BGI Ethiopia has acquired a 30% share in Raya Brewery worth 75 million birr. Raya Brewery has sold 217.5 million birr in shares so far according to Lemma Bekele, General Manager of the brewery.
Raya Brewery intends to sell 250 million birr in shares and has presented a request for a 482 million birr loan from the Commercial Bank of Ethiopia said Lemma.
The brewery is planning to use the money to finance the construction of a factory to cost approximately 732 million birr. The factory hopes to supply 10-15% of the market initially with production of 300,000 hecto liters annually.Raya has plans to double its initial production rate to match increases in beer demand in the coming years. The demand for beer is expected to continue increasing due to increases in infrastructure that open up new markets and increases in the population size.
Raya expects to invite tenders for the construction of the factory in the coming month and expects the factory to be operational within 18 months after construction begins according to Lemma.
A potential challenge that Raya is already anticipating is a shortage of bottles in the local market according to Lemma. The factory is ready to import the bottles from Egypt should a shortage occur he explained.
Raya Brewery was formed in March 2010 by 58 shareholders with a capital of 2.36 million birr. It now has 2,022 shareholders. The company plans to produce draft and bottled beers and to diversify to premium brand beer eventually.
Source: Capital
