With a career spanning over 30 years in international markets, Ramy Merdan has navigated the complexities of supply chains, efficiency strategies, and business growth. Since joining Agthia in 2017, he has focused on strengthening operations and streamlining value chains across the Group’s diverse portfolio.
Now, as Chief Operating Officer, he is at the forefront of Agthia’s expansion, balancing cost management, sustainability, and market responsiveness. In this interview, he discusses the challenges and opportunities shaping the food and beverage industry, Agthia’s approach to operational excellence, and the company’s long-term growth strategy.
Can you share key learnings from your previous roles and how you’ve implemented them at Agthia?
The key learnings we’ve implemented at Agthia revolve around driving efficiency and continually raising the bar in productivity, efficiency, and lean operations. Maintaining a competitive edge in cost management is crucial, as we oversee the total cost of goods sold and overall operational costs. Balancing sustainability, quality, and affordability is essential, and we have clear programmes in place to enhance efficiency, leading to cost improvements, competitive supplier partnerships, and optimised freight costs. Additionally, we focus on automation and digitalisation to drive further efficiencies.
In the UAE, operating costs are significant, so automation plays a crucial role in cost reduction. Since I joined, we have implemented a productivity programme that has achieved year-on-year cost savings, improved yield, and enhanced efficiency. However, I prefer not to use the term ‘cutting costs’ because it often implies compromising quality. Instead, we focus on driving efficiency and productivity, which results in a lower cost per ton. This, in turn, allows us to either offer more competitive pricing in the market or provide our sales team with better margins to support innovation and market execution.
How would you describe Agthia’s role in the foodservice sector?
Over the past three to four years, we have experienced significant growth, doubling our business and becoming one of the fastest-growing food companies in the region. Maintaining this momentum is key, and we drive our supply chain strategy through three core pillars: agility, resilience, and capability. By capability, I don’t just mean assets, AI, or digitalisation, but also investing in our people. We have structured programmes to develop internal talent, and when additional expertise is required, we source it externally.
Our AI and smart manufacturing initiatives form part of this capability enhancement. Agility is crucial, given our rapid growth—being close to our customers ensures we can serve them better. We operate across seven countries, with factories in Egypt, Saudi Arabia, Kuwait, Turkey, Oman, and the UAE. Expanding our supply chain footprint is vital to supporting our growth objectives.
Can you tell us more about Agthia’s collaborations in the foodservice sector?
In the foodservice sector, we lead with key products such as Al Ain Water, which is widely available across UAE restaurants, as well as Grand Mills flour, which is supplied to both restaurants and QSRs. We have a strong presence in both segments. Agility is essential in foodservice, ensuring timely delivery and maintaining quality at the right price. This sector is expanding rapidly, and we are committed to meeting its evolving demands.
Could you elaborate on Agthia’s sustainability initiatives?
Sustainability is a core focus, aligned with the UAE’s strategic vision for 2030. We have multiple initiatives aimed at reducing electricity consumption and CO2 emissions. Two of our major factories in the UAE are transitioning to solar energy, with 35% of their power to be sourced from solar panels by 2025. We are also evaluating similar transitions for other facilities. Additionally, we have clear KPIs across all our factories to manage water consumption and further reduce our environmental footprint.
What challenges do you face in the foodservice sector?
I wouldn’t describe it as a challenge, but rather a need for agility. With the rapid growth of foodservice, ensuring the right stock levels is critical. Staying ahead of demand and closely managing supply chain operations is key to supporting this fast-expanding sector. Post-COVID, we’ve witnessed a surge in foodservice demand, with new hotels and restaurants continually opening. Keeping pace with this growth requires meticulous planning and execution.
What are Agthia’s future goals?
Over the past five years, Agthia has experienced rapid growth, acquiring six companies and significantly expanding our base. This has resulted in nearly doubling our business. Now, we are finalising our next five-year strategy, which will be published in 2025 and extend through to 2030.
Our goal is to continue this fast-paced expansion and transition from a regional to a global player. From a manufacturing, value chain, and supply chain perspective, this means becoming more agile and customer-centric. If expanding into new regions with additional factories is required to serve our customers better, we will do it. Our 2025 plan builds on our past successes, and the forthcoming five-year strategy focuses on even greater achievements.
