Sasini Group plans to invest more than Sh600 million in new projects in a bid to diversify its sources of income in the next three years, the listed plantations firm announced on Friday.
Chairman Naushad Merali said the cash will be injected into avocado export business, dairy and macadamia subsectors.
The company in December announced plans to set up a Sh530 million macadamia processing plant on a 20-acre farm next to its coffee mill in Kiambu, and an embryo production centre at Mweiga farm.
An additional Sh50 million seed capital has been set aside to fast-track an avocado export business pilot project, Merali said. The avocado pilot project will set the stage for a multi-million-shilling modern factory from next year.
“The board, in pursuit of strategic directives, continued to restructure the company operations by disposing off non-performing assets to strengthen its balance sheet and profit from its new investments,” Merali said.
Addressing farmers during the firm’s 65th annual general meeting at Ndumberi farm, Kiambu, on Friday, Merali said the planned construction of the macadamia factory was on course. The plant is expected to be completed by January 2018, and commissioned in February.
“In its diversification strategy, the company has broken ground for the construction of a macadamia nuts processing factory in its Kiambu farm and encouraged its coffee farmers to plant the crop,” he told investors. “The rationalisation of the dairy herd, the embryo programme and the biogas plant are ongoing as planned.”
The tea and coffee grower, processor, warehousing and marketer’s full-year net profit for period through September 30 fell by 30.74 per cent to Sh761.85 million from Sh1.10 billion, it reported in financial statement in January. Gross revenue, however, increased by 27.96 per cent to Sh3.57 billion from Sh2.79 billion the year before.
The company has aggressively embarked on inter-planting macadamia with coffee bushes, a programme Merali said will not compromise on coffee production.
“We anticipate to generate a further Sh300, 000 per ha from this venture within the coming six years when we shall be at optimal production of macadamia nuts,” he added.
Merali said the company targets to produce at least 200,000 kilogrammes of macadamia seedlings every year, which will be sold to farmers at subsidised prices.
Sasini, he said, has more than 25,000 seedlings ready for sale to farmers before the end of this month at Sh300 per seedling which is below the current prices being offered by its competitors in the market.
Agriculture PS Richard Lesiyampe said the national government will from next year seek to partner with Sasini in a bid to sell the seedlings at a subsidised price of Sh200.