Muljibhai Madhvani
Encyclopedia
Muljibhai Prabhudas Madhvani (1894 - 1958), commonly referred to as Muljibhai Madhvani was an Indian
-born Uganda
n businessman, entrepreneur
, industrialist and philanthropist
. Born in India
, he migrated to Uganda when he was only 14 years old. In 1912, he started his first business in Jinja
. He expanded and added to that initial investment and out of those efforts, the conglomerate known as the Madhvani Group
was born.
Taluka of Porbandar
, India
on May 18, 1894. He studied up to Standard VII, before joining the Lohana Boarding House in Porbander, Gujarat, India. He dropped out shortly after Class 1.
In 1908, he migrated to Uganda
, following his older brother Nanjibhai Madhvani, who had emigrated to the East Africa
n country, two years earlier. In 1911, at age of 17, he started working for his uncles Vithaldas and Kalidas in a retail business in Iganga
. He was able to learn about trade and industry while working in Iganga. Soon, while still only 17 years old, his uncles trusted him with opening up an affiliated store in Kaliro
in modern day Kaliro District
.
The business acumen he exhibited impressed his uncles who later asked him to open up another shop in Jinja
, where he started to build his first business, the Vithaldas Haridas & Company, while he was still an employee of his uncles. In 1918, the company bought 800 acres (3.2 km²) of land in Kakira
, between Jinja
and Iganga
, for the purpose of starting a sugar factory. Muljibhai later became the Managing Director of Vithaldas Haridas & Company. That sugar complex, which is today known as Kakira Sugar Works
, opened in 1930. By adding to the original parcel of land, through purchases, the current company land holdings at Kakira, are in excess of 9500 hectare, as of April 2009.
According to the group company profile, the years up to the 1960s were good for Uganda and Madhvani. The commodity market was doing well and the middle class, spawned by Uganda’s industrialization, was growing steadily. By the 1950s, the sugar estate was well established.
Muljibhai's two elder sons, Jayant Madhvani and Manubhai Madhvani, had joined him in 1946 to assist with the running of the business. It was during that decade that Muljibhai ventured into textiles and beer. Using what was probably the first International Finance Corporation
loan to an Africa
n country, he set up Mulco Textiles in Jinja. He also acquired Nile Breweries in 1957. The brewery was divested to South African Breweries
in 2002.
As his business prospered, Muljibhai was keen to take care of the well-being and welfare of his employees and the community. His workers and their dependents have enjoyed free education, housing and healthcare, many decades before the term "corporate social responsibility" was even devised.
Muljibhai Madhvani died on July 11, 1958 in Kakira
, where he was cremated. However a mausoleum that was constructed in his memory lies at the lakeside along that of his elder son and heir, Jayant Madhvani. After the death of their father, Jayant and his brother Manubhai, oversaw the group’s diversification into oil and soap manufacturing, steel, tea and glass production. Then came the Asian expulsion in 1972 by Idi Amin
. By then, the group had grown into a complex of 52 industrial, commercial and agricultural companies, operating in East Africa
, Central Africa
and Southern Africa
.
In 1972, the Madhvanis who had known no home other than Uganda, left the country penniless, along with thousands of other Ugandan-Asians. However, the family returned in 1982 to repossess their properties under the Expropriated Properties Bill extended by the Obote
government to lure Asians back into the country. On return, they found the sugar estate in shambles. Less than 5000 acres (20.2 km²) was under cane cultivation and sugar production had long ceased. All the associated industries such as oil and soap were mere shells of their former selves.
The company was debt-ridden and Uganda was not very creditworthy at the time. But the World Bank
gave the group a £50 million loan to rehabilitate the estate. More loans from the East African Development Bank
and the Uganda Development Bank
helped revive the conglomerate and fuel the acquisition of new assets.
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
-born Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
n businessman, entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
, industrialist and philanthropist
Philanthropist
A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, and/or reputation to charitable causes...
