As part of growth strategy, but also as a way to cope with both growing demand and supply of raw materials from sunflower farmers the company implemented additional major factory expansion plans in 2015 by investing in a new warehouse and a canteen – all covering 800sqm of built area. The company has also purchased a second bigger oil expeller with a processing capacity of 50 -60MT – /Day (a technology from an Indian Manufacturer, Goyum) and solvent extraction plant with a capacity to process 100MT/Day of seed cakes to crude sunflower oil. The solvent extraction plan as been installed and will commence official operations by beginning of September 2020.
Since 2013, the company has been collaborating with local government (Kondoa District Council) through the use of government extension officers in the field to identify and train farmers on proper agronomic activities, and post-harvest treatment of sunflower seeds. Through this collaboration, the company has organized farmers into groups where it works with two Agricultural and Marketing Cooperative Societies (AMCOS) with over 400 sunflower farmers. The company is targeting to expand into more LGAs and work with 10 more AMCOs in the next 5 years. These AMCOS are expected to have at least 10000 sunflower farmers, who will be able to supply enough raw materials to the factory after the expansion plans are completed in the next 5 years.
Magin Ltd intends to reach new customers by having well designed marketing strategies, which will include product differentiation for the different segments of the market based on income levels. Crude sunflower oil will mainly be sold to low-income earners in Kondoa and neighbouring districts mostly via existing sales channels. For double-refined oil, a wholesale approach will be employed where the Company will mainly target middle to high income consumers in urban areas outside of Kondoa who can afford larger oil quantities at each purchase at higher prices.