How will this new venture on the share of this once a blue chip company?

Link

Sukari, maji, maziwa next they will venture into tea leaves to make a complete cup for the lean cold season..

You know once Samsung was a sugar farming company just like Mumias. Rink >>http://en.wikipedia.org/wiki/Samsung .its called evolution and change ...biashara should not be static

I don't own Mumias. I am not sure if I want to own any yet. Nevertheless, it makes sense to be vertically & horizontally integrated.

Mumias buys sugarcane to produce sugar but has many by-products.
1) The waste (bagasse) used to thrown out but is now used to produce power by burning it as a fuel source. A pity about having less cane than they planned to.
2) The molasses was sold off cheap. Now it is used to make ethanol a high value by-product.
3) Water is simply a by-product of steam they produce a lot of due to the need for steam boilers. It has been 'distilled' so why not bottle & sell it?
4) Milk processing is a stretch but if the cows are fed on 'waste plant material' generated on the farm then the milk is a by-product. Plus cows produce manure which can be added back to the soil.

So except for milk, the rest makes sense. Perhaps Mumias needs to partner with an experienced alcoholic manufacturer to produce alcoholic drinks since Mumias produces ethanol a key ingredient. In addition, many mixed drinks [e.g. Smirnoff Ice, Breezer, etc ] contain sugar & water.

The core business is Sugar Milling. The others [except Milk Processing] are related businesses. The 'power' is also used to run the boilers which drive the Sugar Milling machinery.

Bidco manufactures/refines oils/fats. The 'waste products' from vegetable oil refining is used to produce soap & detergents. It adds value to a 'waste' that would have to be hauled away or destroyed.

ARM is going to produce power from coal. The power will be used internally for cement production as well as sold to KPLC. The ash [waste] from coal can be used as an ingredient in cement production.

Of course says Captain Obvious. And Warren Buffett. And VVS. And most Wazuans.

If the long-term return of these businesses is less than their Marginal Cost of Capital... [Not to mention variable costs]