AGRICULTURAL equipment maker and distributor Zimplow Holdings has pledged to turn the company into a one-stop shop for parts, equipment and service.
To put the strategy into action and produce more long-lasting outcomes, the company has created a new organogram with an updated senior management structure.
The firm recently undertook retrenchments to realign with current operating levels and is expecting 17% cost savings after full implementation of the restructuring programme as it seeks to restore business to peak levels.
“The group will follow through on its strategy to position the group as a one-stop shop for equipment, parts and service,” Zimplow chairperson Godfrey Manhambara said in a statement accompanying the group’s financial results for the year ended December 31, 2022.
Management said it would follow through on sustaining the key initiatives undertaken during the year under review as they go into 2023.
“Significant cost savings are expected after full implementation of the restructuring process and the group restored to peak business levels,” Manhambara said.
Zimplow also expects to get the newly-introduced business unit, Tractive Power Solutions (TPS), to gain the targeted market share in earth-moving equipment parts and service provision to customers.
“TPS is establishing itself as the go to partner for technical solutions such as repair and maintenance contract (or on-site solutions) for huge fleet owners as well as workshop solutions given the group’s expansive back infrastructure,” the Zimplow chairperson said.
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The group separated two leading tractor brands under Zimplow — Massey Ferguson and Valtra — to operate as distinct product offerings.
“The group is committed to follow through in executing its strategy to stabilise the logistics and automotive cluster, building resilience in the agriculture cluster and transforming the mining and infrastructure cluster,” he said.
During the period, export sales performance anchored the business unit’s financial year 2022 volumes growth with implements sold in the export market 36% ahead of prior year with the local market performing at 16% below prior year.
The same trend was also observed on hoes and implement spares where sales volumes grew by 23% and 34%, respectively against prior year.
“Under Farmec, tractor volumes were reduced by 15% with a shift towards the higher horsepower range. Tractor implements volumes continued to grow with a 4% increase from prior year. Engagement with key suppliers has been a priority in order to position Farmec’s offering to our customer better. In addition, the efforts to have a better response rate and customer experience has seen the service hours growing during the period under review by 32%,” he said.
Despite the operating environment remaining unpredictable, Zimplow said with the growth being experienced in the mining and agricultural sectors, its anchor segments, it was confident of delivering strong performances in the future.