Investment ProfilE 2017
Making life more comfortable through sound investments
welcome Our desire and plan is to make transformational investments in sectors that have a high potential in touching and changing the livelihoods of communities while at the same time increasing shareholder value and making good returns on their investments.
We have come a long way and still have a long way to go
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HoneyPlus Holdings Public Limited Company
table of content 01 | Who We Are
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02 | PREAMBLE
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03 |BOARD MEMBERS
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04 | The HoneyPlus Agenda
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05 | Honeyplus model
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06 | Namelok Dairies Ltd
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HoneyPlus Holdings Public Limited Company
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WHO WE ARE
HoneyPlus Holdings Plc. is an investment Company owned by 100 shareholders (‘The HH100’) and whose aspiration is to make transformational investments in sectors that have a high potential in touching and changing the livelihoods of communities. We believe we never lose lights from our candles by lighting other people’s candles.
our Mission To create distributable wealth through value adding investments across Africa
our vision Millions of lives transformed through impactful investments
Core Values •• Integrity •• Excellence •• Caring
Investment Pillars •• Manufacturing (Food Processing) •• Mining & Value Addition •• Energy & Petroleum •• Financial Services (Finance & Insurance)
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HoneyPlus Holdings Public Limited Company
PREAMBLE
In a world of 7 billion people, competing for resources has become a common game across continents as individuals and corporates crisscrosses oceans in search of growth and better opportunities. From airlines to mining, manufacturing to provision of services, interconnectivities to financial services, no sector has been left out in the quest for growth and success. Corporates are stretching themselves beyond imaginable levels while individual’s scheme better strategies including pulling of resources to harness run-away opportunities because of seed capital. In Africa, the same game is played and like everywhere around the world, the players are not only local but international. China has become a partner of choice to many governments and now private sector. Japan held her sixth Economic Development for Africa in Nairobi (interestingly, the previous five meetings about Africa were held outside Africa). America has come knocking and so has the European Union. Others that have come include India, Malaysia, Iran, Brazil …all scrambling for a piece of Africa’s economic pie. While the world is courting Africa, Africans on their part are slowly emerging in their hoods and sticking their necks out. Never before have Africans taken charge of their destiny as they are doing now and it will even get better as time goes by. 10 years ago, Forbes’ 1000 richest men in the world did not include anyone in Africa. Today, there are several including in the top 100 with their riches earned in Africa. This is great news for the continent! Over the next 25 years, the transformation of Africa by Africans will be tremendous! Currently there is a huge focus on infrastructure that will lead to economic boom in areas such as agriculture, mining, petroleum, manufacturing, financial services ….almost in every sector, there is tremendous activity signaling good economic fortunes ahead. Kenya for instance has gone big on infrastructure development spanning from geothermal power projects to petroleum, from road network across the country to the Standard Gauge Railway and massive devolved economic systems powered by the 47 County Governments. To harness the potential in Africa and Kenya in particular, HoneyPlus Holdings Plc (a new baby in the block) was incorporated in 2015 under the collective investment platform to pull resources specifically for value-added investment projects. In the next 10 years, HoneyPlus Holdings Plc will endeavor to have investments in four (4) critical sectors i.e. manufacturing (especially food processing), mining & value addition, energy & petroleum and in financial services. HoneyPlus Holdings Public Limited Company
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Board Members
Kingston is currently the Head of Media at Christ is the Answer Ministry (CITAM). He sits in the boards of Lan-x Africa Ltd, and Alpha Kenya. Founder of the summit Center of Leadership, Director First Leadership He has a Masters in Organizational Leadership.
Mr. Kingston Ogango, Chairman
Dr. Hellen Nyambura Kariuki Dr Hellen’s expertise combines strong leadership, academic, program management, training and research background with in depth knowledge of Medical Physiology, Health and Wellness and Palliative Care She has a PhD. in Medical Physiology, MSc, Medical Physiology, University of Nairobi Bachelor of Dental Surgery, University of Nairobi
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Joel K. Terer Joel Terer holds an M.A in Economics and Cooperation from BKD University and Bachelor of ArtsEconomics and Sociology from Agra University. Terer has attended various courses related to Administration and Records management together with Promotional CoursesSenior Management Course (SMC) and Strategic Leadership development Programme (SLDP) from Kenya School of Government among others
HoneyPlus Holdings Public Limited Company
Bosire, Faith Grace Wanjiku Faith is a professional accountant of more than 15 years with vast exposure in accounting, auditing, taxation, administration and lecturing for more than 15 years of experience. She holds a Bachelor of Commerce degree Accounting and Auditing, Master of Commerce – Financial Management, Diploma in Investment Management and Development Banking, Diploma in Computerized Accountant, and she is a Certified Public Accountant (CPA-K). She is currently an Audit Consultant at Henry Smith and Wilson.
