GMB set for restructuring

GMB  chairman  Charles  Chikaura  said the  separation  would  see  the  establishment  of a Special Purpose  Vehicle   in the form of a Private  Limited  company .

The   organisation’s three  divisions,  which include  Polybags Manufacturing,  Agro  Processing   and  Farmer Support  Services  and  Commodity  Trading  and Logistics,  will operate  under the new proposed privatised company.

The   parastatal   said  as part of  the strategic  alignment  process it  will reduce  staffing  to   1 300  permanent  employees from the current  2 242. This, Chikaura said,  will be done through   restructuring  and  retrenchment  between  2012  and   2013.

Chikaura said the  exercise  would  see  staff cost  to  income  ratio maintained   at below  30%  down  by  half  from the  previous  average  of  60%.  

 
“The tender for the organisation’s restructuring has since been floated. This restructuring   will result in the separation of   SGR   from commercial services,” Chikaura said in a statement.

GMB is  projecting   to  reduce  its  loss  by  76%  to US$ 1,5 million  by  end  of  this   year.  Profits of up to US$ 2, 8 million are expected by end of 2013.
Chikaura  said   the reduction  in   losses  is attributed  to  improvement  in  sales  revenue, annual  grain  intake  and   cost  containment  measures  the   organisation continues  to  implement.

Sales  revenue  in  2011  grew   by  26%  to US$ 14,7 million,  up  from US$11,6 million recorded  in the previous  year. The organisation is projecting a 33% increase   in sales revenue  to US$19, 5 million by end of 2012.

SGR   support handling and storage   fees contribution   to   revenue   increased by 563% to US$29,2 million up from US$ 4,4 million recorded in the previous year.  Contribution this year is   projected to increase by 11% to US$ 34, 1 million.

According  to GMB ,  annual  grain  intake   continues to  improve  and  this  year is anticipated to   increase  by  20% from   the  300 000mt recorded in 2011.

The  organisation  said  it  will continue   with  its value  addition   to  improve  its  financial position   and  strategic  position.

Chikaura said joint  a venture   proposal  with  a private  player is  still  under  consideration  by  government   and  adoption is  anticipated   to  improve  on efficiency  and  profitability of  the  organisation.

Top