The Sunday News
Dumisani Nsingo and Wilson Dakwa, Business Reporters
INNSCOR Africa Limited has invested about $10 million into its bread division, Baker’s Inn over the past two years as it seeks to position itself as a market leader.
Baker’s Inn chief executive officer Mr Ngoni Mazango said the company has invested substantial amounts of money into its operations since last year as it seeks to consolidate its position as the country’s biggest bread producer. He said this at the official commissioning of its additional $1.5 million production line at its Bulawayo factory on Friday.
The company channelled about $1 million towards the installation of an additional fifth production line at its Harare factory and bought 234 vehicles worth about $7 million for distributing its product across the country.
“We spent about $7 million purchasing our new fleet from last year to early this year for our distribution,” said Mr Mazango.
He said the company which produces over 450 000 loaves a day enjoys over 40 percent of the local market share.
“I am proud to tell the nation that with our valued customers and business partners we are commanding a 44 percent market as a company nationwide and we just say thank you to our valued customers for that support and I urge them to continue supporting us,” said Mr Mazango.
He said the company has not suffered much from the rise of food alternatives to wheat bread at some homes as consumers grapple due to low disposable income and the prevailing liquidity crunch in the country.
“As a business we have been growing and alternatives to bread are there but because of the continuous support we are getting from our customers we are excited as a company because what we have seen in our business is growth. I don’t know whatever this impact is to other people (businesses) but we are proud and we are happy that our customers are supporting this brand and we have been growing. At some stage we were only commanding 20-25 percent market share but today I’m telling you we are commanding 44 percent,” said Mr Mazango.
Innscor Africa chairman Mr Addington Chinake said the investment the company has channelled at its Bulawayo factory was testimony of its commitment and contribution towards reviving of the city’s industries as well as the confidence it has in the country’s market.
“Bulawayo is perceived as a marginalised territory and forgotten part of Zimbabwe but we at Innscor Africa do not believe so and testimony to this can be seen by today’s event (commissioning of an additional production line). Innscor has a number of shareholders who are proud to be Zimbabwean.
We make no apologies for being a Zimbabwean company and we believe in this country and its future. Our country can only develop and grow if we invest in our markets and our people,” he said.
Mr Chinake said before increasing its Bulawayo factory capacity, the company was failing to meet the demand for its bread in the southern region market relying on its Harare factory to fill the deficit. Baker’s Inn has six depots in the southern region namely Chiredzi, Masvingo, Zvishavane, Hwange, Gokwe and Gweru which receive deliveries from the Bulawayo factory. The Bulawayo market is split into three areas — the Central Business District covering the eastern suburbs and the Inyathi area, Area 1 which covers Tsholotsho going to Lupane while Area II covers the western areas of the city, Gwanda and Plumtree.
“Following today’s commission, this factory will be producing more than 200 000 loaves per day. The people of Bulawayo and Matabeleland region will now be able to receive directly from this factory straight into the retail market on an immediate basis.
“By increasing capacity, our mission is to meet the demand in this region. We noticed that during major holidays like Easter, there would be a shortage of our product in the market and there was a need for grains to arrive from Harare and to transport it to this region,” said Mr Chinake.
Innscor employs more than 1 800 people in its bread division and produces more than 450 000 loaves a day from its two factories (Bulawayo and Harare). The Bulawayo factory started production in 1996 and by that time the plant only had the capacity to produce 2 000 loaves per day. Mr Chinake said Bakers Inn was not only focusing on increasing its capacity but was also committed towards improving the quality of its products.
“We shall continue to invest in further research and development to ensure that the quality of a product that comes out of this factory meets and exceeds your expectations. If you want better value and taste, stick to our products,” he said.
Bulawayo Mayor Councillor Martin Moyo said the investment by Innscor through Baker’s Inn played a pivotal role towards enhancing the city’s economic activities.
“This is a positive development because it’s not all about baking bread — an investment has been made in the city. The increased number of loaves to be produced at this factory enables more people to buy and resell the bread. This plant largely benefits Bulawayo as a city, I hope other companies should emulate this and come and invest in Bulawayo because when the companies expand, the city also expands. Investing money into Bulawayo results in improved incomes into the population and that’s a very huge benefit,” he said.