David M. Tanki, Founder & CEO
Mr. Tanki is the Executive Director of Lan-x Africa Limited, a company he founded in 2004 and Maximex Solutions Ltd (Founded in 2012). He seats in the Board of FEP Holdings Ltd where he serves in the Finance & Investment Committee and also in the Audit, Risk and Compliance Committee. In addition, he is in the Board of Regent Group where he serves as the Chairman. He is a holder of a B.Com degree (Accounts Option) and MBA in Finance with a Post Graduate in Management Information Systems from Maastricht School of Management, Netherlands. Mr. Tanki is a Business Improvement and Strategy Consultant for a number of Eastern Africa’s blue-chip companies and has more than 15 years’ experience in consultancy and working in senior management position of various multinationals including NCR (K) Ltd and AT&T
Julius Tom Ekwenye
Mrs. Noami NgigiOdongo Naomi is a seasoned Human Resources practitioner with over 15 years of experience in various HR roles in multinational companies among them Coca-Cola Beverages Africa, World Vison East Africa Regional Office and Kenya Airways Ltd. She is a Certified Executive Coach with the Academy of Executive Coaching and is passionate about Talent and Capability Development. Naomi holds a Master’s Degree in Business Administration from Jawaharlal Nehru Institute of Business Management, Vikram University, India.
Julius is an Expert / consultant in Leadership with a bias organizational development. He holds a Bachelor’s Degree in Business Administration, Master’s degree in Management and Leadership (MML) from the Management University of Africa (MUA) and is currently a PhD student in the same university. In addition, he is a Certified Public Accountant II from Strathmore and works as the Managing Director – Current Customs Ltd, an Advertising Agency since 2000.
HoneyPlus Holdings Public Limited Company
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The HoneyPlus Agenda
Economic Overview Kenya’s economy has grown steadily in the last 4 years at an average of 5.825 (2013-5.6%, 2014-6.1%, 20155.7% and 2016-5.9%) driven mainly by construction (infrastructure) sector, finance & insurance and agricultural sectors. Although the National Treasury reported that Kenya had a fiscal deficit of 8.7% of GDP in FY15 and almost the same value in 2016, the country has one of the more developed domestic debt markets in Africa, with the government raising its deficit financing domestically without having to tap the international Eurobond or sovereign debt markets in the fiscal year 2016/17. According to the Moody’s Report, Kenya’s liquidity pressures are expected to remain manageable in 2017. Kenya targeted to raise KES. 226 billion from the domestic market in the fiscal year 2016/17 and KES. 287 billion from the external market. Estimates by Cytonn Investments show that by the end of 2016, the government was ahead of target on domestic borrowing, having taken up Sh169 billion. The Agricultural Sector Agriculture dominates the Kenyan economy, accounting for 75 percent of the workforce and about 25 percent of the annual GDP. The country’s major agricultural exports are tea, coffee, cut-flowers, and vegetables. Unfortunately, Kenya’s high rainfall areas constitute about 10% of Kenya’s arable land, and produce 70% of national commercial agricultural output. Farmers in semi-arid regions produce about 20% of the output while the arid regions account for the remaining 10%. Productivity remains relatively low in all the regions due to poor incentives, and underdeveloped supporting infrastructure and institutions. Since 2013 Kenya has been undertaking agricultural sector reforms that are expected to spur growth. A new regulatory framework, arising from the consolidation and harmonization of the sectoral laws is under implementation.
