@samir the history of army's involved in business, guarding borders effectively is not a good one. People interested in making money are not going to take any chance to risk their lives for any motherland.