Sembule Steel Mills Ltd has been sold, Xclusive UG understands. Our source reveals that the indigenous company has been bought by Tirupati Development- Uganda.
Tirupati Development (U) Ltd was established in 2006 and its mother company is Tirupati Sarjan India. For years Sembule Steel Mills Limited has been struggling with loans.
In September Sembule implored government to intervene and rescue the company from being taken over by Bank of Baroda which it owes seven billion shillings.
The pleawas made through Buikwe South MP Dr Lulume Bayiga who presented a petition to the Parliamentary Committee on trade, tourism and industry saying if government does not intervene, local companies will vanish at the expense of foreign investors.
Sembule is said to have borrowed 7 billion shillings for capital development from Bank of Baroda and has failed to raise the money to pay back the loan. The bank wanted to take over the plant owned by Christopher Sembuya which according to the petition is worth 50 billion shillings. Tirupati has paid him $10 million.