adminTinashe Makichi Harare Bureau
Diversified group Innscor Africa has invested $40 million towards the purchase of a new plant for Colcom Holdings among other notable projects within the group’s portfolio during the past 18 months, a senior company official said.
At least $15 million of the $40 million went towards the refurbishment and upgrading of bakery equipment at Bakers Inn.
Notable investments were also made at National Foods and Capri as the group stepped up efforts to improve operational efficiencies.
In an interview with our Harare Bureau yesterday, Innscor Africa chief executive Antonio Fourie said the group has in the last 18 months made inroads in reviewing strategies aimed at improving efficiency and competitiveness on the back of subdued disposable income among customers.
“As you know Colcom is a food processing company specialising in the rearing of livestock, processing and packaging of pork, beef and chicken meat products.
‘‘Therefore a sizeable investment has been made to bring in new plant and equipment for the company.
“We invested about 40 million the last 18 months and 15 million has gone into our bakery portfolio in particular and we spent a substantial amount in Colcom, national foods and also in Capri,” said Fourie.
“The group’s bakery business was being affected by antiquated equipment characterised by consistent breakdowns making the business more costly.”
The group also restructured the Baker’s Inn factory and also rationalised the human resources structure.
Innscor Africa moved the Baker’s Inn retail outlet management and intellectual side of their business from baker’s inn factory to the fast foods side of business in a bid to achieve economies of scale.
The group’s confectionary operations have been incorporated into the fast foods side of business and a pie production line has been put up and falls within the $15 million investment.
Fourie said the group has made some major inroads within the Spar business by successfully consolidating the stores from two DC’s into one DC.
The group also managed to transfer Fresh Pro business from Spar into Distribution Group Africa operations (DGA). “We’ve closed the two structures from DC store operations into one head office and we’ve moved fresh pro business from spar to DGA. Borrowdale Brooke Spar was closed.
“The group lost quite a couple of franchisee and we’re looking at growing our corporate store base to improve revenue and performance of the company,” said Fourie.
On the logistics and distribution operations, the group has set up a good business through DGA but the logistics side remains underdeveloped hence providing an opportunity for the group to partner players in that segment.
The group’s distribution business consists of DGA operations in Zimbabwe, Zambia and Malawi.
He said the group will keep on engaging strategic partners in different sectors of business. This year, Innscor Africa proposed the acquisition of a 59 percent stake in Profeeds but the diversified group has since withdrawn from the group after the Competition and Tariffs Commission ordered them to reduce shareholding in National Foods to below 30 percent.
Fourie said the group will rethink its strategy on the proposed merger and again look at other opportunities for partnership.
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