KENYA – Kevian Kenya, the Peek N’ Peel and Afia juice owner, has invested Sh350 million (US$ 3.37 million) in establishing a new recycling plant, Ramani Recylers in Thika, Central Kenya.
Ramani Recylers, will operate as a subsidiary of the company. The plant has an installed daily production capacity of 1,500 tonnes, with the company expecting to scale up the production capacity in the future.
The juice producer says the plant will recycle waste packaging papers to make ceiling boards, pallets for industrial use, doors, dustbins, roofing materials, seedling bins and furniture.
“This is just the first phase of our project and we project that by the time we reach the second phase we will be manufacturing a wide range of products from the recycled waste.,” said Mr. Kimani Rugendo, Kevian Managing Director.
To facilitate the operation, the firm has already signed a collection partnership deal with several companies, including national carrier Kenya Airways, Brookside Dairy and Tetra Pak. Collection centers will be distributed in Nairobi and its environs.
“We will set up collections centres to make the value chain complete from farms to consumption, back to farm and putting the waste into the secondary use,” Mr. Rugendo said.
Mr. Rugendo noted that the investment is part of the company’s expansion plans in an area that has received minor investments.
The investment was funded through a mix of debt and internal cash reserves to manufacture industrial materials from packaging material.
Kevian Kenya has been on an expansion drive in bid to diversify its revenue streams away from its mainstay products such as juice.
Following support of the German Investment Corporation, Kevian has ventured into production of non-alcoholic malt drinks, tomato sauce and ready-to-drink coffee.
The firm has also entered into a partnership with the British soft drink brand Vimto through an exclusive franchise deal allowing the local manufacturer to produce Vimto sparkling juice in Kenya.
The owner of the company Kimani Rugendo has hinted at plans of listing the company on the Nairobi Securities Exchange.
The public listing, through an initial public offering (IPO), is part of Mr Rugendo’s succession strategy that will see Kenyans own a piece of the multi-billion-shilling company which produces Afia and Pick n’ Peel juices.
“Succession is awaited, and we will now call for an IPO,” said Mr Rugendo at a press briefing.