National Blankets seeks investors
TEXTILE giant, National Blankets, is seeking potential investors with the hope of harnessing about US$1,5 million to jump-start business operations.
At the moment, the company’s production unit is closed with only the sales department open to sell readily available stocks.National Blankets resumed operations in early 2021 after dodging liquidation following judicial management after shareholders paid all creditors their dues, which ran into millions of dollars.
Like other textile companies, National Blankets is eligible to benefit from the Special Drawing Rights (SDRs) meant for industry retooling and capitalisation.
However, the company’s business development manager, Mr Shepherd Nyambirai, said SDRs are not transferable from the central bank to commercial banks for them to access.
He said instead of waiting for SDRs, National Blankets was trying to get potential investors who can inject some capital to resume its operations.
“Shareholders are engaging interested partners for capital injection, as they are keen to see National Blankets back to its former glory,” said Mr Nyambirai.
“Our strength is that we have the correct technology and there is demand for our product, especially by various public institutions both for the domestic and export markets,” he said.“This is due to outstanding properties of the woven blanket, which the knitted blanket falls short of, especially durability and dimensional stability after repeated washes. Unfortunately, we are already late for the 2024 winter season.”
Mr Nyambirai indicated that an estimated US$1,5 million capital injection will help revive the firm, which is a strategic entity in terms of employment creation and a potential foreign currency earner.The revival of the textile industry has been affected by an influx of cheap imports and players in the sector keep on calling for the Government to put measures, which will promote the sector’s growth.
Access to cotton lint has also been a problem as producers prefer the export market to local players. At its peak, National Blankets used to be one of the top employers in Bulawayo and contributed to exports.Hopes are high that the company’s revival would amplify Bulawayo’s re-industrialisation and absorb more workers.
Meanwhile, the textile sector is gaining momentum with David Whitehead being revived to start production.After nearly two decades of dormancy, with only occasional periods of operations, David Whitehead is poised for full-scale production after the new investor, Agric Value Chain Zimbabwe, invested in cutting-edge technology to establish state-of-the-art plants.
Mr Nyambirai said the revitalisation of David Whitehead will give fresh impetus to the textile sector by improving the functionality of the cotton value chain.He said the value chain is disrupted in that a significant proportion of the country’s raw cotton is being exported, despite the limited number of cotton spinning mills, resulting in unmet demand for both spun yarn and cotton fabric..
“To fill in the gap, weavers, knitters, as well as garment manufacturers are importing yarns and fabrics. David Whitehead’s re-opening will ensure that we have a complete value chain right from the cotton field to finished garments,” said Mr Nyambira.“It also promotes value addition, job creation and import substitution, which is key towards achieving Vision 2030.”
With its textile industry in decline, Zimbabwe currently exports nearly 90 percent of its cotton lint. This represents a missed opportunity for value addition and job creation in the country. —chronicle
