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Home » Delta’s US$70 million quest to bolster value chains

Delta’s US$70 million quest to bolster value chains

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DELTA Corporation (Delta) expects its new US$70 million capital expenditure splurge to provide growth of at least one third across its value chains.
The investment, which was spread across the company’s different beverage sectors, was planned at the peak of the Covid-19 pandemic, according to chief executive Matlhogonolo Valela.
It has seen new equipment being installed at the sparkling beverages plant, a new Chibuku Super plant and lagers manufacturing plant in Southerton.
Valela said the investment projects underscored Delta’s commitment to Zimbabwe’s economic development.

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Matlhogonolo Valela

“We entered the pandemic period under very depressed business conditions and volume performance. We are grateful that as the pandemic struck government adopted pragmatic pro-business policies that allowed us to thrive in spite of the circumstances and without compromising public health,” Valela said.
“It was during the pandemic that we realised the resilience of our consumer spending. This spurred us to adopt a pro-growth strategy.
“We initiated these projects more than 24 months ago but were delayed in their implementation by the Covid-19 induced disruptions to global supply chains and the subsequent onset of the Russia-Ukraine conflict.
“The soft drinks PET line in Graniteside enables us to improve the supply of convenience packs and regain market share. The new Southerton Chibuku Super factory will address the availability of our flagship traditional beer brands and a high-tech lager beer packaging line here at Southerton will enable customer choice on brand and pack, which were currently constrained.”
Apart from the three new projects, Delta has also installed another line at its subsidiary Afdis, bringing total investment in capital expenditure to US$70 million.
“The projects will all be in full production within four months of each other, a record rapid investment programme never experienced before in our business,” Valela said.
“These projects will have significant multiplier effects on the economy, which means if consumer spending responds there is an opportunity for all our value chain partners to increase their output by 30 percent to supply lager beer, 33 percent to supply soft drinks, and 33 percent to supply sorghum beer, thus driving our economy to growth. In the last financial year, our major categories broke record volumes, resulting in us running out of capacity. It is opportune that these lines are coming on stream at this time.
“We hope the country’s policies will continue to encourage even higher growth in consumer spending, through productivity, enterprise development and stability on the macroeconomic front so that we may again exhaust the new capacities to drive economic growth across our value chain further and to deliver on our contribution to Vision 2030 as we uplift the livelihoods of our people,” he added.
newsdesk@fingaz.co.zw

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