Blue Ribbon Foods rolls out milling plant
PHILLIMON MHLANGA
Blue Ribbon Foods (BRF), one of the country biggest milling companies, will roll out its new milling plant before the end of next week. The company’s general manager, Yusuf Kamau, told Business Times this week that BRF has completed assembling the plant and trial runs have commenced.
Once the new $6 million state of the art wheat milling plant is officially commissioned, Kamau said production capacity at BRF is expected to increase to 100 percent. The plant will add 9 000 metric tonnes per month milling capacity.
“It has taken us one and a half years to complete assembling this plant and we expect to officially commission it anytime from now, maybe before the end of this week or next week,” Kamau told Business Times.
“We have spent about $6 million on this plant and trial runs have commenced. We expect to increase capacity to 100 percent. Once commissioned, we also expect enhanced efficiencies.”
BRF is owned by Tanzanian milling giant, Bakhresa Group, which acquired about 74 percent shareholding in the company in 2015.
Apart from its huge presence in Tanzania, Bakhresa Group also has strong establishment in other countries in east and southern Africa.
The milling giant agreed to inject $40 million to revive BRF which had been closed in 2012 owing to funding constraints and was placed under judicial management. Grant Thornton Chartered Accountant managing partner, Reggie Saruchera was the judicial manager. BRI resumed operations three years later.
Bakhresa immediately injected $20 million into the company which went towards recapitalisation, clearing liabilities to creditors and workers.
BRF was saddled with a total of $29,4 million liabilities to local and regional banks and other creditors. The injection brought relief to workers who had not been paid for years.
Two months ago, Bakhresa Group proposed to acquire the entire shareholding in BRF and its subsidiaries. The plan has since been approved by the Competition and Tariff Commission.
Shareholders in Blue Ribbon included a management consortium called Orchadrian Enterprises which owned about 74 percent, Cereal International Limited which had 16 percent and a 10 percent owned by employees share ownership. The proposal means they will all now lose their entire interest.
Recently, Kamau, said Bakhresa had put on hold plans to inject a further $20 million investment into BRF because it was waiting for government to amend the Indigenisation Act. The law, which was enacted in 2008, compelled foreign companies to transfer at least 51 percent shares to black Zimbabweans.
Government has since revamped the empowerment legislation and Bakhresa is now prepared to acquire the entire shareholding in BRI.
Blue Ribbon had five units including BRI Logistics, Blue Ribbon Foods, JA Mitchels and Nutresco Foods. Its popular brands are Chibataura and Ngwerewere mealie meal, and the company also has considerable assets, which put it in a good position to recapture a significant market share.
