21 July 2009

Zimbabwe: Savanna Tobacco Plans to Double Production

Harare — THE country's fastest growing indigenous cigarette manufacturing and tobacco processing company, Savanna Tobacco has embarked on an intensive recapitalisation programme that is set to double the production output of the company by year end.

The tobacco company is carrying out the recapitalisation programme by increasing its distribution fleet throughout the country as well as expanding operations to meet market demands. Savanna Tobacco executive chairman, Adam Molai said two new brands of cigarettes had been introduced into the market and there was need to reach out to the market while encouraging diversity.

"From a sales service and distribution point of view we have added capacity by increasing the number of our sales representatives and we have also increased our distribution fleet by 40 percent," said Mr Molai.

He added that the recent acquisition of Burley Marketing Zimbabwe needed to be complimented with the growth of human capital and distribution networks. "This new acquisition will avail more space for production, " Mr Molai said.

To coincide with their move to BMZ, the company has also purchased cigarette making and packing machines to double production output. "The machines were acquired from the world's renowned manufacturers of cigarette making machines." "These are designed to ensure that, other than their high speed production capacity, the quality declaration on Savanna Tobacco's cigarette packs are achieved without deviation," Mr Molai said.

He said that despite losing US$6 million to unscrupulous business people, the company was going to engage strategic partners like the Standards Association of Zimbabwe for the surety of quality products in the market.

He urged the consumers to guard against anti-competitive behaviour, while advocating for ethical and fair business practice.

"Such behaviour is not in line with the Spirit of Competition Act which outlaws any unfair trade practices with monopolistic tendencies," he said.

"As a recovering industry manufacturers should think business and forge ahead towards the development and revival of industry while welcoming competition as a stepping stone towards new innovations," Mr Molai said.

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