Bain New Holland in bid to boost sales

Tractor manufacturer Bain New Holland has engaged TSL and local financial institutions for structured finance facilities in an effort to boost sales.
Bain New Holland sales and marketing director Mr Marlon Nyamangara said the initiative was meant to increase distribution of the company’s products by selling tractors through big companies that can offer staggered payment options to the farmers.
“TSL pays 30 percent of the total cost of the farming equipment they want and the rest will be paid over six months, 12 months and 24 months depending on the payment terms the company prefers,” he said.

TSL owns one of the world’s largest tobacco auction floors and is involved in the entire tobacco production chain from growing to shipping. It also operates the Avis franchise in Zimbabwe.

Bain New Holland used to sell most of its manufactured farming equipment direct to the farmers, but due to the economic hardships the country is facing farmers are no longer able to afford.

Mr Nyamangara said, the strategic alliances were aimed at increasing agriculture production in Zimbabwe through flexible payment plans to local farmers.
“We used to supply farmers with hiring equipment and make payment plans with them directly without including any middleman but we have closed such programmes,” Mr Nyamangara said.

Bain New Holland is also working with financial institutions in the country by offering its products at wholesale prices while the banks offer soft loans to the farmers to purchase the equipment.

“Currently, we are working with different companies to create soft loans and long-term investments to increase production in the country,” he said.
“We are working with Africa Century, BancABC and ZB Bank,” he said.

“But farmers are really yet to benefit since most of the banks require collateral, which most of the farmers do not have.”
The strategy Bain New Holland has come up with is similar to a $5 million structured asset facility Zimplow recently concluded with a Brazilian firm.

Under the facility, the Brazilian export and import bank will supply tractors to Zimplow, which would sell the equipment to farmers at low cost while the Brazilian bank pays the supplier.

The facility is expected to boost Zimplow tractor sales at a time farmers and the rest of the economy are reeling under the effect of tight liquidity crisis. — BH24.