Innscor set to unveil new production line

SAMANTHA MADE

Innscor Africa Holdings, a cash-rich and expansive diversified conglomerate listed on the Victoria Falls Stock Exchange (VFEX), is set to commission a new fully automated production line at one of its units in  the capital Harare this month, as part of a broader strategy to enhance manufacturing efficiency and meet growing consumer demand across Zimbabwe.

The company confirmed that the new line is currently undergoing testing and will be fully operational before the end of this month.

The development is the latest milestone in Innscor’s ongoing investment in modernising its operations and consolidating its competitive advantage in the food manufacturing space.

Group Secretary Andrew Lorimer revealed the details of the expansion, noting that the company is pushing ahead with key infrastructure projects across its major sites in Harare and Bulawayo.

“The commissioning of an additional, fully automated, state-of-the-art production line is currently underway at the division’s Harare facility; this line is expected to be fully operational next (June) month,” Lorimer said.

The initiative is part of a broader operational efficiency drive aimed at boosting output, ensuring product consistency, and supporting volume growth across the company’s fast-moving consumer goods (FMCG) portfolio.

Innscor’s new production line is being introduced at a time of relative economic stability in Zimbabwe, a period the group has used to implement strategic upgrades across several divisions.

Despite persistent liquidity constraints, inflationary pressures, and exchange rate volatility, the authorities’ tight monetary policy stance has helped bring some predictability to business operations—particularly around pricing and supply chain planning.

The company’s investment reflects renewed corporate confidence in the trading environment, while also preparing Innscor to respond swiftly to any resurgence in market volatility.

“Further initiatives to enhance and expand production processes at both the Harare and Bulawayo sites remain ongoing, coupled with efforts to scale up the ‘Baker’s Inn Express Shop’ network countrywide, ensuring easy access to bread for all consumers,” Lorimer added.

One of the standout initiatives under Innscor’s consumer access strategy is the scaling up of its “Baker’s Inn Express Shop” network.

These outlets—spread across both high-density suburbs and remote areas—are designed to bring freshly baked products directly to consumers, bypassing complex retail logistics and ensuring affordability and freshness.

The shops serve as an extension of the company’s brand presence, while supporting communities by making staple foods more accessible. This form of decentralised retail model is especially crucial in a country where formal retail penetration remains limited in many regions.

By bringing baked goods closer to consumers, Innscor is not only addressing logistical inefficiencies but also strengthening its customer relationships at grassroots level.

At the core of Innscor’s growth strategy is its high-performing Bakery Division, home to one of Zimbabwe’s most recognised brands—Baker’s Inn.

The division has posted a significant 10% growth in volumes over the comparative nine-month period, underscoring continued strong demand in a challenging economic environment.

“The Bakery division recorded volume growth of 10% over the comparative nine-month period. Consumer demand remained firm into Quarter Three, driven by stable and convenient exit pricing to the consumer, whilst the manufacturing operations continued to benefit from consistent flour supply, improved plant efficiency and capacity utilisation,” said Lorimer.

This growth trajectory has been underpinned by investments in plant upgrades, greater automation, and procurement efficiencies—particularly in securing flour supplies amid regional shortages.

The company’s strategy of maintaining stable retail prices despite cost pressures has also been critical in retaining market share and building consumer trust, especially in urban centres where price sensitivity is high.

The fully automated production line in Harare is expected to substantially boost daily throughput while simultaneously enhancing product quality and operational precision.

The line is designed to streamline production, reduce waste, and minimise human error—factors that contribute directly to cost efficiency and product consistency.

Such investments in automation are becoming increasingly important in Zimbabwe’s manufacturing landscape, where high labour costs, power disruptions, and resource constraints can diminish competitiveness.

Innscor’s ability to fund these upgrades internally—thanks to its strong cash flows and prudent financial management—gives it a clear edge over other market participants that may struggle to access long-term capital.

This automation push is complemented by digital integration across the supply chain, from sourcing to distribution, enabling real-time monitoring and rapid response to shifts in demand.

As a listed entity on the hard currency-denominated Victoria Falls Stock Exchange, Innscor Africa Holdings benefits from improved access to capital, reduced currency risk, and heightened investor confidence. The listing has also enabled the Group to preserve shareholder value in real terms amid local currency depreciation.

Innscor’s strong balance sheet, driven by consistent profitability across its core segments, allows it to reinvest aggressively in modernising production facilities and expanding its footprint across Zimbabwe and the region.

The company’s diversified portfolio—ranging from baking and protein production to beverages, distribution, and light manufacturing—provides a natural hedge against sector-specific risks and economic shocks.

While Innscor remains optimistic about the macroeconomic outlook, management is acutely aware of the persistent risks that could undermine growth.

In his commentary, Lorimer said the group was encouraged by signs of stability in the trading environment but would remain vigilant in the face of potential disruptions.

“The group operated under relatively stable market conditions during Quarter Three, with many of the trading dynamics highlighted within the group’s interim report remaining unchanged.

The authorities continued to maintain a tight monetary policy stance, and whilst the market experienced constrained liquidity as a result, the stable currency dynamics have ultimately benefited the end consumer through more efficient pricing discovery, and allowed for a consequential improvement in business sentiment,” Lorimer said.

“The Group remains hopeful that the prevailing stability will be sustained, and maintains an optimistic, yet cautious outlook, with fiscal discipline being the key determinant in mitigating inflationary pressure and currency volatility.”

The statement reflects a mature risk-management stance—one that acknowledges the country’s vulnerabilities while continuing to invest for the long term.

Innscor’s expansion strategy is both deliberate and calculated.

From rolling out new production lines and decentralised retail outlets to driving automation and upgrading logistics infrastructure, the company is laying the groundwork for sustainable, demand-driven growth.

The commissioning of the new line in Harare will not only support increased output but will also allow the company to explore new product formats and packaging options, enhancing competitiveness in the retail sector.

As consumer behaviour evolves and demand for convenience grows, Innscor is positioning itself as the go-to provider of essential goods that are affordable, accessible, and consistent in quality.

Innscor Africa Holdings continues to set the pace for industrial resilience and innovation in Zimbabwe.

The upcoming launch of a fully automated production line at its Harare plant is the latest in a series of strategic investments that underscore the company’s long-term vision.

Armed with financial muscle, strong brand equity, and an expanding retail footprint, Innscor is poised to deepen its dominance in Zimbabwe’s consumer market—while preparing for regional expansion.

In an operating environment still recovering from years of economic turmoil, Innscor is offering a blueprint for how local firms can drive growth through operational excellence, investment discipline, and consumer-centric innovation.

“The Group remains hopeful that the prevailing stability will be sustained,” Lorimer concluded, “and maintains an optimistic, yet cautious outlook.