Baloobhai Patel, KenyanTycoon Exceeds Expectations with $3.2 million Profit Last Year
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News around Africa - March 4, 2023

Baloobhai Patel, KenyanTycoon Exceeds Expectations with $3.2 million Profit Last Year

Baloobhai Patel, Kenyan businessman and the owner of a leading investment holding, Carbacid investments Limited, demonstrated exceptional financial performance at the conclusion of the 2022 fiscal year even amidst operational challenges.

Carbacid Investments Limited which is the principal producer of carbon dioxide, vast in the manufacturing of soft drinks and various industrial applications. The company reported an impressive profit of Ksh411.65 million ($3.21 million), a 14 percent increase from the Ksh 360.75 million ($2.82 million) profit achieved in 2021.

The company’s revenue for the period under review increased by an impressive 22 percent from Ksh 701.16 million ($5.48 million) to Ksh 855.53 million ($6.68 million), despite facing heightened competition in its operating environment. This impressive double-digit upsurge in the company’s profitability can be attributed to its exceptional top-line performance.

Carbacid Investments Limited, the firm which is 49.9 percent owned by Baloobhai Patel noted that its earnings for 2022 could have increased if not for the high costs it incurred in various operational inputs, such as fuel, power, and spares, which significantly impacted its bottom line during the review.

Carbacid announced that its revenue was also affected by the emergence of new competitors, especially alcohol manufacturers who use carbon dioxide as a by-product of their production process – a product that Carbacid sells to its industrial customers.

However, Carbacid is proactively seeking new markets and positioning its carbon dioxide as a superior quality product to maintain its resilience. This made the company collaborate with Aksaya, an investment firm, and launched a multimillion-dollar takeover bid to acquire BOC Kenya. This development is an effort to enhance its resilience in a competitive operating environment.

Also, to expand Carbacid’s portfolio in the Kenyan market and solidify its position as a leading investment holding in the region.

With this positive development the bid is currently undergoing  regulatory scrutiny due to a legal challenge filed by Ngugi Kiuna, a former Chairman of BOC. Kiuna had earlier proposed a deal that undervalues the target company, which has resulted in additional scrutiny from regulators.

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