Grofin Kenya Limited invests Ksh26m in Palmy Enterprises

Private equity firm Grofin Kenya Limited has invested Ksh26 million in Nairobi-based sanitary products manufacturer, Palmy Enterprises.

Under the Palmy and Lovely brands, the family-owned business makes toilet papers and other sanitary products. The capital injection is set to help the company diversify its product lines.

Grofin’s investment will go into working capital, buying machinery, vehicles and expanding capacity to distribute the products to stores in locations not served by competitive mega retailers. The investment will also enable Palmy diversify its product range to include serviettes and liquid hand wash.

According to Grofin Kenya General Manager, Rishi Khubchandani, Palmy’s business model had focused on building its toilet tissue brands in small shops and supermarkets.“Consumption from the base of the pyramid and emerging middle class is registering high growth,” he said.

Palmy’s products are mainly sold in kiosks and small shops in Nairobi‘s Eastleigh, Umoja, Kayole, Donholm and Embakasi and the satellite towns of Rongai, Ruai, Kiambu and Limuru. Located in Nairobi’s industrial area, the company began operations in April 2010.

Grofin aims to fund companies with needs of between US $50,000 (Ksh4.3 million) and US $1.5 million (Ksh130 million) for a period of between four and six years, through debt, equity or a mix of the two.