Agro Chemical and Food Company Limited (ACFC)

Departments

Production Department

The new ENA plant was designed and installed by Praj Industries Limited, India in collaboration with M/s H. Young & Co. (EA) Limited with effect from September, 2008 and commissioned in December 2009.

The objective is to produce high quality Extra Neutral Alcohol (ENA) to satisfy the market demand for manufacture of beverage spirit and pharmaceutical formulations. The ENA produced by this plant meets the national and international quality standards.

WAY FORWARD

The plant is operating well since it was commissioned and ACFC expects to attract international demand for its ENA product due to its high quality.

We are also intending to improve on the biogas generation to supplement the plant’s energy needs and improve on energy usage in the plant so that we can have cost effective production which may lead to enhanced affordability of the ENA to most of our customers.

Our aim is to satisfy our customer’s demands and requirements by ensuring that we meet their need through continual improvements of quality of our products and service to our customers.

GREEN ENERGY

The increasing demand for energy globally has triggered the necessity to explore production of energy from renewable sources. This category of energy also called bio-fuels is produced from materials that are replenishable or reproducable organic matter.

ACFC is keen on reviving fuel ethanol production as a means to lessening our country’s burden on using our scarce foreign exchange to import petroleum.

Currently we are generating biogas from our factory effluent and the biogas is used to fire our boilers to generate steam for the factory thermal energy requirements. This saves on the fuel oil needed to fire the boilers at the same time serves to treat the effluent to reduce organic pollution.

Quality Assurance Department

Agro-Chemical and Food Company Limited is an ISO 9001:2008 and ISO 22000:2005 certified firm.

The strategic decision to establish the Quality and Food Safety Management Systems was necessitated by the need to benchmark and continually improve the management processes thereby demonstrating the Company’s commitment to consistent production and supply of safe, quality products.

In the rapidly growing global economy, re-engineering of management processes to make them more efficient and cost effective is an important concept. Intelligent business entities are increasingly recognizing the fact that, quality cannot be pledged into a product or service; it has to be built into the product/service and that, it is a result of continual improvement of the organizational processes, which then works its way to the customers.

The establishment and effective implementation of the Quality Management System (QMS) and the Food Safety Management System (FSMS) based on the requirements of the internationally recognized ISO standards, is therefore imperative for any dynamic organization.

The ISO certification provides organizations with the opportunity to review, re-organize, control and re-invent themselves in order to sharpen their competitive edge. It also provides assurance to the consumers and other shareholders, that an organization is determined to make quality, part and parcel of its culture.

The certification of ACFC management system to the ISO standards has greatly assisted the Company to proactively organize and manage its technical, administrative and human processes, including the outsourced processes that affect quality of product & services to ensure they are effective. All these are done in order to achieve the company mission and corporate objectives.

The certification to ISO 9001 and ISO 22000 standards and successful implementation of the QMS & FSMS, has significantly assisted the various business units within ACFC to build a balanced management infrastructure, whose ultimate benefits are enhanced customer satisfaction, reduced operating costs and increased transfer of knowledge within the organization.

The implementation of QMS & FSMS has benchmarked ACFC business practices with the international competition thus establishing the organization as a reliable business partner.

Purchasing & Supplies Department

The Procurement Department is charged with the responsibility of procuring goods, works and services for all departments of the organization by receiving purchasing needs/requirements from the various departments, scrutinizing the scope/specifications, consolidating, planning and carrying out the procurement accordingly while observing both statutory and regulatory requirements among other requirements.

Purchasing and supplies Department takes pride to be associated with the successful completion and commissioning of the Extra Neutral Alcohol (ENA) plant. The department got involved in the procurement of the plant right from identification of the consultancy firms which carried out feasibility studies, environmental impact assessment, invitation of tenders (international), etc. The ENA plant is the biggest and most expensive single project whose procurement has been accomplished by the department despite unforeseen challenges during the project period.

Engineering Department

The Engineering Department is one of the main concerns of the factory in the Works Division responsible for all maintenance operations at ACFC. It aims at providing optimum availability of plant, machinery and equipment and the allied process measuring, controlling and monitoring systems for the manufacture of products.

ACFC boasts of an outlay of specialized equipment and process control systems well cut out to match the needs of the latest technology in place to run its varied but specific manufacturing operations.

