Sierra Cables East Africa launches bid for supply contracts to power agencies
The Sri Lankan cables firm based in Nairobi, Sierra Cables East Africa, has launched a bid to supply electricity cables to power agencies.
The bid for contracts is targeted at two state-owned companies, Kenya Power and Rural Electricity Authority (REA).
The firm has increased its production, reaching 24 hours, in order to meet demand from the agencies. Sierra Cables East Africa also aims for sales and earnings growth.
“We are currently running production on a 24-hour basis for purposes of meeting outstanding orders,” Ruwan Fernando, CEO of Sierra Cables East Africa, informed Business Daily.
“We are banking on the new order from utility companies and independent power producers in Kenya and East Africa to grow the company’s revenue and eventually turn into a profit making position.”
“In the year ended 2018 Sierra Cables PLC gave Sierra Cables EA an additional capital injection of Sh50 million in the form of equity for purposes of purchasing raw materials, majorly aluminum, to facilitate the production process.”
The company received Sh30mn (US$297,715) from its parent firm, Sidian Bank, in order to increase operations.
“We are currently at 80 per cent towards satisfying the orders that were outstanding as at December 31, and projecting to complete the 20 per cent by end of January 2019,” Fernando added.