Case Study: Swot Hulett Sugar Company

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Huletts Sugar Company Overview

Tongaat Hulett Sugar South Africa has a proud history in South Africa that goes back to its beginnings in the 19th century. In April 1982, Tongaat Hulett was formed with the merger of the Tongaat Group and the Huletts Corporation.
In South Africa, Tongaat Hulett Sugar South Africa runs four sugar mills (Maidstone, Darnall, Amatikulu and Felixton), a central refinery situated in Durban. These four are producing in excess of 10 million tons of cane in a typical season.
Tongaat Hulett is an agricultural and agri-processing business which includes integrated components of land management and property development. The company had three business units, being Tongaat Hulett Sugar, including the animal feeds business,

• Ensuring that management continues to be empowered to address sustainability in all facets of the business and staff is committed to having skilled workforce.
• Tongaat Hulett is the largest private sector employer in Mozambique and Zimbabwe.
• The business’s key focus areas of sustainability include stakeholder value creation, safety, health, environment, developing successful indigenous farmers, broad based black economic empowerment, human resources and skills development, talent management, employment equity, socio-economic development, stakeholder engagement and corporate governance.
• Well known in the market and is a leading brand in the industry, is highly profitability.
• High growth rate, with experienced business units and existing distribution and sales networks.
Weaknesses:
• Unsafe working environments and inadequate safety awareness can lead to a high injury rate.
• In a competitive job market, staff may be lost to external opportunities.
• The company’s reputation may be adversely impacted if manufacturing processes are inappropriate.
• Future market size to the

• Improving value chain efficiencies such as energy, production and transportation can reduce operating costs and limit the potential financial impact.
• Water use saving will improve the operating efficiency and reduce company exposure to water related dynamics.
• The market changes fast, thus giving Hulett and opportunity to grow within the industry.
• Global markets are available and industry shows are positive trend.
• Positive growth rates and profitability in the next 5 years

Threats:
• Physical, regulatory and reputational risks associated with climate change present risk to Hulett operations. Changing weather patterns may affect crop yields.
• As an agri-processing business the industry relies on quality water resources to grow sugar and process finished products, drought can be a major threat
• Increase in labour cost and thus causing strikes.
• Rising cost in raw materials and machinery.
• Increasing rates and interest and cash flow becoming a challenge, as well as sugar tax changes and government regulations.
• The industry showing a growth in