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Simba Cement, a cement company majority owned by Devki Group, a leading conglomerate led by Kenyan industrialist Narendra Raval, has signed a lucrative long-term contract worth Ksh27.7 billion ($200 million) annually, catapulting its regional expansion plans.
The agreement, which involves the export of clinker, a key component in cement production, to neighboring countries, solidifies Simba Cement’s position as a dominant player in the East African market.
Under the visionary leadership of Kenyan industrialist Narendra Raval, the chairman of Devki Group, Simba Cement has been actively pursuing strategic growth initiatives.
Following the recent announcement of a cutting-edge cement processing plant in Eldoret, the company’s capacity is set to be further enhanced, allowing it to meet rising demand.
The state-of-the-art processing plant, located in Eldoret, will serve as a vital hub for Simba Cement’s regional expansion plans.
With its proximity to Rwanda, Uganda, and Burundi, Simba Cement aims to tap into these lucrative markets, where the cost of the commodity will be significantly reduced due to decreased transportation costs.
Raval shed light on the landmark export deal, stating that initial shipments of 6,000 tonnes of clinker per day have already commenced to neighboring countries.
This long-term contract marks a significant milestone for Simba Cement, as it aims to increase its exports from the present 20 percent to meet the growing demand in the region.
The forthcoming cement processing plant in Eldoret will play a pivotal role in augmenting Simba Cement’s production capacity, adding another 2.5 million tonnes of clinker per year.
Upon its commissioning, Narendra Raval’s enterprises will emerge as the largest clinker producer in East Africa, with a combined production capacity of 7.5 million tonnes across his three factories.
Raval, who founded Devki Group with his wife in Nairobi in 1986 as a tiny steel-processing and -trading business, eventually turned it into the largest building material and steel product maker in East and Central Africa. He owns the majority of the group.
The Kenyan businessman was reported to have a net worth of $400 million in 2015.
