Innscor spreads US$56m on 8 business units

18 Nov, 2022 - 00:11 0 Views
Innscor spreads US$56m on 8 business units Addington Chinake

eBusiness Weekly

Nelson Gahadza

Innscor Africa Limited says the planned US$56 million investment in financial year 2023 will be spread across eight business units as the group seeks to maintain its dominance across markets.

Innscor’s operations span various sectors of the economy. The group engages in fast food services and the manufacture, distribution and retailing of household commodities and fresh produce.

It operates through segments: Milk-Bake, Protein, Light Manufacturing Services, and Head Office Services.

The Milk-Bake segment focuses on bakery division, national foods, and non-controlling interest in proceeds while the Protein segment comprises Colcom, Irvin’s, Associated Meat Packers, Texas meat and Texas chicken.

The Light Manufacturing segment involves the production of stockfeeds, edible oils, bakers’ fats, sale of other general household products; the production, processing and marketing of pork and related food products; the manufacture and retail of household goods and appliances.

It also involves the production of chicken, table eggs and day old chicks; the down-packaging and manufacture of grocery products such as rice, dairy, candles, and beverages; and the production of a variety of bags for packaging, which include open-mouth bags, general purpose bags, and carrier bags.

In the 2022 financial year, the group invested US$70 million in various capital projects. However, Addington Chinake, the group’s non-executive chairman said of the additional US$56 million for the ensuing year US$10 million will be spent on bread delivery trucks while another US$10 million will be invested on pasta and biscuits plant at National Food Limited.

He added that US$8 million will go towards beverage equipment while Colcom factory upgrade and the Bulawayo feed mill will get US$7 million each.

“Table eggs facility upgrade and innovations at National Foods will each get US$5 million while the Kwekwe dairy farm will receive US$4 million,” he said in an interview.

Innscor has already invested in a new Buffalo Brewing Company and the group’s entry into opaque beer will provide direct competition to another Zimbabwe’s largest company Delta, which has over the years enjoyed monopoly of the market.

However, on its part, Delta has invested in additional capacity for its Chibuku Super at its Southerton plant.

According to Chinake, while the operating environment was tough during the first half of the year, the stability of July to October and of the exchange rate is notable and must be welcomed. He said Government and fiscal authorities in order to maintain current economic stability should — promote free market exchange rate and minimise money supply.

Chinake added that the Government should simplify the tax environment and liberalise grain purchase and funding.

In terms of tax issues, industry has condemned the four percent (4 percent) Intermediated Money Transfer Tax (IMTT) on local USD transactions, arguing that it has become a disincentive to banking.

According to the Confederation of Zimbabwe Industries (CZI) the measure is punitive to the formal sector and is also threatening the depositing of US$ into the financial systems as firms try to avoid losing 4 percent of the value whenever they transact.

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