malvernmugadzikwa
Enacy Mapakame
LISTED diversified firm Zimplow Holdings Limited has lined up an array of initiatives to turn around its earnings in the short-to mid-term period, including expansion of export markets, global partnerships and capacity-enhancement programmes.
According to Zimplow acting group chief executive officer Mr Willem Swan, the implementation of these initiatives started in the second half of the current financial year.
In an interview on the sidelines of the group’s 74th annual general meeting in Harare on Thursday, Mr Swan revealed that the company is working on a new and wider product range for the agriculture sector in the region.
By pushing volumes in the region, the group expects to boost its foreign currency earnings, as well as offset the adverse impacts of the El Niño-induced drought, which severely affected Zimbabwe and the rest of the Southern African region.
Demand for farming implements has dipped on the back of bad weather across the region.
“In terms of exports on the Mealie Brand side, we have been a major exporter in the region of hoes, ox-drawn ploughs, spares and garden equipment.
“Now, with a capacitation programme at the unit, we have designed and tested new implements like ploughs, boom sprayers, smaller tractors and harrow disks for the regional market. We are looking at markets like Zambia, Malawi and Mozambique,” said Mr Swan.
He added the group is also resuscitating its relationship with Angolan farmers with the aim of resupplying implements. But that is not all for Zimplow. The group has invested about US$750 000 for delivery of FAW trucks, which should come into the country in July, in a move that will boost its stocks.
The group is confident of meeting its projections to year-end on the back of a growing order pipeline.
Under its mining and infrastructure cluster, Zimplow is also banking on its partnership with a new original equipment manufacturer Develon, which has started making strides “and creating excitement in markets across Asia, the Americas and North Africa”.
“Zimplow’s collaboration with Develon offers equipment solutions by offering well-priced units and after-sales service that is set to enhance productivity in the construction, agriculture and mining sectors.
“Develon models are known for their exceptional performance, durability, comfortable interiors, impressive fuel efficiency and versatile capabilities,” said Mr Swan.
At Powermec, which is also under the mining cluster, the unit’s sales were down by 25 percent, whilst parts and service hours revenue decreased by 15 percent during the five months to May 31, 2024 in comparison to the same period last year.
Although this negative performance is attributable to the strained economic environment and tight liquidity in the market, the group, however, increased its funding towards stockholding, together with product support initiatives.
Mr Swan said this is meant to ensure that there is ample capability to meet customer needs in light of the increased power outages being experienced this winter. The business unit is also concluding discussions with a “reputable international solar equipment manufacturer” with a view to providing more cost-effective solar power solutions to existing and prospective customers.
Although the group recorded a 20 percent revenue decline to US$10,9 million during the five-month period, on the back of depressed demand due to the drought across the region, it still maintains a positive outlook, supported by its various initiatives, while firm gold prices are also an added advantage.
Online Reporter