AFTER reporting growth during the year ended December 31, 2021, Turnall Holdings Limited managing director Zvizvayi Bikwa (ZB), is confident that the firm is on track to return to its hey days.
In this interview with our business reporter Fidelity Mhlanga (FM), the Turnall boss reveals his grand plan.
FM: It has been nearly a year and half since you assumed office as MD. What is your impression so far?
ZB: The company has huge potential and opportunities exist for further exploration.
Turnall has done very well this past year and can rise beyond what it has achieved before.
It’s my privilege to be part of a company with such a solid background and 79-year history, which makes Turnall a significant industry player.
FM: What are your goals?
ZB: We need to achieve a good sustainable return for our stakeholders, especially shareholders.
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The goal is to take Turnall to greater heights and make it the leading construction company through innovation.
Stability and growth are reflected in the results achieved in 2021.
FM: What do you see as the biggest challenges so far?
ZB: The ever-changing business operating environment means we need to be versatile and innovative in coming up with practical solutions which work for the business and our clients.
FM: What is the future of manufacturing in Zimbabwe?
ZB: Manufacturing is the backbone of any growing economy. Zimbabwe’s manufacturing is recovering compared to other African countries.
So there is untapped opportunities in the sector, from value-addition to creating new product ideas which can help in import-substitution.
We still have a lot to learn from other countries in terms of value addition, maximum resource utilisation, innovation and market expansion.
FM: Turnall has had tumultuous moments. Has the company recovered from the tainted image?
ZB: Turnall’s 2021 published results are a testament to the good governance that the new team is adhering to when it comes to financial management.
We declared dividends and profits for our year of trade. We believe our image and record will be judged on performance. The ecosheet products performed very well in the market.
However, we feel any new product must continue to be remodelled to meet customer requirements, which is what we are doing for all ecosheet-based products.
Some 79 years later, Turnall products are still withstanding the test of time. Any new introductions must meet the same standard.
FM: I understand that plans are underway to invest in a new plant to resume production of roofing sheets in Harare.
ZB: The Harare plant refurbishment and upgrade will include various capital projects totalling close to US$4 million.
Installation and commissioning will occur during the third quarter of this year.
This will triple our capacity on roofing sheets and add innovative roofing product variations such as slates, pantiles and ecotiles.
Major benefits will be to reduce product cost to the end user due to economies of scale as well as reduced transfer costs, less product handling and more roofing options for our clients.
FM: Tell us about the Glass Reinforced Plastic (GRP) pipe plant
ZB: The GRP pipe investment has been US$1,5 million and will total US$4 million on completion.
We expect it to be commissioned in the fourth quarter of 2023. The maximum plant capacity will be 300 pipes of 12-18 metre-long pipes per operating day. Sizes will range from 300mm to 2 400mm diameter pipes.
FM: Tell us about the state of the construction industry in Zimbabwe.
ZB: This sector is an indicator for the country’s development progress. We need to keep investing in technical skills development.
Locally developed solutions to deal with imported input substitution and non-renewable as well as non-environmentally friendly inputs will make a difference in some challenges faced by the industry.
FM: Do you foresee a growth in infrastructure projects?
ZB: Definitely, Turnall foresees major opportunity in infrastructure projects especially with GRP pipes for government projects as well as local authority sewer and water reticulation projects.
The GRP plant will be the second one in Africa and our market will extend beyond Zimbabwean borders.
The national housing projects and refurbishment of various projects throughout the country will grow our market and Turnall is excited to be part of this development.
FM: The National Social Security Authority (Nssa) announced that it is divesting from Turnall. Tell us more about this deal
ZB: Nssa is still a shareholder and when that changes, a notice will be published.
For Turnall, just like any other listed entity, such shareholder movements are in the public domain, and are subject to scrutiny by all stakeholders.
Whatever the market thinks, the collective sentiment is captured in the share price for everyone to see and make their own judgement.
FM: Please give us details about your performance for the year December 2021
ZB: The key result areas for this achievement were in managing gross profit margin and operating expenses.
A restructuring exercise was carried out during 2021 to improve performance through leaner structures.
A reduction in operating expenses was achieved through tight controls and putting a strategic procurement model in place which ensured no input run-outs as well as input cost containment.
Better relationships with our suppliers as well as improved customer service helped us increase our sales in 2021.
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