Capwell Industries is investing Sh1 billion in a wheat flour plant as it embarks on an expansion drive that will see the firm introduce more products in the market.
The company, popular for its Soko Unga brand, has been building new plants in the last couple of months in a move that is set to increase competition.
This comes at a time when Unga Group #ticker:UNGA is about to commission the newly installed wheat mill in Eldoret as it seeks to improve efficiency in milling to meet growing demand and cut down on production cost.
“We shall be commissioning the new wheat plant in June,” said Rajan Shah, Capwell chief executive officer.
The firm used to have wheat flour under Best Cook brand through contract manufacturing but discontinued the brand some years back.
The new plant, which will have a 250 tonne daily capacity, will comprise pre-cleaning equipment and a storage silo with a capacity of 15,000 tonnes.
Capwell recently introduced a new high-end maize flour brand, Amaize, which brings competition to Unga’s Hostess.
The Thika-based firm also makes Ranee, Pearl and CIL rice, Soko porridge flour, pulses, spaghetti and pastas.
Unga has also announced plans to expand its wheat facility in Eldoret by putting up an additional production line.
The plant, which is due for commissioning before the end of this financial year, will have a 300-tonne daily milling capacity compared with the current one in use that has 250 tonnes.
Unga runs milling plants in Nairobi and Eldoret. In 2013, it upgraded its Nairobi wheat flour mill by installing new machineries.
In Eldoret, the firm mills its popular Jogoo brand and wheat flour brands while its Nairobi factory processes wheat flour as well as Hostess.