Consumer goods manufacturer Bidco Africa Group has opened a $2.5 million (Sh267 million) juice processing plant in Ruiru, Kiambu through a joint venture with Danish firm Co-Ro food for non-carbonated soft drinks.
Bidco said the joint venture would trade under BidCoro to produce Sunquick brand targeting both local and export markets, citing high demand for juice products.
BidCoro chief operating officer Mads Burmester told the Business Daily on the sidelines of the launch that they raised the capital injected through a mix of borrowing and internal cash reserves.
“We have teamed up with Bidco Africa Group to set up BidCoro, which is a 50-50 joint venture to produce a concentrated drink called Sunquick,” he said.
“We are targeting both local and export markets where 90 per cent of this product will go. We have invested $2.5 million in capital to this product largely from borrowing and internal cash.”
Mr Burmester said their largest markets for the product remains Mauritius, Qatar, Portugal and Denmark. He added that the joint venture would ill be looking for a larger piece of the African market.
Bidco Africa Group Chairman Vimal Shah said the consumer markets have gradually changed locally and there is a need for product diversification to tap on other markets outside Kenya.
“There is a huge demand for the juice markets in the region given the changing consumer habits. We are glad that the government has created an enabling business environment for the private sector to grow and thrive,” he said.
Mr Shah said the product would be competitive, pocket friendly and create jobs.
a strong employment line to new people employees who will be working at the new factory.
The new plant will add another 100 jobs, said Shah.
The family-owned Bidco has plants in Kenya, Uganda, Tanzania and Madagascar. The company earns extra revenue from export sales around Africa and other lines of business such as farming. Its five-year growth plan is focused on boosting revenue from sales in Kenya.
Bidco was established by Shah, his brother and father, and is one of the leading manufacturers in the Kenya, employing more than 5,000 people.
Cabinet Secretary for Industrialization, trade and Enterprise Development Ms Betty Maina who graced the launch said the government is committed to working and creating a conducive environment to the private sector.
She said there is need for the private sector to be innovative and take advantage of the government business incentives so that they can produce more and export more instead of relying on imports to feed the demand for the local market.
“We want to see more exports and less imports from the local manufacturers given the government has created a conducive environment for the private sector to grow and thrive so that they can create opportunities,” said Ms Maina.
The Kenyan juice markets have been very competitive where the product uptake depends on pricing, packaging and the brand name of the manufacturer.
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