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Business Reporter
BRICK maker, Willdale Limited is targeting to produce 90 million bricks this year with the company also planning to expand into the region. Willdale chief executive Nyasha Matonda told The Herald Business the company was exploring the Mozambique and Zambia market for its face bricks. Currently, Willdale’s volumes are pushed by demand from individual residential property developments in cities although prospects are high on anticipated construction projects across the country.“The biggest market is currently individual home developers,” said Mr Matonda by email.
“We expect to participate in the other several projects that are lined up such as Government flats, university buildings and hostels, schools and cluster houses,” he said.
In the full year to March 2016, Willdale reported turnover came in 20 percent below prior year at $3,6 million due to depressed volumes and lower prices. Volumes for the year were 18 percent weaker than prior year.
Mr Matonda said there had been a general decline in construction projects as a result of the challenging economic environment, and this had a knock on effect on the group’s performance.
Additionally, the sprouting of unregistered brick makers across the country is posing a threat to the company’s sales volumes especially the common bricks.
Unlicenced brick makers and suppliers have capitalised on the boom in individual residential development projects in urban centres, however exposing consumers to the risk of poor structures that may lead to disasters.
Mr Matonda said there was need for industry regulators to enforce the existing by-laws that protect consumers from substandard bricks to maintain its integrity.
Willdale is however upbeat of 2016 on the back of its diversified portfolio which now includes transport logistics. Added to this is the group’s cost cutting measures which are expected to bear fruit in the year.
“Critical mass is obtained from large projects such as schools, shopping malls and cluster houses. We are driving volumes by being competitive through keeping our costs low and maintaining our high quality standards.
“We have also added a brick delivery service to provide total solutions to clients,” said Mr Matonda.
This year, Willdale set up a transport logistics unit to enhance handling and movement of bricks while widening revenue streams.
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