BBL

completed

Bonite Bottlers Limited (BBL or the company) is a beverage bottling and distribution company located in Moshi, Tanzania. BBL holds the franchise to bottle carbonated soft drinks (CSD) for Coca Cola in several regions in northern Tanzania. BBL’s franchise regions include Arusha, Kilimanjaro and Manyara and two districts – Singida and Manyoni – in the Singida region. The Company also bottles mineral water under the Kilimanjaro Drinking Water (KDW) brand. The project is to assist BBL to expand its production capacity and acquire the latest equipment for its operations. The project involves the following components: - expanding its CSD production capacity to 36,000 bottle per hour (bph) from the present 24,000 bph on its returnable glass bottle (RGB) line; - replacing an existing PVC bottling line with a modern PET bottling line; - extending its factory complex to house the new RGB line and provide additional storage space; - acquiring additional vehicles to augment its distribution network; - acquiring a PET-preform manufacturing line and - providing incremental working capital. The total project cost is estimated at $20 million. BBL has not upgraded or replaced any machinery within its operations in the last 10 years. Now is an opportune time for BBL to replace its dated machinery with modern equipment, and increase production efficiency. The Project will enable BBL to produce a larger volume of Coca-Cola products and expand its market share through the supply of a wider range of products. The Project will also change the type of material used from PVC to PET, which is a better packaging material, is less costly and has a more aesthetic presentation. Finally, the ability to manufacture PET-preforms will significantly reduce operational cost for BBL and increase its ability to produce a wider variety of PET packaged products.