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CAIRNS Holdings Limited plans to ramp up production capacity to 60 percent from the current 35 percent by September 2015 when it receives the first tranche of funds from Takura Capital.
Capacity is forecast to jump to over 80 percent thereafter.
Last month, Takura Capital snapped up a 63,57 percent stake in the food processing firm that was previously held by the Reserve Bank of Zimbabwe through investment vehicle, Finance Trust of Zimbabwe.
As part of the deal, Takura Capital is expected to inject US$30 million into Cairns.
Cairns Holdings judicial manager Mr Reggie Saruchera of Grant Thornton Camelsa told The Sunday Mail Business during a tour of the company by Cabinet ministers and officials from the President’s Office last week that: “Takura Capital is set to bring in money by end of September. It will come in tranches because some of the money will go into capex (capital expenditure).
“Production will rise from September; I think from the current levels of between 35 percent and 40 percent to 60 percent. When our equipment comes around October and starts operating, capacity utilisation will also go up to 80 percent.”
Cairns Holdings sourced more than US$1 million from the Distressed Industries and Marginalised Areas Fund and acquired equipment worth US$800 000 from Europe and China.
The company was placed under provisional judicial management in December 2012 after its debts soared to US$25 million. At that time, it was operating at five percent capacity with 343 employees.
Cairns Holdings acting chief executive Mr Jeremiah Kwenda last week said the staff complement had grown to 800 (636 full-time).
Average monthly sales rose in the first quarter of 2015 to US$2 million from US$1,7 million a year earlier and they are expected to reach US$3 million by year-end.
The Mutare factory has been reopened and discontinued products such as Sun Jam and baked beans are back on shop shelves.
By end of fourth quarter, the company plans to have re-introduced Pro-Nutro cereal and marmalade.
Other shareholders in the company include Cyrus Holdings (9,42 percent), Zimcor Limited (4,43 percent), Cairns Holdings’ Workers Trust (4,28 percent), aand Stanbic Nominees (2,22 percent).
Online Reporter