adminCharity Ruzvidzo Business Reporter
AILING Bulawayo leather firm G&D Shoes is on the rebound after adopting a new turn-around strategy aimed at increasing its work force from 30 to 300 in the next three months.
Once a leading footwear manufacturer, G&D was placed under judicial management in 2010 due to operational constraints and has since been engaging workers based on orders.
The company’s judicial management representative, Munyaradzi Gwese, yesterday told Business Chronicle the company resumed its operations this week and was geared for growth.
“Our production line is up and has started growing. The more work we get in the production line the more people we employ.
“Currently we have 30 workers. However, we hope to have 300 employees in the next two to three months if our plans succeed,” he said.
“We are trying to implement a strategy where we reach the masses, produce a pair of shoes for the ordinary person at a price they can afford.
“Producing and selling right away is our plan. We want to avoid situations where we have to go to the banks to look for loans for capitalisation.”
Gwese said the company was moving away from targeting corporate orders but would now sell products to individuals and the informal sector such as flea markets.
“We said instead of focusing on corporates, let’s also look at who is buying the shoes and we observed that it is the informal sector and the general public is buying from that sector,” he said.
“So, as G&D, what we are trying to do is to target the informal sector.
“The credit market is very limited but the informal sector is where the money is.”
Gwese said nobody in the corporate sector was targeting the people except Bata, adding that by so doing, G&D Shoes would fight stiff competition from imports and consolidate its market share.
He urged Zimbabweans to stop importing goods for resell and support local firms.
“So far we have at least five companies that have requested our products. We engaged our customers about our products hence these orders”.
Gwese also said Belmont Leather, a sister company doing tannery and processing of raw hides into leather, was their main supplier.
He said while under judicial management the company conducted market research and production planning that enabled it to identify survival tactics.
Shortage of working capital, ageing equipment, power constraints and stiff competition from imports have been cited as major factors affecting the leather industry which requires about $50 million for recapitalisation.
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derick.khumalo