India’s largest biscuit maker, Britannia Industries Ltd., has secured a deal for operations in Kenya as part of its expansion plan in Africa.

The company has teamed up with Nairobi-based Kenafric Industries to buy Catalyst Capital-backed Britannia Foods Ltd. in Kenya in a $20 million transaction that also involved the acquisition of a property and a plant, Mikul Shah said in an interview. director of Kenafric. Britannia Industries, unrelated to Britannia Foods, has taken a controlling stake in the partnership, it said.

The refurbished Nairobi factory is scheduled to become operational this week, according to Kenafric.

Britannia is a 130-year-old company whose brands include Good Day and Marie Gold biscuits in India. It has sought to add capacity in Africa, where governments want to expand their industries and reduce imports of products that can be manufactured locally.

The company recently set up contract packaging facilities in Egypt and Uganda, and has been considering ventures in Kenya and Nigeria, Bloomberg reported in March.

Britannia Industries did not immediately respond to questions about the Kenya deal when contacted on Tuesday.

Kenafric, which is backed by Paris-based private equity firms Amethis and Johannesburg-based Metier, is a family business that started in 1987 as a shoe manufacturer. It entered the biscuit business four years ago, according to Shah, as it expanded into products such as confectionery, beverages, stationery and food spices. It has a presence in Kenya, Uganda, Tanzania, Rwanda, Congo, Burundi and Malawi.

“We had to make a big investment or think about what to do because it was too small to fit into our portfolio,” Shah said of the cookie business. The deal with Britannia Industries will help Kenafric become Kenya’s second largest biscuit maker. of number 5, he said.

This story was published from a wire agency source with no text changes. Only the title has been changed.

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