Innscor invests US$25 million in automated bakery plant for its bakery
Diversified industrial conglomerate Innscor Africa Limited says the US$25 million automated plant for its bakery division in Bulawayo will be fully operational before end of this year in a move meant to enhance efficiencies.
The group is also working on other initiatives meant to enhance production facilities such as automation upgrades at the Harare plant which will commence after the Bulawayo one.
This comes as the division recorded a 19 percent growth in annual loaf volumes for the financial year to June 30, 2022 on the back of improved loaf quality, and a renewed focus on the sales and distribution functions.
According to chairman Addington Chinake, the operation was re-structured in the final quarter of the financial year into its core components of manufacturing, sales, and distribution, and the group is confident that this will further improve loaf quality, enhance production efficiencies, and allow for significantly improved market-reach.
“Investment is well underway at a US$25 million new world-class, fully automated manufacturing facility in Bulawayo, and this site is expected to be operational before the end of the 2022 calendar year, whilst further plant automation enhancements will follow in the Harare plant; additionally, a distribution vehicle re-fleeting programme is now also in progress,” he said.
The initiative is a part of the broader investment pipeline the group started during the financial year 2021. Further investments into production efficiencies will help position the group maintain its growth trajectory going forward.
Despite a difficult operating environment, Innscor recorded strong volume performance driven by firm demand and a strong product mix. Resultantly, total revenue for the year jumped 49 percent to $290 billion while profit for the year rose 350 percent to $53,6 billion.
“This was achieved on the back of a sustained focus on diversifying and expanding product portfolios, implementing affordable pricing policies, and employing efficient route-to-market strategies; all of which were further supported by ongoing investment into enhanced manufacturing capacity and capabilities,” said Chinake.-ebusinessweekly
