eBusiness Weekly
Enacy Mapakame
Agriculture and mining equipment supplier, Zimplow Holdings Limited has started implementing its expansion programmes across units, which is aimed at boosting output, as the group targets consolidating its export market and enhancing foreign currency earnings.
One of the strategies is branch network expansion for its various units.
The group has indicated its heavy reliance on foreign currency, at a time access to it remains limited in the country, thus creating scope for strategies to tap into the export market.
During the past financial year — to December 31, 2022 (FY22), Zimplow’s export business grew by 35 percent, which chief executive officer Vimbayi Nyakudya said helped sustain the group in terms of foreign currency needs.
Its expansion programmes are also meant to meet product supply needs for the domestic market.
Now, the group has added another Tren Tyre outlet to its branch network as part of initiatives to meet demand.
“The Zimplow Group is pursuing aggressive expansion plans at present. We are constantly evolving and refining our identity as a supplier of choice to all our key sectors of the Zimbabwean economy, such as agriculture, mining, and infrastructure,” said Nyakudya at the launch of the new Tren Tyre outlet along Robert Mugabe Way in Harare.
“The establishment of this Branch is essential to Tren Tyre’s decentralisation strategies, and our efforts are focused on moving closer to our customers so that we can provide them with greater convenience.
This strategic move is being made to increase the effectiveness and efficiency of our operations,” he said.
During FY22, factory optimisation increased retread production by 40 percent for the business unit.
Good Year tyre sales rose 2 percent despite supply chain difficulties coupled with a generally challenging operating environment characterised by inflationary pressures and exchange rate volatility.
The expansion of the Tren Tyre unit also forms part of the group’s broader initiatives to enhance efficiencies, optimise operations as well as increase earnings performance to offset the negative impact of the discontinuation of the Caterpillar dealership by Barzem.
The broader initiatives also entail the launch of Valmec and Tractive Power Solutions (TPS), while the Group has also increased resource allocation into Scanlink and Tren Tyre units to boost performance and overall contribution to the group.
Tren Tyre was founded in 1997, and in 2021 it became part of the Zimplow Group.
In Zimbabwe, Tren Tyre has an extensive branch network that spans the country’s most vital mining, agricultural, and industrial regions with plans to further expand into other towns.
“We take great pride in our long-standing partnership with our global manufacturer, who offers a wide variety of products and brands (including Goodyear, Sava, and Kelly), and we are unwaveringly committed to this partnership,” said Mr Nyakudya.
