SOUTHERN AFRICA – Southern African plastic manufacturer Arkay Plastics has received an undisclosed amount of investment from International private equity firm Spear Capital.
Spear Capital announced it has made the investment in Arkay’s unit in Zambia and Mozambique to equip it with means of becoming a leading player with market dominance in the manufacturing sector.
Arkay Plastics is regarded as the leading brand name for plastic houseware, furniture, industrial products and packaging in the operating countries, with distinct segments in retail, exports, packaging and crates.
The manufacturer carries approved supplier status with international organizations such as Carlsberg, Castle, Coca-Cola, Heineken, Plascon and AB InBev.
“Spear’s management team will assist in overcoming Arkay’s working capital constraints while hastening its sustainable plastic manufacturing competitiveness with local and international customers.”Kentan Kotecha of Arkay
Arkay will use the clinched investment for its working capital requirements, to expand its production capacity, and fund its overall export market growth plans.
Spear’s drive to increase Arkay Plastics’ production capacity will enable the company to fulfil larger orders while growing the higher-margin crate business.
In addition, Arkay will prioritise its sustainable manufacturing growth through environmental impact and waste production.
Kentan Kotecha of Arkay said, “We greatly welcome the capital injection and establishing a partnership between Arkay Plastics and Spear Capital.
“Spear’s management team will assist in overcoming Arkay’s working capital constraints while hastening its sustainable plastic manufacturing competitiveness with local and international customers.
“The investment will further our ambitions of achieving competitive pricing through economies of scale to increase our market share significantly in Southern African region.”
Spear Capital predominantly focuses on food and beverage, retail and wholesale and pharmaceutical sector in sub-Saharan Africa, providing between US$2- US$10 million in growth capital to consumer-based businesses which meet its mission and investment strategy.
“Arkay proved to be a natural investment for Spear Capita, owing to the company’s proven business model and expansion strategy in Zambia and Mozambique.
“Spear’s investment will bolster further expansion exploration and sales through the development of Arkay’s exports markets, while implementing sound governance structure – a vital component for manufacturers within Arkay’s market,” said Spear Capital partner Shaw Mabuto.
In corporated in Malawi in 1997, Arkay has also established factories in Mozambique and Zambia and exports its products to Zimbabwe, Botswana and South Africa.
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