Chronicle Editor
Sikhulekelani Moyo, Business Reporter
TEXTILE giant, National Blanket, says it is fully focused on improving production with no legacy burdens after it managed to settle tax arrears with the Zimbabwe Revenue Authority (Zimra) recently.
The company temporarily ceased production late last year after being denied a tax clearance by the tax authority over an estimated $800 000 debt.
Failure to obtain a tax clearance meant the company could not import the bulk of its raw materials or conduct business with other compliant businesses.
National Blankets business development manager, Mr Shepard Nyambirai, said the legacy debt issues have since been resolved and the business was now focused on scaling up operations.
The company has since approached the Government for a possible bailout, which will help it bridge the capital funding gap amid concerns over prohibitive borrowing conditions from mainstream banks.
“The tiff with Zimra has been resolved. The Ministry of Finance and Economic Development has approved our application for funding through the Special Drawing Rights funds from IMF,” said Mr Nyambirai.
“The Minister, Prof Mthuli Ncube, is following on developments at National Blankets Ltd and is keen to see the company back to its former glory.
“He has indicated that National Blankets Ltd is a project of national interest due to its potential to create employment, promote import substitution as well as value addition.”
National Blanket resumed operations last year and has started supplying a number of retailers, hotels and hospitals nationwide.
Mr Nyambirai said the market has responded well to their products regardless of influx of cheap imported products.
“The market has responded well to our product though we still need to re-establish our distribution network so that the product is accessible nationwide,” he said.
“The company is also selling to the public from its factory shop in Bulawayo.”
Meanwhile, textile companies are still pleading with the authorities to implement policies, which will protect them from competing with cheap imported products.
“Like other textile companies, National Blankets Ltd has been affected by influx of cheap imports. Whilst the industry is protected through SI 122/2017, implementation of the same is still a challenge leaving the industry virtually vulnerable,” said Mr Nyambirai.
“Smuggling and under declaration of textile products have paralysed the textile industry.”
He said regardless of financial challenges faced by the company, they have managed to acquire state-of-the-art machines, which will help them to diversify and improve product quality.
“While most malfunctioning companies bemoan obsolete equipment, National Blankets Ltd has invested in state-of-the-art machinery, perhaps the best in the Sadc region,” said Mr Nyambirai.
“The machinery is versatile and is capable of producing blankets, canvas, sheeting fabric, jute packaging bags, upholstery fabric to mention but a few.
“Harnessing the capability of the equipment through product diversification is key towards resuscitation of National Blankets Ltd.” — @SikhulekelaniM1
Online Reporter