The Sunday News
Dumisani Nsingo, Senior Business Reporter
THE country’s leading blanket manufacturer, National Blankets will soon introduce canvas products in its production line as well as partnering a reputable regional textile manufacturer as it moves to steer its business to profitability.
The company’s outgoing judicial manager, Mr Philip Ndlovu, of PNA Chartered Accountants said the blanket manufacturer would soon come out of judicial management following indications by Zimbabwe Asset Management Company (Zamco) to take over its debt from a loan accessed from CABS Bank under the Distressed Marginalised Areas Fund.
Mr Ndlovu’s term, as the blanket manufacturer’s judicial manager expired at the end of September last year but the company’s shareholders engaged him to stay for another year, only to entice him again to run the operations of the entity until the finalisation of the Zamco loan takeover.
“Zamco is seeking to provide us a longer time to settle CABS debt. It’s still being examined so I cannot give you all the details but that’s what is holding the exit of the judiciary manager and getting the company back to the normal state (management) and the shareholders are aware of this and they are assisting me in doing this takeover.
“Zamco (officials) were supposed to come this month but said that they have lot of work and so far they have postponed two visits to the factory and we are waiting for them and obviously they are coming to turn around the fortunes of the company,” Mr Ndlovu said.
At its peak in the late 1980s and early 1990s the company used to employ about 1 000 people but it now has a workforce of just over 110. It owes its creditors close to $500 000. Mr Ndlovu said the company was poised to be profitable in the near future and has received inquiries from a number of countries in the region.
“Inquiries from regional Governments are purely on tender basis to supply either their Defence Forces or their Government related department. The issue of heat wave is having a very significant impact on our sale of blankets and we have really lost out.
“Last year around this time there were (Region Five Under-20 Youth) games and when those games came there was a high off-take of blankets because the Ministry of Sport and Recreation needed those blankets to house the various athletes who came from the region,” he said.
Mr Ndlovu said the company was on the verge of entering into a partnership with an unnamed regional company in the production of blankets.
“I will not go to specifics because it’s premature to do that but I had meetings with them (foreign company) and they visited our factory and were very happy with our production. We also visited their factory. They appear to be very keen and interested to start off with them, bringing quite a lot of material for finishing because our finishing capacity is far much better than theirs but they have access to capital and raw materials.”
If the partnership comes to fruition, he said, it would come in handy as “the turnaround time for materials from their factory to this factory is about 12 days and yet our imports which were coming overseas were taking in excess of 90 days.”
In a bid to guard against low sales during the off peak season, the company is contemplating embarking in canvas products manufacturing.
“We won’t need a lot of capital equipment to produce canvas products because the existing looms (machines) can produce that canvas, what will be required is dipping machinery to make sure the canvas is sealed to its specification. There are interested parties whom we are discussing with to actually bring technology to train our staff at National Blankets.
“It’s an on-going project that should enable us to start imports in the region as well. We have made feasibility studies both regional and local, to ensure that the canvas products that this company wants to bring here are acceptable and are being used in the mining sector here. I won’t go into specifics but there is a big demand for that,” Mr Ndlovu said.
Association for Business in Zimbabwe chief executive officer, Dr Lucky Mlilo said the numerous initiatives being taken by National Blankets were welcome as it signifies that through exploring various innovative strategies struggling companies can afford to get out of the woods.
