An Overview of the Packaging Sector in Uganda by Katon Manufacturers

Dr. N. Venkata Krishnan, Managing Director of Katon Manufacturers Ltd, explains how the packaging sector is structured in Uganda.

“My competitors have shareholders which means that 60 to 70% of their business is from in house. The other 30% of their business they pick up in the market. That 70% is also made up of the leaders in their markets who make soap, cosmetics, and other kinds of products that require packaging. These monopoly groups are now growing very quickly. If they have a shareholder that requires a few hundred tons, they can do it in house. This means they can save on cost and make a good profit. In packaging, there is a lot of profit. From the paper material, you do not want to waste a single product. The manufacturing sector is growing and new investors are coming in and the demand is also increasing. Before, we had only seven companies and now, within two years there are twelve companies. Out of the remaining five companies, three are a monopoly. They have their own factories. This cuts off the market. They run their own product and save a lot of money. For example, what I put into the profit margin, my competitors can save that cost directly. They also save on the overall cost because they have labor already in house. However, I do not have anyone in house. At Katon, I am 100% dependent on my customers only. If I handle those customers properly, they will stay with me and not go to my competitors”, says Dr. N. Venkata Krishnan.

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