Firm Associated With Africa's Richest Man Bids for Control of Mumias Sugar

J P Mukherji & Associates(JPMA), an Indian company that runs the Dangote Sugar refineries in Nigeria owned by Africa's richest man Aliko Dangote has bid for control of Mumias Sugar Company.

Kenyan billionaire Julius Mwale's company Tumaz and Tumaz hired JPMA with an aim to run Mumias Sugar if it wins the bid.

Mwale's company emerged with the highest bid of Ksh27.6 billion on a lease of 20 years for the fallen sugar company.

P V Rao, Mumias Sugar's receiver-manager stated that the bids will undergo technical and financial evaluation before the winning bid is announced.

The sugar company also received bids from other companies including;  Kruman Finances associated with French and Turkish investors, which tabled a bid of Ksh19.6 billion on a 25-year lease.

Transmara Group (Sarai) came in with a bid of Ksh11.5 billion on a 20-year lease.

Other companies that bid for Mumias Sugar include; Pandhal Industries which tabled a bid of Ksh9.7 billion for a 20-year lease, Kibos Sugar with a bid of Ksh8.8 billion, Devki with a bid of Ksh8.4 billion on a 20-year lease and West Kenya Sugar with a bid of Ksh3.5 billion.

Mauritius-based company Sucrie Des Mascarelgnes Ltd I also reported to have tabled a bid for Mumias Sugar but the value of its bid was not disclosed.

Mwale plans to run Mumias Sugar through JPMA if he wins the bid.

The indican company has consulted with and managed a number of sugar factories across various parts of the world including Saudi Arabia, India, Ethiopia, Uganda, Tanzania and Nigeria.

In 2014, JPMA consulted with the Kwale Sugar Company.

Their partnership with Dangote is among the largest sugar projects in the world.

According to reports, JPMA is upgrading Dangote's factories to crush 24,000 tonnes of cane per day from 6,000 tonnes per day.

Dangote's Sugar division posted a Ksh35 billion turnover for the first six months of 2021, a 27 per cent increase from the same period in 2020.

It is the largest supplier of sugar in Africa.

Mumias Sugar entered receivership in 2018 after posting a turnover of Ksh800 million for six months.

Mwale noted that JPMA has been his technical bidding partner, along with US consulting and infrastructure firm KE International. He has since revealed that he secured Ksh22 billion from a top American bank to strengthen his bid.

The tycoon said he will offer the farmers Ksh2.2 billion through Mumias Outgrowers Company (MOCO) as an incentive to start growing sugarcane.