Over the last 40 years, Mr Ntake has built his business empire on strict attention to quality standards as well as recognizing gaps and identifying opportunities even if they present themselves as challenges.

From managing a small family retail shop during his school days to establishing Ntake Bakery as one of Uganda’s most esteemed bakery and edible oil brands, Gaster Lule's business journey exemplifies resilience, innovation, and strategic growth. In a chat with Business Edge, Mr Ntake reflects on the secrets of his business success and his perspectives on the "Buy Uganda, Build Uganda" initiative.

Could you walk us through the key moments and milestones that shaped your journey to success?

My journey began during my school years, when I played an active role in managing our family retail shop. This experience instilled in me the values of discipline, responsibility, and foundational business principles at an early age. Running the shop was a pivotal learning platform that shaped my entrepreneurial mindset. After completing my studies, I ventured into baking, starting with queen cakes.

It was a modest beginning but one that taught me the significance of quality and consistency. Encouraged by early success and customer feedback, I expanded into bread production. Maintaining high standards became our hallmark, and this commitment to quality drove us to seek better ingredients.

When the local wheat flour couldn’t meet our standards, we took the bold step of importing higher-quality wheat flour, to ensure that our bread stood out in the market. As our reputation for excellence grew, so did the demand for our products. To meet this demand, we strategically scaled up operations, transitioning from small-scale production to a more sophisticated setup with upgraded milling capacities.

What factors have been most crucial to your success in scaling your operations? Also, what challenges have you encountered in upholding product quality and managing consumer perceptions in a competitive market?

The key to our success in scaling operations has been a steady, quality-driven approach. We began with a small 50-metric-ton mill, which served as the foundation for our bakery's growth. As market demand grew, so did our capacity. We expanded to a 600-metric-ton capacity mill, investing in modern equipment and refining our processes to meet the increasing demand for high-quality baked goods.

Maintaining product standards while scaling, however, comes with its own set of challenges. One of the early hurdles we faced was the inconsistency in the quality of local wheat flour. Initially, we relied on local suppliers, but as our operations grew, it became clear that to uphold the quality of our products, we needed to source better flour.

The biggest challenge we face now is balancing the demands of scaling up with the need for consistent quality. As we grow, it’s crucial to ensure that the values we built our business on are maintained across all our products and throughout our entire supply chain. We’ve managed to overcome these challenges by re-investing in our operations, upgrading technology, and continuously training our staff to handle the increased production capacity without compromising our standards.

What motivated you to diversify into other industries?

In 2021, we recognized a major gap in the bakery industry that presented both a challenge and an opportunity—producing quality edible oil, which is an essential ingredient in baking. As our bakery business grew, we became increasingly aware of the high demand for quality oil that met our strict standards.

However, we were also concerned about the variability of local edible oils, which didn’t always meet the level of consistency and quality that we needed for our baked goods. After extensive research and discussions with fellow bakers and industry professionals, we realized that refining our own edible oil could give us the control we needed over quality and consistency.

In 2021, we launched our oil refining operation, investing in the necessary infrastructure and technology to ensure we could produce high-quality pure oil that would meet the demands of our bakery and other food businesses. This allowed us to not only ensure a consistent supply of oil for our own products but also to expand our offerings to the broader market. Moreover, the refining process itself produces valuable by-products, including margarine and soap, which we saw as another opportunity for growth. These products are in high demand, and we have been able to market them under the same commitment to quality that defines Ntake Bakery.

How did the COVID-19 pandemic, along with the disruptions caused by the war in Ukraine, affect your business operations and your strategy for growth?

The COVID-19 pandemic was a particularly challenging time for Ntake Bakery. Not only did it disrupt our day-to-day operations, but it also coincided with a critical phase of our business expansion. We were in the process of developing land allocated by the Uganda Investment Authority (UIA), and the restrictions imposed by the pandemic caused delays in construction. Despite these obstacles, we stayed focused and continued to move forward with our plans, adapting to the new circumstances as best as we could.

However, just as we were beginning to see light at the end of the tunnel, the war in Ukraine added another layer of difficulty. The conflict caused a global disruption in commodity prices, especially for wheat and edible oils, which are key ingredients in our production processes. The prices of wheat flour, oils, and other raw materials soared, affecting our cost structures. This posed a challenge as we had to balance maintaining the quality of our products with rising production costs.

To navigate this crisis, we had to make strategic adjustments, including sourcing for alternative suppliers and exploring cost-effective production methods. While the war and the subsequent inflationary pressures impacted our bottom line, it also spurred us to think creatively about product diversification and long-term sustainability.

How does your business align with and contribute to the "Buy Uganda, Build Uganda" initiative, and what impact do you believe supporting local businesses has on the Ugandan economy?

As a proud Ugandan entrepreneur, I strongly align Ntake Bakery with the ‘Buy Uganda, Build Uganda’ initiative, which encourages consumers to support locally made products and boost the domestic economy. By producing Ugandan-made goods, we contribute to the growth of our local economy, create jobs, and enhance the livelihoods of our people. Our bakery operations are driven by a commitment to utilizing local resources and talent wherever possible.

All but just a few of our employees are Ugandan nationals, and we make it a point to hire locally, whether for skilled roles or entry-level positions. This creates meaningful employment opportunities in our community. The minimal foreign expertise we bring in primarily addresses gaps in technology and machinery, ensuring that we are able to incorporate the latest production techniques and innovations without compromising our commitment to local empowerment. Furthermore, Ntake Bakery strives to source raw materials and ingredients as locally as ensuring that our supply chain directly benefits Ugandan farmers and suppliers. By doing this, we not only enhance the quality of our products but also play an active role in building local capacity, supporting smallholder farmers, and reducing dependency on imported goods.

Through these efforts, we contribute to the ‘Buy Uganda, Build Uganda’ vision by fostering a thriving, self-reliant economy that supports local businesses, generates employment, and encourages innovation. Our goal is to inspire other Ugandan businesses to follow suit, creating a sustainable cycle of growth and prosperity.