Latest News Editor's Choice


News / National

Bakers Inn to build second plant in Bulawayo

by Staff reporter
22 May 2024 at 09:33hrs | Views
Baker's Inn, a division of Victoria Falls Stock Exchange-listed Innscor Africa, is expanding its operations by adding a second plant to its Belmont factory in Bulawayo.

The company recently commissioned a US$27.8 million bakery, now operating at full capacity, producing 8,000 loaves of bread per hour. This new facility has significantly improved the quality and consistency of their bread.

The second production line is part of Baker's Inn's strategy to increase capacity to meet the demand in Zimbabwe's southern region. Innscor Chairman Mr. Addington Chinake announced the imminent installation of this second line, which will serve the Midlands and the two Matabeleland provinces.

Speaking at the official commissioning of the first line at the Leeds Road Factory in Bulawayo, where President Mnangagwa was the guest of honour, Mr. Chinake highlighted that the plant now supplies over a quarter of the company's bread. This has enhanced efficiency, reduced waste, and lowered fuel costs for Baker's Inn.

This expansion marks a significant milestone for Baker's Inn, bringing the company closer to its goal of providing fresh, high-quality bread nationwide. Zimbabwe's current national bread demand is 950,000 loaves per day.

Baker's Inn Bulawayo operates a fleet of 91 trucks that cover over 14,000 kilometres daily, ensuring that nearly 5,500 individuals, including vendors and retailers, receive fresh bread every day.

In its latest trading update for the third quarter ending in March, Innscor reported that bread volumes at Baker's Inn increased by 16 percent compared to the same nine-month period the previous year. This growth was supported by stable flour prices and maintaining a consumer-friendly exit price, despite changes in the Value Added Tax during the quarter.

Following recent changes in the local currency regime, the price of a loaf is now ZiG 13.50.

Innscor has invested US$125 million in expansion across its divisions over the past two financial years. Much of this investment has recently been commissioned or is nearing completion. The group continues to focus on ensuring new investments achieve targeted returns and maintaining strong cash flow to support future financing and investment activities.

Source - The Herald