The Dairy Industry The dairy industry in Kenya is one of the largest and sophisticated in Africa. With an estimated 5 billion litres of milk produced in the country, the dairy industry is an important player in the economic and nutritional aspects of the Kenyan population. This industry accounts for 14% of agricultural GDP and 6-8% of the country’s GDP. According to USAID the industry generates an estimated more than 1 million jobs at farm level and an additional 500,000 in direct waged employment and another almost 750,000 jobs in support services.
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HoneyPlus Holdings Public Limited Company
Dairy sector is a vital sector in poverty alleviation in both the rural and urban areas as it contributes to food and nutritional security and increased household incomes. Kenya’s 1 million stockholders keep the largest dairy herd in Africa (larger than South Africa) according to Jimmy Smith, Director of ILRI. The industry contributes about USD 2 billion to the country’s GDP, according to USAID, considering the sector includes farmers, traders and vendors, collection centres, processors, and retailers. The Rift Valley and Central regions produce the bulk of the milk in the country. However, other regions, including Eastern, Nyanza and Western regions also produce significant quantities of milk. Kenya has an estimated herd of 3.5 million improved dairy animals, 9 million zebus, 12 million goats, and 900,000 camels. Cattle account for 88% of the milk produced whereas camels and goats account for the rest. The country is unique in Africa, producing enough milk for local consumption and exporting some products to a number of countries. Of the total milk produced, about 60% is marketed through traders, cooperatives, hotels and kiosks. An estimated 84% of the milk produced is sold in raw form to consumers ranging from rural to urban dwellers, according to the Regional Dairy Centre of Excellence (RDCoE). Milk Processing The dairy processing industry in Kenya is dominated by a few big processors and a high number of smaller and medium operators. Though the number of licensed dairies is higher, about 40 dairies are actively producing and availing their products through the normal retail channels in a significant manner. Latest figures show that there are 4 big dairies processing above 100,000 litres per day. These dairies include Brookside, New KCC, Sameer Agriculture & Livestock and Githunguri Dairy Cooperative Society. Other medium level dairies processing less than this amount but with a significant intake include Kinangop, Meru Dairy Cooperative Society, and Kabianga Dairy. Smaller specialist dairies include Bio Food Products, Razco Ltd, Raka Cheese, Brown’s Cheese and Alpha Dairy. Fresh liquid white milk is the predominant milk product produced in Kenya, accounting for the 60-70% of the total production. Ambient temperature long shelf life products are also widely produced by the big dairies, especially in their attempt to mop out excess milk during the flush periods. High value products including flavoured milk, yoghurt, cultured milk (known locally as Maziwa lala), butter, ghee and cream are produced by a majority of the medium to large scale dairies. Most of the smaller specialist dairies produce yoghurt, cheese and ice cream, exclusively or with a few other products.
HoneyPlus Holdings Public Limited Company
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The industry contributes about USD 2 billion to the country’s GDP, according to USAID
Dairy sector is a vital sector in poverty alleviation in both the rural and urban areas as it contributes to food and nutritional security and increased household incomes. Kenya’s 1 million stockholders keep the largest dairy herd in Africa (larger than South Africa) according to Jimmy Smith, Director of ILRI. The industry contributes about USD 2 billion to the country’s GDP, according to USAID, considering the sector includes farmers, traders and vendors, collection centres, processors, and retailers. The Rift Valley and Central regions produce the bulk of the milk in the country. However, other regions, including Eastern, Nyanza and Western regions also produce significant quantities of milk. Kenya has an estimated herd of 3.5 million improved dairy animals, 9 million zebus, 12 million goats, and 900,000 camels. Cattle account for 88% of the milk produced whereas camels and goats account for the rest. The country is unique in Africa, producing enough milk for local consumption and exporting some products to a number of countries. Of the total milk produced, about 60% is marketed through traders, cooperatives, hotels and kiosks. An estimated 84% of the milk produced is sold in raw form to consumers ranging from rural to urban dwellers, according to the Regional Dairy Centre of Excellence (RDCoE). Milk Processing The dairy processing industry in Kenya is dominated by a few big processors and a high number of smaller and medium operators. Though the number of licensed dairies is higher, about 40 dairies are actively producing and availing their products through the normal retail channels in a significant manner. Latest figures show that there are 4 big dairies processing above 100,000 litres per day. These dairies include Brookside, New KCC, Sameer Agriculture & Livestock and Githunguri Dairy Co-operative Society. Other medium level dairies processing less than this amount but with a significant intake include Kinangop, Meru Dairy Cooperative Society, and Kabianga Dairy. Smaller specialist dairies include Bio Food Products, Razco Ltd, Raka Cheese, Brown’s Cheese and Alpha Dairy. Fresh liquid white milk is the predominant milk product produced in Kenya, accounting for the 60-70% of the total production. Ambient temperature long shelf life products are also widely produced by the big dairies, especially in their attempt to mop out excess milk during the flush periods. High value products including flavoured milk, yoghurt, cultured milk (known locally as Maziwa lala), butter, ghee and cream are produced by a majority of the medium to large scale dairies. Most of the smaller specialist dairies produce yoghurt, cheese and ice cream, exclusively or with a few other products.
