Zimplow new business unit gains traction
Farmec, Zimplow tractor division Zimplow Holdings Limited’s new business units are already gaining traction in new and existing markets, as the company aggressively pursues expansion to offset the challenges experienced during the past financial year.
During the financial year 2022, the group’s performance was depressed mainly due to its unit Bazerm’s discontinuation of the CAT dealership effective September 30, 2022.
But to offset such challenges, the group launched new business units.
The group set up a new structure for heavy equipment and earth-movers, transitioning from Barzem to Tractive Power Solutions (TPS), which has already started securing affiliations and accreditations with key suppliers to continue servicing main clients’ massive earth moving fleets.
“Following the launch of TPS, the business unit has channeled its efforts towards market penetration and establishment of market visibility and so far, has a strong order book as we enter the second half of the year,” said group chief executive officer Vimbayi Nyakudya.
Management is also upbeat about performance of its other new business unit – Valmec.
“This new business unit is gaining notable inroads in terms of business penetration in existing and new markets as it positions itself as the alternative for entry-level and as well as emerging farmers.
“Two tractor units and 78 implements were sold in the period under review. The good performance on implements is mainly due to the affordability of the second-tier range of implements on offer from Valmec,” he said.
According to the group, parts sales are also improving and are expected to increase as the business unit increases its presence on the market.
Meanwhile, management is also upbeat capacity expansion initiatives across business units will enhance production volumes, at a time one of the group’s focus is increasing presence on the export market.
Apart from the already existing markets in Zambia, Mozambique, Angola, Malawi and Tanzania, the group is also looking at consolidating market share through increased product supply as well as increased product range for the regional markets.
This also will boost the company’s foreign currency earnings. The group’s operations heavily rely on foreign currency, which is largely unavailable on the official market, forcing many businesses to seek alternative ways of sourcing it on their own.
Management is also focused on cash generation, cost containment and balance sheet preservation.
“Operationally, the group will follow through in establishing capacity in factories, efficiencies in new operating units and safeguarding its market share in this already depressed trading environment,” said Nyakudya.
-ebusinessweekly
