East Africa’s leading dairy firm Brookside Dairy is in a pole position to buy majority shares in Inyange Industries.  

Inyange, Rwanda’s leading food processing company, is in talks with the Kenyan dairy firm to sell a 51 per cent controlling stake in a bid to expand its operations to East African region.

Crystal Ventures Ltd, an investment arm of ruling party Rwanda Patriotic Front, owns Inyange.

The management of Crystal Ventures has confirmed the talks between the two companies although details are still scanty.

“Talks between the two companies are ongoing although right now the information is still confidential,” said Jack Kayonga, chairman of Crystal Ventures’ board of directors.  

Inyange, with current investment of up to $70 million, will lose the decision-making role should it retain 49 per cent.

The firm is engaged in three main production lines: Milk, water and juice, and hopes to take this advantage to the region since it is one of the few companies  in East Africa manufacturing the three products at one ago.

The takeover is expected to build the company’s capacity in terms of expertise and financial resources in its quest to expand in the region.

READ: RPF’s Crystal Ventures to sell off over 50pc stake

Crystal Ventures is estimating to raise over $120 million when the deal is signed.  

Previously, Brookside and Inyange have been working with the Ministry of Agriculture and Animal Resources to seek partnerships — improve quality of milk and access to markets. Brookside has presence in Uganda, Tanzania and Kenya.

Brookside hopes to offer services such as artificial insemination, animal feeds, hygiene and milk processing equipment.

Brookside will be working with Agriculture Ministry and the Rwanda Agriculture Board to develop a Rwanda Herd Book so that farmers can trace breeds with ease.

School feeding programmes

The firm is also interested in Rwanda’s school feeding programmes as the government supplies milk to all pupils.

Inyange argued that holding 100 per cent in an enclosed market is no longer profitable and retaining 49 per cent in an expanded firm generates revenue. The food processor intends to reinvest the proceeds to produce more products.

The diversification will mostly target mineral water products, which will see introduction of different types like table water, carbonated water and flavoured water.

Inyange is currently producing below capacity, at less than 70 per cent, and with more capital investment, it expects to increase its production capacity.