The Herald (Zimbabwe)

Innscor to spend up to US$60m on capex

- Business Reporter

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.”

 ?? ?? Mr Chinake
Mr Chinake

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