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MSC Growth strategy .
selah
#1 Posted : Monday, July 29, 2013 12:53:31 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
Mumias sugar has embarked on a very risky but high return venture if well executed.

The news I am getting is that one is just required to buy water worth 10k then you are given a fridge/cooler ....the way Coca-cola does it.

Some distributors are asking for a 2k registration fee....although I suspect these are just cartels exploiting the lack of proper communication from MSC.

If this strategy works Mumias water might win a very big market for it self.

Combined with the ethanol production I think Mumias might give a good return than most stocks in the coming years.

'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
mwekez@ji
#2 Posted : Monday, July 29, 2013 1:14:35 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
If i remember well, the impact of water on Mumias bottom line is marginal. Correct me if otherwise
selah
#3 Posted : Monday, July 29, 2013 1:26:58 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
mwekez@ji wrote:
If i remember well, the impact of water on Mumias bottom line is marginal. Correct me if otherwise


The launch of the water I believe has not been done officially the production started this year if am not wrong the potential for this business is huge.

I think with their new marketing strategy and their unique production system....where I think the water is produced using steam....MSC have a chnce of utilising their sugar distribution network to carve a niche for this new product.


'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
mwekez@ji
#4 Posted : Monday, July 29, 2013 2:35:14 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
selah wrote:
mwekez@ji wrote:
If i remember well, the impact of water on Mumias bottom line is marginal. Correct me if otherwise


The launch of the water I believe has not been done officially the production started this year if am not wrong the potential for this business is huge.

I think with their new marketing strategy and their unique production system....where I think the water is produced using steam....MSC have a chnce of utilising their sugar distribution network to carve a niche for this new product.




@Selah, the water plant was commissioned in June 2012. In the period to Dec 2012, it contributed KES 10M only out of the total revenue of KES 5.4B. The water business is currently very competitive with water companies coming up with all sorts of product differentiation. You may now understand my reason of not being enthusiastic about the water business. If they have a plan on how to grow the sugar business and makes money out of it, then that will get many interested …. What become of Tarda project?
selah
#5 Posted : Monday, July 29, 2013 3:05:49 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
As a new product line it was expected the return would be suppressed but going forward there is no reason why Mumias water shld not have a big chunk of the market.

Mumias has a very impressing supply chain which most water companies dont have....The extent of its reach and the Mumias brand will offer it the competitive advantage to calve a niche for itself.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
murchr
#6 Posted : Monday, July 29, 2013 4:13:47 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
selah wrote:
As a new product line it was expected the return would be suppressed but going forward there is no reason why Mumias water shld not have a big chunk of the market.

Mumias has a very impressing supply chain which most water companies dont have....The extent of its reach and the Mumias brand will offer it the competitive advantage to calve a niche for itself.


Better than cocacola's dasani? Really??..Just don't hold your breath.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
selah
#7 Posted : Monday, July 29, 2013 4:24:26 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
murchr wrote:
selah wrote:
As a new product line it was expected the return would be suppressed but going forward there is no reason why Mumias water shld not have a big chunk of the market.

Mumias has a very impressing supply chain which most water companies dont have....The extent of its reach and the Mumias brand will offer it the competitive advantage to calve a niche for itself.


Better than cocacola's dasani? Really??..Just don't hold your breath.


I am not saying Mumias water will control the market...or beat dasani...on the contrary ...I think mumias will calve it own niche...it will depend on the positioning of the product.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
murchr
#8 Posted : Monday, July 29, 2013 4:35:35 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
selah wrote:
murchr wrote:
selah wrote:
As a new product line it was expected the return would be suppressed but going forward there is no reason why Mumias water shld not have a big chunk of the market.

Mumias has a very impressing supply chain which most water companies dont have....The extent of its reach and the Mumias brand will offer it the competitive advantage to calve a niche for itself.


Better than cocacola's dasani? Really??..Just don't hold your breath.


I am not saying Mumias water will control the market...or beat dasani...on the contrary ...I think mumias will calve it own niche...it will depend on the positioning of the product.


Numbers don't lie
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
dave.kim
#9 Posted : Monday, July 29, 2013 5:00:32 PM
Rank: Member

Joined: 6/25/2010
Posts: 176
Remember all these other ventures are a bi-product of sugar production. What they need to do is find a way of dealing with the dwindling harvest
Rule No.1 is never lose money. Rule No.2 is never forget rule number one
Gordon Gekko
#10 Posted : Monday, July 29, 2013 5:42:58 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
Dasani have just launched sparkling water.....
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