Kenyan tycoon Baloobhai Patel’s Carbacid smashes expectations with $3.2-million profit in 2022

Carbacid Investments Limited, a leading Kenyan investment holding owned by Baloobhai Patel, has demonstrated remarkable financial performance at the conclusion of the 2022 fiscal year, even amidst operational challenges.

As the principal producer of carbon dioxide, utilized in the manufacturing of soft drinks and various industrial applications, the company reported an impressive profit of Ksh411.65 million ($3.21 million), a 14-percent increase from the Ksh360.75 million ($2.82 million) profit achieved in 2021.

The impressive double-digit surge in the company’s profitability can be attributed to its exceptional top-line performance.

The company’s revenue for the period under review increased by 22 percent from Ksh701.16 million ($5.48 million) to Ksh855.53 million ($6.68 million), despite facing heightened competition in its operating environment.

However, the firm, which is 49.9-percent owned by Patel, noted that its earnings for 2022 could have been even higher if not for the increased costs it incurred in various inputs, such as fuel, power, and spares, which significantly impacted its bottom line during the review period.

Carbacid stated that its revenue was also affected by the emergence of new competitors, including alcohol manufacturers who collect carbon dioxide as a by-product of their production process – a product that Carbacid sells to its industrial customers.

In response to this challenge, Carbacid is proactively seeking new markets and positioning its carbon dioxide as a superior quality product to maintain its resilience.

In an effort to enhance its resilience in a competitive operating environment, Carbacid Investments, in collaboration with Aksaya, an investment firm, has launched a multimillion-dollar takeover bid to acquire BOC Kenya.

This strategic move aims to expand Carbacid’s portfolio in the Kenyan market and solidify its position as a leading investment holding in the region.

Despite the positive development, the bid is currently under regulatory scrutiny due to a legal challenge filed by Ngugi Kiuna, a former chairman of BOC. Kiuna argued that the proposed deal undervalues the target company, which has resulted in additional scrutiny from regulators.