SKL Plc Reaffirms Growth Strategy as KES 131.9 Million Kisaju Manufacturing Plant Nears Completion

Shri Krishana Overseas (SKL) Plc has reaffirmed its long-term growth ambitions after successfully holding its first Annual General Meeting (AGM) since listing on the Nairobi Securities Exchange (NSE) SME Market Segment in July 2025.

Shareholders approved all resolutions presented by the Board and expressed confidence in the company's strategic direction as it continues investing in manufacturing capacity, operational efficiency and product diversification.

The AGM, chaired by Board Chairman Mr. Suresh Patel and attended by directors, senior management, shareholders, auditors and other stakeholders, marked a significant milestone in SKL's transformation into a publicly listed company. Addressing shareholders, Mr. Patel emphasized the Board's commitment to sound governance and sustainable growth.

"Our first AGM is an important milestone in SKL's journey as a listed company. The Board remains committed to strong corporate governance, prudent oversight, and supporting management in creating sustainable long-term value for all shareholders," he said.

Kisaju Plant Nears Completion

A key highlight of the meeting was the progress of SKL's new state-of-the-art packaging manufacturing facility in Kisaju, Kajiado County, which remains on track for completion from the third quarter of the year. Although the project experienced delays due to slower cash conversion cycles and a greater focus on working-capital efficiency and prudent risk management, management assured shareholders that construction is advancing steadily, with installation and commissioning now in the final stages before regulatory approvals and final testing.

The company has so far invested KES 131.9 million in the project, financed largely through a KES 117.9 million development loan. Built on a two-acre parcel of land, the facility will increase SKL's annual production capacity from 3,000 tonnes to 22,000 tonnes, positioning the company to meet increasing demand from a wider range of industries.

Long-Term Strategy and Market Expansion

Managing Director Dr. Sonvir Singh said the investment is part of SKL's long-term strategy to strengthen its market leadership and expand into new sectors requiring high-quality packaging solutions.

"Our strategic investments today are laying the foundation for tomorrow's growth. We remain focused on expanding our manufacturing capacity, improving operational efficiency, and creating sustainable value for our shareholders," said Dr. Singh.

He added that the company is witnessing strong demand beyond its traditional customer base.

"We are seeing growing demand for packaging solutions in other areas such as the dairy, herbs, edible oils and confectionery sectors, which will add to the horticulture exports, the floriculture subsector, and the Fast-Moving Consumer Goods (FMCG) and pharmaceuticals oils sectors where we are already well-established," he said.

The expanded production capacity is expected to enable SKL to better serve customers in the floriculture, horticulture, pharmaceutical, FMCG, dairy, edible oils, herbs and confectionery industries while creating new business opportunities both within Kenya and across the region.

Investment in Technology and Human Capital

Finance Director Mrs. Nirmala Devi said the company is also making strategic investments in technology and human capital to support the next phase of growth.

"We have also made an investment in IT systems that will help it improve its administration, which is critical for the next stage of growth. In addition, SKL has also started hiring in preparation for the additional capacity that is expected to come on," she said.

Financial Performance

The company reported strong revenue growth despite a difficult business environment. For the financial year ended December 31, 2025, SKL recorded revenues of KES 351 million, representing a 13.5 per cent increase from KES 309 million recorded the previous year. However, profit after tax declined to KES 23 million from KES 40 million, mainly due to higher raw material costs and changes in taxation.

Shareholder Confidence and Future Vision

During the AGM, shareholders sought clarification on the Kisaju project, production capacity, profitability, market expansion and future growth plans. The Board and management assured investors that the new manufacturing facility will significantly improve operational efficiency, lower unit production costs, enhance competitiveness and support sustainable profitability over the long term.

Management also outlined an ambitious vision of positioning SKL among East Africa's leading packaging manufacturers over the next decade through innovation, product diversification, expanded market reach and continued investment in modern manufacturing technologies.

As the meeting concluded, the Board expressed appreciation to shareholders, customers, employees, financial institutions, regulators, suppliers and business partners for their continued confidence and support, reaffirming its commitment to building a stronger, more competitive and sustainable company that delivers lasting value to all stakeholders.