. Born in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, he migrated to Uganda when he was only 14 years old. In 1912, he started his first business in Jinja
Jinja, Uganda
Jinja is the largest town in Uganda, Africa. It is the second busiest commercial center in the country, after Kampala, Uganda's capital and only city. Jinja was established in 1907.-Location:...
. He expanded and added to that initial investment and out of those efforts, the conglomerate known as the Madhvani Group
Madhvani Group
The Madhvani Group of Companies commonly referred to as the Madhvani Group, is one of the largest conglomerates in Uganda, with a total asset base in excess of US$275 million, as of April 2009. The group has investments in Uganda, Rwanda, Southern Sudan, Tanzania, the Middle East, India and North...
was born.
History
Muljibhai Madhvani was born to Prabhudasbhai Madhvani and Laduma Madhvani in Ashiyapat in RanavavRanavav
Ranavav is a city and a municipality in Porbandar district in the Indian state of Gujarat.-Geography:Ranavav is located at . It has an average elevation of 40 metres .Ranavav is a Taluka of Porbandar district in Saurastra, Gujarat...
Taluka of Porbandar
Porbandar
Porbandar is a coastal city in the Indian state of Gujarat, perhaps best known for being the birthplace of Mahatma Gandhi and Sudama...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
on May 18, 1894. He studied up to Standard VII, before joining the Lohana Boarding House in Porbander, Gujarat, India. He dropped out shortly after Class 1.
In 1908, he migrated to Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, following his older brother Nanjibhai Madhvani, who had emigrated to the East Africa
East Africa
East Africa or Eastern Africa is the easterly region of the African continent, variably defined by geography or geopolitics. In the UN scheme of geographic regions, 19 territories constitute Eastern Africa:...
n country, two years earlier. In 1911, at age of 17, he started working for his uncles Vithaldas and Kalidas in a retail business in Iganga
Iganga
.Iganga is a town in Eastern Uganda. It is the main municipal, administrative and commercial center of Iganga District and the district headquarters are located there. The district is named after the town.-Location:...
. He was able to learn about trade and industry while working in Iganga. Soon, while still only 17 years old, his uncles trusted him with opening up an affiliated store in Kaliro
Kaliro
Kaliro is a town in Eastern Uganda. It is the main municipal, administrative and commercial center of Kaliro District and the location of the district headquarters. The district is named after the town.-Location:...
in modern day Kaliro District
Kaliro District
Kaliro District is a district in Eastern Uganda. It was created out of the eastern part of Kamuli District in 2006, and is now a fully fledged district...
.
The business acumen he exhibited impressed his uncles who later asked him to open up another shop in Jinja
Jinja, Uganda
Jinja is the largest town in Uganda, Africa. It is the second busiest commercial center in the country, after Kampala, Uganda's capital and only city. Jinja was established in 1907.-Location:...
, where he started to build his first business, the Vithaldas Haridas & Company, while he was still an employee of his uncles. In 1918, the company bought 800 acres (3.2 km²) of land in Kakira
Kakira
Kakira is a town in Eastern Uganda. It is the location of the International headquarters of the Madhvani Group.-Location:Kakira is located in Jinja District, approximately east of downtown Jinja on the highway to Iganga...
, between Jinja
Jinja, Uganda
Jinja is the largest town in Uganda, Africa. It is the second busiest commercial center in the country, after Kampala, Uganda's capital and only city. Jinja was established in 1907.-Location:...
and Iganga
Iganga
.Iganga is a town in Eastern Uganda. It is the main municipal, administrative and commercial center of Iganga District and the district headquarters are located there. The district is named after the town.-Location:...
, for the purpose of starting a sugar factory. Muljibhai later became the Managing Director of Vithaldas Haridas & Company. That sugar complex, which is today known as Kakira Sugar Works
Kakira Sugar Works
Kakira Sugar Works Limited, often referred to as Kakira Sugar Works , is a leading sugar manufacturer in Uganda.-Overview:Kakira Sugar Works is the largest manufacturer of sugar in Uganda, producing an estimated 165,000 metric tonnes annually, accounting for about 47% of the national output in 2011...
