ProGroup needs $20m for recapitalisation

Business Reporter
Fast Moving Consumers Goods-focused company, ProGroup Holdings requires $20 million to recapitalise its business in a bid to consolidate its market share in the local manufacturing sector.

ProGroup chief executive Mr Nigel Philp yesterday told the Herald Business that the company had potential to become one of the biggest manufacturers in the region if more working capital is injected.

“We believe that the more we grow, the more efficient we become. At the moment we are heading towards the right direction. We do not want to acquire a lot of debts because what we have at the moment is enough.

“But to run this business to the capacity that we want, we have to borrow over $20 million for recapitalisation,” said Mr Philp.

ProGroup is a leading Zimbabwean agri-business with a multi-faceted operation and regional focus. The group has under its portfolio Profeeds, Probrands, Probottlers, and ProStores.

The group has positioned itself as a challenging brand to the already existing giant industry players like National Foods among other notable brands.

Progroup’s flagship Probrands has attracted the interests of investment company Takura Capital and Innscor Africa.

“Yes Takura Capital approached us at one time over Probrands but nothing concrete materialised from the engagements.”

Mr Philp said the company has plans to increase production from the current 10 000 tonnes of stock feed at Profeeds in 2016.

He said the group is aware of the impending drought but has devised mechanisms that will enable the stock feeds business to run consistently.

“Our biggest aim is to become a manufacturing conglomerate because the future of Zimbabwe hinges on the development of the agriculture sector and then moving into manufacturing.

Mr Philp said the group aims to be a well-structured organisation, providing opportunities to small-scale players within its circles of operation while offering quality products to create a profitable business in an established and secure environment.

“There is hope in this country’s prospects for the future and because of that hope we have trained about 8 000 small-scale poultry producers and empowered them as well,” said Mr Philp.

ProGroup invested $6 million in the construction of a new plant for Profeeds while additional investment was put towards construction of fish feed manufacturing plant.

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