Ethiopia: Kangaroo Plast Group to set up a beer factory in Modjo
Kangaroo Plast Group PLC has set its sights on yet another industry, with preparations to begin construction on a new brewery in Modjo of the Oromia Regional State, according to Addis Fortune, April 17.
The project, with a 200 million Br capital, was begun a year and a half ago, and is expected to begin construction in six weeks. Anticipating a construction span of a year and a half, the factory will have the capacity to produce 300,000 hectolitres (hctl) of beer a year.
Offering job opportunities to 300 people, the factory is expected to increase its capacity to 500,000hctl after a year of production.
"Modjo is the centre of distribution for the South Eastern and Central parts of the country," Minwuleyet Melak, technical manger of the project told Fortune, "It has reliable water resources with high quality."
Modjo is better known for its leather and textile factories as there are six leather factories currently involved in production and export while three are under construction in the same area.
Modjo also offers five textile factories, one that is operational and four that are in developmental stages.
There are five beer factories in Ethiopia, Meta Abo, Harar, Bedele, Dashen and BGI Ethiopia. The first three are state owned, while the other two are owned by private investors.
The factories have a capacity of producing 3.5 million hectolitres a year. Their combined monthly production is 10 million hectolitres with their annual income standing at 380 million Br in the 2005/2006 fiscal year.
The leading brewery in the country is BGI Ethiopia, with the capacity to produce 10 million litres a month and an annual turnover of 45 million dollars.
Sector experts explain that the demand for beer in the country is on the rise because the existing breweries have not been able to saturate all the markets that are available in the country.
"The beer supply in this country does not match the current demand and if the new factory works hard on the market they might be able to get a substantial market share," an expert in the sector told Fortune.
Studies indicate that Ethiopia would be able to cater to three additional large scale beer factories with similar production capacities to the ones that are currently in the market before meeting the high level of demand.
Kangaroo Plast Group PLC is one of the eight subsidiary companies under Kangaroo Industrial Group founded by Yirga Haile and Family. The family conglomerate is involved in a number of different sectors with Universal Foods, Enyi Ethiopia Rose, Enyi Construction, 3F Furniture, Kangaroo Foam and Palm Ethiopia all under its umbrella.
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