Chemi and Cotex Industries Limited secures strategic financial partnership to support expansion plans

15 December, 2010

Chemi and Cotex Industries Limited (CCIL) today announced the formation of a strategic partnership with the Principal Investments division of HSBC and Satya Capital. This partnership is in support of the company's plans for considerable growth and expansion in key areas of its consumer goods business.

Yogesh Manek, Chairman of CCIL said “We are pleased and proud to welcome HSBC and Satya to the CCIL team. CCIL has grown with Tanzania, and is now ready to be part of the East and Sub-Saharan Africa growth story. The new and much strengthened team, I am sure will take CCIL to heights that were hitherto un-imagined.”

Direct Principal Investments is HSBC's dedicated principal investment arm globally. Sajjad Sabur, managing director at the Direct Principal Investments division of HSBC, said, "This is HSBC's second direct investment in East Africa. Our investment in CCIL demonstrates our drive to support strong dynamic local businesses and foster growth."

Satya Capital, a private equity group which focuses exclusively on Africa, has chosen CCIL for its first investment in consumer goods in the continent. “We have been impressed by the strength of the CCIL brands, particularly Whitedent, and with such a dedicated management team, we are excited at CCIL’s very significant potential for growth” said Moez Daya, Managing Partner at Satya Capital.

Established in 1975, CCIL manufactures and distributes leading consumer goods brands in East Africa, ranging from oral care, skin care and foods as well as various metals and industrial plastics. CCIL manufactures out of its Dar es Salaam hub and exports into Kenya, Uganda, Rwanda and South Africa. The company’s distribution network consists of depots, a fleet of delivery vehicles and a strong regional workforce.

Notes for editors

About Direct Principal Investments
Direct Principal Investments is HSBC's dedicated principal investment arm globally. Its philosophy is to develop partnerships with local businesses and relationship clients of HSBC in management buyouts, growth capital and recapitalisation opportunities. The division has dedicated investment professionals with local knowledge of the relevant regions and access to HSBC's global and regional networks. Its equity and equity-linked investments start upwards of $20 million per transaction across a range of industries.
More information can be found at www.hsbcnet.com/pi/africa

About Satya Capital
Satya Capital is an independent investment firm, focused on Africa. Satya Capital invests in growing businesses across the continent providing primarily growth and expansion capital.
More information can be found at www.satyacapital.com