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HoneyPlus Holdings Public Limited Company
Investment Opportunities Kenya’s Vision 2030 outlines a number of investment opportunities almost covering all the sectors of the economy. The survey released by New World Wealth earlier in April 2017 presented specific investment opportunities that have created the most millionaires in Africa over the last 10 years. Kenya’s Embassy in Berlin has also documented investment opportunities that they use to attract investor from Germany to Kenya. Some of these investment opportunities are in the following sectors of the economy: -
The Energy Sector especially in solar power and electricity generation
Manufacturing Sector especially in agricultural produce including fertilizers
Education sector
Tourism sector including hotel, accommodation and conferences
Information and Communication sector
Infrastructure development
Almost every sector presents innumerable opportunities that HoneyPlus can quickly tap into as it seeks to enhance shareholder value.
Financial services and insurance
HoneyPlus’ Strategy Our desire and plan is to make transformational investments in sectors that have a high potential in touching and changing the livelihoods of communities while at the same time increasing shareholder value and making good returns on their investments. We look for investments whose payback time is within 5 years and preferably 3 years before HoneyPlus launches into long term investments. HoneyPlus Holdings Plc. will during this period also make investments where it will have controlling stake and or where there is potential to control at more than 51% and preferably 80% provided the other 20% is held by locals where the investment is done. HoneyPlus Holdings Public Limited Company
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HONEYPLUS MODEL
Fig. 1.1 Investment Structure
Fig. 1.2 Investment Structure
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HoneyPlus Holdings Public Limited Company
Fig. 1.3 Investment Structure
We have began with milk and in the near horizon is coconut and cooking oil both of which HoneyPlus Investment Team to be led by the Finance, Investment & Strategy Committee of the Board will immediately embark on completing the preliminary studies to enable us launch one in 2018.
HoneyPlus Holdings Public Limited Company
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Namelok Dairies Ltd Namelok Dairies Ltd is the first of the investments to be carried out by the company with the processing plant located in Mulot area of Narok County. It is a state of the art fully automated milk processing plant with capacity to do Fresh Milk, UHT Milk, Yoghurt, Flavored Milk etc. Over the next three years, our intention is to reach a maximum processing capacity of about 200,000 liters of milk every day to reach no lesser than 60 million liters of processed milk annually and making no lesser than KES. 5 billion in revenue per year.
Mission
VISION
CORE VALUES
To transform lives through sustainable milk business
To be a leading producer of healthy and innovative milk solutions
Innovative & Inexcusable Actions: Namelok commits to a high degree of product, process and market innovation driven by inexcusable actions Contagious Actions with Excellence: Namelok commits to a high level of excellence – the kind that is admirable and sought for Drinking Healthy with Fun: Making health to be fun is Namelok’s ultimate DNA and ensuring that people take healthy drinks for which milk is in the frontline Passionate Engagement: Namelok shall endeavor to have passionate and committed employees everyday through the year
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HoneyPlus Holdings Public Limited Company
Officials of Namelok exploring the model to farmers
The Bishop leading in prayer for the ground breaking
Mr. David Tanki explaining to Governor Tunai the model of the Namelok Milk Processing Plant
Governor Tunai leading the ground breaking event processing plant
HoneyPlus Holdings Public Limited Company
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The Crescent Road +254 20 2319612 | +254 20 2166058 | +254 716 385 500 Email: info@honeyplus.co.ke | Website: www.honeyplus.co.ke