Sri Lanka's 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 stationery market.
Hemas Holdings PLC has completed its inaugural international acquisition by purchasing a controlling stake in Kenya's Twiga Stationers & Printers Limited through its subsidiary Atlas Axillia Company. The transaction, valued at $16.1 million for a 75% stake, represents a significant expansion strategy for the Sri Lankan conglomerate into East Africa's consumer goods sector. The acquisition grants Hemas immediate access to Kenya's 54 million consumers and the broader East African region with approximately 330 million potential customers.
Twiga operates as a market leader in Kenya's stationery business, managing established local brands including Kasuku, CrownBird, and Envoy. According to Hemas Group CEO Ashish Chandra, the acquisition unlocks commercial synergies in product innovation and manufacturing efficiency between Atlas Axillia and Twiga, particularly in back-to-school consumer segments. The move positions Hemas to diversify revenue away from Sri Lanka's domestic macroeconomic challenges into higher-growth international markets.
Chandra identified three principal challenges in managing the newly acquired business. The stationery sector's seasonal nature presents the most significant hurdle, with 65-70% of annual sales concentrated between November and January during the school year. This seasonality demands precise supply chain management and commodity procurement at competitive rates, an area where Atlas Axillia's established expertise is expected to provide advantages. Rising global paper prices, influenced by Middle East economic conditions, add complexity to cost management.
Competitive pressures represent the second obstacle, as recent consolidation among rival firms has created stronger competitors alongside incoming international players. Additionally, political factors could influence business performance, with Kenyan government elections scheduled for next year potentially affecting education subsidies that drive consumer purchasing decisions—a dynamic Chandra noted mirrors challenges the company already manages in Sri Lanka's market.
