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Capwell commissioning a Sh1 billion wheat flour plant this June.

Thika-based Capwell Industries Limited (CIL) is setting up a Sh1 billion wheat flour plant as it embarks on an expansion drive that will see the firm introduce more products in the market.

The new plant, which will have a 250 tonne daily capacity, will comprise pre-cleaning equipment and a storage silo with a capacity of 15,000 tonnes.

According to Capwell CEO Rajan Shah, The plant, which is due for commissioning before the end of this financial year, will have a 300-tonne daily milling capacity compared with the current one in use that has 250 tonnes.

“We shall be commissioning the new wheat plant in June,” said Rajan.

(See also: Capwell Industries Joins The 40 Companies In Kenya With HACCP Certification On Food Safety Management Systems.)

The company, popular for its Soko Unga brand, has been building new plants in the last couple of months in a move that is set to increase competition.

Capwell recently introduced a new high-end maize flour brand, Amaize, which brings competition to Unga’s Hostess. They also make Ranee, Pearl and CIL rice, Soko porridge flour, pulses, spaghetti and pastas.

Amaize flour, which sells at Sh142 for a two kilogramme packet, brings stiff competition to Unga Group’s premium flour Hostess. The flour hit the market in March this year and has already seen the price of Hostess, which has been retailing at Sh149, cut to Sh142 for a two-kilo packet.

These developments come at a time when Unga Group is about to commission the newly installed wheat mill in Eldoret as it seeks to improve efficiency in milling to meet growing demand and cut down on production cost.

CIL started its operations in 1999 with a modern maize milling factory in Thika Town, manufacturing high quality flour, rice pulses and porridge, using the best processes and technologies available.
It has since diversified its operations to rice milling, porridge milling, packaging of wheat flour and distribution of fruit juice.

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