Chronicle EditorNatasha Chamba, Business Reporter
INDUSTRIAL holdings group Tobacco Sales Limited (TSL) will this year focus on consolidating strategic partnerships with international firms as it seeks to boost foreign currency revenues to sustain its operations.
Of late, a number of local firms are failing to import critical raw materials to sustain their operations due to foreign currency shortages.
TSL chief executive Mr Patrick Devenish said his organisation would through a strategic alliance with international firms bolster forex generation across its logistics, agriculture, packaging and real estate division to enhance self-sufficiency.
He said TSL would deepen its partnership with German giant DB Schenker to earn the company the required foreign currency.’
“Our forex generation is dependent on the services we provide to DB Schenker through our logistics division.
“We want to deepen this relationship with them to generate more foreign currency.
“DB Schenker is one of the world”s largest logistics companies and we have a very strong relationship with them,’ said Mr Devenish.
DB Schenker is a logistics and supply chain management entity and is a division of the German rail operator Deutsche Bahn AG owned by the German government.
Mr Davenish said TSL’s Agricura, which provides crop chemicals and veterinary products, will also begin to export its products to neighbouring countries soon.
He said export enhancement would also be driven through Corteva, an American company (formerly Dow Du Point) which is a shareholder in Agricura.
“Our warehouse TS timbers situated close to Tobacco Processors Zimbabwe will be demolished and rebuilt.
“Then we have the Hubbert Fox complex which we also aim at repairing. We need about $10 million altogether.
“We have already started demolishing TS Timber with a view to finishing refurbishing in six months’ time,’’ Mr Devenish said.
The company recorded a 19 percent jump in revenue to $52,1 million in the full year to October last year driven by a strong performance of its agriculture-related business.
The company’s profit-after-tax more than doubled to $12,9 million compared to the $4,8 million recorded in the previous year.
This season TSL anticipates at least a two percent growth in tobacco output from 500 000 kilogrammes depending on the weather’s outlook.
— @queentauruszw
derick.khumalo