- Steel tycoon Narendra Raval seeks to revive Mumias Sugar through a rental deal that aims to save the First Miller.
- Mr Raval, founder of Kenyan steel and cement maker Devki Group, confirmed his offer in a tender that attracted eight companies.
- The loss-making Mumias Sugar Company was placed in receivership by the KCB group in September 2019 to protect its assets and maintain its operations.
Steel tycoon Narendra Raval seeks to revive Mumias Sugar through a rental deal that aims to save the First Miller.
Mr Raval, founder of Kenyan steel and cement maker Devki Group, confirmed his offer in a tender that attracted eight companies.
The loss-making Mumias Sugar Company was placed in receivership by the KCB group in September 2019 to protect its assets and maintain its operations.
As part of the lease agreement, the successful company will operate the plant on behalf of KCB after defaulting on loans in the amount of 545 million shillings owed to the lender, which was successful in doing so. take the process to court.
“I am one of the eight people shortlisted for the takeover of Mumias under leasing. I would be very happy if I came out the best as my main goal will be to relaunch the factory and restore livelihoods to the more than a million people who relied on the company, ”Raval said.
Mr Raval said he was ready to inject the cash needed to bring the giant sucker back to productivity after years of inactivity resulting from financial hardship.
Sources at the plant told the Daily business that Mr. Raval is likely to be chosen based on his success in running steel and cement factories coupled with his financial strength.
The business needs hundreds of millions of dollars to resume operations. The funds are to be used to purchase used spare parts.
Mumias relied on ethanol as the main source of income after shutting down other sources of income such as water production, cogeneration and sugar production.
The Devki group of companies he founded has a turnover of over $ 650 million a year. Forbes estimated his personal net worth at over $ 500 million.
Last year, the National Cement Company, which is owned by Mr. Raval, paid 5 billion shillings to complete its purchase of the assets of ARM Cement in Kenya.
Mr. Raval, who initially made his fortune in the steel industry, has grown his cement empire over the past two years.
In anticipation of the likely takeover of the business, most of the factory workers have not reported for work for a month as no activity is currently underway and leadership changes are expected to occur with the change. on call.
Over the past two weeks, potential investors have conducted surveys of the company, including a sugarcane census to establish the availability of the raw material.
Mumias, majority government-owned and for a long time Kenya’s largest miller, struggled to stay afloat even after the government injected around 3 billion shillings.