admin“We want to reorganise our layout and enhance capacity utilisation, which is currently at almost 60 percent. Machinery and labour have high cost when capacity utilisation is low. For close to 20 years, we have been using the same machinery. We need to reorganise . . . produce a wide range of products in Zimbabwe,” he said.
“Our focus is now mainly school shoes, canvas shoes and formal shoes. We will soon be importing a good secondhand mixer machine, as we are not in a position to buy a brand new one. This machine will help us increase capacity as it is the latest technology that occupies less space.”
Bata Shoe Company employs more than 1 500 people, excluding 170 who are engaged as contract workers.
Mr Pinto said the Gweru factory manufactured 200 000 pairs of shoes per month.
“Our aim is to keep increasing production. We have special arrangements with the power utility, the Zimbabwe Electricity Transmission and Distribution Company as to when they should cut our power. They do not cut us outside the agreed hours, after that we are on generator to ensure maximum production. We now have 80 percent of our shoes from the local factory while only 20 percent is imported,” he said.
Mr Pinto said a brand new mixer machine costs about $300 000 and when transport and Value Added Tax were added, the price could get close to $500 000.
The second hand machine costs between $40 000 and $60 000.
“We are expecting the mixer machine by the end of March and we have plans to bring in three other machines later this year,” said the Bata managing director.
He said the relocation of the formerly Kwekwe based JIT company to Bata’s Gweru plant helped boost the company’s turnaround as it reduced operational costs.
“We no longer need to place on standby a team of technical experts to attend to faulty machines in Kwekwe. Our operations are now centralised and this is a huge relief on our human and machinery resources expenses. We have lots of space here at the Gweru plant. The machines that we are importing will also help us maximise production without the machinery taking too much space,” he said.
Mr Pinto said Bata’s recovery story was mainly due to the assistance the company was receiving from its sister companies in Africa.
He said the sister companies sometimes bought raw materials on their behalf and they would pay later.
On the company’s compliance with the indigenisation and economic empowerment policy, Mr Pinto said Bata submitted its plan in November 2010 and it was rejected last year in December.
“Our organisation, Bata International, is working on a new indigenisation plan. I am not privy to the details of the plan as it is being handled by our parent company,” he said.
Midlands Governor Jason Machaya, who was leading the touring party, commended Bata in its efforts to boost production and enhance the job security of Midlands people.
“We are happy with Bata’s revitalisation as evidenced from its raising production levels from 30 percent last year to almost 60 percent this year. I have been briefed that they are also empowering locals by sub-contracting some of their divisions to indigenous people. They will provide them with the machinery, expertise, raw materials and the market for the product. This is a positive development that should be commended.
“This is, however, not the answer to the indigenisation programme where companies have to cede 51 percent of their shareholding to locals. This still needs to be done separately,” he said.
Governor Machaya also revealed that Bata Shoe Company was working on a rebranding programme that would result in the company operating like a franchise that has independent businesses or companies operating under it.
“The programme will be branded in similar fashion to that of Spar and Lucky 7, where different business would follow certain business ethics in their operations that are in line with the brand’s standards.
“Individuals or companies would manufacture or sell shoes under the Bata brand. We should be able to witness two or three such shops in the first quarter of the year and the shops will start operating in the Midlands
before spreading to other parts of the country,” he said.
Online Reporter