, opened in 1930. By adding to the original parcel of land, through purchases, the current company land holdings at Kakira, are in excess of 9500 hectare, as of April 2009.
According to the group company profile, the years up to the 1960s were good for Uganda and Madhvani. The commodity market was doing well and the middle class, spawned by Uganda’s industrialization, was growing steadily. By the 1950s, the sugar estate was well established.
Muljibhai's two elder sons, Jayant Madhvani and Manubhai Madhvani, had joined him in 1946 to assist with the running of the business. It was during that decade that Muljibhai ventured into textiles and beer. Using what was probably the first International Finance Corporation
International Finance Corporation
The International Finance Corporation promotes sustainable private sector investment in developing countries.IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States....
loan to an Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
n country, he set up Mulco Textiles in Jinja. He also acquired Nile Breweries in 1957. The brewery was divested to South African Breweries
South African Breweries
The South African Breweries , then called Castle Breweries, was founded in 1895 specifically to serve a new market of miners and prospectors in and around Johannesburg. Two years later, it became the first industrial company to list on the Johannesburg Stock Exchange...
in 2002.
As his business prospered, Muljibhai was keen to take care of the well-being and welfare of his employees and the community. His workers and their dependents have enjoyed free education, housing and healthcare, many decades before the term "corporate social responsibility" was even devised.
Muljibhai Madhvani died on July 11, 1958 in Kakira
Kakira
Kakira is a town in Eastern Uganda. It is the location of the International headquarters of the Madhvani Group.-Location:Kakira is located in Jinja District, approximately east of downtown Jinja on the highway to Iganga...
, where he was cremated. However a mausoleum that was constructed in his memory lies at the lakeside along that of his elder son and heir, Jayant Madhvani. After the death of their father, Jayant and his brother Manubhai, oversaw the group’s diversification into oil and soap manufacturing, steel, tea and glass production. Then came the Asian expulsion in 1972 by Idi Amin
Idi Amin
Idi Amin Dada was a military leader and President of Uganda from 1971 to 1979. Amin joined the British colonial regiment, the King's African Rifles in 1946. Eventually he held the rank of Major General in the post-colonial Ugandan Army and became its Commander before seizing power in the military...
. By then, the group had grown into a complex of 52 industrial, commercial and agricultural companies, operating in East Africa
East Africa
East Africa or Eastern Africa is the easterly region of the African continent, variably defined by geography or geopolitics. In the UN scheme of geographic regions, 19 territories constitute Eastern Africa:...
, Central Africa
Central Africa
Central Africa is a core region of the African continent which includes Burundi, the Central African Republic, Chad, the Democratic Republic of the Congo, and Rwanda....
and Southern Africa
Southern Africa
Southern Africa is the southernmost region of the African continent, variably defined by geography or geopolitics. Within the region are numerous territories, including the Republic of South Africa ; nowadays, the simpler term South Africa is generally reserved for the country in English.-UN...
.
In 1972, the Madhvanis who had known no home other than Uganda, left the country penniless, along with thousands of other Ugandan-Asians. However, the family returned in 1982 to repossess their properties under the Expropriated Properties Bill extended by the Obote
Obote
Obote may refer to:*Milton Obote, former president of Uganda*Miria Obote, Ugandan politician and widow of Milton Obote...
government to lure Asians back into the country. On return, they found the sugar estate in shambles. Less than 5000 acres (20.2 km²) was under cane cultivation and sugar production had long ceased. All the associated industries such as oil and soap were mere shells of their former selves.
The company was debt-ridden and Uganda was not very creditworthy at the time. But the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
gave the group a £50 million loan to rehabilitate the estate. More loans from the East African Development Bank
East African Development Bank
East African Development Bank is a development finance institution with the objective of promoting development in East Africa.-Overview:...
and the Uganda Development Bank
Uganda Development Bank
-Overview:The bank began its operations in 1972. Uganda Development Bank is the first development finance institution established by the Government of Uganda. The main objective of UDB is to promote and finance development in various sectors of the economy with particular emphasis on agriculture,...
helped revive the conglomerate and fuel the acquisition of new assets.
