Bidco Looks to the African Markets for Growth

Author: Mayaka, Charles
Source: United States International University
Year: 2006
Company Name: Bidco Oil Refineries
Number of pages: 17

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Abstract:

It was business as usual at the factory yard in March 2003, but not for Mr. Vimal Shah, the CEO of Bidco Oil Refineries in Thika, Kenya. Standing at the window of his expansive first floor office, Vimal hardly noticed the frenzied activities taking place down below, where truckload after truckload of products left for different destinations in Kenya. His mind was busy going over the two proposals sitting on his desk. This was to be Vimal's most difficult decision yet in the 11 years he had been at the helm of Bidco Oil Refineries. Everything had gone well for Vimal so far, having grown the business into a respected consumer goods manufacturer in the East African region. Although Bidco had its share of difficult times, the board trusted him to make the right choices to grow the business. It was now time to make crucial decisions regarding the company's future growth. It had become increasingly clear that the company needed to look elsewhere for growth given the intense competition and overcapacity that was being experienced in the edible oils and fats industry in Kenya. Did the two proposals, both involving foreign direct investment in Uganda, constitute the opportunity the company had been looking for to expand into additional African markets? “Which proposal should I take to the board?” Vimal wondered.