East African Business Week (Kampala)
27 September 2008
London — Britain's largest independent tissue products manufacturer, The LPC Group plc, plans to invest in Uganda soon.
Based in Leicestershire, the group's directors and owners, the Tejani family, hosted Uganda's president Yoweri Museveni at their premises last week. Founded in 1980, the LPC has close links with Uganda as they once ran a thriving coffee business there. Despite being forced to relocate to the UK over 35 years ago by former president Idi Amin's regime, the family still has a strong will to see their former home's economy grow.
The two hour visit saw the President tour two LPC sites and discuss the needs of his country with the Group's directors. Uganda's economy currently focuses on the export of agricultural products. But despite the country itself being very fertile and rich with natural resources, the national economy's growth remains slow as much of the country's produce is sold for far less than the price demanded by developed countries. "We are interested in trade not aid Museveni," told the Tejanis. "Our focus is to add value to our raw materials, Museveni added.
"Much of what Uganda produces is exported in its raw state, with the country getting a basic price for the commodity. Once it leaves the country significant value is added by others, which we see as a great opportunity lost. We are in talks to develop businesses that process the raw commodities before export, so that Uganda retains an increased share of the profits made on its resource," an LPC statement said last week.
"LPC focuses on the fast growing private label market in both consumer ("At Home") tissue products sold to the major international retail groups and institutional ("Away From Home") tissue products sold directly to business users or via wholesalers, it added.
LPC's sales have grown at a rate of 20% per annum over the last three years. Current annual sales are approximately £300 million.
LPC Group's Executive Chairman, Amin Tejani, told the Ugandan delegation that the group had identified a number of areas for investment. They include pharmaceuticals, paper, wood pulping and food processing.
LPC's plans to set up a processing plant to create wood pulp for use in its European paper processing operation. As part of the initiative around 2.5 million trees would be planted in a joint initiative with the Government, and subsequently felled trees would be replaced. "Rewards would not be confined to the economy however, as the whole operation would be designed and managed to improve the conditions for the local population,Tejani added.
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