Sri Lankan conglomerate Hemas Holdings has purchased a 75% stake in Kenya's Twiga Stationers & Printers for $16.1 million, marking its first major international acquisition and establishing a foothold in East Africa's $136 billion economy.
Hemas Holdings PLC has completed its first significant cross-border acquisition, purchasing a controlling 75% stake in Kenya-based Twiga Stationers & Printers Limited for $16.1 million through subsidiary Atlas Axillia Company. The transaction represents a strategic expansion into East Africa, providing the Sri Lankan conglomerate immediate access to Kenya's 54 million consumers and the broader East African market of approximately 330 million people.
Group CEO Ashish Chandra identified supply chain management as the primary operational challenge facing the newly acquired business. The stationery sector operates with distinct seasonality, with approximately 65 to 70% of annual sales concentrated between November and January, coinciding with the regional school year. Managing paper procurement—a commodity product subject to price volatility—during peak demand periods will be critical to success, particularly given current economic uncertainties in the Middle East affecting global prices.
Competition presents a secondary concern for Hemas. According to Chandra, the Kenyan market has consolidated among competitors, with the third and fourth largest players merging to form a stronger number two position. Additionally, international firms are entering the market, intensifying competitive pressure. Chandra noted that government policy could significantly influence market dynamics, particularly Kenya's education subsidies and related book purchasing programs, similar to mechanisms in Sri Lanka. Kenya's scheduled elections next year may trigger policy changes affecting the sector.
Twiga operates established local brands including Kasuku, CrownBird, and Envoy, positioning Hemas to leverage product innovation and manufacturing efficiency through Atlas Axillia's expertise. The acquisition aligns with Hemas' strategy of establishing East Africa and Bangladesh as core international growth pillars, reducing dependence on Sri Lanka's domestic economic conditions.
