One of the country’s largest electricals and hardware suppliers, Powerspeed Electrical Limited’s implementation of expansion programmes, is timely enabling the company to tap into the construction boom being witnessed.
Despite the obtaining economic headwinds, the construction industry has remained buoyant with firm activities across segments as the construction.
For instance, the real estate, which from time immemorial, has always been a haven for investment during uncertain periods and a perfect hedge against inflationary pressures for instance, has experienced strong activity ranging from residential, commercial to industrial developments.
In the past few years, various real estate projects have been undertaken across the country to cater for residential, office parks, industrial and retail space to meet growing demand.
Such developments allow companies like Powerspeed to enjoy good returns from the property development projects being carried out in the country at institutional and individual levels.
Additionally, strong funds flow from the diaspora, which is emerging as one of the biggest source of foreign currency, is driving a boom in residential construction throughout the country, which is, in turn, driving demand for building materials.
This presents opportunities for the group as suppliers of building materials while branch network expansion is also expected to be beneficial to the group.
The group has maintained a strong focus on product availability and a diverse product portfolio as ways to push volumes. Store expansion fits into this plan, as efforts to meet demand and product availability to the market.
Recently, the company launched a new branch in Zvishavane as part of its branch network expansion.
The new Branch boasts 5 000 quality lines suited for all domestic and commercial needs in the area including painting, plumbing, electrical, solar, building, cabling, power tools, outdoor and automotive.
Following six months of construction on a 6,056 square metre plot, the custom-built building is 1,740 square metre, with a retail space of 1,691 square metre and 81 parking bays inside the property.
According to the group, green building elements such as natural lighting, seamless boundary walls and self-ventilation have been incorporated as well as ramps on the entrance and exit ways making the building disability friendly.
“With its convenient features and wide range of products, the branch is poised to become a leading retailer in the mineral-rich Midlands province and continues Electrosales’ steady growth of 22 branches and over 1 200 employees,” said Powerspeed.
The company is a leading supplier of electrical, hardware, building and home improvement products and services trading through its own chain of hardware retail outlets known as Electrosales Hardware.
During its half year to March 31, 2023, Powerspeed recorded a 500 percent jump in revenue to $42 billion compared to the same period last year on volume increase.
Operating expenses climbed to $5,36 billion from $1,18 billion, giving an operating profit of $1,86 billion, up from the previous $650 million. Profit after tax rose to $1,15 billion from $416 million.
During the half year period, Powerspeed moved its Electrosales branch in Avondale to a bigger space and brand-new building.
“The building, our second that is purpose-built, is also our biggest branch with 2 860 metres under roof.
Turnover in this branch has been growing steadily and feedback from customers is very good,” said Powerspeed.
“A continued focus on ensuring maximum product availability and increased product range and choice has, once again, ensured an increase in volume over the same period the previous year.”