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Molina Dl Centro

Molina Dl Centro

Q &A with Jaime Aguirre Guarderas, MD Molina Dl Centro, Peru talks to TSBR on the journey to becoming the best milling Company in the región

Could you begin by introducing Molinera del Centro S.A, perhaps giving some insight into its history and highlighting key events over the years?

Compañía Molinera del Centro – Molicentro – initiated its operations twenty years ago. It was created as a milling company to provide cookie flour to its related company and to the bread industry. In 2007, seven years ago, it launched to the market two pasta brands.

Last year, was completed in a record timeframe, its newest expansion. A new milling building to host the latest Golfetto Sangati milling technology, which increased capacity by 200%. At the same time, two new pasta production lines, were installed, again multiplying by three the current capacity. These efforts were done in parallel with the construction of a larger warehouse and larger yard of manoeuvres.

Could also expand on your operations including facility location, capacity, staff strength, range of product and markets (local & international)?

Our facility location has more than 20,000 square meters and has the larger wheat silos capacity in the Peruvian milling industry. Four pasta production lines and two wheat mills.

It is a lean organization with around 100 workers in total.

How would you describe the sector in Peru as part of the wider manufacturing sector?

The milling sector is mature and very competitive industry. Last year it decreased around 2% and current growth is estimated at less than 2%. Bread flour is growing at 3%, but pasta demand has decreased by 0.5%.

Wheat is not produced in Perú, so more than 95% of its consumption comes from abroad markets, mainly USA, Canada, Argentina and recently from Russia.

Recent years has seen the industry push towards integration has a means of controlling quality and costs, how integrated is your operation at Molinera del Centro S.A and to what size of your value chain?

All production processes are fully automated and integrated. Since the reception of wheat to its packaging process. Recently we have replaced part of our concept for storing and distribution, using another way of doing it.

Molinera del Centro S.A. completed construction on a 500-tonne-per-24-hour flour mill recently, can you expand on this expansion project and the opportunities it presents the company

It has been a very difficult project, since it was deployed together with the implementation of two new pasta lines, a new yard of manoeuvres and a new storage building, all of these at the same time of keeping total production and sales operations of current lines of business. Nevertheless, thanks to our providers and employees it has been done in a record time diminishing any negative impact.

Since we were at full capacity it has provide us the opportunity to increase our production and sales.

Could you highlight any other strategic partnerships both locally and internationally that has helped Molinera del Centro S.A achieve its goals?

At one moment on time, we had 400 external workers, from different strategic partners who helped us to implement our expansion project. All of them played an important role in it. Coordination among different part of it was very critical and it was executed with extremely precision.

I understand Molinera del Centro S.A prides itself on its sustainability and social initiatives. Could you provide some insight into your approach to sustainability (community, staff, Providers, Shareholders)

We place human beings at the centre of al what we do. In each of our activities it is taken into consideration whether they are customers, providers, collaborators, stockholders and community. We try to keep our social responsibility initiatives related with what we perform, which is healthy food. Even though we have collaborated to the local government providing IT equipment’s for their public schools, educating our collaborators and families with healthy daily nutrition diet.

Subsequently can you highlight CSR initiatives that you have engaged in either directly or indirectly that affects the community positively

With our community and environment we are always being very careful. It is part of our daily behaviour. It is not something isolated as a particular project, it is part of our DNA.

Are there other recent, current and planned projects that Molinera del Centro S.A in the pipe line leading to the next 5 years of its operations

Of course. There is no end in improving our operational efficiency or market penetration. This month we have just lunched our newest way of storing and distributing flour to our B2B customers. Next year we will transform our energy generation source to become friendlier with the environment, becoming the first milling company to implement such kind of project in the country.

What does the immediate future hold for Molinera del Centro S.A? What would you like to see the business achieve in 2014 and beyond?

This year we began our FSSC22000 certification process and it will be completed at year end. Our growth, despite the industry is almost flat, will be over 30% YTY, as a consequence of the implementation of our Strategic Planning designed in 2012 and followed with no deviations.

Is there anything else you would like to add at this time?
We are not obsessed to become the largest milling company of the country, but only the best.

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