ZIMBABWE – INNSCOR Africa Limited, a diversified consumer staple manufacturer in Zimbabwe intends to spend between US$50 million and US$60 million on capital programs in the 2024 financial year, as the conglomerate continues to consolidate its local and regional market share.
The intended capital expenditure follows a cumulative US$125 million that was deployed in capital investments across the Innscor business units in the past two years.
Mr Addington Chinake the Innscor’s board chairperson revealed this while presenting the 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.
“This investment program has allowed for the establishment of new business units and products enabled the expansion and modernizing 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,” the statement read.
The company said the investments would span its subsidiaries including the beverages, milling, baking, protein, and packaging segments all scheduled for completion in the 2024 financial year.
In the bakeries division, the investments will be directed at the Harare plant automation initiatives and recapitalization 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 by March this year.
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 modernization of the Coventry factory, retail expansions, and refurbishment of the Colcom Shop. The Colcom division comprises Triple C Pigs and Colcom Foods.
NatPak, which is Innscor’s packaging segment, will direct investment to capacity increases in the flexibles division and new category investments in the rigid division.
According to the company, as of December 2023, when the official communication was made, much of this investment has recently been commissioned or is in the final stages of commissioning.
In optimism, Mr. Chinake noted that it is vital that the company’s expansion programs yield world-class quality products, and that its increasing manufacturing capacities across 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.”
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