DRAFT PROPOSAL

GROUP ASSIGNMENT

CONESTOGA COLLEGE
Table of Contents
COMPANY ANALYSIS........................................................................................................................................... 2
COUNTRY ANALYSIS............................................................................................................................................ 2
COMPETITION..................................................................................................................................................... 2
PROPOSED MARKET ENTRY STRATEGY................................................................................................................ 2
WHY DID YOUR GROUP CHOOSE THIS STRATEGY?............................................................................................... 3
RISKS.................................................................................................................................................................. 3
ROLES AND RESPONSIBILITIES OF EACH TEAM MEMBER......................................................................................3
Executive Summary
A nominal processing rate of 6000 t/day is used at some stations, while the actual processing rate
is 1000 t/day at others. The factory's current operating capacity is 1100 t/day, but an expansion to
a processing capacity of 5000 t/day and the generation of excess electricity are both planned for
Kakira sugar factory (and perhaps fuel ethanol). The Dorr clarifier (22-foot diameter, low juice
level, installed in 1950) began having operational problems in 1989, thus the juice clearing
process was modified: phosphate concentration was increased to 300 mg/litre, 3 p.p.m. Juice and
inflow rate were stabilised after adding Magnafloc LT-27. This just made a small difference.
After installing a larger flash tank with a U-siphon at the entrance of the clarifier, the
performance significantly improved and was maintained for two seasons. The 1991/92 season
was plagued with issues, and the impacts of subsequent modifications are documented. To make
sugar from a single-sulphitation process equal to that of plantation-grown white sugar, simple
defecation and single sulphitation of syrup were used.

Company Information
In East Africa, this is where the company began and where it continues to thrive. Under the
Group's administration, US$ 60 million in finance from the World Bank, African Development
Bank, and Uganda Development Bank was secured for the Kakira sugar complex refurbishment.
Through a 10.5-month season, a sugar factory's crushing capacity has expanded significantly
over the last decade. Today, 6,000 tonnes of cane per day ["TCD"] are crushed. A candy factory
on the site produces sweets and toffees, as well as other confectionery items.
Uganda's largest sugar producer, the company's nucleus estate grows more than 9,700 ha of
sugarcane while 6,000 outgrower farmers supply the rest with more than 18,000 ha of cane,
making this the largest sugar producer in the country. Kakira's agricultural development
necessitated the construction of a sugarcane nursery for processed seed cane, as well as an
Agronomy Section and an Applied Research Center by the company (1).

The company, which employs around 7,500 people, has played a significant role in the economic
development of the rural town. Additionally, Kakira's actions aid outgrower farmers, cane
transporters, and other supporting and ancillary industries. The Ugandan government's attempts
to eradicate poverty have benefited greatly as a result of this. The Kakira Sugar Works employs
about 75,000 people in Uganda's South Busoga district. According to the World Bank and the
African Development Bank, the Kakira dam rehabilitation is one of the continent's most
successful projects. An excellent case study of how a corporation might prosper under private
sector leadership. This accomplishment perfectly exemplifies the Madhvani Group's sugar
industry success.

This year Kakira has completed an ambitious phased increase of its crushing capacity to allow it
to generate more than 150,000 tonnes of sugar annually. Expansion in agricultural land use is an
important aspect of the Outgrowers' expansion plan. The extended co-generation plant has
already produced a total of 22 MW of power, including 12 MW that can be sold to the national
grid. As part of the sugar expansion, FMO offered a $10,7 million loan. The Global Environment
Fund has offered a grant of US$ 3.3 million, and the East African Development Bank has loaned
US$ 8.6 million, to assist the spread of cogeneration. The project will also receive Carbon
Emission Reduction Credits from the World Bank. The remaining $ 50 million in project costs
are covered by internal funds and medium-term loans from commercial banks in the area.

After the KSW expansion and cogeneration project was finished, the Madhvani Group began
considering future plans. To reduce fuel imports, the manufacturing of anhydrous ethanol, the
development of a sugar complex with a capacity of 2,500 tonnes per day in the Amuru District of
northern Uganda and the growing of 'Jatropha' to make biodiesel are some of the projects
(another renewable bio-fuel option).

Country Report
East Africa's sceneries can be breathtakingly gorgeous. As the result of the East African Rift's
global plate tectonic processes, Africa's tallest mountains, Mount Kilimanjaro and Mount
Kenya, are found in East Africa. Lake Tanganyika, the world's second-deepest freshwater lake,
and Lake Victoria are both located in this region.
East Africa has a more hotter and more humid environment than other tropical regions. As a
result of the Rwenzori Mountains and the Ethiopian Highlands' rain shadow on the westerly
monsoon winds, East Africa is abnormally frigid and dry for its latitude. Years may go by without
a drop of rain on the Somali coast. [21] According to the National Climatic Data Center, annual
rainfall outside of Somalia climbs with altitude and southward movement. Mombasa, the coast,
gets 16 inches of rain per year, while Garoowe gets more than 1,100 mm (43 inches) per year.
In April and around the end of October or early November, precipitation is exceptionally
concentrated. These months saw the passage of the Intertropical Convergence Zone, which
resembles the monsoon season in Sri Lanka, Vietnam, and the Northeast of Brazil (2).

