Innscor to spend up to US$60m on capex
INNSCOR Africa Limited intends to spend between US$50 million and US$60 million on capital programmes in the 2024 financial year as the conglomerate continues to consolidate its local and regional market share.
The diversified consumer staple and durable goods manufacturer said the investments would span its subsidiaries including the beverages, milling, baking, protein, and packaging segments all scheduled for completion in the next financial year.
In the bakeries division, the investments will be directed at the Harare plant automation initiatives and recapitalisation of Baker’s Inn delivery fleet.
At National Foods the capital expenditure will focus on setting up a biscuits plant, snacks plant expansion as well as the rice packing and storage plant, which is scheduled for completion in March next year.
This comes after National Foods commissioned a pasta plant earlier this month.
Under Profeeds, Innscor aims to spend on the establishment of a stockfeeds factory in Bulawayo and the setting up of a new Harare distribution centre (Profarmer) and retail network expansion while the Prodairy will focus on developing additional plant capacity and investment in the new product formats and categories. Probrands capital expenditure will be coupled by a Route-to-Market investment.
The other capex project will entail Colcom’s upstream piggery operations and the modernisation of the Coventry factory, retail expansions and refurbishment of the Colcom Shop.
The Colcom division comprises Triple C Pigs and Colcom Foods.
On the other hand, NatPak, which is Innscor’s packaging segment, will direct investment to capacity increases in the flexibles division and new category investments in the rigids division.
The rigids division focuses on the manufacturing of High-Density Polyethylene Plastic (HDPE) bottles preforms and closures while the flexibles division manufactures products that include but are not limited to, bread bags, automated packaging films, laminated packaging films, surface printed bopp, pouches, bottom and side seal bags. It also aims to grow capacity and investment in the sacks division according to Innscor the project is currently underway.
The intended capital expenditure follows a cumulative US$125 million that was deployed in capital investments across the Innscor business units in the pasts two years.
“This investment programme has allowed for the establishment of new business units and products, enabled the expansion and modernising of existing manufacturing lines, extended existing product categories, and will ultimately enhance the overall manufacturing efficiencies and capabilities of the Group as critical mass is reached.
“Much of this investment has recently been commissioned or is in the final stages of commissioning, and in the period ahead we will deploy considerable focus and energy on ensuring these exciting new investments operate according to the necessary operating models, driving positive returns to shareholders,” said Mr Addington Chinake the Innscor’s board chairperson in its 2023 annual report.
According to Mr Chinake, the group’s business models continue to undergo constant refinement to ensure that the group remains adaptive and relevant in a dynamic and complex operating environment.
“It is vital that our expansion programmes yield world-class quality products, and that our increasing manufacturing capacities across our business units translate into economies of scale, resulting in excellent pricing for our customers; we will continue to strive to make the lives of our customers better.”