The department draws its life and strength from an array of well trained, experienced specialized and dedicated technical staff endowed with exposures and expertise to tap from, within the engineering discipline.

Our immediate challenge is to make sure that the installed E.N.A. plant running on Supervisory Control and Data Acquisition System (SCADA) and allied software systems is maintained at optimum levels to enhance and sustain production quality and volumes at all time high in order to boost sales and revenue.

To match our technology application with reasonable maintenance practice, we are in the process of centralizing and computerizing our preventive and predictive maintenance operations to facilitate and enhance the effectiveness and efficiency of our maintenance programs so that the short and long term plans and activities can be easily retrievable and documented.

Marketing Department

Marketing is a function that has come of age at ACFC and can be closely linked to the excellent performance of the Company over the years. We have deep understanding of our customers’ needs and the specific requirements of every sector or market segments that we operate in. We endeavor to understand both present and future needs of each of the customers in these segments. We make it our business to seek the opinions of our customers and other stakeholders to understand how various issues would impact on the business particularly our supply chain and our customers and suppliers business, essentially all these would impact on the manner in which ACFC position its goods and services.

We offer value in line with all our activities in the Company’s business plan. In our endeavor to fulfill the market demand for portable spirit of world class quality, ACFC made a decision to put up a modern technology distillery for the production of Extra Neutral Alcohol which is being launched today.
Extra Neutral Alcohol (ENA) is a superior grade Spirit (Ethanol), conforming to International Standards, for use by beverage industry especially for the up-market brands and particularly for manufacture of international brands under license.

In addition to manufacturing the high quality Extra Neutral Alcohol through environmentally friendly procedures, ACFC is customer focused with aim and objectives directed towards providing unique and unrivalled customer service. Our customer’s consignments are handled by well trained personnel who are there to make sure that customer’s consignment is handled safely and efficiently. We recognize that the customer always comes first.

ACFC is aware of the dynamism of businesses worldwide as we acquire new business models that are proactive to customers needs, easy and faster access to products and services and ever changing customers demand for premium products. It must therefore re-engineer all its processes for this future.

ACFC believes that the long term financial performance will depend on having the right social and environmental conditions for growth in its markets. Through product diversification into such areas like provision of cleaner and easy to use energy alternatives that will contribute to the basic family unit and environmentally friendly fuels and other products. This is the direction for the future.

The Marketing Department will continue to apply all the basic tools of marketing to increase the demand by identifying various wants nurturing them into needs, fulfilling the needs and growing the revenue base of the Company.

We appeal to our customers to try this excellent product. They will notice the difference.

Environment, Safety & Health Department

Environment, Occupational Safety and Health issues have become globally important that a company of ACFC status cannot afford to ignore. This has been occasioned by the fact that people are becoming increasingly aware of the environmental impacts of their daily operations and calls for sustainable development that would ensure economic utilization of the available raw materials and pollution control without harming the future generations.

The organization is fully aware of this and recognizes the fact that Environmental management is a critical issue for its sustainable development as well as that of the surrounding community. The company is therefore committed to conducting its activities using the most efficient and environmentally friendly technologies to ensure compliance to environmental laws and regulations in controlling, minimizing and mitigating negative environmental impacts emanating from its processes using the principles of 4R (reduction, re-use, recovery and recycling of wastes).

In line with the above, the company installed and commissioned in 1997 an effluent treatment plant at a cost of over Ksh. 140 Million. The plant treats waste-water through the process of bio-methanation thereby producing bio-gas which is utilized in the boiler to produce steam. This saves the company substantial amount of money which would be used in fuel oil.

The organization is also aware of the possible pollution impacts that its operations could have on the environment and has therefore set up a fully fledged and well equipped Environment, Safety and Health department whose daily operations are guided by the Company’s Environmental policy, Health and Safety policy and the National environment and Occupational Safety and Health regulations.

The company also has a responsibility to ensure occupational safety and health of its workers through ensuring safe working environment and absence of risks to health that may be caused by use, handling, storage and transportation of its raw materials, products and wastes.

Other than recovery of biogas, the generated sludge (humus) has rich ingredients that can be used as soil supplements. The potential of this bio-fertiliser can be enhanced through bio-composting for value addition for use and benefits in farming activities, especially in horticultural practises.

Finance Department

Our vision as a department is to uphold transparency, integrity and accountability in the use of the Company’s resources.

