Quick Info

Business Description

PAK Fab Enterprises is a limited liability company involved in the production and distribution of briquettes whose purpose is to promote cost efficiency for manufacturers by increasing production capacity due to a reliable and clean source of fuel. It seeks to promote industrial use of clean energy through commercialization of improved biomass briquettes.

Problem/Solution

The manufacturing sector in Kenya is known to use fossil fuels as sources of energy in its production processes. This is not only very expensive to the industries but also, environmentally unfriendly in an already vulnerable nation. The use of briquettes, therefore, is a good substitute that is a sustainable fuel source and at the same time lowers energy costs as it is relatively cheaper.

Products/Service

The enterprise’s core product is white briquettes, a highly combustible solid that is an alternative to firewood. The business produces different designs of the briquettes. The briquettes are designed for industrial use; however, the enterprise also produces household briquettes. The company has begun specializing in the production of non-carbonized briquettes to improve its products.

Market

PAK Fab Enterprises primarily targets industries that use high-energy-boilers that require hundreds of tons of firewood in a week. There are many manufacturers both in Kenya and in the Eastern African region that use firewood and would greatly benefit from PAK Fabricators products.The sector is selected due to its heavy demand for firewood and its by-products which eventually lead to environmental degradation. PAK Briquettesthus provides a solution that contributes to environmental management and increased tree cover, whilst enabling the industries to cut on their production costs.

Competitive Landscape

The company faces competition from other sources of energy but mainly from firewood vendors (charcoal and dealers and log cutters) who supply the target market. Other briquette producers are also competitors. Barriers to the market entry include established organizations but for PAK Fab there are opportunities like limited diversification and market access which seeks to exploit. PAK Fab Enterprises Ltd uniqueness is in its target customers. Industries require a sizeable supply of energy for their production. This coupled with the fact that there is too much pressure on industries to contribute towards a clean environment; PAK Fab’s energy solution is very timely.

Business Model and Distribution Channels

PAK Fab Enterprises Ltd designs and manufactures white briquettes which are sold to industries and small scale consumers like households. Quality services are given to the customers and timely delivery to maintain good relationships with the customers.

Traction to Date

The business operates as a registered company and its current production capacity is 1 ton of briquettes per day. It has secured The Bata Shoe Company among others as repeat customers.