Geoffrey Menya
Kampala (KEN)
Role(s):
Founder/Owner/Principal
Metin Uganda Ltd
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Startup
Location:
Kampala
Industry:
Agriculture
Year Founded:
2011
Number Employees:
100-250 people
Business Stage:
Growth (profitable)
Entity Type:
Limited Liability Company
Description:
Executive Summary for silt and cotton production project
Metin Uganda P.O. Box 10853 Kampala, a limited liability company established in 2011, is a start up business in textile industry located in Kampala city with its farms outside the city center in the production of cotton and cotton products and silk and silk products. Silk farming was introduced in Uganda in 1986 while as cotton in 1903. Farmers started producing silk cocoons in 1993 which they were selling to private companies who were then exporting them to Japan and India. The export of silk cocoons became unprofitable for the companies because they were not economical to export since they had a lot of air in them making them bulky. The pioneer companies pulled out of the industry in 1998. Some silk farmers together with some former workers of the silk companies then formed Metin Uganda ltd to develop the industry.
Farmers and extension workers ventured in processing to add value to silk cocoons. Three products were being made and exported. These were raw silk yarn, degummed cocoons and silk waste. The qualities of these products were being rated as high and so there had no any problem in marketing them. The good quality is based on Uganda’s favorable climatic conditions which makes silk worm rearing a success. There were outstanding orders for the different products being exported which couldn’t be satisfied because of the low production capacity.
A four hundred end automatic silk reeling machine with capacity to produce an average of 13.5 kg of silk yarn per hour is needed. In 2014 the machine will automate the production process and raise the productivity of the industry. As a result of this, Capacity to process and market silk products will increase and farmers will be able to increase their incomes. The machine will increase the production process and raise the productivity of the industry.
However, farmer’s capacity to produce cocoons is very limited because of low mulberry acreage, lack of rearing facilities and equipment, silkworm eggs and training. This proposal aims at building capacity to take advantage of the existing opportunities in the silk export market to increase foreign exchange earnings of Metin (U) Ltd and raise the living standards of farmers.
The world major consumers/importers of silk are USA, Japan, Europe, India and Hong Kong. Uganda was exporting the silk to Egypt, South Africa and Zimbabwe which was not even among the major consumers, an indication that there is still a big portion to the market which we can explore and benefit from. Already inquiries have been received from NAATS World Wide Ltd of Hong Kong and INTRADE IMPEX LTD of India (through Uganda High Commission in India) but Uganda is not yet in a position to service these demands. Once production picks up, these and other demands will be attended to.
This proposal meets government strategic objectives of building capacity, intervention to fight poverty, improve trade and investment and modernize agriculture.
This proposal is requesting investor’s intervention to fund/loan/venture capital of USD 10 millions which will enable Metin Uganda Ltd to start reeling and increase the production capacity to export and raise the incomes of the silk farmers. And setting up cotton schemes for the industry.