QUALITY DRIVEN APPROACH AT AZERSUN HOLDING

 

Caspian Energy (CE): Mr Aras, let's take a look at  the formation history and development  of Azersun Holding.

Fevzihan Aras, General Director, Azersun Group: Azersun Holding Group got its start in Azerbaijan back in 1991. Today the company enjoys a secure toehold position in non-oil sector due to its strategic focus on investment activities in the industry sector, sweeping popularity both with the government and customer base on one hand, as well as a factory network of streamlined food production based on well-coordinated work of personnel numbering around 4,000 staff members on the other.

Dating its history back to the moment when Azerbaijan was facing severe industrial crisis conditions with majority of factories closing down and nowhere to turn for trade, Azersun Holding made a strategic move by focusing on trade activities flooding the local market with food products as well as selling them abroad.

In 1995 President of Azersun Holding Abdolbari Goozal met with the national leader Heydar Aliyev to discuss his future investment activities in the country. 1996 marked a new transitioning point for the company which became a number 1 producer of a wide range of food products, including tea and oil, tinned products, tissue paper along with metal and cardboard packaging products.  Later, the portfolio of the company went on to include production of sugar, cube sugar, hazelnut and so.

Today the Group incorporates 13 companies, each of them with specific activity and business direction. 

 

 

CE: Tell us about the short-term  goals of the company?

Fevzihan Aras: In 2006 we signed off the largest investment project to date in the food industry of Azerbaijan, the construction of the Sugar Factory in the Imishli region. It has recently acquired the Quality Management Certificate ISO 9001:2000. Meanwhile, the factory has been advancing at the overseas markets where the production are being exported. By the end of the year we have added up to our subsidiaries three more enterprises, including hazelnut processing plant in Zaqatala, tinned food factory in Lankaran, and Qafqaz Cube Sugar Factory. We are currently working towards acquisition of the quality management certificates for these plants and in particular the HACCP Certificate for Qafqaz Konserv Zavodu (Qafqaz Canned Foods Ltd).

 

CE:  How about the current projects within the Group ? Any plans to boost and expand production further?

Fevzihan Aras: As I admitted earlier, 2006 has been a truly spectacular year for Azersun Holding as the Group managed to increase the number of its subsidiaries by 13 having commissioned the Imishli Sugar Factory, Zaqatala Hazelnut Factory, Lankaran Canned Foods, Qafqaz Cube Sugar Factory last year. These products have already occupied a certain niche in the domestic market. The next step will be to focus on their promotion outside the country. We are already conducting market research surveys overseas with this regard and are well informed about the features, customer demands and preferences in some of our target markets.

Another outstanding objective for Azersun Holding is to set up its own milk and salt- producing factories in the near future. We have already begun to deliver on some of these plans and made the first steps in that direction. Some of our subsidiaries, such as Qafqaz Canned Foods Ltd, Baku Oil and Food Industry, Qafqaz Cube Sugar, Qafqaz Paper Industry and Sun-Tea Azerbaijan, have added up new brands into their portfolio. Qafqaz Metal Packaging, Qafqaz Paper Industry and Vatan Grain Foods have been provided with new upgraded equipment in line with the international quality standards.

 

CE: What operations does the Holding perform within the framework of the State Program of Socio-Economic Regional Development ?

Fevzihan Aras: The first step we took in that direction was the construction of the second to none Imishli Sugar Factory estimated around $100 mln. This has bolstered the economic situation in  the neighboring regions due to an increase in employment opportunities and favorable conditions for local sugar-beet producers.

The earlier commissioned hazelnut factory in Zagatala and the canned food factory in Lankaran  serve another example of our compliance with the above mentioned state program. Thus, the production capacity of the Zaqatala hazelnut factory, considered the largest in the northwest, reaches 50,000 ton a year. The employment capacities of the factory vary around 200 people depending on the season. The factory made a considerable  progress in increasing public awareness about quality related issues. When collecting gathered hazelnut from local people the plant authorities are guided by the ‘high price for quality goods' principle.

The Lankaran Canned Foods employs up to 100 people and is well-equipped in accordance with the accepted technology standards. After successful entry into the local market we are currently seeking exposure to the overseas markets. In addition to the common production activities, both factories are exploring new opportunities of widening the range of existing production lines. 

CE: What are the principles Azersun Holding is committed to in its work?

Fevzihan Aras: Moral values, teamwork, firm approach to production constitute the set of principles that guide us here in Azersun Holding. We are not obsessed with material benefits. We are concerned with the needs of  our employees and want to satisfy them to the most. Therefore, the Group is committed to the quality of customer services, fairness and excellence in everything we do.    

The commitment to ‘quality principle' is also shaping our understanding of the promotion and development strategy. The Group tailors its production and services to international standards in order to sustain the leadership position domestically and ensure efficient level of performance overseas. All this, in turn, makes it possible to achieve a good level of export.

 

CE: What is the distinguishing feature of management principles embraced by Azersun Holding?

Fevzihan Aras: Azersun Holding Group of Companies is operating as an open-management entity. All offers submitted by enterprises and departments are discussed between the management and initiators. This approach bring about significant changes in the Group itself. We regularly receive blueprints for new projects and ideas which help us achieve better results in our work.

 

CE: When are you going to establish Strategic Management Group with Azersun Holding? Will this new division make any change in activities of the Group?  

Fevzihan Aras: New opening units and growing number of employees make us feel even greater responsibility . The certain work has already been performed to establish Strategic Management Group that will boost these activities. The group setup is scheduled for the second half-year. The group will be comprising both Azersun specialists and outsource professionals. Maintaining direct connection to the Board, the group will be evaluating and processing proposals from all our enterprises. It will be highly systematized work both in terms of provisional strategy and performance efficiency.  

 

CE: What actions are led by Holding to increase professional skills of its employees?

Fevzihan Aras: Azersun Holding is aware of the importance of well-coordinated, trained human resources. We are creating all necessary conditions for work at all enterprises within the Group. We understand that a life of employee is the primary factor influencing his/her performance and the quality of their work. Training of employees in accordance with rapidly changing operating environment is the most important objective of company  management. For its employees the Group arranges training programs by inviting foreign specialists across various fields. Furthermore, our employees take part in various workshops performed by outsource organizations.

 

CE: How would you define  the role of Azersun Holding  in the country's  economy?

Fevzihan Aras: Azersun Holding has been operating in Azerbaijan for 16 years. Over this period of time we have launched a dozen of enterprises opening thousands of new workplaces and increasing  the welfare of Azerbaijani people. We have laid the basis for food production in Azerbaijan. Apart from production process, Azersun Holding has been among the pioneers exporting the local food brands overseas. All of the products coming off the production lines of our factories stretching across the country bear the mark reading "Made in Azerbaijan".     

We do our best to deserve this name and raise it even higher. We are constantly seeking new prospects to help our company develop further in future years and tailor our strategy according to the needs of customers