- Kenafric Industries Ltd was established by the Chedda family, Velji Punja Shah, and his four sons in 1987
- The company started as a wholesaler, distributing a range of products, including cooking oil, sugar and candy
- After the family’s success in the confectionery industry, they expanded into the chocolate industry, with a KSh 1 billion machine
TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
Among the multibillion-shilling companies in Kenya that arose from humble beginnings is Kenafric Industries Ltd.
Source: UGC
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The company produces a wide range of goods such as confectionery, culinary products, juices, biscuits and snacks in Kenya.
The items include lollipops, bubble gum, ball gum, sweets, toffees, and chiclets.
According to its website, some of its brands are Fresh, Squeezy, Veve, Lotta, Oyo Mchuzi Mix, and Bing Bang.
Who founded Kenafric Industries?
The sweet empire was established by the Chedda family, Velji Punja Shah, and his four sons in 1987.
Bharat Shah is running it alongside his brothers, Mayur, Mikul, and Nilesh Shah.
The company started as a wholesaler, distributing a range of products, including cooking oil, sugar, candy, maize, sanitary towels, and medications.
Source: UGC
Later, they expanded their supply chain to include furniture, and the business flourished until the 1982 coup, when hooligans destroyed their store.
Shah was forced to start over, selling furniture and entering the Polyvinyl Chloride (PVC) industry. Among their products were gumboots, shoes, and slippers.
One of their brands was Dancing Queen, a sandal for women.
The Iran-Iraq conflict, which caused oil prices to skyrocket, hurt the company in 1989. One byproduct of petrochemicals is PVC, which is used in the production of shoes.
How KenAfric transitioned to confectionary
In 1989, the family decided to pursue their goal of working in the sugar sector by starting a confectionery business.
They started small, buying used machinery to make bubble gum, mint, and candles.
Because millennials (those born in the 1980s and 1990s) enjoyed sweets, the business flourished.
Ten years later, in the year 2000, the company began exporting its goods to various nations worldwide.
When did Kenafric start chocolate manufacturing?
After the family’s success in the confectionery industry, they expanded into the chocolate industry.
Although they invested $10 million (KSh 1.3 billion), the venture suffered losses, which impacted the main business. Their return to normalcy took a year.
In 2012, the company launched a KSh 1 billion confectionery machine.
Which company holds a minority stake in Kenafric?
In 2017, Metier teamed up with the French company Amethis Finance to purchase a minority stake in Kenafric Industries Limited.
The Shah family kept up their independent operations for stationery and shoes; thus, the deal was restricted to the candy and culinary businesses.
“This transaction is limited to the Group’s food (confectionery) products, and the Shah family will continue to run the stationery and footwear businesses separately. This transaction stems from a long-standing, trusted relationship that Amethis has with the Shah family,” Amethis stated.
It was the first investment in Kenya by Metier, a well-established private equity firm in South Africa.
Which firm did KenAfric acquire?
Business Daily reported that Kenafric and India’s Brittania Industries partnered to buy the struggling Kenyan biscuit manufacturer Brittania in August 2022.
The entire transaction, which was worth approximately KSh 2.4 billion, was made when Brittania Kenya failed to repay a debt of KSh 1.3 billion from DTB and other creditors.
The KenAfric Group’s head of law and compliance, Lorna Solopian, expressed the company’s pride in acquiring the Britannia brand.
Who established Broadways Bread Company?
In other news, Broadways was founded in 1958 as a tiny bakery in Thika town, Kiambu county, and has stood the test of time.
Two brothers, the late Sobhagchand Shah and Ratilal Shah, established the bakery before Kenya’s independence.
From a one-deck oven bakery to one of Kenya’s leading bakeries, the company that produces the Broadways and New Seneta brands expanded gradually.
Source: TUKO.co.ke