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Mukwano to build 6 new factories

By Vision Reporter

Added 16th December 2008 03:00 AM

MUKWANO Group of Companies is to build six more factories next year to meet the increasing regional demand for its products, the managing director has said.

MUKWANO Group of Companies is to build six more factories next year to meet the increasing regional demand for its products, the managing director has said.

By James Odomel

MUKWANO Group of Companies is to build six more factories next year to meet the increasing regional demand for its products, the managing director has said.

“The market for our products has grown so fast in the region. “To meet this overwhelming demand, we shall construct six more factories next year,” Alykhan Karmali, said during the distributors’ end of year party at the Golf Course Hotel, in Kampala.

He, however, did not say what the investment would cost. The Mukwano Group deals in a number of businesses which include manufacturing, processing and real estate.

“Over the years, we have grown to become East Africa’s leading company in the production of fast moving consumer goods.

“Our growth is evident with new the projects and production plants we have established,” Karmali said. He said there were significant changes in the domestic and international markets, which had increased the demand of their products like Sunseed oil, which is exported to the UK.

The group also promotes sunflower growing in northern Uganda. The group has been working in partnership with the farmers in the Lango sub-region for the past eight years.

The company provides farmers with high yielding sunflower seeds, extension services in modern agricultural practices and commercial farming.

The sunflower project in the region is credited for the dramatic improvement of the communities welfare.

The project has assisted more than 85,000 contract farmers with farm inputs and seeds. The processing plants will provide direct and indirect employment to thousands of people in region.

Mukwano buys a combined harvest of about 34,000 tonnes, but hopes to raise this to 300,000 tonnes within two years. At sh350 per kilograms, farmers are earning an estimated sh12b from the group. The success of the project has been because of four main pillars; availability of hybrid seeds, the use of best farming practices, the elimination of middlemen and a ready market by Mukwano.

In order to avoid the exploitation of the farmers by middlemen, the company has put into place a number of logistical and administrative structures to help the farmers access services directly from Mukwano without having to pay a third party. Thus farmers are given packing bags and transport for their harvest. There are also visited by agents, supervisors and coordinators who are paid directly by Mukwano.

Mukwano to build 6 new factories

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