The building of a long-term relationship for continued company improvement and development.
Who are BPIL
Founded over 30 years ago, Biyinzika Poultry International Ltd is a leading player in poultry production in Uganda. Originally a breeding and hatchery business marketing broiler and layer day-old chicks the company has grown over the years with investment in grain storage, feed milling, broiler production and more recently processing its own broilers to supply dressed fresh and frozen chicken to the Ugandan retail, HORECA and wholesale markets. In 2014, 8 Miles LLP a London based private equity firm, focused exclusively on making investments in African businesses, bought the majority stake of BPIL. FCE was initially approached to assist 8 Miles to carry out a technical due diligence of the business and upon successful closure of the deal Jim was appointed as a Non-Executive Director to represent 8 Miles and act as a poultry consultant to the company.
BPIL, whilst a strong player in the day-old chick market within Uganda suffered from variable performance and inconsistent management practices and controls. The company had grown organically on its own farming sites, but these had poor biosecurity and in some cases farms had become too large and multi-age. As a result, breeder performance was inconsistent and there was significant scope for improving operational performance across breeding, hatcheries, grain storage and feed milling to improve the quality of product provided to the customers and to improve financial performance of the business.
The work done by FCE during the technical due diligence highlighted the need to improve the asset base over time and to de-risk the business from disease challenge by building new farms away from the existing business footprint. Upgrading of the hatchery facilities was essential to improve chick quality as was the implementation of best practices across the business from operations, sales and marketing, financial controls, and profitability.
A programme was developed along with the Executive team to strengthen across all areas of the business. This included recruitment of key skills and the implementation of human resource, training, and development of best practice. As a result of the technical due diligence completed by FCE, the business has been rebuilt both in terms of human and physical assets and this journey continues.
FCE is proud of the relationship we have developed with BPIL and to have been able to be a part of the company’s development and growth over the past few years. Building long term relationships is a key part of what FCE does, as Jim Johnston commented
“Having been involved with this business for 6 years it has been both satisfying and exciting to work closely with the BPIL management Team, Board of Directors and with the Shareholders to build secure foundations and strong business growth”.