Balaxi is a consumer-centric company that focuses on meeting the needs and expectations of not only our retail channel partners, but also the end-consumers of our products. Every day at Balaxi, we search and explore ways through which we can add value to the lives of people. Therefore, while we have unceasingly focused on growing our pharmaceutical portfolio and taking it to new geographies, we have established a consumer products division, with the initial pilot launch of branded toothpaste and biscuits in Angola.
We started this journey in 2019, when we decided to venture into the branded consumer products business and established our presence by introducing a wide range of biscuits, cookies, and toothpaste into 16 districts across Angola (scroll down to read more about the Angolan consumer market). In line with our ‘assset light’ production model, we began source our biscuits and cookies from an established Indian production facility that maintains and adheres to the best hygiene standards within a regulated and quality conscious industry. These products are sold under our in-house label brand ‘YAP’, which comes under the affordable price range.
The business follows a well-established strategy of supplying goods to various distributors, supermarkets, and general stores. In Angola, the business is supported by 38 warehouses and an in-house logistics fleet of delivery vehicles to reliably support the last-mile delivery of our products. This infrastructure, originally setup to serve our pharmaceutical business, now also provides us with the operating leverage on the back of our on-ground infrastructure and commercial retailing relationships. With a long-term goal to establish a valuecontributing consumer goods business, we have further scaled up our FMCG portfolio by adding new products such as wafers, toothpaste, ketchup, hand sanitizers, and disinfectants, amongst others.
Angola, officially the Republic of Angola, is a country on the west coast of Southern Africa. It is the second-largest Portuguese-speaking country in both total area and population (after Brazil) and is the seventh-largest country in Africa. The consumer goods market of Angola is amongst Africa’s most promising markets. Angola imports most of its consumer goods and utilities from countries such as Portugal, Brazil, China, and South Africa. The biscuits segment witnessed an import of US$ 37.9 million. The food trade in Angola remains dominated by informal channels, with open-air markets, small traditional stores, and street vendors accounting for 70-80% of the market. Furthermore, heavy investments in supermarkets and shopping malls saw a formal market share of food sales increase from less than 5% in the year 2000 to 20-30% in the year 2019. The Angolan consumer goods industry holds remarkable potential and is a significant market for the branded consumer products offered by Balaxi.