Marondera, (New Ziana) – Proton Bakers, one of the country’s biggest bread producers, has embarked on an expansion drive involving installation of a new US$3.6 million plant which will increase output by 60 000 loaves of bread per day, a senior official of the company said on Tuesday.
Jerry Tselentis, the company’s managing director, told New Ziana the improving economic environment in the country had persuaded Proton Bakers to make the investment.
That will increase the company’s daily bread output to 200 000 loaves, in addition to a variety of confectionery products.
Tselentis said Proton Bakers has had to build new factory facilities as part of the expansion project, which will see it compete aggressively against other top tier rivals in the local bread market.
The company has recently also increased its transport fleet, and expanded its Harare and Bulawayo distribution depots as part of the growth strategy.
“Obviously, this business extension project required massive effort and extensive further capitalization in many other areas too in order to accommodate the accompanying supporting network structure, necessary for project roll out and execution,” Tselentis said.
But he said the variance in currency between costs and income, where the greenback dominated in the
former case, and the local currency in the latter, had become worrisome.
“One of the most challenging problems we face, is that our most significant production and distribution costs are exclusively charged in US dollars, whilst we are required to sell our products in both local
and foreign currencies,” he said.
“Inflation volatilities in our local currency results in increased bread costs and this impacts the overall growth possibilities and overall profitability of the company.”
Despite the trading challenges, Tselentis said Proton Bakers remained optimistic, and was gearing to expand in the local market.
Since its inception in 1960 in Marondera, the company has expanded its footprint to Harare, Bulawayo, Mashonaland Central, Mashonaland West and parts of Manicaland provinces.
It is the country’s third biggest bread producer with a 15 percent share of the local market. In addition to bread, it also produces rolls, buns, biscuits and candy cakes. As a result of the new investment, the number of employees has increased to 1 463.
New Ziana
