Bidco Refineries, the largest manufacturer of edible oils in East and Central Africa is investing in the beverage industry, with a Sh1.7 billion ($19.4 million) beverage plant set to break the domination of multinationals who dominate the beverage market in the East African country.
“The move is in line with our expansion plan to play in even more categories of fast-moving consumer goods other than those we are already in,” local news platform, Business Daily quoted Mr Vimal Shah, CEO of Bidco as saying.
Shah said the company has acquired a piece of land off the Thika-Garissa highway in Kenya, where the company’s planned production and bottling facility would be located. He had at the Reuters Africa Investment Summit earlier in the year identified land availability as one of the hindrances of industrial growth in Kenya.
Bidco has been successful in its edible oils business, with annual revenue in the excess of $200 million and plan to introduce new products in a $200 million investment by 2017. The firm also manufactures soaps, cooking fats, animal feeds baking powder and detergents.
Bidco plans to make non-carbonated still drinks, carbonated soft drinks and water in its planned production facility, with Shah stressing that all the companies in the industry would get enough customers especially with the East African country’s population expected to increase to 60 million from 40 million by 2030.
Bidco plans a factory with two processing lines; each will be fitted with capacity to produce 24,000 bottles per hour. About 100 million plastic bottles per year are expected to be produced by a separate plant.
The company estimates an annual production of 50 million litres from the soft drink pant, which would be gotten from different production lines to include smoothies, energy and sports drinks, and carbonated soft drinks, as well as non-carbonated soft drinks with fruit.
With plans on the proposed beverage plant all set, Bidco has gotten a Sh1.7 billion ($19.4 million) loan from local banks, a development seen as part of a bigger plan by the company to expand by up to 400 percent in the next four years.
The company’s projected growth is expected to be achieved via a Sh4 billion expansion supported by big lenders such as International Finance Corporation (IFC) which has agreed to lend Bidco another Sh2 billion ($22.8 million).
