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Entrepreneur's bid to conserve the environment one briquette at a time
Mary Njeri the founder of Eco Charge Ltd, a company that produces Biomass briquettes from agricultural waste.
What you need to know:
- Owing to their ingenuity, within a year of operation, the company was already generating Sh24 million in revenue.
- With the increase in demand for their products, however, came a need to expand production capacity to meet the orders.
While pursuing her undergraduate at the Catholic University of Eastern Africa (CUEA), Mary Njeri developed a passion for green energy that saw her start manufacturing charcoal briquettes using waste materials such as cow dung, saw dust and molasses.
At the time, she was producing the briquettes mostly for domestic use, but when she graduated from the university in 2016, she was fortunate to meet an investor who facilitated her with the funding to manufacture biomass briquettes for commercial use.
“I used the money to set up a production plant in Mai Mahiu and employ 10 staff to help with the production,” says Njeri, the founder of Eco Charge Limited, during an interview with Powering SMEs.
Using agricultural waste such as macadamia shells and sawdust, her company would produce biomass briquettes, which they would sell to organisations such as manufacturing companies, schools and hotels.
“Many manufacturing companies use boilers in one way or another, for their production activities. Previously, these firms have relied on firewood or electricity to run the boilers, both very expensive,” she explains.
As an alternative source of energy, they would give them biomass briquettes, which are cheaper than electricity and run four times longer than firewood.
“A school with a population of 1,500 students in a term could use two trucks of firewood, but for briquettes, they will only need 10 tonnes, so they will save up to 30 percent on energy,” she says.
With climate change becoming a major issue in the world, the biomass briquettes, which can be considered as a cleaner source of energy, would also help to significantly reduce the impacts of global warming.
“We did a case study of the Kenya Tea Developers Association, the association comprises 57 companies in total. Each company uses around 11, 500 trees per year. This comes to almost 700, 000 trees per year for them to do their processing. For every tonne we sell, we are able to save 36 trees.”
Owing to their ingenuity, their products received a good reception from the market, and within a year of operation, they were already generating Sh24 million in revenue.
“That really encouraged me because I knew then that we were onto something,” remarks Njeri.
With the increase in demand for their products, however, came a need to expand production capacity to meet the orders. For this, they would need a larger investment.
“Getting an investor who can trust you and your vision is no walk in the park. After constant searching, in March this year, we were lucky to get a working capital facility from Grassroots Business Fund.”
They were able to build a larger warehouse and employ a larger workforce. From a workforce of 10 when they were starting out back in 2016, the firm currently employs 40 staff at their factory in Kajiado, 70 percent of this number women.
“Before, we were on a one-acre plot, now we are situated on a two-acre plot, which has enabled us to employ more women, who come in as casual labourers for sun drying the saw dust,” says Njeri.
Through the funding, they were also able to acquire more specialised equipment, which has not only helped to make work easier, but has also enabled them to fulfill orders more consistently.
“Previously, we relied on the sun for drying, so when the weather was not on our side we could not produce. Through the funding, we were able to acquire a dryer, so now, whether it rains or not, we are still able to produce.”
The entrepreneur adds that receiving the funding also helped to build their credibility among other organisations who felt that if a reputable organisation had trusted them with their money, then there must be a valid reason for believing in them.
“Their rates were also better than the banks, so we have been able to maintain our cashflows without really struggling,” posed Ms Njeri.
Due to the tax exemptions that companies which operate in the waste management space get, Mary says that they have been able to grow at a faster pace than the typical startup.
However, she does admit that despite the growth they have been able to register over the past one year, business has not been easy, particularly when it comes to maintaining cash flows due to delayed payments from some of their clients.
“At times it can take weeks for an invoice to mature, yet you bought raw materials using cash. Being a woman in a male dominated industry has also not been easy,” she explains.
With Tanzania as the other market for their goods, they seek to acquire additional funding which will enable them to set up a processing plant there. This will lower their cost of shipping.
The funding will also enable them to tap into the wider East African market, as well as the international markets.
“By 2027 we hope to see ourselves in Congo, as we seek to cover the entire East African region. We are also having conversations with a potential client in Germany,” says Njeri.
