Hygiene Innovation and Market Leadership: Dany Skaf Presents Delta Paper Mill and Alpha Industries Ghana

Interview with Dany Skaf, Operations Manager at Delta Paper Mill Ltd and Alpha Industries Ltd

Could you provide insights into the current trends and offer your assessment of the tissues and hygiene products sector in Ghana?

The tissues and hygiene products market has experienced significant growth, especially post-COVID. Tissue consumption in Ghana is among the highest in West Africa but remains relatively low globally. The heightened awareness of hygiene due to COVID has resulted in increased tissue usage among Ghanaians, contributing to the sector’s growth. Despite facing challenges in the aftermath of the pandemic, particularly in 2020, the business has persisted. The difficulty is attributed to the government’s loans, impacting liquidity in Ghana. Nevertheless, the positive trend of increased tissue usage among Ghanaians is promising for our industry.

What sets you apart in terms of competitive advantages?

Our competitors consist of both local producers and importers. With the evolving Ghanaian industry, we have witnessed an influx of new tissue producers. Simultaneously, there is a significant reliance on imported products. As a Ghanaian company, we benefit from reduced taxes, paying less on raw materials when imported as opposed to finished goods. This provides us with a cost advantage.

Furthermore, the overall cost of production in Ghana is lower than that of our neighbors and other countries. Factors such as affordable electricity and superior workmanship contribute to this favorable scenario. Producing in Ghana comes with numerous benefits, considering the consistently improving industrial environment. A few years ago, there were limitations on electricity access, but presently, we rarely face shortages in our base in Tema.

While some industrial sectors may grapple with electricity shortages, our location in Tema has been fortunate to experience minimal disruptions. For instance, in my residential area on Spintex in Accra, there was a power outage yesterday evening, highlighting regional variations in electricity supply. Nonetheless, our base in Tema has encountered very few electricity shortages, contributing to a more stable operational environment.

What sets your products apart?

Firstly, due to my French background, I frequently travel, primarily to France. During these trips, we utilize tissues outside of Ghana, bringing samples back with us. Initially, replicating the same quality in Ghana was challenging as maintaining high quality increases costs. However, there is a growing demand for quality among Ghanaians. Today, they specifically seek quality, and that is precisely what we deliver. Flora exclusively produces high-quality products, and this focus on quality has led to a high demand for Flora in Ghana.

Could you provide information about your market share?

We hold a substantial market share, reaching close to 90% in some product categories and somewhat less in others, averaging around 40%. Over the past three years, particularly in 2022 and 2023, despite challenging market conditions, we have successfully gained a significant share. Our proactive marketing efforts have played a crucial role in maintaining our leadership position in the tissue market. To clarify, we are the leading brand in most tissue product categories in Ghana.

Kindly provide additional information about your other products?

At Delta Paper Mill, our hygiene-focused company, we extend our product range to include washing powder under the brand Tango Wash. Additionally, through our subsidiary, Alpha Industries, we manufacture Top Choco, a chocolate-based product akin to Nutella. Notably, we take pride in producing chocolate in Ghana, utilizing locally sourced cocoa. Our business strategy is rooted in adding value to exceptional local products, such as cocoa, recognized as among the best globally.

Could you provide more insights into your international presence as a group?

Starting from Ghana, we actively engage in exports to neighboring countries. The advantageous aspect is that, owing to the currency dynamics, there are both challenges and benefits. While it can have negative implications, it turns positive when it comes to exporting, resulting in a more cost-effective production. This makes Ghana an attractive hub for exports, especially with the convenient access to neighboring countries.

Expanding our footprint, our group also operates in Ivory Coast, where we boast larger production facilities than in Ghana. Here, we manufacture tissues and various other products, exporting them to all French-speaking countries. The strategic location of Ivory Coast facilitates seamless exports to these nations.

How is your distribution structured, and what are your primary sales channels?

Across our two companies in Ghana, we have built a workforce of approximately 750 individuals, with a significant portion – about 300 people – dedicated to marketing and sales, making it our largest employment sector. Emphasizing the importance of these functions, we cover a wide range of sales channels in the market. Our distribution strategy involves categorizing these channels into distinct groups.

