From the small town of Kakira in eastern Uganda, an international empire was built, reaching far and distant lands. This is the story of the Madhvani Group, which started with sugar and now leads diversified global businesses. The Madhvani Group of Companies is one of the largest conglomerates in Uganda.
It all started in 1908 when Mujlibhai Madhvani, at the age of 14, undertook the long journey from India to Uganda. He joined his uncles Vithaldas and Kalidas Haridas in their shop in Iganga. The waters ran deep in his veins as he was determined to make a success of his enterprise.
Muljibhai Madhvani was born to Prabhudasbhai Madhvani and Laduma Madhvani in Ashiyapat in Ranavav Taluka of Porbandar, India on 18 May 1894. He was born in a Gujarati Lohana caste. Quote: "Probably the success of the most prominent Lohana families in Uganda, Nanji Kalidas Mehta and Sons, M. P. Madhvani and D. K. Hindocha had much influence on Lohana migration from Porbandar and Jamnagar.." He studied up to Standard VII, before joining the Lohana Boarding House in Porbander, Bombay Presidency, India.
Building the Foundation
Mujlibhai built his empire on sugarcane and laid the foundation for Kakira’s development, also empowering the communities within. In 1912, Muljibhai Madhvani, then aged 18, arrived in Jinja following his older brother Nanjibhai. Muljibhai Madhvani was an Indian-born Ugandan businessman, entrepreneur, industrialist and philanthropist. Born in India, he migrated to Uganda when he was only 14 years old. In 1912, he started his first business in Jinja.
Soon, Mujlibhai Madhvani & Co. was also manufacturing sweets, soap, cooking oil, ghee, tea, margarine, and pastry shortening. The sugar complex, which is today known as Kakira Sugar Works, opened in 1930. By the 1950s, the sugar estate was well established. He also acquired Nile Breweries in 1957.
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The Rise and Expansion
After Mujlibhai’s death in 1958, his eldest son, Jayantbhai, took over the business. Manubhai worked closely with him. According to the group company profile, the years up to the 1960s were prosperous for Uganda and Madhvani. As his business flourished, Muljibhai was keen to take care of the well-being and welfare of his employees and the community.
By 1970, the Madhvani Group was at its peak with rapid annual growth of at least one new manufacturing unit a year. The first was to seek vertical integration. It was during this decade that Muljibhai ventured into textiles and beer. According to the group company profile, the years up to the 1960s were prosperous for Uganda and Madhvani. It was during this decade that Muljibhai ventured into textiles and beer.
Muljibhai Madhvani died on 11 July 1958 in Kakira, where he was cremated. However a mausoleum that was constructed in his memory lies at the lakeside along that of his elder son and heir, Jayant Madhvani.
H.E. Nimisha Madhvani, speaks to India Inc at A New Dawn for India Seminar
The Dark Days of Idi Amin
When Idi Amin came to power in 1971, Manubhai was thrown into the Makindye military prison for 21 days. In 1972, the Madhvanis, along with the rest of the Asians living in Uganda, were expelled by Amin. Then came the Asian expulsion in 1972 by Idi Amin. In 1972, the Madhvanis, who had known no other home besides Uganda, left the country penniless, along with thousands of other Asians Ugandans.
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Return and Rehabilitation
However, the family returned in 1982 to repossess their properties under the Expropriated Properties Bill. On return, they found the sugar estate in shambles. Less than 5,000 acres (20 km2) was under cane cultivation and sugar production had long ceased. The company was debt-ridden and Uganda was uncreditworthy at the time. However, the family returned in 1982 to repossess their properties under the Expropriated Properties Bill extended by the Obote government to coax Asians back to the country. On return, they found the sugar estate in shambles.
“There was a genuine affection when we came back [in 1985]. But it was very nice to say the Madhvanis are back but the Madhvanis are not magicians,” recounts Mayur. “It takes a lot of hard work and strategizing, and with government support (President Yoweri Museveni was newly elected at the time), we managed, through our small efforts, to instil in him, the aspect of business not necessarily being a bad thing.
Diversification and Future Plans
Cashing in on the salubrious climate and natural resources, another focus area for the group is tourism. It is commencing a new $150 million sugar project in the northern district of Uganda named Amuru, working closely with the government. Looking ahead, the Madhvani Group plans to produce rum, vodka and gin, predominantly for the export market. All of these are by-products of the same crop - sugarcane.
“Sugar is the main product, [but] it’s quite possible in the time to come that some of these other activities from the by-products will become the main product. On the cards for the Madhvani Group is a possible listing in the future.
Succession and Legacy
The next generation of the Madhvanis are in line to take the company to the future. The caveat is that family members who are involved in the business must contribute to its growth. Succession planning is key in ensuring the Madhvani legacy lives on.
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“You want to avoid falling into the trap where the first generation creates, the second generation enjoys and the third generation destroys. We are the second generation moving to the third. The Madhvanis have broken the mould, but now [it’s not] for us to think we are infallible. We need to set up something that other family businesses can emulate, and follow other families that have succeeded in this.
Key Figures
- Muljibhai Madhvani: The patriarch who started the business in Uganda.
- Jayant Madhvani: Muljibhai's eldest son, who expanded the business significantly.
- Manubhai Madhvani: Muljibhai's second son, who helped run the conglomerate.
- Kamlesh and Mayur Madhvani: Joint Managing Directors, representing the third generation.
The Muljibhai Madhvani Foundation
The Muljibhai Madhvani Foundation is a charitable trust that was established in 1962 to honor the vision of Muljibhai Madhvani. The foundation awards scholarships to deserving undergraduate and postgraduate university students to study in Ugandan universities.
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