Car and General is one of the oldest and most established companies in Kenya. It has been in operation in East Africa for over 80 years.
The Nairobi Securities Exchange (NSE) listed firm deals in the importation and distribution of automotive and engineering equipment.
In this article, WoK looks at the company’s operations and leadership.
History
C&G was established in 1936 in Nakuru as Car & General Equipment Limited with an initial share capital of sh 5400. The company relocated to Nairobi in 1937.
Initially, it imported and distributed automotive spare parts before venturing into the tire retreading business in 1941.
In 1966, the company changed its name to Car&General Kenya Limited and dropped its manufacturing and selling of retread tires, brake linings, and gumboots in a move to re-invent itself.
In the 1950s, it became one of the first companies to get listed on the NSE.
In the 1960s, C&G diversified into Uganda and Tanzania. The company was consistent in its product base until 2003 when it reinvented itself again by introducing commercial Tuktuks and boda-bodas in East Africa.
In 2013, it established a TVS motorcycle assembly plant in Nakuru and ventured into the microfinancing sector with a stake in Watu Credit five years later.
In 2020, the company invested in Real Estate ventures with its Nairobi Mega real estate company.
Leadership
Vijay Gidoomal is the CEO and managing director of C & G, a role he has held since 1996. He is credited for expanding the firm’s operations to Uganda and Tanzania. He is also credited for introducing commercial boda-bodas and tuk-tuks in East Africa.
Nicholas Nganga chairs the board of directors of C&G. The tycoon, who also chairs the board of directors of G4s, was once the permanent secretary for the ministries of finance, foreign affairs, and health.
The top individual shareholder of C&G is Paul Wanderi Ndungu, who holds an 8% stake of sh 233.52 million. Other individual shareholders are Rakesh Prakash Gadani (2.1%), and Gidoomal (1.35%), whose stakes stand at sh 61.34 million and 32. 71 million respectively.
Profits and Dividends
In 2022, C&G announced that it would start selling electric vehicles and tuk-tuks in a move to venture into the green mobility business.
However, Business Daily reported that the company was increasingly relying on borrowing, rather than shareholder capital, to run its operations. At one time in 2021, it ranked among the least traded stocks on the NSE, even as it recorded its highest profit in its 86-year history.
In July 2023, the Competition Authority of Kenya (CAK) gave C&G the green light to acquire back its 50% stake in Cummins C&G Limited which it had sold in 2018. Cummins deals in the distribution of power generators, diesel engines, coolants, and filtration equipment.
C& G also partnered with India-based manufacturer Beroni — known for its cutting-edge agricultural machinery – to increase its range of products.
The moves are expected to increase its profits, which declined by 23% in 2022 in the wake of forex losses and increased logistical costs.
The firm halved its dividend share in 2022 to sh 0.80 per share from 1.60 per share in 2021.
Branches and products
C&G has five lines of business — equipment and automotive distribution, real estate, financial services, agriculture, and manufacturing of helmets.
Its products include TVS motorcycles, Piaggio Tuktuks, Briggs&Sytratton petrol engines, Garmin GPS devices, Electrolux laundry equipment, MRF tires, Cummins diesel generators, Ingersoll Rand air compressors, Kubota agricultural tractors, Toyota forklifts, BT lifting equipment, Doosan excavators, wheel loaders, and ACE backhoes and graders.
The company’s headquarters are in Nairobi. Its main branches are in Nakuru, Mombasa, and Kisumu. It also has sub-branches in Kisii, Kitale, Kitengela, Kericho, Eldoret, Bungoma, Nanyuki, Voi, and Malindi.
It also has branches in Dar-es-Salaam, Arusha, and Kampala, Uganda.
Its brands include Kibo Poultry in Tanzania, Watu Credit, Nairobi Mega, Cummings C&G, and NIIT C&G.
65% of C&G’s profits reportedly originate from the Kenyan market while 35% come from Ugandan and Tanzania markets.
