ASTRA Industries Limited has reduced its prices on all colorants and bases by 20% as it seeks to increase its volumes in the market.
BY TATIRA ZWINOIRA
The plan is designed to increase Astra’s market share by 6% by year end, an executive said last week.
Speaking to journalists at the awards for Astra’s two promotions for its retailers and consumers, managing director Mackenzie Mazimbe said since its partnership with Kansai Plascon, it has invested close to $1 million in various equipment and processes. The promotions ran under the theme, Go Plascon, Go Astra and Go Places.
“Our growth target for 2016 is to continue to grow our market share, we are around 45% to 50% and we are hoping that we gain an extra 6% for 2016. We have invested a fair amount of resources since the entry of Kansai Plascon. It is an on-going process, but for the past two years we have put in close to $1 million in various equipment and processes,” Mazimbe said.
“So what we are doing is offering that opportunity to the market in a way that we have reduced prices by 20%, so we can get greater movement of our Plascon product. Our exports are still very low, but we are now able to access other markets served by our sister companies on the African continent.”
He said the bulk of operations were local, constituting about 90% and their major export destination was Zambia.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
The reduction of prices took effect as of last Friday on the Plascon product which uses oil colourants.
South African company Kansai Plascon acquired a 63,25% stake in Astra Industries Ltd in a deal worth $5,5 million nearly two years ago.
Since then, Astra has been using strategies aimed at increasing volumes in order to boost sales.
Part of these strategies include an introduction of new tinting concepts with many tinting machines being introduced nationwide.
The awards from the Go Plascon, Go Astra and Go Places promotions saw retailers and consumers winning trips to regional and international destinations with $500 spending money.
These destinations include Greece, Mozambique, India, South Africa, The United Kingdom and Paris.
Mazimbe said Astra was pursuing a differentiation strategy that focuses on “ruthlessly exploiting opportunities as and when they render themselves available”. Astra has two plants, one in Harare and one in Bulawayo.
In 2012, the company formerly known as Plascon South Africa was renamed Kansai Plascon, after a merger with Japanese company Kansai Paint, the world’s sixth largest coatings company.
