Investor brings Dangote linked firm to manage Mumias Sugar

Tuesday, November 2nd, 2021 00:00 |
Mumias Sugar revival. Photo/Courtesy

Tumaz and Tumaz Enterprises a company associated with Mwale City Investor Julius Mwale has hired JPMA (J P Mukherji & Associates) an Indian company running Dangote Sugar refineries in Nigeria to run Mumias sugar if it wins the bid.

Tumaz and Tumaz emerged as the top bidder with Kshs. 27.6 billion for a 20 year lease ,in Mumias Sugar bidding process. The Mumias Sugar receiver manager P V Rao said the bids will undergo technical and financial evaluation before announcing the winning bid.

Other bidders who submitted their bids are, Kruman Finances associated with French and Turkish investors, with a bid of Kshs. 19.6 billion for a 25 year lease and Transmara Group (Sarai) with a bid of Kshs. 11.5 billion over a 20 year lease period.

Others are Pandhal Industries with Sh9.7 billion over 20 years lease. Kibos Sugar bid came in at Sh8.8 billion.

Devki at Sh8.4 billion over 20-years lease and West Kenya Sugar was Sh3.5 billion.

A Mauritius based company Sucrie Des Mascarelgnes Ltd also participated but did not disclose the value of its bid.

Mwale's hiring of JPMA gives an insight in to his plans of running the miller if he wins the bid.

JPMA has been a consultant and manager of many sugar factories across the world including Saudi Arabia, India, Ethiopia, Uganda,Tanzania and Nigeria. It also consulted for the establishment of Kwale Sugar company in 2014.

Their work with Dangote is currently one of the largest sugar projects in the world. It is upgrading Dangote's factories to crush 24,000 tonnes of cane per day from 6,000 tonnes per day.

Dangote's Sugar division reported Ksh. 35 billion turnover for the first 6 months of 2021 , an increase of 27% from the previous year. It is the largest supplier of sugar in Africa. Dangote Sugar division is part of Dangote group whose chairman is a Nigerian Aliko Dangote, who is Africa's richest person with a fortune of Kshs. 1.2 trillion.

Mumias Sugar reported revenues of Kshs. 3.5 billion for 6 months in 2015 , which decreased to Kshs. 800 million for 6 months in 2018 before entering receivership.

Mwale said JPMA has been his technical bidding partner , together with the US consulting and infrastructure firm KE International. He told a local daily that he secured Kshs. 22 billion ($200 million) from a top American bank to strengthen his bid.

The tycoon said he will offer the farmers Kshs. 2.2 billion through Mumias Outgrowers company (MOCO) as an incentive to start growing sugarcane. He also allocated Kshs. 2.2 billion each for a new Hospital, housing, airport and for the upgrading of ethanol plant to manufacture medicines and vaccines.

He further allocated Kshs. 5 billion to the factory upgrade, shs 800 million to the water bottling plant and 2.2 billion to the power generation plant.

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