Eyeing growth, Merali invests Sh2.8bn in Nakuru milk processor

Billionaire investor Naushad Merali has announced construction of a Sh2.8 billion plant in Nakuru. This will bring the total amount the businessman has pumped into his dairy business to Sh5.2 billion in the last four years.

Sameer Agriculture and Livestock, a dairy products company associated with Mr Merali is seeking to expand its milk processing capacity.

The processor, whose dairy and juice products are sold under Daima brand, said a similar Sh1.9 billion factory has been completed in Nairobi where it will make Creambell brand of ice-cream.

The announcement comes at a time when the dairy industry seems to be attracting investments from billionaire investors, underlining its potential due to an ever expanding middle class that is driving the consumption of processed milk.

CENTRAL LOCATION

The firm’s chairman Naushad Merali said that Nakuru was selected for its unique central location as the company seeks to increase processing capacity from the current 180,000 litres of milk per day besides expanding its product portfolio to include mineral water.

“The last five years have seen the company accomplish a number of projects in a bid to fight for a slice of local dairy products market and expand to East African Community,” said Mr Merali on Wednesday.

Three years ago, the company completed a Sh500 million upgrade of its milk processing plant in Nairobi.

Kenya’s dairy industry has been attracting billionaire investors, who are banking on a rapidly expanding market that is expected to more than double in the next 10 years.

Mr Deepak Kamani, the chairman of conglomerate Zuri Group and Africa’s richest man Aliko Dangote have both expressed desire to invest in the industry with Mr Kamani having identified Nakuru County to set up a powder milk factory.