(3 minutes read)
· Indian born steel tycoon Narendra Raval of Kenya plans to invest Sh5 billion in modernizing Mumias Sugar, an ageing plant, which was once the top miller of the country
· The mill stopped production nearly three years ago citing reasons of financial strains
· A number of millers have tapped foreigners from countries such as Sudan and Mauritius, which are known for efficient production of the sweetener at low cost with high returns
Indian born steel tycoon Narendra Raval of Kenya plans to invest Sh5 billion in modernizing Mumias Sugar, an ageing plant, which was once the top miller of the country. The mill stopped production nearly three years ago citing reasons of financial strains.
Raval, who is in the race to lease the indebted sugar mill, has unveiled a package that will see Sh4 billion used to upgrade the rundown production plant and Sh1 billion sweetener for farmers to return to cane production. Raval has made his initial fortune in the steel industry. Later, he moved over to cement production. Now, he is wanting to make forays into Kenya’s agriculture sector through the sugar route. If the deal goes through, it will be Raval’s maiden attempt to enter the sugar sector.
Mr Raval, 59, hinted at hiring expatriates for a swift turnaround for a miller that last produced sugar more than two years ago and has been relying on the ethanol plant to keep afloat.
A number of millers have tapped foreigners from countries such as Sudan and Mauritius, which are known for efficient production of the sweetener at low cost with high returns.
Eight firms participated in the leasing tender and Mr Raval is the front-runner on the strength of his financial muscle and track record of running industries. .Raval’s Devki has annual revenues of more than US$700 million (Sh75.8 billion) and produces steel products, roofing sheets and cement among other items. The group has been on a multi-billion shilling expansion over the past four years including construction of a US$110 million (Sh11.9 billion) new roofing sheet manufacturing plant in Lukenya, outside Nairobi.