On one side, we cater to local markets, and on the other side, we engage with hotels, restaurants, supermarkets, malls, and more. We collaborate with each entity in these categories that expresses an interest in working with us. Our marketing representatives are present in supermarkets throughout their operating hours, ensuring a continuous presence.

In terms of local markets, we further subdivide them into regions, such as Accra and its surrounding sub-regions. For each city and region, we deploy dedicated teams targeting specific markets and streets. We have specialized teams assigned to distributors, wholesalers, and retailers, tailoring our approach to the unique needs of each customer type.

Our operational approach involves a substantial fleet to meet demand effectively. We ensure that our teams are present daily, reaching every street, shop, kiosk, container shop, and even individual vendors selling our products in markets and streets. It is a detailed and personalized approach tailored to each customer type, ensuring a widespread and effective distribution network.

Could you highlight some recent achievements or success stories that you take pride in?

One notable success story that immediately comes to mind, particularly associated with Flora, is the transformation of the Flora Pocket Tissue into what we now call the Flora Disposable Handkerchief.

When I first arrived in Ghana around 2003 or 2004, Ghanaians predominantly used cloth handkerchiefs, similar to what Europeans used around 20 years prior. In 2010, when we decided to introduce tissues, we brought in the first Pocket Tissue, or disposable handkerchief, equipment to Ghana.

This initiative was accompanied by extensive promotional efforts, aiming to convey the benefits of its cleanliness and enhanced hygiene compared to traditional cloth handkerchiefs. Overcoming the challenge of convincing people, given the cultural preference for cloth handkerchiefs, was no easy feat. However, through dedicated efforts, we successfully introduced the Flora Disposable Handkerchief into virtually every household and every individual’s routine. Today, it has become a common practice for most Ghanaians to use the Pocket Tissue, often referred to as Flora. This widespread adoption is a testament to the hard work and dedication of our marketing team who played a crucial role in achieving this milestone.

You have been in the country for quite some time now. Could you shed light on your CSR activities and the contributions you make to the country? What specific initiatives are you involved in?

Before delving into CSR, I would like to highlight our unique approach to employment. Recognizing the challenges faced by women in Ghana securing jobs, we make a deliberate effort to employ about 80% women. This is because many of our roles do not require significant physical strength, allowing us to provide equal salaries to both men and women. Additionally, we make it a point to hire individuals with disabilities, placing them in roles where they can perform tasks as efficiently as anyone else. Moreover, we actively engage with students, offering training without charge and providing them with salaries during the process. Our hope is to nurture skilled individuals who can contribute to our business development.

In terms of CSR, as a Ghanaian company with French roots, we feel a deep connection to the country and its people. Recognizing the need for assistance, we have undertaken several initiatives. We regularly donate substantial amounts of products to hospitals and schools, reaching around 130 schools and universities in the last two years alone. A dedicated team ensures a consistent effort, visiting schools and hospitals daily for donations.

Concerned about the environment, we not only adhere to international environmental norms but also educate people on tree care and planting through our team, Flora Greens. We equip every school in Ghana with materials and water containers, emphasizing the importance of caring for plants, which provide us with oxygen. During occasions like the recent flood in the Volta Region, we donated approximately 250,000 Ghana Cedis worth of tissues and chocolates to refugees in camps. Additionally, we actively support cancer awareness, particularly breast cancer, conducting various activities and funding breast cancer scanners.

What innovative contributions are you, along with your brothers, bringing to the company? Are there specific areas or advancements that characterize the influence of your generation?

Our family has been rooted in Africa for five decades, starting with my father, who has a wealth of experience. My brothers and I, coming in with a fresh French mentality, perhaps a more European and youthful perspective, each bring something unique to the table. For instance, my elder brother has significantly enhanced the organizational aspects of the company. As an engineer, I have contributed by introducing ideas in production to both develop and reduce production costs, especially in new technology investments. Meanwhile, my younger brother, being more commercially oriented, has brought valuable ideas for marketing and sales. He spearheaded the formation of a new team focused on emerging technologies and social media.

Our collective approach is driven by a love for Africa, a deep connection to Ghana, and a clear understanding of our goals. While we draw on our father’s experiences, we approach things in our own way – a harmonious blend of experience, age, and the dynamic energy of the younger generation. It is an explosive mix that has proven to work exceptionally well for us.

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