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.