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Mumias out; Kabras in
Rank: Elder Joined: 6/27/2008 Posts: 4,114
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We did our monthly shopping last weekend. When we reached the sugar section, I noticed this new brand with crisp, brilliant white crystals next to Mumias. I thought it was one of those imported varieties, but no: it was labeled "KABRAS" from West Kenya Sugar. This one is going to give Mumias a run for their money. ..... and yes, we bought it instead of our usual Mumias... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@Mukiha, The price per kg??.....Anyway,they produce a fraction of what MSC does (Less than 7 tonnes per day compared to MSC's 900 tonnes a day).....and watch out!You might be buying a product made from stolen raw materials....lol Nothing great was ever achieved without enthusiasm.
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Rank: Member Joined: 8/17/2010 Posts: 116
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mukiha wrote:We did our monthly shopping last weekend.
When we reached the sugar section, I noticed this new brand with crisp, brilliant white crystals next to Mumias.
I thought it was one of those imported varieties, but no: it was labeled "KABRAS" from West Kenya Sugar.
This one is going to give Mumias a run for their money.
..... and yes, we bought it instead of our usual Mumias... Mumias is a household name in kenya.they say they want to buy Mumias instead of Sugar. Kenyan market for consumer item is Brand base market. Not a pricebase market. Even other brand are cheper by 2-3 bob, consumer will prefer Mumias. They says Mumias is sweater then other sugar.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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West Kenya Sugar is PRIVATELY owned & the most profitable sugar miller in Kenya [I need to find the source]... When I say profitable... I mean highest margins... Mumias is much larger but West Kenya is expected to be a strong bidder for the assets/farms/millers for sale... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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VituVingiSana wrote:West Kenya Sugar is PRIVATELY owned & the most profitable sugar miller in Kenya [I need to find the source]...
When I say profitable... I mean highest margins... Mumias is much larger but West Kenya is expected to be a strong bidder for the assets/farms/millers for sale... @VVS do you honestly think anyone will outbid Mumias for government assets... I mean this west sugar your saying probably doesn't even make 200million in profit... So no matter How good their margins are the bigger i don't see them touching anything Mumias sets its eyes on Mark 12:29 Deuteronomy 4:16
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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I stand corrected. The more white sugar is, the more refined it is. The more refined it is, the worse it is for health??
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@VVs, You could be right on the margins.WK has no cane fields and encourage farmers to do their thing and only buy cane at their gates.They are saved a lot of logistics and expenses.....That's why i warned Mukiha that he might be buying sugar from poached cane.......The biggest threat to the survival of WK though is the upcoming Butali Sugar just a couple of miles down the road. @GG, Spot on.Chrystal clear sugar has very low nutrients.You can't sell that stuff to any European country....and hey,most sugar companies are moving ahead with sugar fortification which i am made to understand might be made mandatory by the government in the near future.To this end,Sony Sugar and Mumias are ahead of the pack. @Guru, MSC may have the money to buy any plant in Kenya.The process of privatization though,is by competitive bidding.I think the biggest threat comes not from within but from multinationals such as Illovo SA and ISGEC India....ISGEC is another Bharti and yes,they are already in the country in the form of Kibos Sugar. Nothing great was ever achieved without enthusiasm.
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Rank: New-farer Joined: 6/22/2010 Posts: 16 Location: Westlands
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MSC vs Kabras sounds like EABL vs Keroche. There is nothing like making money, you have to earn it.
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Something about Butali and West Kenya www.standardmedia.co.ke/...0021035&cid=457&GOD BLESS YOUR LIFE
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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polymer1 wrote:MSC vs Kabras sounds like EABL vs Keroche. That's what they said about Kasuku Vs Kimbo and Equity Vs Kenya's Big5 Banks Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Mukiha, May be the sugar was bleached?
Can someone tell me why MSC does not produce industrial sugar such as the one used to sweeten coke?Coca-cola would be a ready market..?
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@Chaka, Our archaic laws...ABK!!.All sugar companies in Kenya have licenses for mill white sugar. Nothing great was ever achieved without enthusiasm.
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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how big is kabras as compared to MUMIAS. the figures speak for themselves. even the other sugar miller that are not 'peforming (nzoia, chemilil, miwani etc) are far much more than it African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Equity was small 10 years ago... So don't write off West Kenya... Perhaps they should 'merge' with Butali to become the most efficient sugar miller... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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guru267 wrote:VituVingiSana wrote:West Kenya Sugar is PRIVATELY owned & the most profitable sugar miller in Kenya [I need to find the source]...
When I say profitable... I mean highest margins... Mumias is much larger but West Kenya is expected to be a strong bidder for the assets/farms/millers for sale... @VVS do you honestly think anyone will outbid Mumias for government assets... I mean this west sugar your saying probably doesn't even make 200million in profit... So no matter How good their margins are the bigger i don't see them touching anything Mumias sets its eyes on As we come up to the 5-year anniversary of this post. Yes, @guru267, I honestly thought West Kenya can outbid Mumias for GoK assets. Yes, @guru267, West Kenya can touch anything Mumias has set its eyes on. Yes, @guru267, a profit of 200mn is better than a loss of 3bn. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Njung'e wrote:@Mukiha, The price per kg??.....Anyway,they produce a fraction of what MSC does (Less than 7 tonnes per day compared to MSC's 900 tonnes a day).....and watch out!You might be buying a product made from stolen raw materials....lol 5 years down the line. @njunge What's West Kenya's production now? What's Mumias production now? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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VituVingiSana wrote:Njung'e wrote:@Mukiha, The price per kg??.....Anyway,they produce a fraction of what MSC does (Less than 7 tonnes per day compared to MSC's 900 tonnes a day).....and watch out!You might be buying a product made from stolen raw materials....lol 5 years down the line. @njunge What's West Kenya's production now? What's Mumias production now? Small and they have no cane of their own .Most of their sugar is imported and re-packaged within their premises.Makora business if you know those Karasingas.They joined the race with criminal minds but i can tell their time is up. MSC may not be doing well,but trust me,they are at the beginning of a fine nice run going into the next two years. What did i just say? Nothing great was ever achieved without enthusiasm.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Njung'e wrote:VituVingiSana wrote:Njung'e wrote:@Mukiha, The price per kg??.....Anyway,they produce a fraction of what MSC does (Less than 7 tonnes per day compared to MSC's 900 tonnes a day).....and watch out!You might be buying a product made from stolen raw materials....lol 5 years down the line. @njunge What's West Kenya's production now? What's Mumias production now? Small and they have no cane of their own .Most of their sugar is imported and re-packaged within their premises.Makora business if you know those Karasingas.They joined the race with criminal minds but i can tell their time is up. MSC may not be doing well,but trust me,they are at the beginning of a fine nice run going into the next two years. What did i just say? I can't see Mumias as an investment. Not yet. I look at Mumias, NBK, KQ, Uchumi from a MINORITY SHAREHOLDER's perspective and I can't see value as a long-term investor. KK disappointed me in 2012 but there was no 'bailout' and imposition of managers or politics. I do not think bailouts for any of these businesses will benefit me [minority shareholder] in the long term compared to other opportunities eg Unga, KK, Equity. Back to Mumias. David Ndii said that the current model [smallholder] is doomed for sugarcane. An article in yesterday's Nation quoted an 'expert' who said smallholder cane cultivation wouldn't work i.e. not competitive to plantations. Do you think the Minority Shareholder will benefit from the turnaround? Why the 2 years? What's different this time?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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