admin
Lovemore Zigara Midlands Correspondent
THE country’s biggest shoe manufacturer, Bata Shoe Company, has injected $500 000 in fresh capital directed at ramping up production of Pata Pata and Sandak lines among its new products on the market. The development will see the company ramping up production of these products, which were reintroduced early this year after being discontinued in 2007 at the height of the country’s economic meltdown.
The new investment will go towards the commissioning of Sandak and Pata Pata making equipment, management said. Some funds have been channelled towards the refurbishment of some of the company’s retail outlets as well as installation of cables to connect the entire Gweru factory with its standby generator.
Bata managing director, Mr Ehsan Zaman, said the connection of the factory to the standby generators meant that the company was now immune to intermittent power cuts. “We had serious issues with the power supply and we invested in laying cables to connect all the factories with our standby generators so that we continue with production even if there is a power outage,” said Mr Zaman.
“We also invested heavily in Sandak and Pata-Pata machines while the other funds were channelled towards the refurbishment of some of our retail outlets. The entire exercise has cost us about $500 000 since the beginning of the year.”
The Bata boss said the company is now targeting the South African export market where there is a lucrative market for school shoes and its Tommy line. Once negotiations with Bata South Africa are finalised the local concern will inject another $500 000 next year, which will be channelled towards working capital to raise production to cater for the new export market.
Mr Zaman said the company would bring an additional shift, which would further ramp up capacity utilisation currently sitting at around 90 percent.
“I believe next year we will inject the same amount into the business but it is not finalised yet. If we are able to finalise some (export) deals with South Africa we are likely to increase our exports and if that happens then the capacity will increase meaning that we have to put an additional line in operation,” said Mr Zaman.
“We are likely to come up with a conclusion at the end of this year to see whether there is a likelihood of an increase in exports of which South Africa is key where we intend to export school shoes and Tommy”. Bata exports to Malawi, Zambia and Botswana regionally and has since last year made some inroads into the Latin American market mainly Chile. — @lavuzigara1
Online Reporter