adminpricing variance that made it uncompetitive against the imported brands, mainly from South Africa.
In addition, the company was demanding cash on delivery as opposed to flexible payment terms, resulting in local shops shunning the product. This resulted in the company accumulating stock of around two million litres of oil and led to the temporary shutdown of the plant in August due to lack of storage space.
Surface Investments executive director Mr Narottam Somani yesterday said Golden Glow should be available in shops in the next three weeks.
“We have been facing challenges with respect to placing our product on the local shelves due to pricing plans. Supermarket chains typically pay in 60 days, while we prefer to be paid as we deliver, especially now when our cash-flows are tight and in view of the high interest rate being charged by banks.
“However, we have come up with an arrangement to ensure that our cooking oil will be available in local retail shops in the next three weeks,” he said.
Mr Somani was speaking to journalists during a tour of the Chitungwiza plant yesterday.
He said the product would be available on supermarket shelves at 20 percent less the price of cooking oil imported from South Africa.
He said a two-litre bottle of their cooking oil would cost US$2,99 compared with South African brands whose price is currently pegged at between US$3,30 and US$3,80.
The move by Surface Investments should provide impetus for calls by local manufacturers to regulate imported goods coming into the country.
Observers have generally lamented the high cost of locally manufactured products compared with imported products.
Surface Investments is a joint venture between the Industrial Development Corporation of Zimbabwe with 26 percent and an Indian firm, Midex Global (74 percent).
Meanwhile, the company has submitted its indigenisation compliance plans to the Government and awaits approval.
Part of their compliance plan includes listing on the Zimbabwe Stock Exchange.
Management has indicated it is targeting to crush
12 000 metric tonnes of cottonseed and 20 000 metric tonnes of soyabeans in the 2012-2013 crushing season.
“The production target for the 2012-2013 crushing season has been set at 12 000 metric tonnes of cottonseed and 20 000 metric tonnes of soyabeans based on the projected national output,” said an IDCZ official.
In terms of capacity, Surface Investments is the country’s largest multi-oilseed processing plant.
The company says it also exports crude oil to Malawi and cotton linters, and cotton hulls to South Africa and Europe.
Online Reporter