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Tinashe Makichi Business Reporter
ZIMBABWE Stock Exchange-listed TSL Limited is expecting an increase in the volumes of tobacco from its contracted farmers this year, despite the fluctuation of tobacco prices at the auction floors, an official said.The company hopes to surpass the 2,5 million kilogrammes of tobacco recorded last year by reaching this year’s contract target of 3,8 million kilogrammes.

TSL Limited group chief executive Mr Washington Matsaira yesterday told the AGM that despite the prevailing economic environment, the company expects volumes to grow.

“We have utmost confidence that we are moving on a steady and comfortable path and the company is mindful of the challenges affecting the industry.

“The 2014 tobacco selling season has not been a good one because of softer prices but we hope to record increased volumes compared to last year,” said Mr Matsaira.

TSL Limited is a conglomerate with interest in logistics, tobacco, agro inputs and properties.

He said the general liquidity crunch has been a challenge and the company is mitigating the impact of adverse factors in the operating environment.

Mr Matsaira said: “Now that purchase of tobacco has started we hope to meet the 3,8 million kg target.”

The tobacco company is also accelerating its Propak business by increasing output to enhance product availability.
Propak, a subsidiary of TSL limited, is currently engaging farmers in a bid to regain market share lost over the years to merchants.

“Increased output to increase product availability is one of our plans to regain our market share,” Mr Matsaira said.

On Logistics, Mr Matsaira said the group had a positive start to 2014 as the impact of the business model review was beginning to show.
The integration of Premier Forklift Services was now complete and the business is expected to significantly improve the quality and range of handling services offered to clients and introduce revenue streams.

“Overall we expect a positive out-turn on the back of an improved tobacco season.”

Mr Matsaira, however, said the search for a long-term technical partner continues. Real Estate also had a positive start and revenue and profitability are marginally ahead of budget.

Expansion of capacity continues to grow with 9 000 square metres of new warehousing units to be commissioned soon.
Cut Rag’s performance was up on 2013, Mr Matsaira said adding that the group was confident of growth.