adminFiona Chigwida Business Correspondent
TURNALL says its Ravenna tile plant is now contributing about 10 percent of group revenue after having sold tiles for 1,000 homes since commissioning last year. Marketing director Caleb Musodza on Monday said the coming on stream of the concrete roofing tiles and pavers represented new revenue streams for the business.
“The contribution to the business performance currently at about 10 percent of revenue would be felt during the current financial year.”
Musodza said capacity utilisation was in the 60s as it was generally an off-peak season. It is however expected to rise to the top 70s during peak around August.
Overall, at year end the tile plant is expected to contribute 25 percent to the topline as the “current order book is firm and encouraging”
The Vortex Hydra Concrete Tile Plant’s main features include an automatic batching and mixing system, automatic production and curing, a ridges production and automatic packing and strapping system.
The plant has capacity to produce up to 40 tiles per minute and has an output of 15,000 tiles in an eight-hour shift, which means it has the capacity to produce 45,000 tiles per day.
The tiles are 90c per unit and $9.90 per square metre while the pavers are $2.30 per unit or $13 per square metre.
Chairman Herbert Nkala said a total 1,000 houses had been roofed so far with the tiles. A house takes an average 4,000 tiles.
Industry Minister Mike Bimha commended Turnall for diversifying and increasing its revenue streams through the tile plant in addition to its traditional fibre cement business.
“This is true especially as businesses across the country are faced with low uptake of their products as a result of low disposable income due to depressed activity.
“As government in such circumstances, we expect the private sector to be innovative and dynamic to remain viable and continue to contribute to the fiscus,” he said.
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