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Tinashe Makichi Business Reporter
Zimbabwe Stock Exchange-listed paint manufacturer Astra Industries plans to maximise on its retail business as industrial demand for paint continues to drop due to subdued disposable incomes, a company official said. In the six months to June this year Astra recorded a 36 percent profit gain following a slight growth in revenue and declining finance costs but subdued demand for the paint is certainly going to have an impact on the company’s revenue.

In an interview with The Herald Business yesterday, Astra managing director Mr Mackenzie Mazimbe said industrial demand for paint is going down daily, a situation that is affecting every paint manufacturer in the country.

Mr Mazimbe said demand for paint is at 35-40 percent and Astra is looking at maximising on its retail business which is the one currently performing well.
“Paint manufacturers are currently faced with a difficult situation where aggregate demand is subdued currently hovering at 35-40 percent and this has been a challenge to all paint manufacturers.

“As with our situation, the retail business is the one driving volumes because industry is failing to consume most of our products,” said Mr Mazimbe.
He said the retail business is expected to contribute 35 percent to the overall company’s revenue.

The operating environment for paint manufacturers continues to deteriorate while liquidity challenges continue to adversely affect business activity.
“Liquidity challenges have made working capital management difficult. The company’s exposure to trade debtors has increased but the group will continue introducing innovative strategies in this prevailing difficult environment” he said.

Mr Mazimbe said the company will continue venturing into the export market but so far they have registered limited success.
In the last quarter Astra realised the synergies anticipated between the Group and Kansai Plascon and the benefits of associating with a multinational, Kansai Plascon is expected to yield further benefits in the foreseeable future.

He said the company invested in upgrading machinery and bringing in new technology and this is going to play a huge role in the improvement of the company’s brands and continue to be competitive on the export market.