Companies

Shoe firm set for Sh18bn step into cement making

shoe

K-Shoe shop on Kenyatta Avenue, Nairobi. FILE PHOTO | NMG

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Summary

  • The Nairobi Securities Exchange-listed firm said in a notice Thursday that it will acquire land to set up a cement production plant and buy three companies involved in transport sector at a combined Sh3 billion.
  • The planned venture into new lines of business for a firm that started off as a shoe seller comes barely seven months after Delta International bought 84 per cent stake at Sh83 million.

Shoe-seller Nairobi Business Ventures (NBV) has lined up Sh18 billion to diversify into cement manufacturing, vehicle and aircraft repairs to grow revenue following the buyout by Dubai-based Delta International FZE.

The Nairobi Securities Exchange-listed firm said in a notice Thursday that it will acquire land to set up a cement production plant and buy three companies involved in transport sector at a combined Sh3 billion.

The planned venture into new lines of business for a firm that started off as a shoe seller comes barely seven months after Delta International bought 84 per cent stake at Sh83 million.

Delta is owned by Haresh Vrajlal Damodardas Soni and its local and regional subsidiaries include Delta Holdings Kenya (real estate), Shreeji Glass Uganda (chemical manufacturing) and Shreeji Chemicals Kenya.

NBV says that it will acquire 11.33 hectares of land in Machakos from Shreeji Enterprises Kenya— its subsidiary— and construct a cement manufacturing plant at Sh15 billion.

“The feasibility study for the construction of the facility has been concluded and the preliminary work to establish the plant is currently being undertaken,” said the firm.

Delta had last year said it was eying a cement plant with ability to manufacture one million tonnes per year.

NBV is also seeking to acquire 100 percent stake in Delta Automobile Limited—a heavy commercial vehicle maintenance firm with presence in Nairobi and Mombasa.

The firm manages, repairs and maintains over 700 trucks mainly of Renault and Volvo brands.

NBV also wants to make entry into aviation sector by fully acquiring Aviation Management Solutions Limited—a firm located at Jomo Kenyatta International Airport and owns a hangar and a building.

In addition, NBV will also buy 100 percent of Air Direct Connect Limited. The aviation firm holds Kenya Civil Aviation Authority licence for maintaining aircraft but was yet to start operations.

NBV started out as a shoes distributor in Kenya through the brand name Kwanza Shoes and ran on the model of importing shoes from China and India. The company later in 2013 changed the brand to K-Shoe.

NBV’s founder and now board member Abutola Vasu had in April told the Business Daily that the deals will help Delta to take the firm into a new growth phase.