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City tycoon and real estate magnate Shukla Mukesh, CEO of Shumuko Group, has announced plans to expand his Shumuko Group’s investments and corporate profile in Uganda by investing up to Sh3 billion to build a modern Overland Car Depot (ICD) bond and related developments on his newly reclaimed Nakawa land plot, marked M-24/26 Mukabya Road.
Shumuk spoke to journalists on Friday, August 2, 2024, at the Shumuk headquarters in Kampala.
Mukesh said some meaningful progress has been made on the plot after clarifying the fate of all parties and reaching a compromise with the different stakeholders who were earlier at odds on issues related to the plot.
Mukesh said: “I would like to announce to all the press and the public our latest milestone and achievement as we have regained possession of the M24/26 Mukabya Road plot in Nakawa which belonged to Middle North Agencies Ltd, one of our group (a subsidiary of Shumuk Group), but had been a vacant land for many years.”
He added: “We have cleared the site and made the necessary improvements and developments on the land to make room for our planned Shumuk Group expansion and new line investments in the form of a modern Inland Car Depot (ICD)/bond and related investments.”
The land, which is located opposite and beside the Shumuk factory in Nakawa, has previously been the subject of controversy. On one hand, the land was the bone of contention between Shumuk and another city businessman, Drake Lubega, and on the other hand, between Shumuk and the family of the late Haruna Semakula, the former boss of Big Ways (U) Ltd.
However, Mukesh, who has been claiming ownership of the plot for years, said the new status quo is backed by the new freehold title they received in 2015 from the KCCA land department.
He said the title was marked as FRV KCCA 2785/2015 folio 9.
Mukesh said they had reached a compromise with the family of late Haruna Semakula and paid them to give up their ownership of the land.
However, he believes that Derek Lubega was thwarted by the court in his bid to seize the same plot of land and his move was unsuccessful.
Mukesh further told reporters on Tuesday that their new ICD will open for business soon and will trade under the name of one of its group subsidiaries, ‘Shumuk Car Bond’ and ‘Middle North Agencies Ltd’.
He said the parking lot is close to 2.5 to 3 acres and can accommodate more than 1,000 cars at a time.
“After more than 30 years of waiting, I am happy to tell the world that we are now ready to carry out meaningful development on this land that has always brought us back to memory. Now there is finally a reason to smile. We have allocated Sh3 billion for the planned investments, planning, etc,” said a happy Mukesh.
Until recently, the land housed a makeshift car wash manned by a few young men and women who ran small kiosks and shops.
This new development on the Schumuk site will bring another thriving business in the form of an auto bond, which is located in the heart of the city and will naturally attract a lot of auto business.
The land alone was very advantageous as it was located in a very strategic location, adjacent to the Shumuk plant and opposite City Oil, and in the context of the economic downturn, nationwide car purchases did not have much impact on the economy.
According to Mukesh, their decision to venture into the automotive industry was to cater to the needs of every ordinary Ugandan.
“We want every ordinary Ugandan to save at least one-third of their income to buy a car. In today’s world, cars are no longer a luxury, but a necessity. We will design a host of tailor-made incentives to cater to the purchasing needs of all potential customers, making these cars affordable for them.
“Besides that, the automotive industry still has a lot of potential. It goes without saying that the future of the automotive industry is very bright as automakers are launching new innovations every day.
“Our goal is to change the status quo and remove the financial or other barriers that many people face in purchasing a new car so that every ordinary Ugandan can drive a new car at a very affordable price with very flexible terms.
“People only have to pay 10% of the car’s value and get their dream car, and we will work out payment plans and terms for the rest that are simple and fair to all,” Mukesh stressed.
Mukesh said they are not only working with banks but also with other available lenders and financial institutions to help individual customers raise funds for car purchases.
Over the years, Schmuck has invested in many areas, including his first company, Schmuck Aluminum, which was founded in 1984 to produce aluminum utensils and related products.
Over the years, the Shumuk brand has grown into a household name thanks to its outstanding design consistency and brand recognition.
“I should say that a large part of our brand’s success is due to our resilience and desire to create a lasting brand, which has kept us ahead of the curve and competitive.”
He said Shumuk was also involved in several other businesses, including Shumuk Tours and Travel, Shumuk Forex Bureau, hospitality business (i.e. Shumuk Emerald Hotel Ltd, Springs International Hotels Ltd) and Shumuk Diaries Ltd (i.e. distribution of “Top Dairies” products in Uganda).
Schmucker moved into the dairy sector after acquiring Alpha Diaries in Nbarara, but later abandoned the business and sold it to a new company, which they later partnered with to help fill the distribution gap.
Additionally, Shumuk has ventured into the beverage industry with the Shumuk Springs mineral water brand.
The company also deals in real estate, Shumuk Properties Ltd., which led to the creation of our Shumuk Building in the city center, the Shumuk Warehouse, and many other properties built in the city under the company’s name.
“It’s difficult to pinpoint how many people we employ but it’s upwards of 1,500-2,000 people directly and indirectly. Until 2018, pre-COVID, our group was contributing up to over $20 million per year to the Uganda Reconstruction Authority coffers and we were one of the largest taxpayers in Uganda then, but of course, post-COVID, that figure has come down and till this day, we are still struggling to make up that gap, like many individual companies in the country and around the world,” explains Mukesh.
About Mukesh
Mukesh Shukla, popularly known as Shumuk, is the CEO/Managing Director and founder of the Shumuk Group empire.
Mukesh is an acclaimed businessman with a flair for business and holds an MBA from Makerere University.
In 2012 he was ranked as one of Uganda’s wealthiest individuals and one of the richest Ugandans of Indian descent, a coveted position that he has managed to salvage and keep afloat over the years despite endless court battles for his empire with the Katatumba family and many other business rivals.
He is the son of the late Pradeep Shukla, who was a tax officer with the Uganda Revenue Authority in the 1950s. In 2021, Mukesh contested for the seat of MP Nakawa and lost to Joel Senyonyi.
In 2012, Mukesh Shukla, popularly known as Shumuk, was ranked as one of the richest men in Uganda and he has maintained this coveted ranking for many years.
“The lesson I (Shumuk) have learned about business success over the years is that you have to persevere in whatever you do so that you can be the best at it,” Shumuk said. “The key to success is not to run or venture into multiple businesses at the same time, but to focus on one particular product, service or business, build a strong and sustainable brand for yourself, and do your best. When it succeeds, you can move on to other promising businesses. Ideally, this is the winning formula that I can pass on over the years in business.”
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