What ARM’s moves could mean for the economy and their competitors

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rhino Cement - ARM

ARM Cement has been making major strides this year in further cementing *pun intended* their place as the region’s largest manufacturer of cement. Having marked their 40th anniversary this year, 2014 presented the perfect time to further build their brand and standing in the region while celebrating this monumentous milestone.

While announcing their half year results in June, they were able to grow revenues by 16% per cent to Shs 7,566 billion compared to Shs 6,499 billion over the same period in 2013 making them one of the biggest revenue generators in the country. They also capped this by commissioning East Africa’s largest clinker plant in Tanga, Tanzania, while also getting the green light to set up the country’s largest cement factory in Kitui County.

These moves, among many others, will have significant impact to the economy and makes for a clear warning to their competitors that they are in it for the long haul and will be aimong for a bigger percentage of the region’s market. With the new plants, ARM will be one of the biggest employers in the region and this will go a long way to creating opportunities for professionals and locals. It is always has a ripple effect, for example, once construction for the new plant starts the local community will benefit greatly as well as the economy of the region.

By increasing their revenue they also increase their tax contribution which can be used by the government to improve different secotrs such as infrastructure. The fact that their revenues are growing and they are investing more in plants means that the construction and real eastate industry in Kenya is steadily growing as well. There is enough demand for raw materials to make ARM take these steps to meet the demand.

As for the competitors, it will give them a wake up call to go back to the drawing table and see what they can do to improve their products and thus leading to healthy competition which, in my opinion, is great for the economy.

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