Sri Lankan conglomerate Hemas Holdings has completed its first significant international acquisition, purchasing a 75% stake in Kenya's Twiga Stationers & Printers for $16.1 million, marking a strategic entry into East Africa's stationery market.
Hemas Holdings PLC has acquired a controlling stake in Kenyan stationery company Twiga Stationers & Printers Limited through its subsidiary Atlas Axillia Company, signalling the conglomerate's expansion into East African markets. The $16.1 million transaction represents Hemas's inaugural major international acquisition and provides the company operational manufacturing and distribution capabilities in a region with significant growth potential.
According to Hemas Group CEO Ashish Chandra, the acquisition presents multiple strategic advantages and challenges. The company gains immediate access to Kenya's 54 million consumers and broader East African trade networks serving approximately 330 million people. Twiga operates established local brands including Kasuku, CrownBird, and Envoy, positioning itself as a market leader in the region. The move also enables Hemas to diversify its revenue base beyond Sri Lanka's volatile macroeconomic environment.
Chandra identified supply chain management as the most pressing operational challenge, given the stationery sector's highly seasonal nature. He explained that 65 to 70% of annual business occurs during a three-month back-to-school period from November through January, requiring precise timing of raw material procurement. Fluctuating global paper commodity prices, particularly influenced by Middle East economic conditions, add complexity to cost management.
Competition and government policy present additional concerns. Chandra noted that competing firms have consolidated, creating a stronger second-place rival, while international players are also entering the Kenyan market. Kenya's scheduled elections next year could also impact business performance, as government school subsidy policies—similar to Sri Lanka's system—directly influence stationery and paper demand. The acquisition is intended to unlock manufacturing efficiencies and product innovation synergies with Atlas Axillia's existing operations.
