The Business Year

Aydin Mehdiyev

AZERBAIJAN - Agriculture

Name Around the House

Owner, Delta Group

Bio

Aydin Mehdiyev was born in 1965 and entered the Department of Finance and Management at Azerbaijan State Economic University in 1981. After working through the 1990s in Russia, he became a businessman in Azerbaijan in 1997 and finally the Owner of Delta Group.

What have been some of the developments within Delta Group over the past year? High-quality control and the systematic monitoring of investment projects has led to the growth of Delta […]

What have been some of the developments within Delta Group over the past year?

High-quality control and the systematic monitoring of investment projects has led to the growth of Delta Group. In 2012, a committee headed by the Board of Directors was created. It is a regulating and administrative committee through which there is a management of business processes and the interaction between import, distribution, logistics, marketing, and production. Highly qualified specialists in the field of sales, logistics, finance, and management are involved.

What is the progress on your Saglam Qida factory and what impact is this expected to have on production once it is opened?

This plant is unique in Azerbaijan. The production process will meet all of the requirements of international quality standards. Bread and bakery products will meet hazard analysis and critical control points (HACCP), which are hygienic quality standards. The main goal for us is to provide our customers with high-quality bakery products at affordable prices. At this stage, the plant’s construction is complete. Currently, German experts are conducting adjustment work. The logistics system and marketing strategy is fully developed. The plant will open soon, and in the near future customers will be able to buy our bread at various outlets.

How would you describe the market for FMCGs in Azerbaijan? How do you intend to place your products ahead of well-established multinational brands?

Over the last few years, the FMCG sector has continuously developed and we have seen an expansion of market chains and an increase in local production. In addition, many worldwide brands have entered the Azerbaijani market. All of these factors have led to an expansion of Azerbaijani companies abroad, as they have been using their experience in the national market to widen the scope of their activities. I am very positive in terms of future expectations and I believe the sector will grow further in 2013 and beyond. In general, our work is uniquely designed to meet the needs of consumers. Products imported and manufactured by us are under investigation in the domestic market. This involves a variety of qualitative and quantitative research in the field of marketing. Due to the necessary experience in the field of marketing, we offer products in the market that fulfill the needs of our consumers. Even some of them, according to surveys conducted by independent local and foreign marketing companies, have become our customers’ favorite products.

“In addition to the bread factory, we are planning projects in terms of agriculture and flour products.”

What is the penetration rate of your products in Azerbaijan? Where are your products exported?

We conduct our operational activities in the territory of Baku and regions of Azerbaijan. At this time, we have covered all regions of Azerbaijan, including the territory of Nakhchivan. We have a major stake in the strategically important food sector. Also, we are the official representative of world-famous brands, both in Azerbaijan and in several other countries. Producing goods capable of competing on the world market, our aim is to present Azerbaijan to foreign countries. Our goods are present in countries such as Russia, Israel, Georgia, Kazakhstan, Tajikistan, Turkmenistan, Uzbekistan, Afghanistan, Libya, and Iraq.

How would you rate Azerbaijan as a production base for consumer goods?

I firmly believe that Azerbaijan has huge potential and possesses all the resources to become a production base. Thanks to the successful policy of President Ilham Aliyev in the field of production, we see increases in output every year and the quality of consumer goods improves regularly.

What have been the most significant changes to the investment landscape for FMCG goods in Azerbaijan during the past decade?

The global and targeted work of the Aliyev administration in carrying out reforms in the economy, and in particular in the development of the FMCG of sector in Azerbaijan, was one significant change. According to strategic research, Azerbaijan is on track to become the most rapidly growing country by 2030. The scale of the population’s total income is progressing and the average monthly income per capita is also growing in relation to previous years. During this past presidential administration, numerous enterprises for FMCG production have been created. In parallel, new foreign investors and world brands have presented a market of great opportunities in Azerbaijan. As a producer and importer, Delta Group completely supports the President and his administration.

Looking forward to 2013, what are your growth objectives for Delta Group?

Delta Group has always been a development-oriented company that has actively sought to join the ranks of nationwide projects. In addition to the bread factory, we are planning projects in terms of agriculture and flour products. We aim to expand our import portfolio and bring even more internationally recognized brands to Azerbaijan. By the end of 2013, we expect an increase in capacity, product assortment, and the construction of a regional logistics center, which will provide franchising services.

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