Home » General » Innscor Africa Invests U.S $40 Million

Diversified group Innscor Africa has for the last 18 months invested $40 million towards improving operational efficiencies at its bakery plant, protein business and at National Foods. $15 million of that money went towards the refurbishment and upgrade of bakery equipment at Baker’s Inn.

Notable investments were also made at Colcom, National Foods and Capri as the group steps up efforts to double its output.

In an interview with The Herald Business yesterday, Innscor Africa chief executive Mr Antonio Fourie said the group has for the last 18 months made inroads in reviewing strategies aimed at improving efficiency and competitiveness on the back of subdued disposable income among customers.

“As you know, Colcom is a food processing company specialising in the rearing of livestock, processing and packaging of pork, beef and chicken meat products.

“Therefore a sizeable investment has been made to bring in new plant and equipment for the company.

“We invested about $40 million in the last 18 months and $15 million has gone into our bakery portfolio in particular and we spent a substantial amount in Colcom, Natfoods and also in Capri,” said Mr Fourie.

He said the plans were all part of the new strategy to double the scale of the third largest company on the Zimbabwe Stock Exchange.

To that end Innscor had moved the Baker’s Inn retail outlet management from Baker’s Inn factory to the fast foods side of business in a bid to achieve economies of scale.

The group’s confectionery operations have been incorporated into the fast foods side of business and a pie production line has been set up.

The line falls within the $15 million investment. Mr Fourie said the group has made some major inroads within the Spar business with some consolidations and a store closure.

The group also managed to transfer Fresh Pro business from Spar into Distribution Group Africa operations (DGA).

“We have closed the two structures from DC store operations into one head office and we have moved Fresh Pro business from Spar to DGA. Borrowdale Brooke Spar was closed.

“The group lost quite a couple of franchisees and we are looking at growing our corporate store base to improve the revenue and performance of the company,” said Mr Fourie.

On the logistics and distribution operations, the group has put up a good business through DGA but the logistics side remains underdeveloped and therefore provides an opportunity for the group to partner players in that segment.

The group’s distribution business consists of DGA operations in Zimbabwe, Zambia and Malawi.

He said the group will keep on engaging strategic partners in different sectors of business.

Innscor Africa recently proposed the acquisition of a 59 percent stake in Profeeds but the diversified group has since withdrawn the offer after the Competition and Tariff Commission ordered them to reduce shareholding in National Foods to below 30 percent.

Mr Fourie said the group will rethink its strategy on the proposed merger and again look at other opportunities for partnerships.

Innscor’s principal activities include the provision of fast food services, the production and selling of biological assets and the manufacture and selling of household commodities.

Its divisions include fast foods (Baker’s Inn, Chicken Inn, Creamy Inn, Nando’s and Pizza Inn, among others). Retail and distribution (Distribution Group Africa, Innscor Credit Retail, Kodak Photo and the Spar franchised outlets) Agro-processing (Niloticus and Colcom Holdings) and manufacturing (bakeries, National Foods and appliance manufacturing).

Source : The Herald