Britannia Industries expands in Africa with Kenya deal

India’s largest cookie producer, Britannia Industries Ltd., clinched a deal for operations in Kenya as half its plan to increase in Africa.

The firm teamed up with Nairobi-based Kenafric Industries to buy Catalyst Capital-backed Britania Foods Ltd. in Kenya in a $20 million transaction that additionally concerned buying property and a plant, Mikul Shah, a director at Kenafric, mentioned in an interview. Britannia Industries, unrelated to Britania Foods, took a controlling stake within the partnership, he mentioned.

The refurbished manufacturing facility in Nairobi is scheduled to be commissioned this week, in keeping with Kenafric.

Britannia is a 130-year outdated firm whose manufacturers embody Good Day and Marie Gold cookies in India. It has been wanting so as to add capability in Africa, the place governments wish to increase their industries and cut back imports of merchandise that may be made domestically.

The firm not too long ago arrange contract-packing services in Egypt and Uganda, and has been contemplating ventures in Kenya and Nigeria, Bloomberg reported in March.

Britannia Industries didn’t instantly reply to questions in regards to the Kenya deal when contacted on Tuesday.

Kenafric, which is backed by personal fairness corporations Paris-based Amethis and Johannesburg-based Metier, is a family-owned enterprise that began in 1987 as a footwear maker. It entered the biscuits enterprise 4 years in the past, in keeping with Shah, because it expanded into merchandise together with confectionery, drinks, stationery and meals spices. It has a presence in Kenya, Uganda, Tanzania, Rwanda, Congo, Burundi and Malawi.

“We had to make a big investment or think of what to do because it was too small to stay within our portfolio,” Shah mentioned in regards to the biscuits enterprise. The take care of Britannia Industries will assist Kenafric to turn out to be Kenya’s second-largest biscuit-maker from No. 5, he mentioned.