Extended Family
The following are some of the prominent members of the Madhvani Family:- Muljibhai Madhvani (1894 - 1958) - Family Patriarch, Founder of Madhvani GroupMadhvani GroupThe Madhvani Group of Companies commonly referred to as the Madhvani Group, is one of the largest conglomerates in Uganda, with a total asset base in excess of US$275 million, as of April 2009. The group has investments in Uganda, Rwanda, Southern Sudan, Tanzania, the Middle East, India and North...
- Jayant Madhvani ( - 1971) - Muljibhai's firstborn son. Run the conglomerate after death of his father.
- Manubhai Madhvani (1930 - 2011) - Muljibhai's second son. Ran the conglomerate with his elder brother before elder brother died.
- Surendra Madhvani - Muljibhai's third son.
- Pratap Madhvani - Muljibhai's fourth son.
- Mayur Madhvani - Muljibhai's fifth and youngest son. Current Managing Director of the Madhvani GroupMadhvani GroupThe Madhvani Group of Companies commonly referred to as the Madhvani Group, is one of the largest conglomerates in Uganda, with a total asset base in excess of US$275 million, as of April 2009. The group has investments in Uganda, Rwanda, Southern Sudan, Tanzania, the Middle East, India and North...
- Nitin Madhvani - Jayant's firstborn son and grandson of Muljibhai
- Amit Madhvani - Jayant's second son and grandson of Muljibhai
- Nimisha Madhvani - Jayant's only daughter. Currently, Uganda's High CommissionerHigh CommissionerHigh Commissioner is the title of various high-ranking, special executive positions held by a commission of appointment.The English term is also used to render various equivalent titles in other languages.-Bilateral diplomacy:...
to IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world... - Meena Madhvani - Jayant's widow.
See also
- Madhvani GroupMadhvani GroupThe Madhvani Group of Companies commonly referred to as the Madhvani Group, is one of the largest conglomerates in Uganda, with a total asset base in excess of US$275 million, as of April 2009. The group has investments in Uganda, Rwanda, Southern Sudan, Tanzania, the Middle East, India and North...
- Kakira Sugar WorksKakira Sugar WorksKakira Sugar Works Limited, often referred to as Kakira Sugar Works , is a leading sugar manufacturer in Uganda.-Overview:Kakira Sugar Works is the largest manufacturer of sugar in Uganda, producing an estimated 165,000 metric tonnes annually, accounting for about 47% of the national output in 2011...
- Idi AminIdi AminIdi Amin Dada was a military leader and President of Uganda from 1971 to 1979. Amin joined the British colonial regiment, the King's African Rifles in 1946. Eventually he held the rank of Major General in the post-colonial Ugandan Army and became its Commander before seizing power in the military...
- Economy of UgandaEconomy of UgandaEndowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits, it is thought that Uganda could feed the whole of Africa if it was commercially farmed. The economy of Uganda has great potential, and it appeared poised for rapid economic growth and...
- IgangaIganga.Iganga is a town in Eastern Uganda. It is the main municipal, administrative and commercial center of Iganga District and the district headquarters are located there. The district is named after the town.-Location:...
- KaliroKaliroKaliro is a town in Eastern Uganda. It is the main municipal, administrative and commercial center of Kaliro District and the location of the district headquarters. The district is named after the town.-Location:...
- KakiraKakiraKakira is a town in Eastern Uganda. It is the location of the International headquarters of the Madhvani Group.-Location:Kakira is located in Jinja District, approximately east of downtown Jinja on the highway to Iganga...
- JinjaJinja, UgandaJinja is the largest town in Uganda, Africa. It is the second busiest commercial center in the country, after Kampala, Uganda's capital and only city. Jinja was established in 1907.-Location:...