National Blankets seeks US$1,5m
TEXTILE giant, National Blankets Limited, is seeking guaranteed funding support that will provide it with working capital worth about US$1,5 million to source critical inputs to boost production.
At the moment, the company’s production unit in Bulawayo is closed with only the sales department open to sell the readily available stocks.
National Blankets resumed operations in early 2021 after managing to dodge liquidation having come out of judicial management after shareholders paid all the creditors their dues, which ran into millions of dollars.
The company temporarily ceased production in 2022 after being denied a tax clearance by the tax authority over an estimated $800 000 debt, which was later on settled.
However, the company did not resume full-scale production as it was waiting for funding from the Government under a special loan dispensation for key value chains.
Responding to questions from Business Chronicle, National Blankets business development manager, Mr Shepherd Nyambirai, said they need working capital of about US$1,5m.
He said the bulk of the fund will go towards raw materials purchase.
“The Government, through its various institutions like hospitals, Zimbabwe Republic Police, Zimbabwe National Army and the Zimbabwe Prisons and Correctional Services consumes a total of approximately 500 000 units of blankets per annum,” said Mr Nyambirai.
“Therefore, the Government guaranteed loans backed by a supply contract to these institutions will go a long way towards the revitalisation of National Blankets.”
At its peak, National Blankets was one of the market leaders in the blanket manufacturing business, enjoying 70 percent domestic market share and was a major exporter of textile products to the Sadc region.
It also employed more than 5 000 employees who lost their jobs when it crumbled.
Meanwhile, industries have been pleading with the Government to provide affordable funding for retooling with companies saying they have been working with obsolete machinery, which is affecting their production and quality of their products.
However, National Blankets has since bought state-of-the-art machinery and has embraced new technology in its operations, which will enable the business to produce a product range that conforms with world class standards.
The company is, however, facing challenges in terms of accessing working capital, mainly for procurement of raw materials.
National Blankets is one of the companies which were supposed to benefit from the IMF Special Drawing Rights (SDRs) funds meant for the industry retooling and capitalisation. -ebusinessweekly
