VituVingiSana wrote:C&G is a conglomerate in multiple lines of businesses mostly related to engineering and property.
This is good for C&G as it can expand its reach into "greater" EAC with a well-known brand with a wide range of products.
@Vitu, I don't see the positive side of this partnership. It's a parasitic relationship host being C&G
1. C&G is already present in the 11 countries mentioned. Further, only those 11 countries make up the JV territories in the agreement.
So, C&G gets zero new territory; Cummins gains 11 new territories.2. C&G is already the sole distributor of Cummins brand in territory. First distributor agreement done in 2006. So, from 100% of the pie to 50% of the same size pie.
3. Now C&G will be tied to Cummins, so bye bye to any potential trade deals with cummins competitors (Caterpillar etc), sale of parts, servicing, installations
4. C&G is mature in the territory markets grossing over USD 30 Million in revenues in 2015, with a genset market share north of 15% in Kenya, Uganda and Tanzania. Only cummins is set to reap from the partnership
5. In the wording of the announcement "The joint venture will take over the full-line distributor business from C&G"
C&G are (sole) distributors / dealers of other (super) brands outside of generators; TVS motorbikes, Piaggio 3-wheelers, Briggs & Stratton machines, Mariner Outboard Engines, Doosan heacy equipment, Garmin devices, Kubota tractors, MRF tyres, Toyota Forklifts, etc
but I could be wrong.
Pesa Nane plans to be shilingi when he grows up.