We have a chat with Sofwan Ahmed, the current MD of MHA, where we touch on the secret of the company’s lasting success as well as the ways in which they are adapting to stay ahead of the game in the rapidly evolving digital landscape of business.
MHA Private Limited is an iconic veteran company in the Maldivian F&B scene. With
over 50 years of experience leading the market, the company is a top importer and distributor of internationally renowned products.
Hotel Insider: You come from a highly tech-driven, entrepreneurial background. How do you translate that into your management of such an institutional F&B company as MHA?
Sofwan: I joined MHA during the peak of the COVID-19 pandemic, at a time when businesses had to operate behind closed doors. Established companies such as MHA had to rapidly adopt technology and conduct operations differently from how it has been doing for the past five decades. It was an unprecedented and challenging period. My experience in tech greatly helped in managing the business during those turbulent times and transformed it to what it is today – a highly scaled, fast-moving consumer goods (FCMG) business that is heavily data-driven.
Knowledge about technology, digital business, and transformation has become more important for leaders now than ever before. With emerging technologies such as AI entering every facet of our work and lives, every company in any industry today will be forced to become a tech company. I believe that those who adopt tech will thrive and those who don’t, will not survive. Likewise, I have been urging our company to not be threatened by technology, but to embrace it.
Looking back at my entrepreneurial background, it taught me a lot about building leaders. Running a business such as MHA, which is currently seeing a 30% year-on-year growth, continuously demands new leaders to take on the leadership roles generated as the business scales. My previous experience has greatly helped in shaping the way I develop future leaders in the organisation who embrace change,
innovation, growth, and taking calculated risks.
Hotel Insider: How would you describe the transition between such jarring industries? Was it difficult?
Sofwan: Between the two industries – information technology and F&B – technology was certainly the more demanding industry for many reasons. First off, technology is something that changes very frequently, so we always have to be up to date every day. Also, buying decisions involving technology are high-involvement purchases where there are three phases of sales: the pre-sale, the sale, and the after-sales. It was a more complex industry where any purchasing decision involved convincing multiple parties such as consultants, contractors, authorities, architects, and finally the actual buyer. So, coming from such a complex industry, F&B has certainly been an easier move for me.
Hotel Insider: MHA Private Limited has been leading in the industry for over 50 years. What’s the secret to your lasting success in the industry all these years?
Sofwan: The reason for MHA’s success is our integrity, which has allowed us to gain the trust of our customers and other stakeholders for generations. There are business practices and ethics that we standby and have followed since the company was founded by the late Mr. Hussain Abdulla.
Hotel Insider: MHA was also one of the first companies to be granted import licenses in the Maldives. How has importing goods and especially distributing them to different areas in the Maldives changed in the last few years?
Sofwan: The economy has grown considerably since the 1970s with most growth seen in the last two decades. The growing economy paved way for new businesses which has led to healthier competition. We’ve seen more specialisation in the economy and even the food industry. Likewise, MHA has also taken a more specialised approach to doing business rather than the general trading strategy we have implemented in the past. We now focus more on retail for the general trading line and have specialised in providing ice cream brands for hospitality and businesses.
In the last few years, the biggest change has been digitisation. We’ve also seen a growing interest among businesses in going for frozen products such as frozen dairy and bakery items which can deliver better quality at lower prices.
Hotel Insider: You have an array of renowned international brands under your portfolio, what do you focus on when bringing in new products?
Sofwan: We always strive to identify new needs in the market and keep an eye out for innovations in the food industry. For example, in the consumer business, we’ve seen a growing demand for healthy, but convenient, easy-to-make, food. For businesses, we understand that the Maldivian landscape is becoming even more competitive and that businesses need the best possible quality at the lowest possible cost. There are food technologies available today that can help achieve this. One such product that we import is frozen dairy goods, which is produced in Europe and shipped in a frozen state in larger quantities, enabling us to deliver high quality at low prices.
As such, over the past two years, we’ve collaborated with select hotel operators to offer premium ice cream brands such as Häagen-Dazs, KitKat, Nestlé, and London Dairy in customer-facing avenues like bars, public spaces, and even in minibars inside rooms. These have been very well-received and everyone that we have collaborated with so far has either continued or expanded their offerings. We are currently open for collaborations and can guarantee zero capital costs for those who partner with us.
Another important factor that we consider is compliance. Going with a renowned brand gives us the assurance that the regulatory standards as well as other industrial practices are followed. So, one key focus when bringing in new products is to ensure that it’s a product that’s established globally and adheres to the industry’s best standards.
Hotel Insider: As a wholesale supplier for the resort industry, how have you had to adapt to the changing guest preferences and culinary practices in the market?
Sofwan: We have had to focus more on the evolving health and wellness trend that’s taking the market by storm now. We’ve seen a rise in demand for health-conscious products, including organic, gluten-free, vegan, low-calorie products and we foresee that the need for meat substitute foods will also grow in the future.
Some of these industry requirements have prompted us to invest in infrastructural upgrades; the safety and quality standards of products are now higher and hence more rigorous control measures are needed.
Hotel Insider: Based on your expertise, how important is it that suppliers adapt to the latest digital innovations and trends to stay ahead of the game?
Sofwan: A business’s ability to adopt technology will decide whether they will stay in the game, and how well it’s been integrated into the business processes will define how far ahead they can reach in the game.
Technology is intertwined into every aspect of our lives. It is no longer a competitive tool but a necessity. We now have the means to collect and analyse huge amounts of data, which is the case for the F&B industry, and particularly the case for the hospitality industry as well. This data, when used responsibly and effectively, can lead to huge cost savings and operational efficiencies.
The need for technology will be further amplified by the entrance of Gen Z into our workforce and consumer base; this generation was born into the age of automation and AI, and they will demand that their workplace and hotel rooms to be as smart as their own devices. This is especially true for South Asia where a greater proportion of our population falls into this category.
Hotel Insider: Thank you so much for your time, Sofwan. It was our pleasure to chat with you.