Indian firm takes over Kenyan flower nursery

An Indian company has just become the world’s largest grower of roses after buying the Kenyan business of a Dutch flower producer.

Bangalore-based Karuturi Networks spent 50 million euros (US$71 million) to buy Sher Holland’s Kenya nursery after months of talks, chief financial officer Prasanna Pai said.

The acquisition was financed by the sale of foreign-currency convertible bonds, said Pai, adding it would raise Karuturi’s annual production to 650 million roses from about 130 million now.

"The aim is to increase it to one billion stems in three years," Pai said, adding no more immediate takeovers are being planned. "We have additional land in Ethiopia that we will convert into greenhouses to achieve that goal."

Karuturi was founded by entrepreneur Ramakrishna Karuturi, a 42-year-old mechanical engineer who gave up the family business of manufacturing cables and transmission towers to grow roses. The inspiration to go into the flower business came when he went around this southern Indian city in search of roses for his wife one Valentine’s Day and couldn’t find any.

"It’s a bit embarrassing, but not completely untrue," Karuturi said of the story of his fruitless search for roses for his wife that led him to where he is now. "But I also love this business, I enjoy doing this business."

Karuturi roses are now sold in Africa, the US, Europe, the Middle East, Asia, Australia and New Zealand.

Karuturi said in February he was in talks with the Sher group, which hails from a country that has traditionally dominated the global flower business. "It’s said that every Dutch farmer has a secret book he passes on to his progeny to keep the tradition going," said Karuturi.

The global flower business is highly fragmented. About 40 000 hectares of land are under rose cultivation worldwide, yet the biggest farm is no more than 200 hectares.

Kenya has the world’s largest share of the rose trade: a mere 4 percent. The country has ideal conditions for growing roses; 12 hours of light and 12 hours of darkness every day that improves the flower vase’s life.

AFP