We ensure the Company’s profits is maximized through cost control, prudent investment of surplus funds and sound financial management.

The official inauguration of the ENA plant is a milestone to our operations. This will lead to enhanced revenues and profitability, improved liquidity position, hence prompt payments to suppliers and lower cost of production due to use of modern state-of-art plant.

Information and Communication Technology (ICT) for Sustainable Business:

The role of ICT has been redefined as a fundamental enabler in creating and maintaining a flexible business network of inter-organizational arrangements.

The business enterprises have to undertake major transformations in order to meet the challenges in the market. Traditionally, in-house developed customized management information systems (MIS) have been used to enhance business networking and now enterprise resource planning (ERP) systems, supply chain management systems, customer relationship management systems (CRM) and e-Business portals are being used to establish business networking systems.

ACFC is one of the few State corporations that have deployed an ERP system to manage the whole spectrum of information management. This is an integrated transaction oriented information systems with the seamless flow of data and work flow among the various business functions in the enterprise resulting into improved administrative and operational efficiency in the organization.

ACFC has in place a robust local area network(LAN) with over 100 client computers interlinked both within the factory and administration units. Besides this, all the clients have internet/email access via a broadband internet link for ease of information access and communication.

The management recognizes that the IT skills among the workforce must be continuously improved in order to increase the impact of technology in productivity improvement. Much of our plant machinery is controlled and monitored through a modern digital control system. This system interfaces key production machines and transfer the trend data contained within process lines to the core software to allow management analyze the data and control better production processes.

ACFC shall continue to embrace ICT for the benefit of all its stakeholders particularly in the areas of decision making, cost control, communication and productivity improvement.

Human Resources Department

Agro-Chemical and Food Company Ltd (ACFC) was established in 1978 to produce alcohol from sugar cane molasses. The company was incorporated in 1978 under the Companies Act Cap 486.It is a unique joint venture between the private sector and the Government of Kenya (GoK).

ACFC is a leading manufacturer and supplier of various grades of spirits, yeast and Co2. It is based in Muhoroni, Kenya which is 60 km from Kisumu City and 40 km from Kericho town.

Currently the Company has a work force of 263 employees divided in categories of Management and unoni.There are 103 Management staff and 160 belong to the Union.

The percentage of female employees is 11.5 while the one of male employees is 88.5.

HR is a key partner in the implementation of ACFC`s corporate strategic plan. Departmental mission is to align all HR activities with the general strategic direction of the Company.

Our objective is to recruit, develop and retain competent staff of high integrity. We seek to empower our staff to develop world class processes that will drive business growth.

This strategy is maintained by attracting and retaining high caliber staff, maintaining competitive remuneration package, performance Management, cordial employee relations, championing of good ethics, improving staff welfare and rendering administrative support services.

The Company runs extensive in house and external training programmes to build up employees capacities to better improve their skills. We plan and maximize on training and development of our workforce through appropriate Training Needs Assessment and Training Impact Assessment to determine the return on investment on our training activities.

The Company also operates a comprehensive medical scheme for its employees and their dependents. It also runs a well-stocked dispensary for minor ailments.

In addition to this, the Company also owns a fully-fledged Primary School called Muhoroni Furaha for its employees and members of the community. The School does very well in National exams and co-curricular activities.

At ACFC we also run a comprehensive wellness system with a state of the art gymnasium. There is also a well-equipped members club, where employees relax after a hard day’s work.

Our work procedures are world class since we are ISO 9001-2001 and ISO 22000 Certified.

Internal Audit Department

Internal Audit Department falls under General Administration and is headed by the Chief Internal Auditor. The department has the responsibility of ensuring that :-

  • Operations of the Organization are run in an effective and efficient manner.
  • Operational informations have integrity and are reliable.
  • The Organization’s assets are properly safeguarded.
  • The Organization comply with laws, rules and regulations.

The Department accomplishes its mission through the conduct of operational, financial and performance audits, selected as a result of a comprehensive risk analysis and assessment process.

The operations of the department are guided by the Audit Charter and executed via a risk based audit plan which covers all functional areas of the organization.

The Department reports functionally to the Board Audit Committee and administratively to the Resident Director and Chief Executive. As part of the strategy to meet its long term objectives, the Department is more focused on a risk based audit process, IT audit and other pro- active review approaches.