Dr Manu Chandaria is one of Kenya’s most prominent industrialists. Chandaria is the chairman of Comcraft Group, an industrial conglomerate which was estimated to be worth over US$2.5bn by Forbes magazine. The group is involved in the production of steel, plastic and aluminium products and has operations in 50 countries across the globe.
“We were very small when I came down to work. We had lost a lot of our wealth,” said Chandaria. “[We wondered] should we really work for a little setup or we should we find comfortable jobs – nine to five, a car and driver standing outside and we would be okay. I had graduated with master’s in engineering [which] very few people had then.”Chandaria, alongside other family members, has overseen the growth of the conglomerate from a small business started by his parents and other relatives in 1915. When Chandaria, his brother and two cousins returned to Kenya in the 1950s after pursuing their education in the US and India, they had to choose between joining the “very small” family business or taking up employment elsewhere.
Chandaria’s father and other relatives had set up Kaluworks, a company that manufactured aluminium cookware. When Chandaria returned to Kenya, the company employed 40 people, five of whom were family members.
“We kept on thinking that our parents must have suffered and sacrificed, because they built from nothing; zero to something. They came here because there was not enough to eat. My father could not read, speak or write English [and] my mother was illiterate.”
Chandaria, his brother and cousins opted to stay in the family business because their parents had gone to great lengths to send them overseas to receive quality education. All their lives, Chandaria said, his parents worked hard to change their status “from a poor family, from a middle grade family to something that we could aspire for”.
“We could not shatter their dreams,” Chandaria recalls. “We said: ‘Close your eyes and let’s get on with the work.’ In the first five years we created 500 jobs. By 1958, we had 800 people working [with us]. We have prospered because it was a strong drive by educated people, seeing a vision ahead of them. Our decision [to join the family business] was right.”
Post-independence expansion
Tanzania’s declaration of independence marked a new era for the family business. Sir Ernest Vasey, who was chairman of the family’s companies, was instrumental in expanding the business. According to Chandaria, the Englishman asked for nothing more than a “small house, a car, a driver and a very small salary”. But his advice was invaluable.
He warned the Chandaria’s that as more African countries gained independence, Kenya would follow suit, investors would flock to the country and eventually, the family businesses would lose market share.
“His advice was to go out. He told us: ‘If you want to survive, you can’t rely on one country.’ So, some family members went to Uganda , some to Tanzania, some to Ethopia [and] some to Zambia. In five years time, in 1965, we were in six countries (including Burundi ). We found ourselves with much more capacity that what we thought.”
After the expansion, Vasey again pointed out that Africa was unstable and many countries were experiencing coups, noting that it would be safe to expand further and also set up operations outside the continent. Once again, the family business expanded to reach a total of 16 countries in Africa.
“Some people went to London, some were sent to Geneva, some were sent to Singapore, some were sent to Toronto and again a new setup of expansion started. Again, it gave us a new dimension of management. So, by 1985 we were already in 30 countries and now we are in 50 countries,” Chandaria said.
The family
Today the Chandaria family of about 65 people operates businesses across the globe. In East Africa, the family’s flagship companies include Mabati Rolling Mills and Kaluworks in Kenya, Alaf in Tanzania and Uganda Baati in Uganda.
“Right from day one, we kept together as a family. We propagated the values: it’s not ‘I’, it’s ‘we’; it’s not mine, it’s ours and everything belongs to the family,” said Chandaria. “Everybody got the best of education. We were the first lot in our family to graduate, but then after that, there is not a single child who has not graduated. We believe that single-handed you can do something, but if you are a fist (five fingers) you can do much more.”
The family’s unity, he noted, is one of the reasons why they have been successful in business. He criticised a common practice in Kenya where parents divide family property among their children, who then divide among their children, eventually eroding the family’s wealth.
“They even fight over it [family wealth]. To us, everything belongs to the family. Everyone lives well. They are all looked after. There are many more companies to work at and the family is very much involved in social work.”
Business practice
The Comcraft Group is known in the region for its work in manufacturing. But before finding its niche, the company made losses.
“We lost quite a bit of money [in the early days] in speculation,” Chandaria said. “Until 1963 we were operating under the colonial system and it was very difficult but because we started since 1915, we found our ways.”
With Tanzania’s declaration of independence, the Chandarias decided to stay on the “friendship side” of the government in power.
“We have always managed to be on the right side of the government… whichever government comes in because we are not politicians; we are serving the people of this country. We have interest in our products being used by as many people in Kenya and anywhere else that we sell,” he said. “We have focused on hard work and commitment and always kept the population of Kenya and the people that work for us at the centre of everything.
“We have always managed to be and operate within the law. We are very honest about our payments to tax. We are not of those fly-by-night cowboys.”
Moving forward, Chandaria said Comcraft will continue to grow and expand.
“We want to be market leaders in this part of the world in whatever we do. In aluminum we want to be market leaders. In roofing we want to be market leaders. In pipes we want to be market leaders and so, for that we have to keep on growing. In all our companies, the plan is to double the sizes [and] create new products.”