Madagascar's Gony Bag Empire Faces Asian Imports

Enduma, a family-run business in Madagascar, has been manufacturing and selling gony bags, large woven polypropylene sacks, for 50 years. These ubiquitous bags can carry up to 250 kilos of produce and have become an essential part of the country's agricultural industry.

The company generates 75 percent of its turnover in Madagascar, mainly during the peak agricultural seasons, supplying various farming sectors, including rice, vanilla, pulses, Cape peas, and salt. Enduma's success is closely tied to the state of Madagascar's crops, the weather, and its knock-on effects.

However, the company now faces significant competition from imported woven bags made in China or India. These imported bags are often of lesser quality, lack traceability, and are not certified safe to be in contact with food. Despite this, they are cheaper, posing a threat to Enduma's market share.

Enduma is part of the Trimeta Group, a conglomerate led by CEO Hassanein Hiridjee, the founder's grandson. The company's warehouse on the outskirts of Antananarivo operates at full capacity, with six-shuttle circular weaving machines running round the clock to produce the iconic gony bags.

## Why it matters The gony bag industry is crucial to Madagascar's agricultural sector, and Enduma's success has a significant impact on the country's economy. The company's ability to resist cheaper imports from Asia will depend on its ability to maintain its quality standards and adapt to changing market conditions. As the company navigates this challenge, it must also contend with the unpredictable nature of Madagascar's crops and weather, which can have a significant impact on its business.

The use of gony bags is not limited to the agricultural industry; they are also used in other sectors, such as mining and the lime, flour, cement, and salt industries. Enduma's products have become an integral part of Madagascar's economy, and the company's continued success is essential to the country's economic growth.

## What happens next As Enduma faces increased competition from Asian imports, the company must find new ways to differentiate its products and maintain its market share. With its long history and commitment to quality, Enduma is well-positioned to continue playing a vital role in Madagascar's agricultural industry. However, the company must remain vigilant and adapt to changing market conditions to ensure its continued success.