Kenyan multimillionaire businessman Narendra Raval, through his conglomerate Devki Group, has successfully concluded the acquisition of Rwanda’s Cimerwa Plc for a sum of Ksh13.6 billion ($84.3 million). The deal further cements the group’s position in the region.
With an annual cement production capacity of 600,000 metric tonnes, Cimerwa is a dominant force in the East African cement industry. Devki Group Founder and Chairman Narendra Raval announced the completion of the acquisition, expressing enthusiasm about the prospects it holds for both countries.
Devki Group’s National Cement Company sets stage for Rwanda’s cement sector overhaul
“On Jan. 25, 2024, I led Kenya’s National Cement Company Limited under Devki Group in formalizing the acquisition of Cimerwa… We will be heavily investing in the business and transforming Rwanda into a self-sustaining country in terms of all cement-related products,” Raval said, emphasizing a commitment to heavy investments in the business, with a vision to transform Rwanda into a self-sustaining hub for all cement-related products.
The acquisition involved the purchase of a 99.94-percent stake in Cimerwa, with the National Cement Company, a subsidiary of Devki Group, acquiring 702.7 million shares at a rate of Ksh19.4 ($0.12) per share. The completion of the transaction marks the beginning of the integration process, leading to Cimerwa’s imminent delisting from the Rwanda Stock Exchange.
Devki Group: From humble beginnings to East Africa’s building material giant
Devki Group, founded by Raval and his wife in Nairobi in 1986 as a small steel-processing and trade enterprise, has grown into the largest manufacturer of building materials and steel products in East and Central Africa. Raval, with an estimated net worth of $400 million in 2015, maintains majority control over the privately held conglomerate.
This acquisition follows Devki Group’s ambitious plans to construct a state-of-the-art cement processing plant in Eldoret, situated in Kenya’s Rift Valley region. The proposed plant will utilize clinker, limestone, and gypsum for cement manufacturing, sourced both locally and from the group’s integrated plants in Kenya.
As Devki Group continues to shape the East African industrial landscape, the acquisition of Cimerwa Plc stands as a pivotal moment in the conglomerate’s journey towards cementing its position as a leader in the regional construction and manufacturing sector.