It is usual in tropical places in Western Africa to see rain fall throughout the year, with the
exception of Asmara, which has only two months of rain each year. Addis Ababa receives 1,250
millimetres (49 inches) of rain a year from the western mountains, while Asmara receives 550
millimetres (22 inches). In the Alps, rain can fall up to 2,500 mm (98 in).

Competition
Sugar production in Kakira is by far the most common. In 1970, with a small crew, the sugar
business was launched over the world. Many sectors provide sugar at a low cost, changing
people's perceptions and leading them to choose the alternative. One of Uganda's leading sugar
producers, Kinyara Sugar Limited (KSL), was previously known as Kinyara Sugar Works
Limited (KSWL). About 31% of Uganda's annual sugar output is produced by KSL, which
produces about 110,000 metric tonnes per year in Uganda. [6] According to a survey published
in 2011, an estimated 350,000 metric tonnes of sugar from Uganda is sold to Burundi, Rwanda,
and the Democratic Republic of Congo (3).

Market Segmentation and

Targeting
In order for the Madhvani Group's businesses to thrive, the company focuses on diversification
and joint ventures with private investors from outside. The Madhvani Group is now looking into
possible joint ventures in the high-tech fields of telecommunications and allied services as part of
its diversification plan. A new sugar complex in North Uganda and biofuels (ethanol from
molasses; bio-fuel from bagasse pyrolysis; bio-diesel from jatropha, etc.) are also on the table as
potential initiatives (ethanol from molasses; bio-fuel from bagasse pyrolysis; bio-diesel from
jatropha, etc.)

Market Entry Strategy

Many significant organisations have collaborated with the Madhvani Group, which has a strong
presence in the region and an experienced management team. A Board of Directors, which may
include family members as well as outsiders, oversees the overall direction of any company. It is
up to a multi-cultural staff based in Uganda, London, and India to run the company's day-to-day
business operations.
Market Plan
The company also supports scientific and technical education through its philanthropic
Foundation and its CSR initiatives. Key strategies of Kakira include: utilising local natural
resources; ensuring sustainable production with cane from the nucleus estate and out-growers;
developing and training our manpower; protecting the environment; focus on cleaner
manufacturing; increasing production to 150,000 tonnes of sugar per year; expanding out-grower
activities; assisting with South Busoga's infrastructure development (e.g. hospitals, schools, out-
grower access roads); driving wealth creation; leveraging

Product Launch
A joint venture between the Madhvani Group and the Ugandan government formed this business
in 1985 to take over the assets of the Madhvani Sugar Works Ltd., which had been the group's
flagship business before 1972. During the intervening years of economic turbulence and bad
management, the factory was no longer in operation and the majority of the nucleus estate had
reverted to the wild.

Financial Analysis
There are currently more than US$100 million in Group revenues in Uganda at this time. As of
April 2009, the Group's Ugandan assets were worth more than US$200 million.

Strategy Tracking
First, the Kakira board should devise a thorough plan to mitigate the possibility of raw material
shortages.
For sugar manufacturing system development and Kakira raw material testing, continuous
monitoring and evaluation is needed.

Conclusion
According to the Kakira Sugar Works case study in Busoga, contract farming and outgrowers are

less destructive and more inclusive than land enclosures. The win-win narratives of contract
farming remove contract farming from its broader social, political, environmental, and

economic context, as proven by the contract farming example. More productive farmers will be

forced to leave sugar agro-extractive poles to make way for less competitive farmers.

Because of this, it was suggested that the current spread of contract farming programmes be

related to the regional sugar borders' logics and dynamic. A historical perspective on agrarian

political economy and ecology was used to provide new light on the growth and transformation

of agricultural social classes in Africa's land purchases and rural displacement. Thus, contract

farming has come to be seen as a highly charged social, political, economic... and discursive

battleground, as opposed to views that portray it as a level playing field where all stakeholders

can freely exercise their influence.

References
1. Nakhooda, F. (2005). Kakira sugar works, Uganda-from cane to sugar and electricity. Partners for

Africa-Renewable Energy Partnerships for Poverty Eradication and Sustainable Development,

(4), 6-8.

2. Baryaruha, A. (1966). Factors affecting industrial employment: Madhvani Sugar Works (Kakira).

3. Prasad, V. D. S. R. (1992). A case study-Multifeed Dorr in Kakira Sugar Works Ltd.,

Uganda. Cooperative Sugar, 23(9), 611-613.

4. Martiniello, G. (Ed.). (2017). Social Struggles in Uganda’s Acholiland: Understanding Responses

and Resistance to Amuru Sugar Works a. In WORLD SCIENTIFIC REFERENCE ON NATURAL

RESOURCES AND ENVIRONMENTAL POLICY IN THE ERA OF GLOBAL CHANGE: Volume 2:

The Social Ecology of the Anthropocene: Continuity and Change in Global Environmental

Politics (pp. 457-481).