Hardly a week after Paul Kinuthia sold his beauty business to beauty products multinational, L’Oreal, the Kenyan businessman has found immediate use for the billions he is set to gain from the multi-billion shilling deal.
Kinuthia is now poised to drastically reduce the dominance of Procter & Gamble, another multinational, in the East African market by building a Sh1.1 billion new sanitary products plant.
To be based in Nairobi, the new factory will manufacture Golden Shine shoe polish, All-Tyme sanitary pads and Bouncy diapers, among others.
Production at the factory is likely to start in December this year with the factory’s new capacity letting Kinuthia’s Interconsumer Products to contest the authority of Procter & Gamble in that market.
On Friday last week, the Interconsumer Products, sold the health and beauty business to the French and the world’s largest cosmetic group, L’Oréal.
The actual value of the deal was not disclosed at the time but some believe it is a multi-billion shilling deal.
According to Business Daily, L’Oréal has now renamed its new acquisition Interbeauty Products.
Business Daily reported that Kinuthia will continue to own the diapers and sanitary division of the sold entity.
“We have invested Sh500 million to acquire land for the new factory. Another Sh600 million will go to setup the plant which we expect to start production by December,” Kinuthia told Business Daily.
It is believed that the new factory is going to increase the level of competition in a market that has been dominated by Procter & Gamble for years.